Security IP Market Shifts to Platform Play as OEMs Demand Certified, Configurable Solutions — Allied Business Intelligence, Inc.

Event summary

OEMs are accelerating demand for fully integrated, certification-ready security IP components in semiconductor designs.
ABI Research reports rising demand for secure Root of Trust (RoT), key provisioning, authentication, and post-quantum-ready cryptography (PQC).
Market consolidation is intensifying, with acquisitions like Synopsys integrating Elliptic Technologies and Intrinsic ID, and Cadence acquiring Secure-IC.
Security IP is increasingly delivered as bundled subsystems, combining cryptographic libraries, firmware, and RoT modules under mixed-revenue models.
Services, traditionally a small part of IP revenues, are becoming a rising component, priced between 10% and 30% of initial licenses.

The big picture

The security IP market is evolving into a platform play, driven by OEMs' need for certified, configurable solutions that scale across various semiconductor designs. This shift is reshaping supplier strategies and accelerating market consolidation, as companies like Synopsys and Cadence integrate specialized security IP providers to offer vertically unified platforms. The trend highlights the growing importance of compliance with regulatory standards and the increasing role of services in the revenue mix.

What we're watching

Platform Competition: How the shift to full-stack, configurable security platforms will reshape the competitive landscape among IP providers.
Regulatory Compliance: Whether OEMs can sustain compliance with emerging regulatory requirements through certification programs like FIPS, CC, and SESIP.
Revenue Diversification: The pace at which services revenue grows as a percentage of total IP revenues, given the longer tail associated with crypto-agility demands.

Our editorial coverage: