Ethernet PHY Chip Market

The growing adoption of advanced technology and high data transmission speeds is driving the market growth.

Market CAGR for ethernet PHY chip is being driven by the increasing adoption of technology that are advanced and high data transmission speeds. There is a rise in the adoption of IoTs and growing demand for high data transmissions and hiked demand for the smaller chips module to enhance the execution of the electronic device fueling the growth of the Ethernet PHY market. The rising demand for high-speed data transmission and adoption of high bandwidth switches. Different organizations and governments are taking initiatives to develop and innovate technologies.

The market of Ethernet PHY chips has been witnessing ascending growth in recent years because of the increased requirement for smaller chip modules to enhance the performance of electronic devices due to the different data transfer speeds needed by end-users in consumer-driven and industrial businesses. The rise of the Internet of Things (IoT) and the increasing number of online video streaming platforms are boosting the demand for these chips, which fuels the market. The high bandwidth switches are also anticipated to promote exponential demand for the products.

The increased utilization of automation or process control technologies in various sectors like automotive, food & beverages, aerospace, oil & gas, and others are fueling the Ethernet PHY Chips growth. The amount of manual activity necessary and enhanced throughput rates requiring minimal human interaction are minimized by automation. Automation systems use industrial Ethernet chips for moving data at high speed.

The increase in the requirement for smaller chip modules is due to different data transmission speeds demanded by the end-users in consumer and industrial-focused organizations. Thus, driving the Ethernet PHY Chip market revenue.

Wi-Fi is a common network connection that has mostly supplanted Ethernet connections in various locations as Wi-Fi transmits data via wireless signals than the Ethernet cables or chips. This is owing to the increase in requirement for Wi-Fi and restraining the Ethernet chips market. The Ethernet avails deterministic service and does not suit the real-time application.

The Global Ethernet PHY Chip Market Industry experiences a surge in demand for high-speed connectivity solutions, driven by the proliferation of data-intensive applications. As businesses and consumers increasingly rely on cloud computing, streaming services, and online gaming, the need for robust Ethernet solutions becomes paramount. In 2024, the market is projected to reach 11.2 USD Billion, reflecting the growing necessity for enhanced data transmission capabilities. This trend is likely to continue as the global economy shifts towards digitalization, further propelling the adoption of Ethernet PHY chips across various sectors.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific Ethernet PHY Chip market dominates the market in the Ethernet PHY Chi market globally. This is owing to the preceding demand for high-speed transmission due to the rapid industrialization in this region and the availability of a large number of leading Ethernet PHY chip market players. The significant development in the telecommunication market, demand for high-performance applications, and the electronics and semiconductors chip markers presence.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Ethernet PHY Chip Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

North American Ethernet PHY Chip market accounts for the second-largest market revenue due to the presence of a large number of players and growing investments in industrial infrastructure. The fast growth in the sector of IT and industrialization have enabled users to choose Ethernet connections. Further, the US Ethernet PHY Chip market held the largest market share, and the Canadian Ethernet PHY Chip market was the fastest-growing market in the European region.

The Asia-Pacific Ethernet PHY Chip Market is expected to grow at the rapid CAGR from 2024 to 2032. This is due to the automotive industry experiencing the highest growth and the presence of the next largest key players with high growth Moreover, the German Ethernet PHY Chip market held the largest market share, and the UK Ethernet PHY Chip market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to spread their product lines, which will help the Ethernet PHY Chip market grow even more. Market participants are also undertaking a various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Ethernet PHY Chip industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Ethernet PHY Chip industry to benefit clients and increase the market sector. In recent years, the Ethernet PHY Chip industry has offered some of the most significant advantages to various industries. Major players in the Ethernet PHY Chip market, including Netgear, Onsemi, Cadence, Marvell Technologies Inc, Texas Instruments Incorporated, Davison Semiconductor Inc, Cisco, NXP Semiconductors, Renesas Electronics Corp, Microchip Technology Inc., Barefoot Networks, Silicon Laboratories., and others are attempting to increase market demand by investing in the research and development operations.

Founded in 2006, Marvell Technologies Inc is a minority-owned technology company developing and delivering professional services and solutions in support of SAP applications. In December 2022,one of the global leaders in the data infrastructure semiconductor solutions declared the Alaska CX9340P, a new 5nm 1.6T Ethernet PHY with 100G I/O capability, built-in Media Access Control security and total Precision Time Protocol (PTP) support communications network applications and for the cloud data center. Ethernet for handling of the ultra-reliable timing-critical services is enabled by PTP, whereas the hardware-based link-layer security, which is enabled by data center operators allowed by MACsec.

A pin-compatible, versatile platform for retiming, encryption, and timing applications at speeds up to 800 GbE will be provided by the combination of X9340P and Alaska C X93160 PHY.

Cadence is a crucial leader in electronic systems design that provides system design strategy for software, hardware, and IP. It provides chips to complete the systems for the most dynamic market applications, like 5G communication, hyper-scale computing, automotive, aerospace, mobile, industrial, and healthcare. In April 2022, the Cadence Hihg-Speed Ethernet Controller IP family, allowing complete Ethernet subsystem solutions up to 800G, was announced by Cadence Design Systems Inc.Cadence SerDes PHY IP in 7nm, 5nm, and 3nm process nodes was also introduced by the company, optimized for power, performance, and area (PPA).

The high-speed, low-latency controller IP enlarges Cadence's Ethernet Controller IP portfolio and is well fit for vast applications of Ethernet in new-age artificial intelligence and machine learning, 5G, and cloud infrastructures.