PCIe IC Market Report: Trends, Forecast and Competitive Analysis to 2031

• Within the type category, PCIe 3.0 is expected to witness the highest growth over the forecast period.
• Within the application category, the server segment is expected to witness higher growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.

Emerging Trends in the PCIe IC Market

• Moving to Higher PCIe Generations (Gen 6 and Beyond): The most prominent trend is the rapid movement to higher PCIe generations, with Gen 6 already underway and upcoming generations in the pipeline. Each newer generation doubles the rate of data transfer, tackling the bandwidth constraints in high-performance computing, AI accelerators, and high-speed networking. This fast transition calls for the production of new controller and switch ICs that can support these higher speeds without compromising signal integrity.
• Compute Express Link (CXL) Integration: CXL is a new interconnect standard based on the PCIe physical layer that is aimed at enabling cache-coherent memory sharing and high-speed communication between CPUs, GPUs, and other accelerators. One of the emerging trends is integrating PCIe and CXL features into a single IC, providing a shared high-performance interconnect solution for heterogeneous computing platforms. This consolidation is expected to enhance system efficiency and flexibility within data centers.
• Enhanced Power Management and Efficiency: With rising data transfer rates, power consumption becomes a stringent requirement. New trends aim to create PCIe ICs with enhanced power management capabilities to reduce energy expenditure without compromising performance. These features include dynamic power scaling, power-saving states, and power supply optimized delivery architectures within the ICs. Enhanced power efficiency is important for sustainability and the cost-saving aspects of running operations at large scales.
• Greater Integration and System-on-Chip (SoC) Solutions: There is a move toward integrating PCIe controller functionality at the system-on-chip (SoC) level into specific applications in embedded systems, automotive, and mobile computing. Such integration minimizes discrete component count, reduces power consumption, and lowers system cost. Incorporating PCIe inside SoCs enables optimized interconnectivity along with specific application needs.
• Stronger Security Capabilities in PCIe Interconnects: As the need for data security continues to rise, there is greater focus on the inclusion of strong security capabilities within PCIe ICs. This involves hardware-based encryption, integrity protection, and authentication support to protect data flowing over the PCIe bus. Improved security is now becoming increasingly important, particularly in sensitive applications such as financial transactions and secure computing environments.

Recent Developments in the PCIe IC Market

• Widespread Commercial Availability of PCIe Gen 5 Controllers and Switches: A major recent advancement is the universal commercial availability and deployment of PCIe Gen 5 controllers and switches. These semiconductors double the bandwidth of Gen 4, supporting more rapid data transfer rates for high-end GPUs, NVMe SSDs, and network interface cards in servers and high-end PCs. This development is pivotal to maintaining pace with the exponentially rising data processing needs of contemporary workloads.
• PCIe Gen 6 Technology Prototyping and Early Development: As Gen 5 continues to be adopted, the market is already actively developing and prototyping PCIe Gen 6 technology. Gen 6 doubles the bandwidth again with PAM4 signaling, which demands immense improvement in SerDes (serializer/deserializer) design and signal integrity management in the PCIe ICs. Demonstrations and early silicon of Gen 6 capability are already on the horizon.
• PCIe-CXL Interconnect Features Integration: Aware of the constraints of PCIe for some heterogeneous compute workloads, IC vendors have begun to integrate CXL standard features into their PCIe controllers and switches. This enables cache-coherent memory sharing and faster communication among various processor and accelerator types over a PCIe physical layer.
• AI and Machine Learning Workload-Optimized PCIe ICs: The rampant growth of artificial intelligence and machine learning workloads is fueling the evolution of PCIe ICs engineered to specifically support these workloads. These include capabilities such as augmented peer-to-peer GPU communication, native support for high-bandwidth memory (HBM) interfaces over PCIe, and low-latency data transfer optimizations to AI accelerators.
• Low-Power PCIe Solutions for Edge Computing: With computing becoming more proximate to the data source with edge computing, the demand for PCIe ICs that provide high bandwidth and low latency with low power consumption is on the rise. New innovations include the availability of low-power PCIe switches and controllers specifically for use in embedded systems, industrial PCs, and other edge devices where power consumption takes center stage.

Strategic Growth Opportunities in the PCIe IC Market

• Artificial Intelligence (AI) and Machine Learning (ML) Infrastructure: The highly exponential growth of AI and ML workloads in cloud computing platforms and data centers requires high-bandwidth, low-latency interconnects for communication among CPUs, GPUs, and domain-specific AI accelerators. Creating sophisticated PCIe Gen 5 and Gen 6 switches and controllers optimized for AI/ML infrastructure offers a significant growth opportunity.
• High-Performance Computing (HPC) and Data Centers: HPC and data centers need strong and scalable interconnect solutions to support huge data processing and analysis. Moving to the higher PCIe generations, combined with memory coherency via the introduction of CXL, presents tremendous growth opportunities for PCIe IC vendors serving such high-end environments.
• Automotive Electronics and Autonomous Driving: The rising automotive electronics complexity, especially with the advent of advanced driver-assistance systems (ADAS) and autonomous driving solutions, requires high-speed and dependable data communication inside the vehicle. Creating PCIe-based interconnect solutions for sensor, processor, and communication modules in future vehicles offers a substantial growth opportunity.
• Gaming and Professional Graphics: The gaming market and professional graphics workloads keep stimulating the data bandwidth of graphics cards and high-speed storage. The use of newer PCIe generations guarantees adequate bandwidth for these intensive workloads, providing a steady growth prospect for PCIe controller and interface ICs in the consumer market.
• Edge Computing and IoT Devices: The growth of edge computing and Internet of Things (IoT) devices that need local processing and data aggregation is driving a need for low-power, high-bandwidth interconnects. Creating PCIe solutions optimized for power-constrained environments while providing adequate data transfer rates for edge applications is an increasing strategic opportunity.

