Serdes Market

The SerDes market, with a value of USD 0.5 billion in 2022, is projected to grow at a compound annual growth rate (CAGR) of 15.2% from USD 0.57 billion in 2023 to reach USD 1.3 billion by 2030. The significant increase in data output in recent years has resulted in the generation of large amounts of data in various formats. This trend has created a demand for effective design and transmission methods, driving the growth of the SerDes market worldwide.

SerDes Market Trends:
• Increasing network infrastructure and globalization to fuel market growth:
The global digitalization and expansion of network infrastructure have led to the generation of massive amounts of data that need to be transmitted while adhering to data privacy regulations. Data is considered the new fuel of the world economy, with an estimated 2.5 quintillion bytes of data generated globally every day. This rapid data generation requires faster data delivery rates.

Serial interconnects serve as the backbone of modern communication systems, acting as conduits for delivering real-time data to users. The digital revolution and the surge in big data have emphasized the importance of strict data privacy regulations, making data highly valuable in the twenty-first century. However, concerns about data privacy and the increasing number of cyberattacks and serialization attacks can hinder market expansion.

The design of SerDes devices has become more complex as devices become more interconnected. The need for high-speed data transmission from end-users has posed challenges for manufacturers. To address this, the market has been driven by the development of serial data lines such as non-Return to Zero (NRZ) and Pulse Amplitude Modulation (PAM4). Data centers, which handle data at speeds of 100 GBPS, account for a significant portion of the demand. SerDes technology, particularly PAM4, has been instrumental in achieving such operational efficiency. Serializer/deserializer (SerDes) circuits or integrated devices transform system-on-chip (SOC) input into serialized data and transmit it through a fast electrical interface. The increasing adoption of SerDes in the telecom industry has contributed to the global market's growth rate in recent years.

The demand for SerDes chips is also rising due to the expansion of data centers and activities in quantum computing. SerDes provides faster and more cost-effective data transfer. As information technology networks expand, requiring more powerful microprocessors and high-bandwidth multimedia hardware to push the limits of data transfer and system performance, the revenue of the SerDes market continues to grow.

SerDes Market Segment Insights:
The SerDes market is segmented based on applications, including optical fiber communication, data center and cloud computing, 5G wireless infrastructures, ADAS, vehicle infotainment, and others. In 2022, the 5G wireless infrastructures segment dominated the market, contributing to approximately 65-67% of the SerDes market revenue. The demand for SerDes is rapidly increasing in smartphones, laptops, and televisions due to the challenges in system design caused by the slim form factor of cell phones with advanced capabilities and features. These design difficulties include data rotation within the cellphone, energy consumption control, and noise reduction. For instance, it is projected that 2.87 billion people worldwide will be using smartphones in 2020, with 67.08% of the global population owning mobile phones according to GSMA real-time intelligence data.

SerDes Product Insights
The SerDes market is divided into two product segments: stand-alone SerDes and SerDes IP core. The stand-alone SerDes segment held the largest market share in 2022 and is expected to grow at a faster rate during the forecast period (2022-2030). The demand for SerDes chips is also increasing due to the expansion of data centers and the development of quantum computing activities. SerDes technology enables faster and more affordable data transfer. As information technology networks continue to grow, there is a need for more powerful microprocessors and multimedia hardware with high bandwidth to meet the demands of data transfer and system performance.

SerDes Regional Insights
The study provides market insights for SerDes in North America, Europe, Asia-Pacific, and the Rest of the World. The North America SerDes market accounted for USD 0.2 billion in 2022 and is expected to demonstrate significant CAGR growth during the study period. This can be attributed to the presence of several SerDes vendors in North America, primarily in the United States, including companies like Maxim Integrated, Texas Instruments, and Intesil (Renesas). The major countries studied in the market report include the United States, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

The Europe SerDes market holds the second-largest market share, driven by the adoption of digital equipment and cloud technology, which are rapidly evolving. Within Europe, the German SerDes market holds the largest market share, while the UK SerDes market is experiencing the fastest growth.

