Ethernet PHY Chip Market Research Report: By Data Rate (10/100 Mbps, 10/100/1000 Mbps, Greater than or Equal to 10 Gbps), By Number of Ports (Single Port, Dual Port, Others), By Industry Application (Data Center and Enterprise Networking, Consumer Electronics, Industrial Automation, Automotive, Telecom) - Global Forecast till 2027

Market Overview

Global Ethernet PHY Chip Market is projected to reach a valuation of USD 14,217.1 MN by 2026, growing at a 10.3% CAGR over the review period (2020-2026).

Ethernet PHY chip technology is one of the key innovations in the area of chip packets, improving the operation of electronic devices. Ethernet PHY chips are used in diverse application areas, such as industrial automation, data center & enterprise networking, consumer electronics, telecom, and automotive. 

This technology also finds huge applications in gaming consoles, set-top boxes & digital televisions, and embedded telecom systems. Increasing uptake of the Ethernet PHY chip in electronics offers ample scope of growth to the chip manufacturers. 

COVID-19 Analysis

The COVID-19 outbreak severely affected the Ethernet PHY chip industry, forcing production plants to reduce the output and shut down for some time. The disruption caused by the pandemic prompted various key component suppliers and technology providers to cut back expenses and production in some areas. 

Emerging economic and technical trends presented new challenges to ICT construction. Resultantly, industry players intensively started working on countermeasures and alternatives to minimize the impact.

However, the Ethernet PHY Chip market is returning to normal, and subsequently, revenues are too picking up gradually. To maximize the core advantages of InGaAs image technologies, growing numbers of countries implement ICT-enabled applications to provide more convenient imaging devices.

Market Dynamics 

Drivers

Rising Consumer Electronics is a Key Driving Force

The augmenting demand for small chip modules to improve electronic devices' operations drives the Ethernet PHY chip market growth. Moreover, increasing uses of Ethernet PHY chips in burgeoning end-use industries such as automotive, medical devices, and telecom positively impacts the market growth. The rising adoption of 25GB Ethernet-based servers and high bandwidth-switches in data centers boost the Ethernet PHY chip market size. 

Opportunities

Data Center Requirements Offer Significant Opportunities

Various data transmission speeds requirements of end-users in industrial and consumer-driven sectors are estimated to offer tremendous Ethernet PHY chip market opportunities. Furthermore, factors such as the proliferation of the internet of things (IoT) devices and online video streaming sites are expected to escalate the Ethernet PHY chip market demand.

The Ethernet PHY chip market outlook appears promising, demonstrating tremendous opportunities in the automotive, consumer electronics, healthcare, industrial, and aerospace & defense sectors. Additionally, the spurring rise in IoT & IIoT technology would foster the growth of the market.

Restraints & Challenges

Complexities in Ethernet PHY Chip Manufacturing to Restrain Market Growth

Despite significant prospective, the Ethernet PHY chip market witnesses major setbacks. Complexities involved in the Ethernet PHY chip manufacturing are projected to restrain the market growth. Also, the lack of technical expertise and continuous innovation in the chip manufacturing processes pose strong challenges

Segment Overview 

Global Ethernet PHY Chip Market is segmented into Data Rate, Number of Ports, Industry Application, and Region. 

</= 100 Gbps segment Accounts for the Largest Market Share

The data rate segment is sub-segmented into 10/100 Mbps, 10/100/1000 Mbps, and greater than or equal to 100 Gbps. Among these, the greater or equal to 100 Gbps segment accounts for the largest market share.

The segment growth is likely to rise at a 14.7% CAGR during the forecast period, with a market value of close to USD 3,577.4 MN by 2026. At the same time, the 10/100/1000 Mbps segment is estimated to grow at a 12.8% CAGR during the forecast period, with a market value of USD 6,169.2 MN by 2026.

Single Ports is the Largest Number of Ports Segment  

The number of ports segment is sub-segmented into a single port, dual port, and others. Among these, the single ports segment accounts for the largest market share. The segment is projected to grow at an 8.8% CAGR, while the dual ports segment growth is projected to rise at an 8.1% CAGR during the assessment period. On the other hand, the other segment is projected to grow at a 17.3% CAGR during the assessment period, with a market value of USD 3,583.1 million by 2026. 

Automotive is the Largest Industry Application Segment

The industry application segment is sub-segmented into automotive, telecom, industrial automation, consumer electronics, data center & enterprise networking, and others. Among these, the automotive segment accounts for the largest market share. 

The segment growth is estimated to rise at a 12.7% CAGR with a market value of USD 2,070.8 million by the end of the review period. On the other hand, the industrial automation segment is estimated to grow at an 11.9% CAGR during the predicted period, with a market value of USD 2,446.1 million by 2026. 

APAC is the Largest Market for Ethernet PHY Chips

By region, the market is bifurcated into the Americas (US, Canada, Mexico, Rest-of-North America) and South America, Europe (the UK, Germany, France, Italy, and Rest-of-Europe), Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), and Rest-of-the-World. Among these, the Asia Pacific region accounts for the largest market share, followed by North America and Europe, respectively.

