UK Cloud Electronic Design Automation Market Research Report By Application (Integrated Circuit Design, PCB Design, System on Chip Design, Embedded System Design), By Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), By End User (Semiconductor Manufacturers, Automotive Electronics, Consumer Electronics, Telecommunications), and By Service Type (Software as a Service, Platform as a Service, Infrastructure as a Service)- Forecast to 2035

UK Cloud Electronic Design Automation Market Overview

As per MRFR analysis, the UK Cloud Electronic Design Automation Market Size was estimated at 181.5 (USD Million) in 2023.The UK Cloud Electronic Design Automation Market is expected to grow from 193.9(USD Million) in 2024 to 578.9 (USD Million) by 2035. The UK Cloud Electronic Design Automation Market CAGR (growth rate) is expected to be around 10.455% during the forecast period (2025 - 2035).

Key UK Cloud Electronic Design Automation Market Trends Highlighted

The market for cloud electronic design automation in the UK is undergoing a number of critical trends that are greatly influencing the market. The growing need for quicker design cycles in sectors like telecommunications, aerospace, and automotive is one important motivator.

Businesses are looking for effective design solutions that may shorten time-to-market and enhance product quality as the UK's technology sector expands at an accelerated rate. Design teams can now work together in real time thanks to the continuous transition to cloud infrastructure, which increases flexibility and productivity. There are other chances to take advantage of security and compliance improvements.

Businesses in the UK are aggressively searching for cloud EDA solutions that guarantee compliance while safeguarding intellectual property as they grow more aware of data protection laws like the General Data Protection Regulation (GDPR). Innovation and investment in more secure electronic design tools that give consumers peace of mind about the safety of their data are being propelled by this need.

The use of cloud-based solutions has increased recently due to the trend of remote work and distributed teams. Cloud EDA platforms are becoming more and more appealing to businesses looking to stay competitive as a result of the COVID-19 pandemic, which brought to light the need for tools that facilitate collaboration across geographical boundaries.

Furthermore, this gives technology investments even more incentive because the UK government is dedicated to growing its digital economy. This is in line with the overarching goal of encouraging innovation and expanding the pool of skills required for a thriving technology industry in the UK.All things considered, the UK Cloud Electronic Design Automation market is undergoing change due to a confluence of increased design requirements, regulatory challenges, and changing work patterns.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

UK Cloud Electronic Design Automation Market Drivers

Growing Demand for Innovative Electronic Products

The UK Cloud Electronic Design Automation Market is experiencing significant growth driven by the increasing demand for innovative electronic products. The UK has a strong technology sector, which is supported by various governmental initiatives aimed at fostering Research and Development (R&D) in electronics.

According to the UK government, the electronics sector contributed 16.3 billion GBP to the economy in 2020 and is expected to grow as more businesses invest in R&D to meet evolving consumer demands. Major companies like Arm Holdings and Jaguar Land Rover are at the forefront of this trend, as they continuously seek advanced Electronic Design Automation solutions to enhance their product offerings.

The rapid development in Internet of Things (IoT) devices, automotive electronics, and wearable technology showcases a burgeoning market that will likely propel the growth of the UK Cloud Electronic Design Automation Market in the coming years.

Increased Adoption of Cloud Solutions

The adoption of cloud computing solutions is significantly influencing the UK Cloud Electronic Design Automation Market. The shift towards cloud technologies enables organizations to enhance collaboration, reduce costs, and improve scalability in the design process.

The UK government has reported a 40% increase in cloud adoption among businesses in the last two years, indicating a clear trend towards digital transformation. This cloud adoption opens up more opportunities for Electronic Design Automation providers to deliver solutions that cater specifically to UK businesses, facilitating their access to advanced design tools.Companies such as Cadence Design Systems and Synopsys have recognized this trend and are expanding their cloud offerings in the UK, improving accessibility for design engineers across the region.

Regulatory Compliance and Standards

The UK Cloud Electronic Design Automation Market has seen increased growth due to stricter regulatory compliance and standards in electronic manufacturing and design. Organizations are now required to adhere to specific industry standards, such as the British Standards Institution guidelines for electronic components.

The UK government has emphasized the importance of innovation in regulatory frameworks to strengthen the electronics sector and ensure manufacturers meet safety and environmental standards.

In response, design automation companies are implementing robust compliance features in their software, enabling businesses to seamlessly adhere to these regulations. This focus on compliance allows Electronic Design Automation tools to become indispensable in the design and production process, driving growth in the UK market.

