Indian design market to cross $7.37-bn in 2008

BANGALORE, INDIA: The Indian design market is expected to cross $7.37 billion in 2008, according to a joint report by India Semiconductor Association (ISA) and IDC India.

The Indian design market is pegged to grow at a compounded annual growth rate of around 21.7 per cent between 2007-2010, said the report launched here today.

The growing expertise in complex end-to-end design and strong IP development and talent drive the industry’s growth, the report said.

The report – India semiconductor and embedded design service industry (2007-2010): Market, technology and ecosystem analysis - also sees the domestic market as one of the fastest growing in the world.

The total design market in India for 2007 was estimated at $6 billion, with 81 per cent of the revenue coming from embedded software. VLSI design and hardware/board design accounted for 13 per cent and 6 per cent respectively.

The industry in India employed an estimated 130,000 professionals in 2007. Embedded generated the largest employment with 82 per cent share while VLSI design and hardware/board recruited 11 per cent and 7 per cent respectively.

The geographical focus of the industry indicates that the US has a share of 70 per cent, Europe has 30 per cent and the emerging economy is that of Japan.

“The Indian semicon design industry with over 200 companies is on a strong growth trajectory. Our growth is nearly 22 per cent, which is three times the global growth rate of around 7 per cent. We are looking eastward for business and collaboration heralding a new era in the future of the sector,” said Poornima Shenoy, president, ISA.

“The domestic semiconductor and embedded design services industry is all set to enter a new phase – Ver 2.0, following on from where Ver 1.0 left off. To achieve this next phase of growth industry need to focus on availability of quality manpower, higher productivity and more value creation,” said Kapil Dev Singh, country manager, IDC India.

E.K. Bharat Bhushan, IAS, director general, STPI launched the report in the presence of S Janakiraman, chairman, ISA along with Shenoy and Singh.