SerDes Market

Rising Network Infrastructure & Globalization to boost the market growth

Global digitalization and expanding network infrastructure have produced vast amounts of data that must be transmitted while adhering to data privacy laws. Data is often referred to as the world economy's new fuel. Research estimates that 2.5 quintillion bytes of data are produced each day globally. Every minute, enormous amounts of data are produced, and this data needs to be delivered at a faster rate.

A modern communication system's backbone comprises serial interconnects, which operate as a conduit for current data to consumers. The digital revolution and the big data boom in the last two years have changed the necessity for stringent data privacy regulations, making data in the twenty-first century valuable. Due to the surge in cyberattacks and serialization attacks, governments and stakeholders are also concerned about the privacy of their data, which can impede market expansion. The SerDes device design is becoming more complex as devices become more Internet-connected. The end-user need for extremely fast data transmission has presented difficulties for the producers.

As a result, the market was boosted by the development of serial data lines like non-Return to Zero (NRZ) and Pulse Amplitude Modulation (PAM4). As seen, Data Centers that handle data at 100 GBPS Speed account for a large portion of the demand. SerDes Technology has used PAM4 as a development to attain such operational efficiency. Employing serializers and reserializes was necessary since conventional methods of speeding up systems, such as raising frequency, pipelining transactions, and extending the bus interface, produced several architectural issues (SerDes).

A circuit or integrated device known as a serializer/deserializer (SerDes) transforms system-on-chip (SOC) input into serialized data and sends it through a quick electrical interface. Hence, rising utilization in the telecom industry will enhance the SerDes market CAGR globally in recent years.

The demand for SerDes chips is also rising due to the expansion of data centers and quantum computing activities. SerDes offers data transfer that is speedier and more reasonably priced. More powerful microprocessors and multimedia hardware with high bandwidths are needed as information technology networks grow to push the limits of data transfer and system performance, increasing the footprint of the SerDes Market revenue.

The Global SerDes Market Industry is projected to experience substantial growth, with forecasts indicating a rise from 0.66 USD Billion in 2024 to 3.15 USD Billion by 2035. This trajectory suggests a compound annual growth rate of 15.27% from 2025 to 2035, reflecting the increasing reliance on SerDes technology across various sectors. The growth is driven by factors such as the demand for high-speed data transmission, advancements in automotive electronics, and the expansion of 5G infrastructure. As industries continue to evolve and embrace digital transformation, the SerDes market is likely to play a pivotal role in facilitating efficient data communication and connectivity.

The Global SerDes Market Industry is poised for growth due to the expansion of 5G infrastructure worldwide. The deployment of 5G networks necessitates advanced SerDes solutions to support the high data rates and low latency required for next-generation communication. As telecommunications companies invest heavily in 5G technology, the demand for SerDes components that can handle increased data throughput becomes critical. This investment is expected to drive the market's valuation significantly, with estimates suggesting a rise from 0.66 USD Billion in 2024 to 3.15 USD Billion by 2035. The anticipated CAGR of 15.27% from 2025 to 2035 underscores the importance of SerDes technology in enabling the capabilities of 5G networks.

The Global SerDes Market Industry is experiencing growth fueled by the rising adoption of Internet of Things (IoT) devices across various sectors. As IoT applications proliferate, the need for efficient data communication becomes increasingly critical. SerDes technology plays a vital role in enabling the connectivity and data transfer required for IoT devices, which often operate in environments demanding low power consumption and high efficiency. This trend is particularly relevant in smart home applications, industrial automation, and healthcare monitoring systems. The growing number of connected devices is likely to drive the demand for SerDes solutions, contributing to the overall market growth and expanding its reach in the global landscape.

The Global SerDes Market Industry is significantly influenced by advancements in automotive electronics, particularly with the rise of electric and autonomous vehicles. These vehicles necessitate sophisticated communication systems that rely on SerDes technology to facilitate data exchange between various components. For instance, the integration of advanced driver-assistance systems (ADAS) requires high-speed data links to ensure seamless operation. As the automotive sector evolves, the demand for reliable and efficient SerDes solutions is expected to grow, further propelling market expansion. This trend aligns with the overall growth of the automotive electronics market, which is projected to contribute substantially to the SerDes market's valuation in the coming years.

