PCIe Market - Forecast(2020 - 2025)
Peripheral Component Interconnect Express Market Overview
Peripheral component interconnect express market (PCle) market is expected to reach $53.5 billion by 2025 at a CAGR of 20.2% during the forecast period 2020-2025. Significant growth of data storage market worldwide is boosting the demand for PCle market. The data storage market is rising with more than 5% annually. Peripheral component interconnect express is used to establish a standard form of connection across the internal components of a computer system to increase efficiency and performance of the computer system. In addition to this rising usage of PCIe for data transfer include graphics cards, network interface cards (NICs), storage accelerator devices and other high-performance peripherals is also driving the PCIe market size. Moreover, the rising adoption of PCI express in automotive industry, datacenters and other enterprises is also analyzed to drive the PCIe industry in the forecast period. In 2019, Companies such as Google, Tesla, Toyota, Hyundai and other companies has committed to invest and expand their presence across the world. As PCIes are used in infotainment systems in cars and several embedded applications in data centers, these investments, expansions are analyzed to drive the PCIe market size in the forecast period 2020-2025.
Report Coverage
The report: “PCle Market report– Forecast (2020-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the PCle market.
By Generation - PCIe 1.0, PCIe 2.0, PCIe 3.0, PCIe 4.0, PCIe 5.0.
By type - Mini PCIe, Sata Express, PCIe SSD, M.2, SFF.
By Devices - SSDs, DDRs, Storage Interface, Processors, I/O Devices, others.
By Product - SLC, MLC.
By Application - GPUs (Graphic Processor Units), Network Interface Cards (NICs), Storage devices, PCle Switches, Servers.
By Enduser - IT & Telecom, Industrial, Residential, Automotive, Infrastructure, Others.
By Geography - North America, South America, Europe, APAC, RoW.
Key Takeaways
- In 2019, North America dominated the PCle market share with more than 40% owing to early adoption of advanced technologies, growth of data centres and increased investments for accommodation of large volume of data centres.
- PCle in Automotive industry is growing at a CAGR of 25.2% in the forecast period owing to growing demand for infotainment systems such as audio, video, GPS, vehicle parking system that can assist the driver in car.
- SSDs segment is anticipated to grow at a CAGR of 24.5% during the forecast period due to its advantages of persistent in delivering predictable data-intensive workloads with continuous response times.
- PCIe top 10 companies include Intel Corporation Emulex Corporation, Texas Instrument, Microsemi, Altera, Samsung Electronics Co. Ltd., HGST, Inc., OCZ Storage Solutions, Broadcomm Limited, and Nvidia Corporation among others.
By Devices- Segment Analysis
SSDs segment is anticipated to grow at a CAGR of 24.5% during the forecast period. SSD is very persistent in delivering predictable data-intensive workloads with continuous response times. With PCIe SSD technology, the IT sector can deliver higher performance with reduced power consumption and cooling costs. As a result, the growing proliferation of cloud applications is expected to drive the PCIe SSD market during the forecast period. Growth of data centers worldwide with investments and expansions are also analyzed to drive the market. In 2019, Google has committed to invest more than $3.3 billion across Europe region in order to expand their presence in the region. In addition to this, the significant fall in NAND prices has reduced the prices of SSD by 50%. Hence these benefits are analyzed to drive the market in the forecast period 2020-2025.
By End User - Segment Analysis
PCle in Automotive industry is growing at a CAGR of 25.2% in the forecast period owing to growing demand for infotainment systems such as audio, video, GPS, vehicle parking system that can assist the driver in car. Due to the successful use of PCIe in cloud computing applications, it is becoming increasingly important in automotive electronic systems. It is also common to find PCIe Wi-Fi chips, PCIe GPUs, and PCIe ASIC-to-ASIC connections in infotainment systems. Moreover with the increased investments in Autonomous cars, PCle finds enormous opportunities. In 2019, Hyundai has committed to invest more than $35 billion in Autonomous cars by 2025. Similarly companies such as Ford, Tesla, Toyota and other have been increasing their investments to produce Autonomous cars. Hence these investments are analysed to drive the market in the forecast period 2020-2025.
By Geography - Segment Analysis
In 2019, North America dominated the PCle market with a market share of more than 40% followed by Europe and APAC. Early adoption of advanced technologies, growth of data centres, increased investments for accommodation of large volume of data centres are the major reasons for growth of market in this region. In 2020, Google has announced to invest more than $10 billion across 11 states in USA. In addition to this, investments, expansions and production of autonomous cars has also led the adoption of PCIe. In 2019, Cruise Automation, the self-driving division of General Motors, announced to invest $1.15 billion for the production of autonomous cars. As PCIe is for several applications in autonomous cars and data centers, these investments are analyzed to drive the market for PCIe market in the forecast period 2020-2025.
Drivers – PCIe Market
- Growing demand for PCIe in data centres
Increasing investments towards the construction of data centres will be one of the primary factors that will drive PCI express market growth. The growing demand for cloud computing will also drive the demand for data centres. In 2020 Microsoft has announced to invest more than $1.1 billion for the expansion of its data centres in LATAM. Similarly, several key vendors have already entered into agreements to set up and expand their market operations. In addition to the construction of data centres, major developments, such as continuous technological upgradation, will also drive market growth during the forecast period. As PCIe is used for several applications in data centres, the growing investments towards data centre construction will drive market growth in the forecast period 2020-2025.
- Continuous technological up gradation
One of the major trends being witnessed in the market is the continuous technological upgradation. The growing demand for PCIe among enterprises is encouraging vendors to upgrade PCIe solutions to meet customer demand and be in line with continuous technological advances. The PCIe 3.0 standard served the PCIe market for the longest time with a maximum speed of around 3,500MB/s. similarly, PCIe 4.0 is offering speed up to 5000 MB/s. With the advent of PCIe 4.0, the overall speed at which PCIe slot operates is doubled and provides a staggering 2GB/s per lane as opposed to the 1GB/s per lane offered by PCIe 3.0. In addition, as PCIe 4.0 switches aid in efficient utilization of data centre resources, which, in turn, offers an optimal return on capital expenditures. The demand for advanced PCIe 4.0, in addition to the advent of PCIe 5.0, has increased the speed and effectiveness driving adoption in data centres and automotive industries. Hence continuous upgradation in PCIe is set to drive the market in the forecast period 2020-2025.
Challenges – PCIe market
- Presence of Noise in Signals during Data Transmission is Major Challenge for Global PCIe Market
PCIe is a high-speed hardware interface, which is being adopted progressively across the globe to connect multiple peripheral devices to a processor system. Technological advancements in PCIe have led to transfer of data at high speed due to presence of high bandwidth. This increase in performance results in decrease in signal integrity due to the presence of noise, crosstalk, and impedance mismatch. The transmission of the signal over a long distance in the presence of environmental noise adversely affects the signal quality. These kind of noise challenges hamper the market in the forecast period 2020-2025.
Market Landscape
Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the PCIe market. In 2019, the market of PCIe has been fragmented with several companies vying for top share. PCIe top 10 companies include Intel Corporation Emulex Corporation, Texas Instrument, Microsemi, Altera, Samsung Electronics Co. Ltd., HGST, Inc., OCZ Storage Solutions, Broadcomm Limited, and Nvidia Corporation among others.
Acquisitions/Technology Launches
- In February 2018, Trenton Systems introduced BPG8155 PCIe backplane, which brings the power and performance of PCIe Gen3 for military applications.
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