EDINBURGH, Scotland - The market for third-party semiconductor intellectual property (IP) will grow nearly 50% in each of the next four years, from around $600 million in 2000 to nearly $3 billion in 2004, according to Jim Tully, senior EDA analyst at Dataquest Inc., a market research firm.
Tully discussed Dataquest's first IP market forecast during a panel session he moderated Sunday (Oct. 22) prior to the start of the IP2000 Europe conference and exhibition here. "The market will grow at a compound annual growth rate of 46%. This is a high-growth market," Tully said, indicating that such growth will draw new and established companies to participate.
"We are very optimistic about the IP market," Tully said, although he added that Dataquest's forecasts were based on a number of assumptions that various technical and infrastructure hurdles would be overcome.
It is fairly clear that IP trading should reduce time-to-market, increase engineer effectiveness and allow companies to focus on their own core competencies, Tully said.
In 1999, the IP market was measured at $442 million, Tully said. Of that total, $75 million was paid for services, $97 million for royalties and $270-million for license fees, he said. Three companies - ARM Ltd., MIPS Technologies Inc. and Rambus Inc. - accounted for more than 50% of the entire market.