PCIe Market - Forecast (2021-2026)
PCIe Market is analyzed to grow at a CAGR of 20.6% during the forecast period 2021-2026 to reach $48,429.51 million. PCIe or PCI Express generally refers to a high speed serial computer expansion bus standard which was designed with more advantages in comparison to older standards. PCIe standards are capable of providing benefits including better performance scaling, lower latency, larger bandwidth support, higher data speeds and so on making it an ideal choice for various application areas like graphic cards, storage devices, network interface cards, and many other high performance peripherals. With rise in data traffic and need for high performance computing devices, different generation models be it PCIe 5.0, PCIe 4.0 and so on are selected according to end-use requirements. Increasing rate of data center infrastructure growth as well as shift towards advanced technologies including artificial intelligence and machine learning are considered as some of the major drivers impacting the growth of PCIe Market. In addition, investments towards advancing telecom communication infrastructure with 5G technology along with rise of adoption in automotive applications like ADAS systems, infotainment systems and so on are further analyzed to fuel the growth of PCIe technology in the long run.
Report Coverage
The report: “PCIe Industry Outlook – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the PCIe industry.
By Generation: PCIe 1.0 & 2.0, PCIe 3.0, PCIe 4.0, PCIe 5.0.
By Form Factor: Mini PCIe, PCIe.
By Product: SLC, MLC.
By Application: Graphic Processor Units, Network Interface Cards, Storage Device & Controllers, PCIe Switches (Gen 1, Gen 2, Gen 3, Gen 4 and Gen 5), Servers.
By End Users: Telecommunication, Industrial, Residential, Data Centers (Hyperscale, Colocation, Others), Automotive, Infrastructure, Others.
By Geography: North America, South America, Europe, APAC and RoW.
Key Takeaways
Growing shift towards advanced technologies like artificial intelligence and machine learning along with increasing growth of data center infrastructures is analyzed to significantly drive the PCIe Market during the forecast period 2021-2026.
Storage Device & Controllers application segment had accounted for the largest market share in 2020, attributed to the factors including rise of cloud based data storage requirements, infrastructural developments for data centers and so on.
High investments towards research and development activities by some of the key market players such as Samsung Electronics Co. Ltd, Renesas Electronics Corporation and Toshiba Corporation with others have helped in boosting the growth of PCIe across APAC markets.
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PCIe Market Segment Analysis- By Generation
Based on generation, the PCIe Market is segmented under PCIe 1.0 & 2.0, PCIe 3.0, PCIe 4.0 and PCIe 5.0. PCIe 3.0 generation had dominated the PCIe Market with $8632.46 million in 2020, and is analyzed to grow significantly at a rate of 20.4% during the forecast period 2021-2026. Generation PCIe 3.0 can be referred to as a Gen 3 expansion card comprising of a four lane configuration, used across some of the major end-use industries be it telecom, data centers and so on. However, with growing advancements towards Gen 4 and Gen 5, adoption of PCIe 3.0 based solutions has been still maintaining a significant growth in the markets, due to its long time presence. Capable of reaching speeds upto 1000 Mbps, PCIe 3.0 architecture incorporate features like enhanced signaling and data integrity, channel enhancements, clock data recovery and so on, retaining its market position. Factors including growth in video streaming, video conferencing, online gaming, social networking and many others have surged the internet traffic amidst the COVID-19 pandemic situation, attributing towards the need for PCIe 3.0 interfaces. In addition, usage of PCIe 3.0 has been still in demand owing to rising rate of investments from various key vendors towards developing products with Gen 3 support. In 2020, AMD announced about the launch of A520 chipset, as a part of supporting its third generation Ryzen desktop processors. Through this, the company wanted to help its customers offer a path for future upgrades, based on Zen 3 architecture. Such factors have eventually helped in creating a positive impact towards the deployment of PCIE 3.0 solutions for the end-use markets.
