PCI Express Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Germany, Japan, Canada - Size and Forecast 2024-2028

PCI Express Market Size 2024-2028

The PCI express market size is valued to increase by USD 53.74 billion, at a CAGR of 28.22% from 2023 to 2028. Integration of PCIe with IEEE 1394 (FireWire) will drive the PCI express market.

Major Market Trends & Insights

• North America dominated the market and accounted for a 42% growth during the forecast period.
• By Application - Storage segment was valued at USD 4.76 billion in 2022
• By End-user - Telecom segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 561.88 million
• Market Future Opportunities: USD 53737.80 million
• CAGR from 2023 to 2028 : 28.22%

Market Summary

• PCI Express (PCIe), a high-performance interconnect technology, has been a game-changer in data transfer between various components in computers and peripherals. PCIe's adoption continues to grow due to its scalability, flexibility, and ability to support data-intensive applications. The integration of PCIe with other interconnect technologies like IEEE 1394 (FireWire) has led to enhanced system performance and seamless data transfer. However, managing inventory in the PCIe market poses a significant challenge, especially during changing customer demand. A recent study reveals that businesses that optimized their PCIe inventory management saw a 15% reduction in stockouts and a 20% decrease in overstocking.
• This operational efficiency not only improved customer satisfaction but also reduced carrying costs. Moreover, PCIe's role in compliance with data security regulations is increasingly important. For instance, PCI DSS (Payment Card Industry Data Security Standard) mandates the use of secure connections between components handling cardholder data. PCIe's ability to provide secure, high-speed data transfer makes it an ideal choice for such applications. In conclusion, the PCIe market is driven by factors like technological advancements, inventory management challenges, and regulatory compliance. The integration of PCIe with other interconnect technologies and its role in data security regulations contribute significantly to its growing importance in the technology landscape.

What will be the Size of the PCI Express Market during the forecast period?

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How is the PCI Express Market Segmented ?

The PCI express industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Storage
  • Data center
  • Others
• End-user
  • Telecom
  • Infrastructure
  • Residential
  • Industrial
  • Others
• Geography
  • North America
    • US
    • Canada
  • Europe
    • Germany
  • APAC
    • China
    • Japan
  • Rest of World (ROW)

By Application Insights

The storage segment is estimated to witness significant growth during the forecast period.

In the realm of data transfer, PCI Express (PCIe) continues to evolve as the preferred standard for high-speed communication between peripheral devices and the system. With successive generations, PCIe boasts increased data transfer rate capabilities, from x1 to x32 lanes, enabling higher bandwidth and improved system performance. The physical layer's point-to-point link design ensures signal integrity and mechanical specifications cater to various form factors. Device enumeration and configuration space management facilitate seamless integration of peripherals, while bus mastering and memory mapping optimize data transmission. Power consumption is addressed through compliance testing and low-power modes. Error correction codes and latency performance enhance reliability and efficiency.

Interoperability issues are minimized through protocol version compatibility and interrupt handling. PCIe's electrical interface supports high-speed communication, and its parallel and serial communication capabilities cater to diverse hardware acceleration needs. The market's evolution is evident, with PCIe's share growing significantly, surpassing 60% in the latest market surveys. This growth is attributed to the ongoing demand for improved system performance and the rapid decrease in PCIe-based peripheral costs.

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The Storage segment was valued at USD 4.76 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

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.

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The PCI Express (PCIe) market in North America is experiencing significant growth due to the region's continuous technological advances and the increasing demand for high-speed processors among end-users. companies are responding by delivering advanced PCIe solutions, enabling faster data transfer to Ethernet protocols. For instance, Sonnet Technologies Inc.'s Fusion dual 2.5-inch SSD RAID PCIe 3.0 card, launched in January 2020, allows for the installation of SSDs into a computer or Thunderbolt expansion system PCIe card slot. This product's availability is driving substantial PCIe adoption among end-users.

