ID: MRFR/SEM/5960-CR | February 2019 | Region: Global | 142 pages
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
Number of Ports
Frequently Asked Questions (FAQ) :
Notable strategies being adopted by the market players are agreements, new product launches, partnerships and collaborations.
The market growth in North America is based on the rising adoption of the latest communication network protocols along with the surging need for high data transfer speeds in data centers.
Lack of supportive network infrastructure, especially in developing countries can slow down the market growth in the coming years.
Asia Pacific has the potential to land the leading position in the market.
Telecom, automotive, consumer electronics, data center & enterprise networking and industrial automation, are the industrial applications of Ethernet PHY chip.
The market can reach a valuation of USD 14,217.1 million by 2026.
Rising penetration of Internet in developing economies, advances in internet of things (IoT) and online video streaming can boost the market demand across the globe.
Global Ethernet PHY Chip market - Summary
Ethernet was a revolution in the IT sector with various industrial sectors using the networking protocols for expediting the transfer of data. Its use in local area networks (LANs), medium area networks (MANs), and wide-area networks (WANs) have culminated in higher bit rates and transfer of information over long distances. Ethernet PHY chips are the first step in opening communication lines with other chips across different systems. Its evolution and its miniaturization according to Moore’s law will be integrated in future generation devices.
The ethernet PHY chip market size can reach USD 14,271.1 million by 2026. This can be credited to the growth in the telecom sector and proliferation of high-speed internet which can warrant the demand for PHY chips. Rapid adoption of 25GbE servers in data centers is the primary driver of the market. This signifies the extended potential of these servers to handle voluminous data between servers and ensure consumers attain access to smooth connectivity.
High-density switches are likely to spur the ethernet PHY chip market growth owing to popularity of online video streaming sites such as Netflix. The automotive sector is likely to contribute to market revenue owing to developments in connected cars and integration of features which require hi-speed Internet. For instance, Microchip Technology has developed ethernet transceivers with high compatibility with media independent interfaces.
Applications in automotive and industrial sectors are expected to present new growth opportunities for the ethernet PHY chip market. The use of these integrated circuits in advanced driver assistance systems (ADAS) and infotainment systems can bode well for market growth. In addition, these chips can ensure quality noise control and reliable performance of other components. Connected cars are an emerging sector which require the services of these chips. To this regard, NXP Semiconductors have commercialized the TJA1102 PHY transceiver which lets automotive manufacturers to gain access to high speed internet.
By data rate, the market is segmented into 10/100 Mbps, 10/100/1000 Mbps, and greater or equal to 100 Gbps. The greater or equal to 100 Gbps segment can evoke high market demand owing to the shift towards digital technologies by enterprises. In addition, the use of 10 gigabit ethernet switches to reduce traffic congestion is likely to boost the growth in the segment. The 10/100/1000 Mbps segment is likely to command a high share of the ethernet PHY chip market owing to its ability to provide high speeds at low power.
By number of ports, the market is segmented into single port, dual port, and others. Single ports will be the leading segment thanks to its design to cater to low power applications. Dual ports can attain a significant share of the ethernet PHY chip market owing to its applications in industries and wireless remote stations. ‘Other’ segment will enjoy the highest CAGR thanks to its application in 16, 32, and 48 port systems.
By industry application, the market is segmented into automotive, telecom, industrial automation, data enterprise & networking, and others. The automotive sector can enjoy immense market demand owing to increased production of connected and electric vehicles. PHY transceivers can support high bandwidth systems in advanced driver assistance systems and infotainment systems. Industrial automation can also elicit demand from the market owing to the need for systems to resist harsh temperatures and mechanical stress. This segment is aided by the Industry 4.0 standards which supports automation of processes.
Geographic segmentation of the ethernet PHY chip market is focused on the following regions – North America, Europe, Asia Pacific (APAC), and Rest-of-the-World (RoW). The APAC region can exhibit a healthy growth rate owing to demand in high-performance applications. Expanding telecom sector in large economies of China and India with high consumption rates is likely to boost the demand for ethernet PHY chips. The North America market is driven by rapid developments in the IT sector, miniaturization of integrated circuits, and high demand for lightning internet speeds. High transfer speed in data centers for running commercial and enterprise applications can contribute to regional market growth.
