Semiconductor IP market is expected to grow 11% per year on average from 2020 to 2025, analyst firm Counterpoint Research said.
The market was worth US$5.2 billion in 2020 but will be worth US$8.6 billion in 2025.
Companies like Arm, which is strong in the mobile market, as well as Synopsys and Cadence will dominate the market, Counterpoint said.
RISC-V will also take up larger shares of the market as years go on, the firm said.
RISC-V is open, unlike x86 or ARM that has closed architectures.
Intel and Microchips are developing chips using RISC-V.
Counterpoint noted that RISC-V has great scalability and power efficiency and will be used in the IoT space by over 25% in 2025.
Chips designed with RISC-V will also see higher demand in industrial electronic products, automobiles and high performance computing, it added.