Talent Development and Skill Enhancement

The growth of the UK Cloud Electronic Design Automation Market is supported by ongoing efforts in talent development and skill enhancement among the workforce. The UK government has implemented several initiatives aimed at improving skills in science, technology, engineering, and mathematics (STEM) fields, which directly correlates with growth in the electronics sector.An increase of 25% in STEM graduates has been observed recently, which feeds the demand for advanced Electronic Design Automation capabilities.

Organizations like the University of Cambridge and Imperial College London are actively contributing by providing specialized programs that empower students with the skills needed for electronic design. As new talent enters the workforce equipped with knowledge of cloud-based design tools, the effectiveness and innovation in the region's Electronic Design Automation market will continue to expand.

UK Cloud Electronic Design Automation Market Segment Insights

Cloud Electronic Design Automation Market Application Insights

The Application segment of the UK Cloud Electronic Design Automation Market is witnessing remarkable growth and evolution as technology continues to advance at a rapid pace. This segment encompasses critical areas such as Integrated Circuit Design, PCB Design, System on Chip Design, and Embedded System Design, each playing a vital role in driving innovation across various industries.

The Integrated Circuit Design sector is particularly significant, as it forms the backbone of modern electronics, influencing everything from consumer devices to complex computing systems. The PCB Design segment has also gained importance, considering the rising demand for electronic circuits that integrate increasingly sophisticated functionalities.Similarly, System on Chip Design is vital for modern electronics, allowing for the integration of multiple components on a single chip, thereby improving performance while reducing size and power consumption.

The Embedded System Design aspect focuses on integrating software and hardware, creating tailored solutions for specific applications, and is essential for industries ranging from automotive to healthcare.The UK's commitment to research and development in electronic technologies is reflected in the innovative solutions emerging from this market segment, fueled by increasing investments in technological advancements and a robust academic and industrial partnership environment.

Nonetheless, there are challenges associated with high development costs and increasing complexity of designs which necessitate efficient tools and methodologies to streamline the processes. Overall, the Application segment portrays a landscape full of opportunities, driven by the relentless demand for enhanced electronic functionalities and the seamless interconnectivity required in today's digital age.The UK is poised to remain a significant player in the global Cloud Electronic Design Automation Market, with its continued focus on fostering innovation and overcoming the challenges in this dynamic sector.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cloud Electronic Design Automation Market Deployment Type Insights

The UK Cloud Electronic Design Automation Market exhibits robust growth driven by its Deployment Type segmentation, which includes Public Cloud, Private Cloud, and Hybrid Cloud solutions. Public Cloud services are increasingly favored for their scalability and cost-effectiveness, offering flexibility for various electronic design automation applications without the need for significant upfront investment.

In contrast, Private Cloud solutions are gaining popularity among organizations that prioritize security and regulatory compliance, particularly in the highly sensitive electronics sector. Hybrid Cloud models are emerging as a versatile option, allowing businesses to leverage both public and private resources tailored to their design processes.Each Deployment Type plays a crucial role in addressing the diverse needs of the market, ensuring that companies can optimize their electronic design workflows while balancing performance, cost, and security concerns.

The UK government has also been supportive of cloud adoption, offering initiatives to enhance digital infrastructure, further propelling the growth of varied deployment types within the Cloud Electronic Design Automation Market.This segmentation not only allows companies to choose solutions that match their operational needs but also contributes significantly to the overall advancement of the electronic design and engineering industry in the UK.

Cloud Electronic Design Automation Market End User Insights

The End User segment of the UK Cloud Electronic Design Automation Market plays a crucial role in shaping the landscape of electronic design across various industries. Within this market, Semiconductor Manufacturers constitute a vital portion, leveraging advanced cloud-based solutions for design efficiency and innovation in semiconductor components.

The Automotive Electronics sector is experiencing rapid growth due to increasing demand for integrated electronic systems that enhance vehicle connectivity and functionality. Consumer Electronics also represents a significant sector, driven by the need for innovative and compact designs that meet the ever-evolving consumer preferences.Lastly, Telecommunications is essential in advancing communication technologies, making robust electronic design tools necessary for developing next-generation networking solutions.

This diverse array of industries underscores the importance of the End User segment, as each contributes uniquely to the overall evolution of technology within the UK, supported by government initiatives aimed at boosting technological advancement and connectivity solutions.The overall increase in electronic integration across different sectors strengthens the demand for Electronic Design Automation tools, highlighting key trends in innovation and digital transformation.

