Altium's Rise and the Future of PCB Design

Altium is challenging incumbents like Cadence and Mentor Graphics by redefining the economics and usability of PCB design. Its growth is driven not by technical dominance, but by product-led accessibility, simulation partnerships, and user-centric AI features. For hardware companies optimizing for speed, scale, and ease-of-use, Altium increasingly offers the shortest path from schematic to production. While high-assurance markets still favor Cadence’s vertical integration, Altium’s rapidly growing install base—particularly at firms like Texas Instruments—signals a shifting center of gravity in the ECAD (Electronic Computer-Aided Design) market.

1. Market Structure: PCB Software as Strategic Infrastructure

PCB design software sits at the base of every modern electronics stack, with the market dominated by three vendors:

• The market is expanding as design complexity increases with miniaturization, heterogeneous integration (SiP/SoC), and 3D stacking.

• While Cadence dominates high-assurance verticals, Altium is expanding rapidly into SMBs, startups, and even Tier 1s due to ease of deployment and cost structure.

2. Differentiation Through UX: From Engineer-Only to Cross-Functional Teams

Altium’s core advantage is user experience. It targets fast-growing hardware teams that need:

• Short learning curves for junior engineers

• Prebuilt part libraries with vendor metadata

• Seamless 2D-to-3D transition for mechanical integration

TI’s shift from primarily Cadence Allegro to >200 Altium licenses (vs. ~60 for Cadence) reflects this UX-driven preference.

This reduces engineering bottlenecks and democratizes PCB iteration—especially valuable in agile hardware teams where mechanical, electrical, and layout need tight feedback loops.

3. Simulation: Vertical Integration vs. Strategic Interoperability

Simulation remains a critical differentiator in high-speed digital and RF design:

• Cadence: tightly integrates simulation (Sigrity, Clarity) within Allegro; preferred for DDR, SerDes, and EMI-intensive workflows.

• Altium: focuses on interoperability—integrates with ANSYS for signal integrity, thermal, and mechanical simulation.

This “plugin strategy” allows Altium to stay lean while giving access to advanced workflows without lock-in. It also appeals to firms adopting mixed CAD/EDA environments.

4. AI and Automation: Workflow Enhancement vs. Reinvention

Both Altium and Cadence are integrating AI into routing, layout, and design verification:

• Altium’s roadmap includes AI-assisted autorouting, DRC validation, and intelligent component placement.

• Cadence Allegro X offers more advanced, real-time AI optimizations—better suited to high-layer, dense boards with tight constraints.

But where Cadence’s AI often assumes expert users, Altium’s implementation emphasizes enhanced usability, surfacing AI suggestions without disrupting the design flow.

This aligns with broader software trends: usability trumps depth when speed-to-deploy and ease-of-training are gating factors.

5. Cost and Licensing Model: Democratization in a Premium Market

PCB tools carry significant switching costs, so price transparency and flexibility are key adoption drivers:

TI’s migration is instructive: Altium’s user base outnumbers Cadence by a 3:1 margin, primarily driven by lower overhead and faster ROI in fast-moving design groups.row with them and doesn’t require excessive time and money just for training.

6. Strategic Outlook: Altium as a Platform, Not Just a Tool

Altium’s move into cloud-based collaboration (via Altium 365) signals a shift from point software to full-stack design infrastructure:

• GitHub-style version control

• BOM validation with live distributor feeds

• Remote hardware collaboration—especially relevant for distributed teams

This positions Altium as a design-to-supplychain bridge, potentially enabling:

• Automated sourcing

• Real-time manufacturability analysis

• Design feedback loops from CM partners