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The PCI express market size is estimated to increase by USD 53.74 billion and grow at a CAGR of 28.22% between 2023 and 2028. The PCI Express (PCIe) market is experiencing significant growth due to the increasing demand for data centers and the resulting investments in their construction. However, this expansion is not without challenges. Compliance with regulatory and compliance standards is essential, yet managing inventory during fluctuating customer demands can be a hindrance. Furthermore, interoperability issues between PCIe and upgraded systems pose a significant challenge. Design configurability and complexity are also concerns, as the integration of PCIe with IEEE 1394 (FireWire) requires intricate engineering solutions. Despite these hurdles, the market continues to grow, driven by the need for faster data transfer rates and improved system performance. PCIe's ability to deliver high-speed connectivity and support for various data types makes it an indispensable component in modern technology infrastructure.
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PCI Express, a high-performance peripheral bus standard, plays a crucial role in the modernization of data centers by enabling advanced technologies such as artificial intelligence (AI) and machine learning (ML) to interface with networking hardware. This technology, which supports miniaturization and high-performance computing devices, is essential for communication applications in various sectors, including cloud-based services and infotainment systems.
The market is witnessing significant growth due to the increasing demand for high-speed data transfer in data centers. Gigabit Ethernet and Sonet/SDH technology are being replaced by this advanced technology to ensure Quality of Service (QoS) and handle increasing data traffic. Ethernet switches, network interface cards, and storage devices are some of the networking hardware components that benefit from PCI Express. Internet Service Providers (ISPs) and High Performance Computing (HPC) applications, such as Adas Systems, also rely on PCI Express for their infrastructure flexibility. The latest generation models of networking hardware and high-performance peripherals are PCI Express compatible, ensuring seamless integration and improved performance.
PCI Express, a cornerstone technology in contemporary data centers, facilitates high-speed data transfer and accommodates advanced technologies, thereby enhancing Quality of Service. Compatible with a myriad of networking hardware components, such as Ethernet switches, network interface cards, and storage devices, PCI Express is indispensable for communication applications in diverse sectors. Among these components, RAID (Redundant Array of Independent Disks) Controller Cards merit special mention. These cards, which conform to the PCI Express interface, enable data redundancy and fault tolerance, ensuring data integrity and availability. With the base year set as 2023, our researchers meticulously analyzed the drivers, trends, and challenges surrounding PCI Express technology. A comprehensive understanding of these factors empowers companies to refine their marketing strategies, thereby securing a competitive edge in the market.
The integration of PCIe with IEEE 1394 (FireWire) is the key factor driving the global market growth. FireWire is an external connector that supports the transfer of information between digital devices, especially video and audio devices. It helps provide high-speed connections between peripherals and computers. With this solution, the operating system automatically detects FireWire when it is plugged in and asks permission to install the driver if the user runs it.
Integrating with FireWire helps in providing high-speed protocols such as IEEE 1394b to the customers, which also include reduced board footprint, increased error immunity, improved power management, increased bandwidth, more efficient performance, and support for a long list of feature enhancements. This helps in improving the efficiency and bandwidth by around 25%-35%. Hence, vendors are providing PCIe integrated with FireWire, which leads to an increase in the adoption of the solutions among enterprises.
Continuous technological upgradation is the primary trend in the global market growth. Continuous technology update is the main trend in the growth of the market. The growing demand among enterprises has prompted the vendor to upgrade his PCIe solution to meet customer demand and keep up with ongoing technological advances. The PCIe 3.0 standard has been in service the longest in the market compared to other PCIe versions.
Shortly after the introduction of PCI 4.0, PCI-SIG, the electronics industry consortium responsible for specifying PCI, PCI-X, and PCIe computer buses, announced that the next version of PCIe, i.e., PCIe 5.0 will be ready to be launched by 2019. PCIe 5.0 solution will be the next evolution that will set the standard for speed, and 32 GT/s bandwidth speed provided by PCIe 5.0 will surpass industry needs. These continuous technological upgrades can support enterprises in meeting the customer demand for high bandwidth speed. Thus, it can lead to the growth of the global PCIe market during the forecast period.
Failure to manage inventory during changing customer demand is a major challenge to the global PCIe market growth. Vendors in the PCIe industry sell products to companies on an order-by-order basis. These companies can usually postpone shipments without incurring liability due to ongoing technological changes. As demand changes and orders are canceled, excess inventory impacts supplier profitability and often leads to inventory write-offs. Demand forecasts are based on multiple quotes, so if a vendor sells his PCIe indirectly through distributors, the problem could be exacerbated.
