SerDes Market Analysis

Global SerDes Market Overview:

SerDes Market Size was valued at USD 0.58 Billion in 2023. The SerDes industry is projected to grow from USD 0.66 Billion in 2024 to USD 2.06 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.20% during the forecast period (2024 - 2032). Huge amounts of data are generated daily in various formats due to the rise in data output in recent years, which calls for effective design, transmission methods, and other factors. These elements are boosting SerDes market drivers internationally.

SerDes Market Trends

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  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.

SerDes Market Segment Insights:

SerDes Application Insights

Based on application, the SerDes Market segmentation includes optical fibre communication, datacenter and cloud computing, 5g wireless infrastructures, ADAS, vehicle infotainment, and others. The 5G wireless infrastructures segment held the majority share in 2022, contributing to around ~65-67% in the SerDes Market revenue. SerDes demand is rapidly rising in smartphones, laptops, and televisions due to the numerous system design difficulties caused by thinner cell phones with more capabilities and features. The difficulties in rotating data in the cellphone while controlling energy consumption and reducing noise are well understood. For instance, 2.87 billion people will be using smartphones worldwide in 2020. According to GSMA real-time intelligence data, 67.08 percent of people worldwide own mobile phones.

SerDes Product Insights

The SerDes Market data has been bifurcated by-product into stand-alone SerDes and SerDes IP core. The stand-alone SerDes segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2024-2032. 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.

Figure 1 SerDes Market, by Product, 2022 & 2030 (USD billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

SerDes Regional Insights

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.

SerDes Key Market Players & Competitive Insights

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.

Key Companies in the SerDes market include

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  Rambus (U.S.)

  
  


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  Texas Instruments Inc. (U.S.)

  
  


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  ON Semiconductor Corporation (U.S.)

  
  


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  STMicroelectronics NV (Switzerland)

  
  


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  ROHM Semiconductor (Japan)

  
  


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  Renesas Electronics Corp (Japan)

  
  


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  NXP Semiconductors NV (Netherlands)

  
  


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  Maxim Integrated (U.S.)

  
  


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  Cypress Semiconductor Corp.Broadcom (U.S.), among others

  
  

SerDes Industry Developments

September 2022: The Arora v FPGA, a 12.5 Gbps high-speed SerDes interface, was introduced by Gowin Semiconductor. The business also contracted with WPG, the biggest distributor of semiconductors in Europe.

August 2022: The Arora v FPGA, a high-speed SerDes interface with a 22nm 12.5 Gbps, was introduced by Gowin Semiconductor. Also, the business inked a contract with WPG, the biggest distributor of semiconductors in Europe

SerDes Market Segmentation:

SerDes Application Outlook 

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  Optical Fibre Communication

  
  


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  Datacenter and Cloud Computing

  
  


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  5G Wireless Infrastructures

  
  


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  ADAS

  
  


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  Vehicle Infotainment

  
  


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  Others

  
  

SerDes Components Outlook

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  Clock Multiplier Unit

  
  


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  Lanes

  
  


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  Physical Coding Sub-Block

  
  

SerDes Product Outlook 

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  Stand-Alone SerDes

  
  


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  SerDes IP Core

  
  

SerDes Industry Outlook

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  Automotive

  
  


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  Consumer Electronics

  
  


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  Telecom & IT

  
  


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  Aerospace

  
  


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  Military and Defense

  
  


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  Manufacturing

  
  


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  Others

  
  

SerDes Regional Outlook

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  North America

  
  

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  US

  
  


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  Canada

  
  

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  Europe

  
  

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  Germany

  
  


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  France

  
  


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  UK

  
  


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  Italy

  
  


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  Spain

  
  


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  Rest of Europe

  
  

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  Asia-Pacific

  
  

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  China

  
  


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  Japan

  
  


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  India

  
  


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  Australia

  
  


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  South Korea

  
  


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  Australia

  
  


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  Rest of Asia-Pacific

  
  

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  Rest of the World

  
  

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  Middle East

  
  


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  Africa

  
  


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  Latin America

  
  

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