Peripheral Component Interconnect Express Market Report 2026

The peripheral component interconnect express market size has grown rapidly in recent years. It will grow from $31.33 billion in 2025 to $34.61 billion in 2026 at a compound annual growth rate (CAGR) of 10.5%. The growth in the historic period can be attributed to increasing demand for high-bandwidth data transfer, growing adoption of high-performance computing workloads, rising integration of advanced graphics processors, expansion of data center infrastructure, and an increasing shift toward serial communication architectures.

The peripheral component interconnect express market size is expected to see rapid growth in the next few years. It will grow to $50.99 billion in 2030 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to increasing adoption of artificial intelligence accelerators, growing demand for ultra-high-speed server connectivity, rising integration of high-performance automotive electronics, expansion of cloud-based computing environments, and increasing use of edge computing systems. Major trends in the forecast period include technology advancements in high-speed serial interfaces, innovations in signal integrity and channel design, developments in next-generation lane scaling, research and development in low-latency communication protocols, and advancements in high-efficiency controller architectures.

The increasing investment in edge and regional data centers is expected to propel the growth of the peripheral component interconnect express market going forward. Edge and regional data centers are decentralized facilities that process and store data closer to end users, improving speed and enabling localized data management. Investment in these facilities is driven by rising demand for low-latency and high-performance computing, as organizations require faster data processing and real-time access while maintaining local control over data. Increased investment in edge and regional data centers strengthens demand for PCIe by accelerating the need for high-speed, low-latency connectivity solutions that support faster processing, improved system performance, and efficient handling of distributed workloads. For example, in June 2025, according to Ember, a UK-based non-profit energy think tank, the data center and cloud sector in the Netherlands accounted for 20% of all foreign direct investment, while in Germany, data centers contributed an estimated $11.23 billion (€10.4 billion) to GDP in 2024, with projections to exceed $26.7 billion (€23 billion) by 2029. Therefore, increasing investment in edge and regional data centers is driving the growth of the Peripheral Component Interconnect Express market.

Leading companies in the peripheral component interconnect express market are focusing on developing advanced technologies, such as pulse amplitude modulation 4-level (PAM-4) encoding, to enhance data transfer efficiency, reduce latency, and support next-generation performance requirements. PAM-4 encoding is a high-speed digital signaling technique widely used in modern data communication standards, including PCIe 6.0, 7.0, and beyond, as well as Ethernet and high-speed memory interfaces. For example, in August 2025, PCI-SIG, a US-based consortium responsible for defining and maintaining PCI specifications, introduced the PCI Express 8 specification. This specification incorporates PAM-4 encoding with a planned raw bit rate of 256 GT/s, targeting up to 1 terabyte per second (TB/s) of bi-directional bandwidth in a 16-lane (x16) configuration. It also outlines objectives for evaluating new connector technologies and confirming latency targets, ensuring reliability and backward compatibility for advanced applications such as artificial intelligence, quantum computing, and hyperscale data centers, while emphasizing reduced power consumption to support energy-efficient scaling.

In May 2025, Synopsys Inc., a US-based electronic design automation and semiconductor IP company, acquired Cascade Semiconductor Solutions Inc. for an undisclosed amount. Through this acquisition, Synopsys aims to strengthen its semiconductor IP portfolio by integrating Cascade’s Peripheral Component Interconnect Express IP solutions, enhance its interface IP offerings, accelerate customer time-to-market, and expand support for high-performance system-on-chip designs. Cascade Semiconductor Solutions Inc. is a US-based semiconductor IP company specializing in PCIe solutions.

Major companies operating in the peripheral component interconnect express market are Samsung Electronics Co. Ltd., NVIDIA Corporation, Intel Corporation, Broadcom Inc., Qualcomm Incorporated, Advanced Micro Devices Inc., Texas Instruments Incorporated, Infineon Technologies AG, STMicroelectronics N.V., NXP Semiconductors N.V., Analog Devices Inc., Renesas Electronics Corporation, Microchip Technology Inc., Synopsys Inc., Marvell Technology Group Ltd., Cadence Design Systems Inc., Silicon Motion Technology Corporation, Rambus Inc., ASMedia Technology Inc., Achronix Semiconductor Corporation.

North America was the largest region in the peripheral component interconnect express market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the peripheral component interconnect express market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the peripheral component interconnect express market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the PCIe market by increasing costs of imported semiconductors, connectors, and manufacturing equipment. The effect is strongest in hardware intensive segments and Asia-Pacific manufacturing hubs. Companies are mitigating risks through diversified sourcing and regional production. In some cases, tariffs have supported local chip manufacturing initiatives and supply chain resilience.

Peripheral Component Interconnect Express (PCIe) is a high-speed serial computer expansion interface that enables fast communication between a system’s motherboard and connected hardware components. It uses point-to-point lanes to deliver significantly higher bandwidth, lower latency, and more efficient data transfer than legacy bus architectures. Its scalable design allows continuous performance enhancements across successive generations, supporting increasingly demanding computing workloads.

The primary components of peripheral component interconnect express include hardware, software, and services. Hardware refers to the physical elements of a computing system, including electronic boards, connectors, controllers, and mechanical components that enable data processing and communication. The generations covered include generation one, generation two, generation three, generation four, generation five, and generation six. These solutions are deployed through on-premises and cloud-based models. Key applications include data centers, automotive systems, consumer electronics, industrial operations, aerospace and defense, and others, with adoption across end-user industries such as information technology and telecommunications, healthcare, retail, banking, financial services and insurance (BFSI), and other sectors.

The peripheral component interconnect express market consists of revenues earned by entities by providing services such as interface design and validation, high-speed signal integrity testing, peripheral component interconnect express hardware integration support, compliance and interoperability certification, and custom firmware and driver development. The market value includes the value of related goods sold by the service provider or included within the service offering. The peripheral component interconnect express market includes sales of peripheral component interconnect express add-in cards, peripheral component interconnect express switches, peripheral component interconnect express controllers, peripheral component interconnect express connectors, and peripheral component interconnect express expansion modules. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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