ID: MRFR/SEM/5959-CR | February 2019 | Region: Global | 117 pages
The SerDes market is expected to reach USD 958.3 million by 2025 and is projected to capture a healthy compound annual growth rate of 15.27%. SerDes combines the Serializer and Deserializer which are required for high-speed communication to convert the serial data and parallel data while reducing the data lines. Several applications involve huge data transmission operations which require efficiency and speed. Some of the applications are highly latency intolerant. Such requirements are presenting opportunities for SerDes' market growth. In recent years, data generation has been increasing and humungous data are getting generated every data in various forms that require proper transmission protocols and efficiency in design and other aspects. Such factors are fuelling the demand for SerDes across the globe.
For instance, in the automotive industry, the demand for the SerDes is rapidly increasing, owing to the deployment of driver safety protocols and cameras to monitor various factors such as monitoring the circumstances during the drive, monitoring the health parameters during the drivers, and so on. Therefore several cameras were deployed for the continuous monitoring of these parameters with higher resolution. To compute bulky data, the SerDes is deployed intensively in automotive.
COVID 19 Analysis:
COVID 19 pandemic has severely affected the vital operations in the industrial sectors and manufacturing sectors. The consumer electronics, communication industries were facing severe issues in every segment of production and deliverance. Therefore like any other industry, the SerDes market was also declining due to the prolonged lockdown, stringent regulations, and laws. Countries like China and Taiwan are considered as the major SerDes manufacturers and offer a significant share in the global supply. However as these regions were severely affected by COVID, the supply rate and manufacturing rate have been reduced significantly. Therefore the SerDes market value has reduced significantly throughout the pandemic. On the other hand, the significant end-user industries like Consumer electronics, automotive, datacentres, optical fiber communication have reduced their key operations, which has also impacted the overall growth of the SerDes market.
The potential benefits of SerDes for the high-speed data transfer and lower latency are considered as the major drivers of the SerDes market. In several applications, a lot of computing processes are involved which require significant storage and higher data transfer speeds. For instance, smart city solutions, video streaming, Autonomous vehicles require higher bandwidth with lower latencies. Such factors are propelling the overall growth of the SerDes market.
The increasing number of applications that involve larger computing operations, emerging data centers, and proliferating quantum computing activities across the globe are considered as the major drivers of the SerDes market.
The high-performing computer systems are increasingly deployed in the defense, aerospace, laboratories, and other crucial departments as they involve complex tasks. Moreover, in recent years the costs of these high-performing systems have reduced significantly which has boosted the deployment of the high-performing systems in enterprises and businesses. Such factors are presenting lucrative opportunities for the overall growth of the SerDes market.
Several end-user industries such as automotive, consumer electronics, IT, and telecom industries are incorporating advanced communication technologies. The increasing number of data centers and quantum computing activities across the globe are some of the key factors that aid the overall growth of the SerDes industry.
The requirement for compliance with the higher level serial protocol is considered as the major restraint for the SerDes market growth. On the other hand, the requirement of supreme attention for the high-speed I/O supplies and analog supplies are also impacting the SerDes market value.
The manufacturers are forced to integrate several components and considerations while manufacturing the SerDes, additionally, the issues such as cross talk, jitter, and increasing power supply noises, the requirement of ISI standards are considered as the major restraints for the SerDes industry.
Designing the SerDes is considered as the key challenge for the SerDes market growth. As the designing process includes, volumes of data, and several devices for accessing the internet, the components for accessing the cloud access increase the complexity further. Moreover, the designing process of high-speed SerDes which includes factors such as power consumption, clock2 distribution, type of packaging, and significant others imposes a challenge for the designers.
The demand for reliability increases in the industry forces the manufacturers to include electromigration simulations in the designing which further adds complexity and the manufacturing costs. Such factors are considered as the major challenge for the SerDes industry.