Regional Analysis

APAC Leads the Global Ethernet PHY Chip Market Growth

Asia Pacific is the major player in the global Ethernet PHY chip market. Factors such as the vast productions and widening adoption of Ethernet PHY chip technology in respective electronic products, the region. Additionally, the high demand for consumer electronic devices, especially automotive, medical, and wearable devices, boosts the region's Ethernet PHY chip market share. 

The flourishing manufacturing industry is also a major driving force behind the growth of the market. China, India, and Japan are rapidly developing APAC countries that have huge revenue generation potential. Among other APAC countries, China accounts for the largest share in the Ethernet PHY chip market in the region. 

North America Seizes Second Highest Ethernet PHY Chip Market Share 

North America holds the second-leading share in the global Ethernet PHY chip market. The region is estimated to grow at the fastest rate during the forecast period. Factors such as the adoption of the latest communication network protocols and the need for high data transfer speeds in data centers influence the Ethernet PHY chip market share. 

Furthermore, the availability of innovative technologies and the presence of many leading vendors in the region push the Ethernet PHY chip market growth. High spending on personal devices and the growing technology environment in the U.S. and Canada are major tailwinds for the regional market's growth.

Europe Holds a Sizable Share in Global Market 

Europe derives a sizable share in the global Ethernet PHY chip market. The growth is driven by the growing healthcare industry in the UK, Germany, France, and Italy. Besides, huge spending in the defense and European space industry to get long-term solutions for high end, demanding devices support the growth of the regional market. Moreover, the presence of notable automakers and manufacturers of advanced semiconductors such as NXP Semiconductors positively impacts the growth of the market.

Competitive Landscape

Players Focus on Product Development & Expansion

The market appears extremely competitive due to the strong presence of well-established market players. They seek opportunities to integrate across the extensive value chain while focusing on R&D investments, production facility expansion, and M&A activities to gain impetus. New players enter the market with aggressive pricing to undercut the established providers and gain footholds in international markets. 

Key Companies 

Intel Corporation (U.S.), Broadcom (U.S.), Texas Instruments Incorporated (U.S.), Microchip Technology Inc. (U.S.), Marvell (U.S.), Cirrus Logic, Inc. (U.S.), Silicon Laboratories (U.S.), NXP Semiconductors (The Netherlands), Davicom Semiconductor Inc. (Taiwan), and Barefoot Networks (U.S.), are some of the affluent contenders holding sizeable Ethernet PHY Chip market share.

Recent Developments

Jan. 29, 2021 – Synopsys, Inc. demonstrated Silicon Proof of DesignWare 112G Ethernet PHY IP in 5nm Process for HPC SoCs. DesignWare 112G Ethernet PHY IP in 5nm FinFET process delivered significant performance and power and area advantages. 

Dec. 09, 2020 – Silvaco Inc., a leading supplier of EDA software and design I.P., announced collaboration with OPENEDGES Technology, Inc., a leading memory subsystem provider I.P., to prove the integration of the OPENEDGES DDR memory controller with Silvaco DDR PHYs. These companies have validated the frictionless interoperability between the OPENEDGES.

Oct. 07, 2020 – Texas Instruments (T.I.) introduced a new Ethernet physical layer (PHY) capable of transmitting 10-Mbps Ethernet signals.

Oct. 01, 2020 – Arteris IP, a leading global supplier of innovative technologies, such as silicon-proven network-on-chip (NoC) and interconnect intellectual property, announced a definitive agreement to acquire the assets of Magillem Design Services. 

 Aug. 03, 2020 – Shenzhen Goodix Technology Co. Ltd., an integrated solution provider offering industry-leading software and hardware semiconductor solutions, announced the acquisition of Dream Chip Technologies GmbH (DCT). The acquisition of DCT is a key step for Goodix in constructing a diversified strategy and integrating global engineering talent. 

Report Overview 

The Ethernet PHY chip market analysis features unique and relevant factors expected to significantly impact the market growth during the forecast period. The detailed Ethernet PHY chip market forecast would help industry players understanding the market better. The MRFR report elaborates on the historical and current trends boosting the growth of the Ethernet PHY chip industry. 

Additionally, the COVID-19 impact on the Ethernet PHY chip market is also included in the report. Regional assessment in this report unlocks several untapped opportunities in regional and international market spaces. Detailed company profiling enables users to evaluate company shares, scope of the existing & emerging product lines in new markets, pricing strategies, innovation possibilities, and much more.

Segmentation Table

Data Rate

• 10/100 Mbps


• 10/100/1000 Mbps


• Greater or Equal than 100 Gbps

Number of Ports

• Single Port


• Dual Port


• Others

Industry Application

• Data Center & Enterprise Networking


• Industrial Automation


• Consumer Electronics


• Automotive


• Telecom

Region 

• North


• America


• Europe


• Asia Pacific


• Rest of the World (RoW)

Frequently Asked Questions (FAQ) :

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