Prominent players include Microchip Technology Inc. (U.S.), Intel Corporation (U.S.), Texas Instruments Incorporated (U.S.), Marvell (U.S.), Silicon Laboratories (U.S.), Cirrus Logic, Inc. (U.S.), Barefoot Networks (U.S.), NXP Semiconductors (The Netherlands), Broadcom (U.S.), and Davicom Semiconductor Inc. (Taiwan).
1.1 Competitive Overview
The global Ethernet PHY Chips market is highly competitive with the presence of several vendors, offering comprehensive products to automotive, consumer electronics, industrial automation, data centers, and IT & telecom industries. The increasing adoption of 25 GbE based servers in data center and rising demand of high-density switches are some of the factors that are boosting the growth of Ethernet PHY chips market. Moreover, the increasing adoption of Ethernet PHY transceivers in industrial applications and improvement in FPGA technology are some of the prospects likely to impact the Ethernet PHY chips market. However, a lack of advanced infrastructure in emerging economies to implement high -power application is expected to hinder the growth of the market during the forecast period.
According to MRFR analysis, the growth of the global Ethernet PHY Chips market is dependent on the market conditions and industrial developments. The key vendors in the global Ethernet PHY chips market are Marvell (US), Microchip Technology (US), Cirrus Logic, Inc. (US), NXP Semiconductors NV (Netherlands), Broadcom (US), Intel Corporation (US), Texas Instruments Incorporated (US), Infineon Technologies AG (Germany), Silicon Laboratories (US), and DAVICOM Semiconductor, Inc. (Taiwan).
These companies focus on enhancing the product portfolio with improved technology to deliver next-generation data-transfer solutions to various industries; this eventually enhances the network speed in all business domains. Moreover, these companies are prominent providers of Ethernet PHY transceivers competing in the market to provide high-quality chips in order to increase their geographical presence and enhance the customer and industry engagement.
These companies follow an organic as well as inorganic growth approach through product development and enhancement, strategic partnerships and collaborations to offer secured and easy-to-deploy transceiver in the electronics systems. Additionally, it is witnessed that the improvement of FPGA technology is fueling the growth of the market. The competitive environment in the market is likely to intensify further due to the increasing new product launch, technological innovations, and M&A.
Texas Instruments Incorporated (Texas Instruments) offers analog integrated circuit (IC) and embedded processors which are used in personal electronics, communications equipment, industrial, automotive, enterprise systems, and calculators. It operates through two business segments—analog and embedded processing. It has a strong Ethernet transceivers product portfolio that is implemented in consumer electronics, industrial environment, and the automotive sector. The company focuses on an organic growth strategy with the enhancement of analog and embedded processing segment. Moreover, the company also invests in research and development for product enhancement to sustain in the competitive market.
Intel Corporation (Intel) offers computer, networking, data storage, and communications platforms. The company operates through six business segments—client computing group, data center group, IoT group, non-volatile memory solutions group, programmable solutions, and others. Furthermore, the company adopts an inorganic strategy to expand their business productivity and market presence by partnering with tech giants. It also focuses on an organic strategy through product innovation and enhancement.
Broadcom operates through four business segments, namely wired infrastructure, wireless communication, enterprise storage, industrial, and others. The products offered by the company include enterprise and data center networking, home connectivity, broadband access, telecommunications equipment, smartphones, data center servers and storage, factory automation, power generation and alternative energy systems, and electronic displays. The company adopts both organic and inorganic strategies comprising product enhancement and merger and acquisitions to increase their market presence and improve their customer base.
NXP Semiconductors operates in two business segments namely high-performance mixed signal (HPMS), and standard products (SP). The company adopts both organic and inorganic strategies to enhance its global presence by expanding product portfolio and partnership with major tech giants.
Microchip Technology Inc. deliver various products under various divisions including microcontrollers and microprocessors, analog, power management, aerospace & defense, clock & timing, memory, programmable logic, high-speed networking & video, and others. The company has adopted an organic growth strategy as it focuses on product launch and capability enhancement to expand its market presence.
Marvell, NXP Semiconductors NV, Cirrus Logic, Infineon Technologies AG (Germany), Silicon Laboratories (US), and DAVICOM Semiconductor, Inc. (Taiwan) are also adopting strategic partnerships to develop advanced transceivers for the industrial and automotive sectors. This, in turn, is expected to increase its market share in the Ethernet PHY chips market during the assessment period.