Cumulative Growth Analysis:
The growth of information technologies, microprocessors, multimedia appliances continues to evolve rapidly in recent times, which increases the demand for bandwidths, and supreme system performance. Moreover, the conventional methods to increase the system performance, such as increasing the number of pipeline transactions, frequency, and significant others create design issues for the manufacturers. These factors have paved the way for the deployment of SerDes chips. The SerDes market is expected to surpass the market value of over USD 958.3 million by the year 2025 while registering a CAGR of 15.27% during the forecast period. The manufacturers are focusing on the architecture that is capable of operating with minimal battery power. Since battery life is considered as the crucial factor for a huge customer base, the developments were influenced by considering these factors. Moreover, several government organizations are also supporting the SerDes market by increasing the investment in the SerDes industry.
Value Chain Analysis:
The SerDes market value is highly influenced by the growth of the communication infrastructure in several countries, as the SerDes enables efficient conversion of the parallel data into serial data which enables efficient data communication. Therefore they are increasingly deployed in the established data centers for the storage and management of data. The increasing number of data centers in several countries is considered as the key growth-stimulating factor of SerDes market growth. Additionally, an increasing number of smartphone users across the globe and the demand for faster communication and internet connectivity are presenting lucrative opportunities for the overall growth of the SerDes market. The advancing technologies and the easier accessibility of smart devices in several parts of the world are positively influencing the SerDes market growth.
The inventions are carried out to enable a SerDes even with lower power modes in the smart devices, as the power consumption is the key consideration for the customers. The battery life is considered the top priority for the majority of the customers. Additionally, the latency rate of the devices is also considered for crucial applications. Such factors have propelled the manufacturers to alter the architecture accordingly. The increasing investments in the SerDes industry are supporting these modifications and thereby increasing the SerDes market value globally.
Based on the Product:
Based on Components:
Based on Application:
Based on the Industry:
Among other regions, North America is holding the highest market share in the SerDes industry in recent years, the growing developments in IoT applications and cloud computing and the increasing demand for high-speed data transmission in the data centers across the region are presenting lucrative opportunities for the overall growth of SerDes industry. US and Canada are considered as the key regions in the SerDes market growth. Moreover, the region is showcasing increasing adaptation of smartphones and tremendous growth in the internet speed facilities and the preference for high-speed communication across the region are positively influencing the overall growth of the SerDes industry.
On the other hand, the Asia-pacific region held a market value of over USD 122 million in the year 2019 and the emerging prominent SerDes chip manufacturers in the Asia-pacific region are propelling the SerDes market growth. Especially, China and Taiwan are contributing a majority share to the global SerDes supply. Moreover, the rapid growth in the communication infrastructure in the Asia-pacific countries and prominent market players are presenting lucrative opportunities for the overall growth of the SerDes industry.
In the year 2020, one of the leading market players, the MIPI alliance has introduced MIPI-A-PHY v 1.0 which is considered as the first automotive long-reach SerDes. The SerDes is capable of offering high-speed unidirectional data and a series of full-stack connectivity solutions, that also enable end-to-end security and functional safety for varied applications that integrate ADAS, IVI, ADS. Some of the beneficiary features include higher reliability, higher resilience, higher performance, lower latency, and efficient support over cable as well.
In the year 2019, one of the leading market players, Rambus Inc. has announced the SerDes PHY. This is designed to serve the data centers which require higher performance, and in the 5G infrastructure applications for high-speed communications.
This report has covered:
|Market Size||Significant Value|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type, Application, End User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Rambus, Inc., Texas Instruments Inc., ON Semiconductor Corporation, STMicroelectronics NV, ROHM Semiconductor, Renesas Electronics Corp, NXP Semiconductors NV, Maxim Integrated, Cypress Semiconductor Corp. and Broadcom, Inc.|
|Key Market Opportunities||Demand for SerDes chips is on the rise owing to growth of data centers and increase quantum computing activities.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The worldwide market of SerDes growth can expedite in the coming years due to the presence of multiple driving factors, states MRFR in its report.