The Asia-Pacific SerDes market is expected to grow at the fastest CAGR from 2022 to 2030. The region's growth is driven by the increasing demand for cloud infrastructure, the changing work culture, and the rollout of 5G technologies. China holds the largest market share in the Asia-Pacific region, while the Indian SerDes market is the fastest-growing. The Indian market is anticipated to grow significantly due to its increasing population and the expansion of industries such as telecommunications, information technology, manufacturing, automotive, military and defense, aerospace, and healthcare. SerDes finds wide application in computers, telephones, and aircraft systems.

SerDes Key Market Players & Competitive Insights:
To further expand the SerDes market, major players in the industry are heavily investing in research and development to enhance their product portfolios. These market participants are undertaking various strategic initiatives, including the introduction of new products, contractual agreements, mergers and acquisitions, increased investments, and collaborations with other organizations, to expand their global presence. In the face of a more competitive and cutthroat market environment, the SerDes industry needs to offer affordable products to foster growth and remain competitive.

The leading players in the global SerDes industry are expected to optimize their operational costs to increase profit margins. Key market players such as Rambus (U.S.), Texas Instruments Inc. (U.S.), ON Semiconductor Corporation (U.S.), STMicroelectronics NV (Switzerland), ROHM Semiconductor (Japan), and others are actively working towards expanding market demand through research and development investments.

Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas. It designs and manufactures integrated circuits and semiconductors, which are sold to electronics manufacturers and designers worldwide. TI is among the top 10 semiconductor companies globally based on sales volume. The company focuses on developing embedded CPUs and analog circuits, which account for more than 80% of its sales. Additionally, TI utilizes its digital light processing technology to produce educational technology products such as calculators, microcontrollers, and multi-core processors. As of 2016, TI held 45,000 patents worldwide.

NXP Semiconductors N.V., a semiconductor manufacturer and designer based in the Netherlands, is headquartered in Eindhoven. The company has nearly 31,000 employees across more than 30 countries. In 2021, NXP reported $11.06 billion in sales. NXP completed its initial public offering on August 6, 2010, after separating from Philips in 2006. Its shares now trade on NASDAQ under the ticker symbol NXPI. NXP Semiconductors was included in the NASDAQ 100 on December 23, 2013. On March 2, 2015, it was announced that NXP and Freescale Semiconductor would merge, and the transaction was finalized on December 7, 2015. On October 27, 2016, Qualcomm announced its intention to acquire NXP.

Key Companies in the SerDes market include:
Rambus (U.S.)
Texas Instruments Inc. (U.S.)
ON Semiconductor Corporation (U.S.)
STMicroelectronics NV (Switzerland)
ROHM Semiconductor (Japan)
Renesas Electronics Corp (Japan)
NXP Semiconductors NV (Netherlands)
Maxim Integrated (U.S.)
Cypress Semiconductor Corp. (U.S.)
Broadcom (U.S.), among others

SerDes Industry Developments:
September 2022: Gowin Semiconductor introduced the Arora v FPGA, a high-speed SerDes interface with a data rate of 12.5 Gbps. The company also signed a contract with WPG, the largest semiconductor distributor in Europe.
August 2022: Gowin Semiconductor unveiled the Arora v FPGA, a high-speed SerDes interface featuring a 22nm process technology and a data rate of 12.5 Gbps. Additionally, the company entered into a contract with WPG, the largest semiconductor distributor in Europe.

SerDes Market Segmentation:
SerDes Application Outlook (USD Billion, 2023-2030)
• Optical Fibre Communication
• Datacenter and Cloud Computing
• 5G Wireless Infrastructures
• ADAS
• Vehicle Infotainment
• Others

SerDes Components Outlook (USD Billion, 2023-2030)
• Clock Multiplier Unit
• Lanes
• Physical Coding Sub-Block

SerDes Product Outlook (USD Billion, 2023-2030)
• Stand-Alone SerDes
• SerDes IP Core

SerDes Industry Outlook (USD Billion, 2023-2030)
• Automotive
• Consumer Electronics
• Telecom & IT
• Aerospace
• Military and Defense
• Manufacturing
• Others

SerDes Regional Outlook
• North America
o US
o Canada
• Europe
o Germany
o France
o UK
o Italy
o Spain
o Rest of Europe
• Asia-Pacific
o China
o Japan
o India
o Australia
o South Korea
o Australia
o Rest of Asia-Pacific
• Rest of the World
o Middle East
o Africa
o Latin America