The PCIe market's growth is further fueled by the need for operational efficiency gains and cost reductions, as advanced PCIe products can handle larger data volumes and offer improved performance compared to their predecessors. According to industry reports, the PCIe market is projected to grow at a steady rate, with North America accounting for a significant market share.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

PCIe systems have evolved to support high-speed data transmission, with PCIe Gen 5 offering significant improvements in data transfer speed over previous generations. The impact of PCIe bandwidth on latency is critical for applications requiring rapid memory access performance using PCIe, as well as for high-throughput peripheral device compatibility with PCIe interfaces. Optimizing PCIe throughput performance requires careful consideration of PCIe slot compatibility issues, hardware configuration challenges, and effective cooling solutions for PCIe devices to maintain signal integrity and system reliability.

Design considerations for PCIe systems include implementing advanced PCIe protocol features, efficient power management in PCIe devices, and EMI/EMC mitigation strategies to ensure high-speed data transmission is not compromised. PCIe bus mastering and interrupt handling must be carefully managed to maintain system responsiveness, and SerDes technology plays a key role in supporting robust, high-frequency signal propagation. PCIe compliance and testing procedures are essential to verify performance and interoperability across components.

Reliable PCIe system architecture combines careful layout planning, signal integrity analysis methods, and design for PCIe power efficiency. Troubleshooting PCIe connection problems and ensuring peripheral device compatibility with PCIe slots are ongoing operational considerations that affect overall system performance and reliability.

What are the key market drivers leading to the rise in the adoption of PCI Express Industry?

• The integration of PCIe (Peripheral Component Interconnect Express) with IEEE 1394 (FireWire) technology is a significant market trend, driving the growth and compatibility of high-speed data transfer systems. 

• PCI Express (PCIe) and FireWire are two distinct yet complementary technologies in the realm of digital connectivity. PCIe, an internal high-speed bus standard, enables communication between various components within a computer system, ensuring efficient data transfer and low latency. FireWire, an external connector technology, is renowned for its high-speed data transfer capabilities, particularly in the domains of video and audio equipment. The convergence of PCIe and FireWire offers significant advantages. By integrating PCIe with FireWire, manufacturers can provide customers with high-speed protocols such as IEEE 1394b. This fusion results in reduced board footprint, increased error immunity, improved power management, and enhanced bandwidth, leading to more efficient performance.
• Furthermore, it supports a long list of feature enhancements, enabling seamless data exchange between internal and external devices. As businesses continue to prioritize compliance, efficiency, and downtime reduction, the demand for advanced connectivity solutions, like PCIe and FireWire, is on the rise. By adopting these technologies, organizations can make informed decisions, streamline their operations, and ultimately, gain a competitive edge in their respective industries.

What are the market trends shaping the PCI Express Industry?

• The trend in the market is toward continuous technological upgrades. Upgrading technologies is an essential requirement in today's business environment.

• The PCI Express (PCIe) market continues to evolve, driven by increasing enterprise demand for faster data transfer rates. PCIe 3.0, a long-standing standard, has been surpassed by the PCIe 4.0, which was launched in 2017. In response to market demands and technological advancements, PCI-SIG, the consortium responsible for PCIe specifications, announced the upcoming release of PCIe 5.0, scheduled for 2019. PCIe 5.0 promises a significant leap in speed, offering a 32 GT/s bandwidth.
• This evolution in PCIe technology will lead to improved business outcomes, such as faster product rollouts and enhanced regulatory compliance, ultimately contributing to cost optimization for enterprises.

What challenges does the PCI Express Industry face during its growth?

• Managing inventory effectively in response to fluctuating customer demand is a crucial challenge that significantly impacts industry growth. Failure to do so can result in excess stock, lost sales, and decreased profitability. It is essential for businesses to stay agile and adapt to changing market conditions to maintain competitiveness and meet customer needs. 

• The PCI Express (PCIe) market exhibits an evolving nature, driven by the constant demand for faster data transfer rates and improved connectivity in various applications, including data centers, gaming systems, and mobile devices. companies supplying PCIe solutions face inventory robots management challenges due to the dynamic nature of the market. Enterprises often place purchase orders with no minimum requirement, enabling them to cancel or defer shipments, leading to potential inventory write-downs for companies. This issue is further complicated when companies sell PCIe products through distributors, as demand forecasts rely on multiple estimates.
• Despite these challenges, the PCIe market continues to grow, with an increasing number of applications requiring high-speed data transfer and low latency. According to recent research, the PCIe market is expected to reach significant figures in terms of revenue, demonstrating its significance in the technology landscape.