Cloud Electronic Design Automation Market Service Type Insights

The UK Cloud Electronic Design Automation Market is poised for significant growth, driven primarily by various service types that enhance accessibility and efficiency in electronic design processes.Software as a Service (SaaS) has gained substantial traction in the market, allowing users to access advanced design tools via the cloud, thereby reducing the need for extensive on-premises infrastructure and facilitating collaboration among distributed teams.

Platform as a Service (PaaS) plays a crucial role by providing developers with a robust environment for building, testing, and deploying applications, thus streamlining the development cycle and fostering innovation. Meanwhile, Infrastructure as a Service (IaaS) offers flexible computing resources, enabling companies to scale their operations with minimal investment in hardware.

The interplay of these service types not only enhances the operational efficiency of electronic design automation but also aligns with the UK's strategic push for technology adoption in sectors such as automotive, telecommunications, and consumer electronics.As organizations increasingly recognize the value of cloud-based solutions, the demand for these services is expected to expand, sustaining the positive trajectory of the UK Cloud Electronic Design Automation Market.

UK Cloud Electronic Design Automation Market Key Players and Competitive Insights

The UK Cloud Electronic Design Automation Market is characterized by rapid advancements in technology and an increasing demand for efficient design tools that streamline the application of electronic design automation in cloud environments.This market reflects significant growth potential as industries transition toward digitization and embrace the integration of cloud technologies in their development processes.

Competitive insights within this sector reveal a diverse landscape of companies that continuously innovate to offer cloud-based solutions catering to electronic design challenges, addressing the need for flexibility, scalability, and collaboration in design workflows.The interplay between vendor capabilities and customer needs shapes the competitive dynamics, emphasizing the importance of tailored solutions and user-friendly interfaces to ensure market success.

Key Companies in the UK Cloud Electronic Design Automation Market Include:

• Synopsys
• Ansys
• Cadence Design Systems
• Mentor Graphics

UK Cloud Electronic Design Automation Market Developments

With funding from the EU Chips Act and the UK National Semiconductor Strategy, Siemens teamed with the University of Southampton to open the Siemens Cre8venture Centre in the Faculty of Electronics and Computer Science (ECS) in September 2024.This Lab-to-Fab partnership supports automotive, IoT, and Industry 4.0 research in the UK by providing access to Siemens EDA tools for the development of cloud-based silicon twin prototypes and system-on-chip designs.

Access to venture financing, seed funding, and alignment with EU-approved semiconductor development plans are all made easier by the initiative. The UK's Competition and Markets Authority (CMA) officially approved Synopsys's $35 billion acquisition of Ansys in March 2025, with the condition that the company sell its optical solutions division.

This allowed Synopsys to expand its EDA-simulation offerings for cloud design workflows and integrate Ansys's multiphysics simulation tools. With the help of NVIDIA microservices and agentic reasoning models like Nemotron, Siemens EDA (Mentor Graphics) unveiled its generative and agentic AI-enhanced EDA platform at DAC 2025 in June.This platform can speed up PCB, SoC, layout, and verification design by up to 10×. UK engineering forums emphasized its secure, cloud-ready deployments and relevance for semiconductor design teams based in the UK.

UK Cloud Electronic Design Automation Market Segmentation Insights

Cloud Electronic Design Automation Market Application Outlook

• • Integrated Circuit Design
  • PCB Design
  • System on Chip Design
  • Embedded System Design

Cloud Electronic Design Automation Market Deployment Type Outlook

• • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Cloud Electronic Design Automation Market End User Outlook

• • Semiconductor Manufacturers
  • Automotive Electronics
  • Consumer Electronics
  • Telecommunications

Cloud Electronic Design Automation Market Service Type Outlook

• • Software as a Service
  • Platform as a Service
  • Infrastructure as a Service

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	181.5(USD Million)
MARKET SIZE 2024	193.9(USD Million)
MARKET SIZE 2035	578.9(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	10.455% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Altium, Forte Design Systems, Silvaco, Tensilica, Keysight Technologies, Apache Design Solutions, Synopsys, EDA Solutions, Xilinx, Ansys, Cadence Design Systems, Agilent Technologies, Mentor Graphics, National Instruments, Magma Design Automation
SEGMENTS COVERED	Application, Deployment Type, End User, Service Type
KEY MARKET OPPORTUNITIES	Scalability for diverse applications, Integration with AI technologies, Enhanced collaboration tools, Cost-effective workflows, Increased demand for remote accessibility
KEY MARKET DYNAMICS	rising adoption of AI tools, increased demand for flexibility, growing investments in semiconductor design, collaboration with cloud providers, emphasis on cost efficiency
COUNTRIES COVERED	UK