Vendors also conduct business on a purchase order basis, and if there is no minimum order requirement, most of enterprises can terminate agreements with little or no warning to the company. Ultimately, a higher customer concentration represents a higher risk of potential order loss and operational impact. Due to continuous technological changes and innovation, the industry can experience drastic fluctuations leading to overcapacity in the market. Hence, vendors might have to reduce the price of the PCIe product for clearing the stock. This could affect the overall market revenue of the global PCIe market during the forecasted period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Hilscher Gesellschaft fur Systemautomation mbH - The company offers peripheral component interconnects express (PCIe) products such as CIFX 50E-2DP DN, CIFX 50E-CO, and CIFX 50E-RE. They offer products to highly integrated solutions and complementary software.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the storage segment will be significant during the forecast period. In the storage market, with the processors increasing in capability and performance, the storage subsystems are causing hindrances due to the latency issues related to the hard disk drive (HDD) storage. Thus, for the non-volatile memory (FLASH), enterprises started to adopt solid-state drives (SSD) that will also support them with persistent memory capability with much higher performance and lower latency.
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The storage segment was valued at USD 4.76 billion in 2018. One of the primary benefits of PCIe SSD is that it supports enterprise processors and storage subsystems in increasing their performance. The higher performance offered by PCIe SSD makes it particularly suitable for caching and buffering applications, with content delivery high on the list of suitable applications. The use of PCIe was most common in storage subsystems and enterprise processors, whereas SSD controllers started to offer PCIe as the interface to the SSD devices. This helped in improving the performance and reduced the latency of systems, as there is no need to bridge back and forth between intermediate technologies, and offered higher bandwidth based on PCIe signaling rates.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The PCIe market in North America is expected to grow due to the continuous technological advances in the region. Also, the growing demand among end-users for high-speed processors is encouraging vendors to deliver advanced PCIe solutions to their customers. Rapid technological advances have resulted in the development of PCIe which can transfer data faster to Ethernet protocols. With the availability of advanced products in PCIe, their adoption will increase significantly among the end-users.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In the realm of high-performance computing and data center modernization, the PCI Express market plays a pivotal role in facilitating advanced technologies such as artificial intelligence (AI) and machine learning (ML). This market encompasses a wide range of networking hardware, including Ethernet switches and Sonet SDH technology, which are essential for ensuring Quality of Service (QOS) in communication applications. The miniaturization trend in data centers has led to an increased demand for high-speed connectivity solutions, such as gigabit Ethernet and PCI Express. These technologies enable the seamless integration of various components, including graphic cards, storage devices, network interface cards, and high performance peripherals.
Moreover, the market is instrumental in enabling infrastructure flexibility for Internet Service Providers (ISPs) and cloud-based services. The latest generation models of PCI Express support data traffic requirements for high-performance computing devices, ADAS systems, infotainment systems, and G technology. In conclusion, the market is a critical component in the data center ecosystem, driving innovation and enabling the integration of various advanced technologies. Its role in ensuring high-speed connectivity, QOS, and infrastructure flexibility makes it an indispensable part of modern data center solutions. In the rapidly evolving technology landscape, the PCI Express market continues to gain momentum. High Performance Computing devices and peripherals are increasingly relying on PCIe technology for faster data transfer rates and improved application performance. With the proliferation of edge computing and the expansion of G networks, the need for IT cost optimization has become crucial. PCIe technology plays a significant role in this regard, enabling businesses to reduce costs by minimizing underutilization and overprovisioning.
Moreover, the integration of AI and machine learning into IT infrastructure necessitates the use of sophisticated algorithms and high-speed storage hardware, such as SSD technology and SONET/SDH technology. PCIe technology facilitates seamless communication between various components, ensuring agile IT infrastructure and enhance team performance. Cloud services offerings and automation technologies are also driving the business growth of the market. These technologies enable businesses to leverage high-speed data transfer capabilities, ensuring optimal application performance and enablement of remote workforces to operate efficiently. PCIe technology's role in enabling agile approaches and reducing costs makes it an indispensable component of modern IT infrastructure.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.22% |
Market growth 2024-2028 |
USD 53.74 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
21.61 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key countries |
US, China, Germany, Japan, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc., Advantech Co. Ltd., Anritsu Corp., Axiomtek Co. Ltd., Broadcom Inc., Diodes Inc., Hilscher Gesellschaft fur Systemautomation mbH, Intel Corp., Kingston Technology Co. Inc., Microchip Technology Inc., NXP Semiconductors N.V., One Stop Systems Inc., Rambus Inc., Renesas Electronics Corp., Samsung Electronics Co. Ltd., Samtec Inc., Silicon Motion Technology Corp., Teledyne Technologies Inc., Texas Instruments Inc., and Western Digital Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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