PCIe IC Market Driver and Challenges

The factors responsible for driving the PCIe IC market include:

• Rising Bandwidth Needs: The never-ending need for increased data transfer rates in applications such as AI, cloud computing, and high-performance computing is the key driver of the PCIe IC market. Each new generation of PCIe doubles the bandwidth, directly meeting this key requirement.
• Explosion of High-Speed Peripherals: The widespread use of high-speed peripherals like NVMe solid-state drives (SSDs), high-end graphics cards, and high-speed network interface cards (NICs) requires high-bandwidth interconnects like PCIe to enjoy their full capability.
• Computing Architecture Advancements: The move towards heterogeneous computing architectures, including CPUs, GPUs, FPGAs, and other accelerators, necessitates efficient and high-speed interconnects for smooth data exchange, leading to the use of PCIe and its extensions such as CXL.
• Expansion of Data Centers and Cloud Infrastructure: The huge growth of data centers and cloud infrastructure to accommodate growing digital services and data storage needs requires high-performance and scale-out interconnect solutions, where PCIe is critical.
• Adoption in Emerging Applications: PCIe's entry into new and emerging application segments such as automotive electronics (for high-speed sensor data and processing) and edge computing (for high-bandwidth local interconnects) further accelerates market growth.

Challenges in the PCIe IC market are:

• Signal Integrity at High Speeds: With each new generation of PCIe, data rates are higher, making it more difficult to preserve signal integrity over the physical link. Designing systems and PCIe ICs able to deliver and receive reliable high-speed signals involves cutting-edge SerDes technology and board-level design.
• Power Consumption Management: Increased data transfer rates generally result in higher power consumption. It is a major challenge to design PCIe ICs that can provide the necessary performance without exceeding acceptable power budgets, particularly for power-conscious applications such as mobile and edge computing.
• Interoperability and Standardization: Maintaining interoperability across vendors' PCIe devices and generations necessitates rigid compliance with PCIe standards. Although the PCI-SIG has a major role to play in standardization, making interoperability completely seamless can remain challenging.

List of PCIe IC Companies

Some of the PCIe IC companies profiled in this report include:

• Broadcom
• Microchip
• Texas Instruments
• ASMedia
• Diodes

PCIe IC Market by Segment

Type [Value from 2019 to 2031]:

• PCIe 2.0
• PCIe 3.0
• PCIe 4.0
• PCIe 5.0
• PCIe 6.0

Application [Value from 2019 to 2031]:

• Server
• SSD
• Others

Region [Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country-wise Outlook for the PCIe IC Market

• United States: The US market is a hotbed of innovation in data center and high-performance computing technologies, such as triggering major advancements in advanced PCIe ICs. Recent developments include the development and verification of PCIe Gen 6 and later controllers and switches by leading semiconductor firms. There has also been intense activity toward creating PCIe-based interconnect solutions for AI accelerators as well as high-bandwidth memory interfaces. In addition, US businesses lead the way in combining PCIe with new interconnect standards such as CXL.
• China: China is quickly building up its strength in the PCIe IC segment to enable its growing digital infrastructure and local technology ecosystem. Some recent trends include greater investment in PCIe Gen 4 and Gen 5 controller and switch R&D by local IC design houses. There is a significant thrust towards self-reliance in strategic semiconductor technologies, including high-speed interconnects such as PCIe, to wean dependence on overseas suppliers. The expansion of China's AI and cloud computing segments is a primary demand driver.
• Germany: Germany's prowess in automotive electronics and industrial automation is driving its advancements in the PCIe IC market. The recent activities involve designing highly reliable and robust PCIe interfaces for industrial PCs and automobile control units. PCIe-based communication in vehicles and industrial systems is being focused on, with an emphasis on low latency and high data integrity. German firms are also part of developing PCIe solutions based on very specific automotive and industrial standards.
• India: The Indian PCIe IC market is in an emerging phase due to the growing adoption of digital technologies and government policies supporting electronics manufacturing. Recent developments have seen local design houses that have emerged with design capabilities for PCIe Gen 3 and Gen 4 controllers, catering mainly to domestic server and PC markets. There is an increasing focus on establishing high-speed interconnect technology expertise to enable India's growing digital infrastructure. Partnerships with foreign technology collaborators are also rising.
• Japan: Japan has a well-established position in semiconductor technology and is one of the leading players in the PCIe IC market, especially in high-quality and dependable solutions. Recent advances have involved the development of PCIe Gen 5 and preliminary investigations into Gen 6 technologies by prominent Japanese semiconductor manufacturers. Efforts are focused on creating PCIe-based interconnects for data centers, high-performance computing, and advanced electronics. Japanese manufacturers are also prominent for their power efficiency and signal integrity focus in PCIe IC design.

Features of this Global PCIe IC Market Report

• Market Size Estimates: PCIe IC market size estimation in terms of value ($B).
• Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
• Segmentation Analysis: PCIe IC market size by type, application, and region in terms of value ($B).
• Regional Analysis: PCIe IC market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the PCIe IC market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape of the PCIe IC market.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

This report answers the following 11 key questions: