SerDes Market Outlook
The global SerDes market was valued at USD 479.5 Million in 2019 and is projected to reach USD 880.4 Million by 2027, expanding at a CAGR of 8.1% during the forecast period.
The market is driven by factors such as increasing need for designs such as SerDes stems, rising awareness regarding the advantages and benefits of SerDes, growing adoption of SerDes in telecommunication applications, cloud computing drives changes in network chip architectures. Conversely, designing the SerDes is a major challenge.
SerDes Market Dynamics
SerDes enables the conversion of parallel data into serial data, which allows designers to increase the speed of data communication without the need to increase the pin count. It represents the perfect convergence of analog precision and analog circuitry. SerDes is employed by large data centers for efficient storage and management of data. Increasing amount of parallel processing facilitated by large data centers is expected boost the need for SerDes. Thus, in turn, is propelling the market.
Growing adoption of smartphones across the globe is majorly attributed to the rise in the use of Internet and improvements in Internet speed for high-speed communication. Additionally, the ease of accessibility associated with smartphones has propelled the usage of smartphones. This has influenced various semiconductor companies to develop optimized applications that can be used in smartphones.
SerDes technology is constantly evolving. Its limits extend far beyond that of optical or networking circuits. SerDes are used in several telecommunication and consumer electronic devices such as laptops, televisions, and smartphones. The use of SerDes improves functionality and expands its applications in a variety of electronic devices. This, in turn, is propelling the market.
Designing is a key challenge in SerDes. Design parameters for a SerDes includes volumes of data, the number of devices accessing the internet, and the onset of growing cloud access increase complexity. Moreover, major challenges of designing high-speed SerDes include focusing on clock2 distribution, power consumption, type of packaging, and the parasitic. These challenges are taken into consideration while designing a custom chip. This, in turn, is projected to impede the market.
Increasing technological and automation investments are demanding for high-speed efficient networks. Technologies addressing these needs, include asset monitoring, security, and transportation. These, in turn, are driving the demand for next-generation communication technology such as 4G, 5G, wireless sensors network (WSN), and li-fi.
The next-generation communication technologies refer to convergence infrastructure capable of offering a multitude of services, such as data, video, and voice, at a higher speed than conventional communication technologies. Major players operating in the market are expected to create lucrative opportunities, as the adoption of next-generation communication technologies such as 4G and 5G gain momentum.
SerDes Market Segmental Outlook
By Type Segment
In terms of types, the SerDes market is segmented into standalone SerDes, SerDes ip core, and rad hard SerDes. The SerDes ip core segment dominated the market with a share of 80.9% in 2020. This growth may be attributed to the increasing demand for high bandwidth and low latency data transmission in various applications. The rad hard segment is anticipated to expand at a CAGR of 8.5% during the forecast period.
Radiation-hardened electronics, are electronic components that include circuits, transistors, diodes, resistors, and capacitors; single-board computer CPUs; and sensors designed to be less susceptible to damage from exposure to extreme temperature and radiation. Rad-Hard SerDes are used in high-speed communications in space and military applications. Thus, contributing to a propelling the segment.
By Applications Segment
On the basis applications, the market is segmented into research center, wire & wireless communication, consumer electronics, data center, and others. Rising demand for high bandwidth for high-speed data transmission is expected to drive the demand for SerDes in research centers and data centers. The Consumer electronics segment is anticipated to grow at a CAGR of 8.8%.
The bandwidth requirement for consumer electronics to transfer data has increased, and new protocols have been implemented to develop and meet the demand for high bandwidth requirement. Initially, the emergence of 5Gbps data rate has its limitation in copper wire-based cables as poor bandwidth and distance of transmission.
These wires were replaced by optical fibers to provide high bandwidth signals over long distances. Rise in bandwidth requirements have led to the establishment of new protocols to cater to the surging demand for data and video transfers through consumer electronics. This, in turn is anticipated to drive the segment.
By Enterprise Size Segment
Based on enterprise size, the market is categorized as Large Enterprise, and SMEs. The large enterprise segment is anticipated to grow at a significant CAGR owing to continuous increase in number of projects run by large enterprises, which involve the use of SerDes for rapid data communication. The small and medium enterprise segment to hold significant share of the market in the coming years.
By End Use Industries
On the basis of end use industries, the market is classified into automotive, telecom & it, aerospace, military & defense, manufacturing, healthcare, and others. The telecom & IT segment is projected to hold a key share of the market during the forecast period due to increasing need for reliable data movement at high speeds. SerDes technology is widely in automotive applications.
The introduction of advanced driver assistance systems (ADAS), autonomous driving systems (ADS), and in-vehicle infotainment (IVI) has increased the demand for sensors, cameras, onboard processing power, and displays. Cameras and displays in vehicles are connected to the image-processing ECU via a SerDes connection.
The long-reach SerDes physical layer interface provides an uneven data link in a point-to-point or daisy-chain topology, providing embedded bidirectional control data, high-speed unidirectional data, and optional power delivery through a single cable. Thus, in turn, propelling the automotive segment.
SerDes Market Region Wise Outlook
On the basis of regions, the market is categorized as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa (MEA). The market in Asia Pacific accounted for the significant share of the market in 2019 and is anticipated to grow during the forecast period owing to government subsidies to promote the semiconductor fabrication market. The market in Europe and North America is also expected to grow significantly during the forecast period.
Key Benefits for Industry Participants & Stakeholders
- In-Depth Analysis of the SerDes Market
- Historical, Current and Projected Market Size in Terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on From SerDes Market Performance
- Stand Alone SerDes
- SerDes IP Core
- Rad Hard SerDes
- Research Center
- Wire & Wireless Communication
- Consumer Electronics
- Data Center
By Enterprise Size
By End Use Industries
- Telecom & IT
- Military & Defense
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
- Alphawave IP
- Broadcom Inc.
- Infineon Technologies AG
- Honeywell International Inc.
- Maxim Integrated
- NXP Semiconductors N.V.
- ON SEMICONDUCTOR CORPORATION
- Semtech Corporation
- STMicroelectronics N.V.
- Texas Instruments Inc.
- Key players in the SerDes market are Texas Instruments Inc., Broadcom Inc., Infineon Technologies AG, Maxim Integrated, and NXP Semiconductors N.V. These companies are considered as key market players of SerDes market, based on their revenue, research & development (R&D) activities in the areas of improving offerings, and regional presence.
- The players are adopting key strategies such as product development, geographical expansion, mergers and acquisition and many other strategies to cater the increasing demand for SerDes.