The Global SerDes Market Industry is also benefiting from emerging applications in consumer electronics, where high-definition video and audio transmission is becoming the norm. Devices such as 4K and 8K televisions, gaming consoles, and virtual reality systems require advanced SerDes technology to deliver seamless multimedia experiences. As consumer preferences shift towards high-quality content, manufacturers are increasingly integrating SerDes solutions to meet these demands. This trend is indicative of a broader movement towards enhanced user experiences in consumer electronics, which is expected to further stimulate market growth. The continuous innovation in this sector suggests a promising future for SerDes technology as it adapts to evolving consumer needs.

The Global SerDes Market Industry experiences a notable surge in demand for high-speed data transmission, driven by the proliferation of data-intensive applications. As industries increasingly rely on real-time data processing, the need for efficient serialization and deserialization of data becomes paramount. This trend is particularly evident in sectors such as telecommunications and data centers, where the requirement for bandwidth continues to escalate. In 2024, the market is valued at 0.66 USD Billion, and projections indicate a substantial growth trajectory, potentially reaching 3.15 USD Billion by 2035. This growth suggests a compound annual growth rate of 15.27% from 2025 to 2035, emphasizing the critical role of SerDes technology in meeting these demands.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America SerDes market accounted for USD 0.2 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is because numerous SerDes vendors, like Maxim Integrated, Texas Instruments, and Intesil (Renesas), are based in North America, primarily the United States.

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

Figure 2: SerDes Market SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe SerDes market accounts for the second-largest market share. The main drivers of market expansion are the uptake of digital equipment and cloud technology, which are quickly evolving. Further, the Germany SerDes market held the largest market share, and the UK SerDes market was the fastest growing market in the European region

The Asia-Pacific SerDes Market is expected to grow at the fastest CAGR from 2024 to 2032. Rising demand for cloud infrastructure, the changing work culture, and the 5G rollout technologies have led to deliberate investments in data centers. Moreover, China SerDes market held the largest market share, and the India SerDes market was the fastest-growing market in the Asia-Pacific region

For instance, India SerDes market will grow with the second fastest-growing CAGR in the Asia Pacific region during the forecast period. Moreover, the Indian Market is anticipated to be a growing region in the SerDes market due to the region's increasing population of populous countries, many of which are effectively edging towards more technologically proficient nations. Several other industries, including telecommunications and information technology, manufacturing, automotive, military and defense, aerospace, and healthcare, will expand steadily in the Indian region, driving the SerDes market there. SerDes is widely utilized in applications like computers, telephones, and aircraft.

The SerDes market will expand even more as a result of major market players in the market investing heavily in R&D to expand their product ranges. With significant market developments like introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organisations, market participants are also undertaking various strategic initiatives to expand their global footprint. The SerDes industry must provide affordable products to grow and compete in a more cutthroat and competitive market climate.

The market leaders in the global SerDes industry are expected to reduce their operating costs to increase their profit margins. The SerDes market major player such as Rambus (U.S.), Texas Instruments Inc. (U.S.), ON Semiconductor Corporation (U.S.), STMicroelectronics NV (Switzerland), ROHM Semiconductor (Japan) and others are working to expand the market demand by investing in research and development activities.

Texas Instruments Incorporated (TI) is an American technological business with its main office in Dallas, Texas. It creates and produces integrated circuits and semiconductors, which it then sells to producers and designers of electronics worldwide. According to sales volume, it is one of the top 10 semiconductor businesses in the world. The company concentrates on creating embedded CPUs and analog circuits, which provide more than 80% of its sales. Calculators, microcontrollers, and multi-core processors are among the educational technology items that TI also makes using its digital light processing technology. As of 2016, the business had 45,000 patents worldwide.

The Netherlands-based semiconductor manufacturer and designer NXP Semiconductors N.V. (NXP) is based in Eindhoven. The organization employs almost 31,000 employees in more than 30 nations. In 2021, NXP reported $11.06 billion in sales. On August 6, 2010, NXP, first separated from Philips in 2006, completed its first public offering. Shares of NXP now trade on the NASDAQ under the ticker name NXPI. NXP Semiconductors was included in the NASDAQ 100 on December 23, 2013. It was announced that NXP and Freescale Semiconductor would merge on March 2, 2015. On December 7, 2015, the transaction was finalized.

It was disclosed on October 27, 2016, that Qualcomm would attempt to acquire NXP.