The global ethernet PHY chip market is anticipated to touch a value of USD 14,217.1 million by 2026, asserts Market Research Future (MRFR). The market can showcase 10.3% CAGR from 2018 to 2026 (forecast period). Factors driving the market growth include adoption of 25GB ethernet-based servers in data centers and demand for high-intensity switches for fast-paced connectivity.
The penetration of Internet in far-flung economies, online video streaming, and advances in internet of things (IoT) can fetch high demand in the ethernet PHY chip market. 25GbE servers are being adopted by enterprises owing to its superior performance as compared to 40GbE servers. In addition, it can reduce the sale of ethernet switches and provide cost- economical benefits by lowering operational expenditure.
Increased demand for high-density switches can fetch massive demand in the ethernet PHY chip market. Popularity of online video streaming sites and inclination towards connected cars can drive its application.
But paucity of network infrastructure in emerging economies can restrain the market growth.
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Notable names in the ethernet PHY chip market include Texas Instruments Incorporated (U.S.), Cirrus Logic, Inc. (U.S.), Broadcom (U.S.), Barefoot Networks (U.S.), Intel Corporation (U.S.), Marvell (U.S.), Microchip Technology Inc. (U.S.), Davicom Semiconductor Inc. (Taiwan), Silicon Laboratories (U.S.), and NXP Semiconductors (The Netherlands).
These players are focused on developing new products to deliver next-generation solutions across diverse sectors. Companies are establishing units in emerging economies to lower their production costs and extend their footprint globally.
The ethernet PHY chip market is segmented by data rate, number of ports, and industry application.
Among data rates, the greater or equal to 100 Gbps segment can exhibit the highest CAGR of 14.7% during the forecast period. It can accrue close to USD 3,577.4 million by 2026. On the other hand, the 10/100/1000 Mbps segment is expected to exhibit 12.8% CAGR during the assessment period to generate close to USD 6,169.2 million by 2026.
By number of ports, single ports can exhibit 8.8% CAGR, while dual ports can display 8.1% CAGR. The ‘others’ segment can display the highest CAGR of 17.3% during the forecast period to generate close to USD 3,583.1 million by 2026. It was valued at USD 863.5 million in 2017.
By industry application, the automotive segment can showcase an exemplary 12.7% CAGR to accrue close to USD 2,070.8 million by 2026. On the other hand, industrial automation is likely to exhibit 11.9% CAGR during the assessment period to touch a size of USD 2,446.1 million.
Geographically, the ethernet PHY chip market is segmented into Europe, Asia Pacific (APAC), North America, and Rest-of-the-World (RoW). APAC accounted for 37% share in 2017, followed by North America (29%), Europe (24%), and RoW (11%).
The APAC region can exhibit 9.6% CAGR to reach a valuation of USD 4,973.7 million by 2026. Factors driving regional growth include rapid industrialization, demand for high-performance applications, and burgeoning expansion of the telecommunications sector. Presence of miscellaneous semiconductor chip and electronics manufacturers can facilitate the ethernet PHY chip market growth.
On the other hand, the North America region can experience 11.6% CAGR during the forecast period to accrue close to USD 4,517.2 million. This is credited to the rapid growth of the semiconductor sector and adoption of latest communication networking technologies. In addition, establishment of data servers to handle the continuous transmission of information at breakneck speeds can elicit the demand in the ethernet PHY chip market.
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The Europe market is expected to experience 10.1% CAGR during the assessment period to accrue close to USD 3,328.4 million by 2026. This can be attributed to the emergence of hybrid and electric vehicles and automation of various industrial processes which can evoke the demand for ethernet chips.
The RoW region can accumulate close to USD 1,397.8 million by 2026. Rise in number of data centers to handle the voluminous flow of information, need for high-density ethernet switches, and improvement in field programmable gate array (FPGA) technologies are factors which can spur regional growth.
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