ROHM Semiconductor, NXP Semiconductors NV, Renesas Electronics Corp, and Maxim Integrated are some prominent companies of the SerDes market.
ADAS, 5G Wireless Infrastructure, Data Center, and Vehicle Infotainment are some of the applications of the SerDes.
SerDes IP Core and Stand-Alone SerDes are two types of SerDes.
SerDes enables the transfer of large volume of data at a high pace, which can cause the global SerDes market soar.
SerDes market in APAC is expected to generate considerable revenue in the assessment period due to the presence of robust wireless connectivity services.
Key players of the SerDes market are focusing on effective solutions, which can favor the market.
1.1 Competitive Overview
Over the past few years, SerDes chips have been used in wireless network routers, gigabit ethernet systems, fiber optic communications systems, and for storage applications. The SerDes industry is characterized by a few large companies as well as numerous SMEs. The growth of these vendors depends upon the market conditions, government support, and industry development. Therefore, it becomes necessary for the vendors to provide cost-effective components and value-added services to their customers to maintain their market position and gain a competitive advantage.
The industry is expected to remain competitive with frequent acquisitions and strategic alliances adopted by the key players as a part of their business strategies so as to increase their industry presence. The companies aim at optimizing their products and further developing value-added capabilities to maximize their margins. Manufacturers emphasize improving their efficiency by reinforcing their production units and supply-chains to reduce the delay in production turn-around-times (TAT) and supply-lead-times. Key players in the market include Broadcom, Inc. (US), Maxim Integrated (US), Texas Instruments (US), ON Semiconductor Corporation (US) and NXP Semiconductors NV (The Netherlands). Other companies in the market include STMicroelectronics NV (Switzerland), ROHM Semiconductor (Japan), Cypress Semiconductor Corp. (US), Rambus, Inc. (US) and Renesas Electronics Corp (Japan).
Broadcom, Inc. dominates the SerDes market holding a share of 10.28%. The company provides a wide range of SerDes devices with PAM technology. Moreover, it also offers the SerDes packages in a varying range of data transfer speeds for better performance capabilities. Additionally, the company has gained a competitive advantage by adopting inorganic strategies such as partnerships and collaborations, and mergers and acquisitions with players from various industries.
Maxim Integrated is one of the eminent players in the SerDes market holding 9.11% of the total market share. The company aims at developing high-performance products and integrating them with its wide technology portfolio. It is involved in the manufacturing of integrated serializer/deserializer for optical network terminal applications. In addition to this, the company focuses on research and development and has successfully maintained strategic partnerships with well-known companies, resulting in its expansion to developing economies.
ON Semiconductor Corporation holds a share of 8.58% in the SerDes market. The company develops SerDes chips for mobile handsets, PMP/MP3 players, telecom switching applications and for serial digital video routing. It provides a comprehensive portfolio of energy efficient solutions and helps customers to solve unique design challenges. The company also focuses on tapping various industry verticals across various regions to expand its market reach.
Texas Instruments holds the fourth position in the SerDes market with 8.02% of the total market share. The company offers evaluation kits for SerDes chipsets and supporting solutions for LVDS interfaces which makes it a key player in the SerDes market. It has entered into strategic alliances with other players and also focuses on launching new products to facilitate various industry verticals and expand its customer base.
NXP Semiconductors NV holds a market share of 7.07%. The company has a wide portfolio of SerDes transceivers for high data speed data transfer applications in the high-bandwidth backplane and chassis-to-chassis networking. It caters to a large proportion of customer base and provides them with energy-efficient. NXP Semiconductors NV is also involved in various partnership deals and strongly focuses on its research and development process to maintain and expand its customer base.
Apart from the key players, other players including STMicroelectronics NV, ROHM Semiconductor, Cypress Semiconductor Corp., Rambus, Inc. and Renesas Electronics Corp also have a considerable presence in the SerDes market. These players collaborate with other businesses having a strong market presence so as to expand their market reach and thereby diversifying their product portfolio.