PCIe Market Segment Analysis- By Application
Based on application, Storage Device & Controllers had accounted for the largest share of $6915.03 million in 2020, analyzed to grow significantly with a CAGR of 19.5% in the PCIe Market during the forecast period. The need for PCIe had evolved in the storage applications overtime with the introduction of technologies namely SATA Express and Non-Volatile Memory Express. With the shift towards ultra thin laptops, tablet PCs and so on, there is significant need towards connectors used in peripheral devices capable of fitting into narrower spaces. In order to address such requirements, PCI-SIG specified the M.2 connectors, thereby gaining it wide popularity. In addition, growing number of investments towards construction of new data centers or upgradation of existing facilities can be considered as some of the major factors attributing towards its market growth owing to rise of cloud based data storage. NVMe and PCIe have been becoming highly popular owing to technological advancements in the field of solid state storage applications. Deployment of PCIe based solid state drives are raising its demand in the markets serving cloud computing requirements, with comparitively higher data transmission as well as high speed connectivity. Owing to these advantages, PCIe had turned as a popular choice among data centers and telecom sectors due to shift towards high-performance computing while storage applications. In 2021, Interface Concept announced about the launch of a removable SSD mass storage XMC module, named IC-EM2-XMCa, capable of supporting PCIe x1/x2/x4 Gen2/Gen3 interface connection. Owing to its capability of increasing storage capacity upto 2TB, as a part of adding mass storage capacity to any third party Single Board Computer or host carrier board, used across VPX, cPCI or VME systems, thus making it suitable for computing as well as storage-intensive applications. Such factors are further set to propel the growth of PCIe within storage devices or controllers in the long run.
PCIe Market Segment Analysis- Geography
APAC had accounted for the largest share of $7954.64 Million in 2020, followed by North America and Europe in the PCIe Market, analyzed to grow at a rate of 21.6% during the forecast period 2021-2026. Factors including growing demand for cloud computing services, shift of telecom sector towards advancing network or communication infrastructures and many others have acted as some of the major factors attributing to the market growth. Presence of key players such as Renesas Electronics Corporation, Samsung Electronics Co. Ltd, Toshiba Corporation with many others opting for R& D activities overtime have been also helping in creating significant growth of PCIe across the region. In 2020, Samsung announced about the launch of PCIe 4.0 NVMe SSD (solid state drive), named SSD 980 Pro. This development was meant to help professionals as well as consumers opting for high performance PCs, workstations and gaming consoles, also making it an ideal choice for consumers working with 4K or 8K contents or playing high graphic games. High investments towards building data center facilities as well as growing shift towards improving virtualization, high-performance computing, and many others for automotives is further analyzed to drive the market growth in the coming years. In 2020, China revealed about constructing one of the world's highest-altitude cloud-computing data center in Tibet in order to meet data storage requirements for China as well as various South Asian nations including Bangladesh, Nepal and Pakistan. As per Ningsuan Technology Group, an investment of about 11.8 billion yuan (around USD 1.8 billion) has been planned for this project, which will help in providing services such as video rendering, distance-learning data backup, autonomous driving and so on in the long run. Such construction projects related to data centers are set to drive the need for high-speed switches, storage devices, and so on, impacting the market growth of PCIe during the forecast period 2021-2026.
PCIe Market Drivers
Increasing growth towards data center infrastructures:
Increasing growth towards data center infrastructures can be considered as one of the vital factors driving the market growth of PCIe. This growth is significantly impacting the need for high-speed devices capable of offering faster data transmission owing to rise of data traffic for optimizing data center facilities. Enterprise workloads have already started migrating towards cloud, which in turn requires the need for high performance computing, virtualization and related applications, making it beneficial for the use of PCIe based devices. In addition to this, with the surging COVID-19 pandemic situation, there is rapid rise of remote work or work from home, driving the growth of data centers towards handling bulks of data with higher efficiency. Moreover, data centers have been continuously focusing on leveraging hyperscale computing networks to be able to meet growing cloud-based workloads, thereby accelerating the demand towards high-speed networking devices be it PCIe switches, servers, storage devices and many more. Large Enterprises including Microsoft Corporation, Google, Amazon Web Services and many others have been constantly focusing on expanding data center facilities across various regions alongside renovation or upgradation for the existing facilities to cope up with the growing data traffic is further set to propel the demand for PCIe based solutions. As a part of this, in 2021, Microsoft had revealed about its plans of investing about $200 million towards construction of two data centers of around 200,000 square feet outside Chicago, expected to become operational by 2022. Such factors are further set to propel the need for PCIe switches, servers, storage devices and so on owing to conducting various processes be it high-performance computing, optimum network connectivity and many others during the forecast period 2021-2026.
