Altium's Rise and the Future of PCB Design

Imagine you're watching a heavyweight title match in the world of PCB design software. In one corner, you have Cadence Allegro—the reigning champion that has been at the top of the industry for decades, with its intricate and powerful features. In the other corner, stepping confidently into the ring, is Altium Designer—sleek, agile, and accessible. If this were a Marvel movie, it would be the experienced, slightly overconfident mentor versus the bright, new superhero.

Altium’s rise in the PCB design space is much more than a story of a newcomer disrupting a complacent market. It’s a lesson in how making a tool accessible and adaptable can attract customers from giant corporations like Tesla, Apple, and even small independent developers. Today, we’re going to break down why Altium is growing so rapidly, how it compares to its competitors, and what that means for investors looking at a high-stakes market for technological innovation.

1. From 2D to 3D – Stack It Like a Champion!

To understand why Altium is resonating with more companies, imagine stacking books. Most traditional PCB software (think Cadence Allegro) lays these books in a line. Sure, it’s great for browsing, but what if you could stack the books upward, maximizing space and efficiency? This is Altium with its modern approach. They’ve made the process easier for more people to start stacking—transitioning from 2D to 3D design capabilities that feel intuitive.

Altium has aggressively innovated to help even beginners understand complex concepts. Companies like Texas Instruments, which previously relied almost exclusively on Cadence Allegro, are now using Altium for reference design and PCB testing for their integrated circuits (ICs). Why? Because Altium is designed with a much smaller learning curve and offers significant flexibility in library management and component integration.

2. The Power of Ease of Use

The interview I analyzed revealed that Texas Instruments started migrating to Altium around 2015, mainly because of “user demand” and “ease of use” compared to Cadence. Imagine you’re training for a triathlon, but instead of a supportive coach and an easy training plan, you get a 1000-page rulebook to memorize. That’s Cadence Allegro. Altium, on the other hand, gives you YouTube videos, a simplified app, and even pre-designed bike routes. It’s designed to help you succeed faster.

Cadence, for all its impressive technology, can feel overwhelming. Texas Instruments shifted because customers demanded PCB designs that they could directly use—copy-pasting circuits, leveraging enormous libraries, and having instant access to component compatibility. Altium’s simple interface allows for all that and more, removing unnecessary complexity from the design workflow.

3. Simulation Integration – Friend or Frenemy?

Now, let’s get a little more technical (just for a moment—I promise!). PCB designs require simulations—imagine running thousands of scenarios to ensure your final product doesn’t burst into flames. Cadence Allegro has always prided itself on tightly integrated simulation tools like Cadence Sigrity for signal integrity, making it more advanced for precise high-speed applications.

Altium, however, realized it doesn’t need to build everything itself—like the best innovators, it formed partnerships. It integrated with ANSYS, the “gold standard” of simulation software. Unlike Cadence, where everything happens in-house, Altium lets users export designs to ANSYS for simulations. This combination has given Altium almost the best of both worlds: advanced simulation with third-party flexibility.

Does this mean Altium’s perfect? Not quite. Cadence still holds an edge when it comes to seamless, real-time integration of simulation and design. This makes Cadence more attractive to industries like defense and aerospace, where there’s zero margin for error. But for a majority of users, the accessibility and affordability of Altium far outweigh the few niche advantages of its competitors.

4. AI in PCB Design – The Next Big Thing?

Now, let’s talk about the future. You’ve probably heard about AI in everything from predicting the stock market to writing movie scripts. So, how does AI fit into PCB design? Well, think of it like having an assistant that catches errors before you make them. Texas Instruments' engineer mentioned that Altium is working on implementing AI-assisted auto-routing—making tedious layout decisions easier and faster.

But this isn’t just about convenience. AI could revolutionize PCB design. The AI tools currently being developed can help with verification and advanced routing, which historically has been a tedious, manual job. Cadence has also entered this field with AI features like Allegro X, but what Altium does differently is integrate these features without requiring users to relearn their entire workflow—a key factor that investors should note.

5. Market Adoption: How Big is the Shift?

The trend is clear: Altium is growing its market share at the expense of older players like Cadence and Mentor Graphics Xpedition. The market for PCB design tools is expanding, and more companies are looking for tools that are easier to use, more flexible, and can integrate well into their existing environments. Altium’s user-friendly features and the ability to offer a lower total cost of ownership have made it the go-to choice for companies of all sizes, from startups to Fortune 500 giants.

Texas Instruments, for example, has approximately 200 Altium licenses and only around 60 for Cadence Allegro. This significant difference in user count reflects the broader industry trend—companies prefer a software suite that can grow with them and doesn’t require excessive time and money just for training.

6. Wrap-Up: The Changing PCB Landscape

Altium isn’t just a trend—it’s quickly becoming a staple in the PCB design ecosystem. For investors, this signals a major shift in the industry. The combination of accessibility, strong partnerships, and forward-thinking AI features gives Altium a significant edge over its competitors. With more companies looking to modernize their PCB workflows and reduce costs, Altium is perfectly positioned to lead the charge.

In the end, the real story here isn’t just about circuit boards—it’s about how a challenger can enter an industry dominated by giants and carve out its space by being smarter, faster, and more adaptable. As an investor, you might want to think about whether you're betting on the old mentor, or the nimble new hero with the backpack full of tricks.