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The peripheral component interconnects express (PCIe) market is estimated to grow at a CAGR of 22.26% between 2022 and 2027. The size of the market is forecast to increase by USD 31,584.8 million. The growth of the market depends on several factors, including the integration of PCIe with IEEE 1394 (FireWire), the increasing number of investments toward the construction of data centers, and the need to comply with compliance and regulatory standards
The PCI express market report extensively covers market segmentation 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). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing number of investments toward the construction of data centers is notably driving the market growth, although factors such as failure to manage inventory during changing customer demand may impede the market growth. Our researchers analyzed the data with 2022 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.
Key PCI Express Market Driver
The integration of PCIe with IEEE 1394 (FireWire) is the key factor driving the global PCIe 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 PCIe 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 PCIe solutions among enterprises.
Significant PCI Express Market Trend
Continuous technological upgradation is the primary trend in the global PCIe market growth. Continuous technology update is the main trend in the growth of the market. The growing demand for PCIe 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 PCIe 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.
Major PCI Express Market Challenge
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.
Key PCI Express Market Customer Landscape
The 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 growth strategies.
Global PCI Express Market Customer Landscape
Vendors 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.com - The company offers peripheral component interconnects express (PCIe) products such as CIFX 50E-2DP DN, CIFX 50E-CO, and CIFX 50E-RE. Also, under this segment, the company offers products to highly integrated solutions and complementary software.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors 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 4,111.12 million in 2017 and continue to grow by 2021. 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 40% 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 rapid spread of COVID-19 impacted the economy of the region, especially that of the US, in 2020. However, with the initiation of vaccination drives in the first half of 2021, lockdown regulations have been relaxed in the region. The recovery of economic growth in the region also led to a rise in investments in new data centers in 2021. For instance, in August 2021, NTT Ltd. announced its plans to build a new data center campus in Mesa under its Global Data Centers Americas division. The new data centers are expected to be completed by the end of 2022. Such trends are expected to aid market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
PCI Express Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 22.26% |
Market growth 2023-2027 |
USD 31,584.8 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.51 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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 NV, 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 forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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