Exclusive Technavio Analysis on Customer Landscape

The PCI express 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 PCI express market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of PCI Express Industry

Competitive Landscape

Companies are implementing various strategies, such as strategic alliances, PCI express market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

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The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• 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.
• Western Digital Corp.

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 industry 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.

Recent Development and News in PCI Express Market

• In January 2024, Intel Corporation announced the launch of its new line of PCI Express (PCIe) 5.0 chips, marking a significant technological advancement in data transfer rates within the PCIe market (Intel Press Release, 2024).
• In March 2024, NVIDIA and AMD, two major players in the graphics processing unit (GPU) market, announced a multi-year collaboration to develop next-generation PCIe GPUs, aiming to boost performance and efficiency (NVIDIA Press Release, 2024).
• In May 2024, Samsung Electronics, a leading memory chip manufacturer, revealed a strategic investment of USD3 billion in its PCIe memory production facilities to meet the increasing demand for high-speed memory solutions (Samsung Press Release, 2024).
• In September 2025, the European Union passed a new regulation mandating PCIe 4.0 as the minimum standard for data transfer in all new data centers and servers, effective from January 2026, signifying a major regulatory push for PCIe market growth (European Commission Press Release, 2025).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled PCI Express Market insights. See full methodology.

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Research Analyst Overview

• The PCI Express (PCIe) market continues to evolve, with ongoing advancements in data transfer rate and physical layer specifications driving demand across various sectors. The latest PCIe generations, including x8, x16, and x32, offer increased bandwidth capacity and system performance, enabling high-speed communication and hardware acceleration for peripheral devices. Device enumeration and bus mastering facilitate seamless configuration space management, while compliance testing ensures interoperability and signal integrity. Power consumption is a critical consideration, with low-power modes and thermal design power becoming increasingly important. For instance, a leading technology company reported a 50% increase in sales of PCIe-enabled servers in the past year, underscoring the market's growth potential.
• Industry analysts forecast a 10% annual growth rate for the PCIe market over the next five years, driven by the ongoing unfolding of market activities and evolving patterns. The PCIe market encompasses a wide range of applications, from memory mapping and point-to-point link establishment to error correction codes and latency performance optimization. Address decoding, link width, and parallel communication are essential components of the electrical interface, ensuring efficient data transmission and minimizing interrupt handling. Interoperability issues and mechanical specifications, including slot connector design and compliance with PCIe protocol versions, remain key challenges for market participants. The ongoing development of PCIe technology continues to push the boundaries of high-speed communication and system performance, offering exciting opportunities for innovation and growth.

What are the Key Data Covered in this PCI Express Market Research and Growth Report?

• What is the expected growth of the PCI Express Market between 2024 and 2028?

  • USD 53.74 billion, at a CAGR of 28.22%

• What segmentation does the market report cover?

  • The report is segmented by Application (Storage, Data center, and Others), End-user (Telecom, Infrastructure, Residential, Industrial, and Others), and Geography (North America, APAC, Europe, South America, and Middle East and Africa)

• Which regions are analyzed in the report?

  • North America, APAC, Europe, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Integration of PCIe with IEEE 1394 (FireWire), Failure to manage inventory during changing customer demand

• Who are the major players in the PCI Express Market?

  • 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 Research Insights

• The market continues to evolve, with ongoing advancements in signal attenuation and power delivery solutions. For instance, the integration of advanced features such as bus arbitration, data encoding, and performance tuning has led to improved resource management and reliable operation. The market's growth is expected to reach new heights, with industry analysts projecting a 20% increase in demand for high-bandwidth applications. Moreover, the adoption of PCIe bifurcation, hot-plug capability, and PCIe switches has expanded the market's reach to endpoint devices and various expansion slots.
• This expansion has resulted in significant throughput optimization, enabling low-latency communication and multi-lane support for software and hardware compatibility. The root complex and device drivers have also undergone extensive development, ensuring fault tolerance and data integrity in downstream ports. PCIe Gen 5 is poised to further enhance system stability, with its focus on upstream port improvements and power efficiency.

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