Indian design services to hit $10.96bn by 2010
This is a continuation of my previous blog on the Indian design services segment.
Revenues for the VLSI, board design and embedded software market in India are likely to touch US $10.96bn in 2010, according to an ISA-IDC study titled India Semiconductor and Embedded Design Market, 2007-2010. This market will grow from US $6.08bn in 2007 to US $7.37bn in 2008, on to US $8.97bn in 2009, respectively.
The total design services market in India is said to have grown at 21 percent year on year (y-o-y), as against a global growth of 6 percent y-o-y. According to Kapil Dev Singh, Country Manager, IDC (I) Ltd, the impending recession in US and sheer volume of work from US will put pressure on man-month rates and they will increase marginally. Currently there are close to 200+ companies active in India.
Touching upon the market trends for 2007 in the India semiconductor and embedded design market, he added that India will continue to be the preferred destination of choice for companies interested in embedded design and development.
There will also be an increased emphasis on IP development, as third-party design services companies look to move up the value chain. Next, localization of products design and manufacturing from India will drive significant investments by product and design services companies leading to a further fueling of growth.
However, he cautioned that the industry will continue to face significant challenges in managing the demand and workforce churn. The industry will also have to constantly evolve, upgrade and innovate, while keeping the costs down in order to stay cost competitive in the global market. Future trends in this industry will further witness the increasing proximity between the third-party service providers and OEMs for end-to-end product design.
Indan design services industry snapshot
The Indian VLSI design services contributed approximately 13 percent to the overall revenues and 11 percent to overall workforce. There has been an increase in consumer and portable/wireless segment, that has indirectly contributed to the growth of the VLSI design service industry in India. Spec to tape-out designs are gradually increasing as well, largely contributed to by the captive units. The IP development will continue to grow steadily during the forecast period.
The Indian hardware/board design industry contributed to 7.2 percent of the overall technical workforce in the design services industry. The trend of VLSI design houses transforming into one-stop design houses has increased the activity in the hardware/board design area. Growth is likely to come from consumer electronics and portable/wireless product segment in 2008. Product development activities for the Indian market will further boost growth.
The Indian embedded software industry is by and large, the most significant contributor. Embedded software contributed approximately 81 percent to the overall design services revenues and 82 percent to the overall workforce. Having a local manufacturing ecosystem will boost this segment with end-to-end product development and roll-out happening from India. Singh said that middleware/embedded applications along with testing will drive the growth in the market.
Two vectors for industry
Singh added that there were two vectors that the industry could go to. One, focus on export revenue and go closer to markets — to their customers’ markets and be part of product development. And two, focus on product development, as it would drive semiconductors and embedded design. He termed the growth achieved in the last three decades as version 1.0 and said India was ready to move on to version 2.0 in the coming years.
In version 2.0, the dynamics between the semiconductor industry ecosystem players would be transformed in the coming years. Also, there will be a disruption, which will see the entities shift their strategies, align and engage with each other within this ecosystem in a manner that will take them up one level in the overall product value chain.
E.K. Bharat Bhushan, director general, STPI, commented: “India is a very important destination. A wide range of design activities are now going on here. Semiconductor design has made rapid strides. India currently has strengths in areas such as IP development, and core advantages in terms of talent and local domestic market.”
Welcome to my blog!
Friends, I've won the world title a whopping eight times in a now! ;) 1. Pradeep Chakraborty's Blog was selected as the best in the world in the Electronic Hardware category for 2008-10, by Electronics Weekly, UK. 2. It received an Honorable Mention @ Blognet Awards 2009!. 3. PC’s Semicon Blog was awarded the Top Digital Media Blog by Online IT Degree (in November 2010). 4. Green Gadget of Texas, USA, has awarded Pradeep's Point as the “Featured Tech Site” for 2011! 5. In 2012, Gorkana, UK, selected Pradeep's Point as the Blog Influencer 2012! 6. In Feb. 2013. PC's Electronic Components Blog selected as 100 Top Resources for Electrical Engineers on ElectricalEngineeringSchools.org, USA. 7. In August 2014, PC's Electronic Components Blog was ranked 11th in the "Top 101 Best Resources for Electrical Engineers.” 8. PC's Telecom Blog in Best VoIP Blogs by HostedSwitch, USA.
In July 2014, WebStatsDomain.org estimated Pradeep's Point at US $19.1 billion ;) Thanks everyone for your love and support! :)!
World Champion 2008! ;)
Pradeep Chakraborty's Blog was selected as the best in the world in the Electronic Hardware category for 2008-10, by Electronics Weekly, UK.
- Accelerating EDA innovation through SoC design methodology convergence
- Top 10 embedded companies in India
- Top 10 Indian embedded companies!
- Durga Puja in Bangalore -- places to visit
- WLCSP market and industrial trends
- Cadence VLSI certification program (CVCP) aims to deliver 'industry grade' graduates
- MEMS devices driving healthcare apps!
- Indian medical electronics equipment industry to grow at 17 percent CAGR over next five years: ISA
- Renesas Mobile inaugurates R&D centre in Bangalore
- 427,276 hits (Since 20th Aug. 2009 -- this day, my earlier blog got hit! Thanks for your very kind support dear readers and Wordpress)
Blognet Awards 2009!
World’s Leading Blog Influencer 2012!
- Accelerating EDA innovation through SoC design methodology convergence
- SEMICON Europa 2014 calls for innovators
- DVCon India 2014 aims to bring Indian design, verification and ESL community closer!
- Apple continues to ‘wow’ all over again!
- All of my blogs are now up for sale! ;)
- Cadence now realizing EDA 360 vision: Nimish Modi
- Need for efficient product development ecosystem: CDNLive 2014
- Diverse requirements for IoT evolving: Charlie Huang
- IoT gathering pace as revolution: Guru Ganesan
- Innovating in system of systems: Lip Bu-Tan
Click to Read
PC’s Semicon Blog Award 2010! :)
You Can’t Miss These!
- Accelerating EDA innovation through SoC design methodology convergence wp.me/p4w7N-2kG 4 weeks ago
- SEMICON Europa 2014 calls for innovators wp.me/p4w7N-2kr 1 month ago
- DVCon India 2014 aims to bring Indian design, verification and ESL community closer! wp.me/p4w7N-2km 1 month ago
- Apple continues to ‘wow’ all over again! wp.me/p4w7N-2kl 1 month ago
- All of my blogs are now up for sale! ;) wp.me/p4w7N-2ki 1 month ago