Growing shift towards advanced technologies like artificial intelligence and machine learning:
Growing shift towards advanced technologies including artificial intelligence (AI) and machine learning (ML) can be considered as one of the major drivers impacting the growth of PCIe Market. With technological advancements, there is significant rise towards AI or ML based workloads, eventually raising the need for upgraded or new generation of computing architectures. Since AI based applications work on generating as well as processing of massive amounts of data within real-time data speeds, there is significant demand towards various high speed PCIe devices like graphic processor units, switches, controllers and many others, capable of handling large bandwidth requirements at high-speeds. In comparison to traditional CPUs, the need for computational models is rising, owing to growing demand towards high-bandwidth and low latency communication channels. Rise of demands have been eventually attributing towards various PCIe generation models, particularly PCIe 4.0 or PCIe 5.0 for serving such application requirements. Leveraging PCIe technology can help CPU models to keep up with the increasing data flow from edge devices across various enterprises, thereby creating a positive impact in its market growth. In 2020, an AI chipmaker, Hailo had introduced high-performance AI acceleration modules, namely M.2 and mini PCIe designed for empowering edge devices. The development of the modules was meant to allow customers integrate high-performance AI capabilities within edge devices, while offering a more flexible and optimized solution. Deployment of such modules can help in accelerating a large number of deep learning based application areas with higher efficiency, thereby creating its significant growth in the PCIe Market in the long run.
PCIe Market Challenges
Complexities related to designing, implementation or verification:
Designing, implementation or verification related complexities act as one of the major challenges restraining the growth of PCIe Market. PCIe based devices are capable of offering improved reliability, availability and many other advantages, gaining it wider adoption across various end-use verticals. However, configurability and complexities for PCIe pose several designing challenges, as the designer needs to read as well as understand various specifications associated with the standard for selecting an option to be incorporated within the designing architecture. In addition, due to its adoption across a broad range of application areas, manufacturing of PCIe in large quantities based on various factors be it voltage, temperature and so on, eventually affects its signal efficiency or integrity, thereby contributing towards high amounts of variation while designing process. Design or verification complexity issues exponentially rises due to need for a huge sample space of configurable features, along with a minimal error while selecting configuration can make the design unsuited for targeted application, thereby causing prolonged time to market. Such factors have been contributing towards lesser adoption of PCIe, while hampering its market growth across various end-use sectors.
PCIe Market Landscape
Product launches, collaboration, and R&D activities are key strategies adopted by players in the PCIe Market. The key players in the PCIe Market include Broadcom Inc., Microchip Technology Inc., Renesas Electronics Corporation, Intel Corporation, Nvidia Corporation, Samsung Electronics Co. Ltd, Toshiba Corporation, Xilinx Inc., PLDA and Texas Instruments among others.
Acquisitions/Technology Launches/Partnerships
In April 2021, Samsung Electronics announced about the launch of its new PM9A1 SSD, featuring a PCIe 4.0x4 interface. This development was meant to be used in PCs, specifically for enterprises as well as government agencies dealing with sensitive information with sophisticated security requirements.
In February 2021, Microchip Technology Inc. had introduced PCI Express 5.0 switch solution, Switchtec PFX PCIe 5.0 which is capable of doubling interconnects performance for dense compute, high-speed networking as well as NVM Express storage. Development of the world’s first PCIe 5.0 switch was done to support high density and reliability capabilities, including 28 lanes to 100 lanes and upto 48 non-transparent bridges.
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