Electronic system design industry revenue up 13% in 1Q 2026

Electronic System Design (ESD) industry revenue increased by 12.7% to $5.75 billion in the first quarter of 2026 from the $5.1 billion registered in the first quarter of 2025, according to the latest Electronic Design Market Data (EDMD) report by the ESD Alliance, a SEMI Technology Coalition.

The four-quarter moving average rose 10.3%, based on a comparison of the most recent four quarters to the prior four.

“The electronic design automation industry continued to report strong year-over-year revenue growth in 1Q 2026,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report and Chief Executive Officer of Silvaco Group Inc. “All product categories reported gains, with Computer-Aided Engineering and Semiconductor IP showing double digit growth. The Americas, EMEA, and APAC geographic regions reported growth in Q1, with double digit increases in EMEA and APAC.”

The companies tracked in the EDMD report employed 72,544 people globally in 1Q 2026, a 12.6% increase over the 1Q 2025 headcount of 64,403 and up by 1.1% compared to 4Q 2025.

The quarterly EDMD report contains detailed revenue information within the following category and geographic breakdowns.

Revenue by Product and Application Category – Year-Over-Year (YoY) Change

• Computer-aided engineering (CAE) revenue increased by 15.5% to $2.02 billion. The four-quarter CAE moving average increased by 13.1%.
• IC physical design and verification revenue increased by 8.3% to $751.3 million. The four-quarter moving average for the category decreased by 0.9%.
• Printed circuit board and multi-chip module (PCB and MCM) revenue rose by 4.8% to $419.2 million. The four-quarter moving average for PCB and MCM rose by 4.3%.
• Semiconductor intellectual property (SIP) revenue increased by 14.1% to $2,332.5 million. The four-quarter SIP moving average rose by 13.7%.
• Services revenue increased by 6.5% to $226.4 million. The four-quarter Services moving average rose by 11.9%.

Revenue by Region – Year-Over-Year Change

• The Americas, the largest reporting region by revenue, procured $2.4 billion of electronic system design products and services in 1Q 2026, a 10.2% increase. The four-quarter moving average for the Americas rose by 9.8%.
• Europe, Middle East, and Africa (EMEA) procured $766.4 million of electronic system design products and services in 1Q 2026, a 17.6% increase. The four-quarter moving average for EMEA grew by 10.9%.
• Japan’s procurement of electronic system design products and services decreased by 9.9% to $283.1 million in 1Q 2026. The four-quarter moving average for Japan decreased by 12.4%.
• Asia Pacific (APAC) procured $2.26 billion of electronic system design products and services in 1Q 2026, a 17.7% increase. The four-quarter moving average for APAC grew by 14.5%.