Ethernet PHY Chip Market Overview:
Global Ethernet PHY Chip Market would touch a valuation of USD 14,217.1 MN by 2026, registering a double-digit CAGR of 10.3% throughout the forecast period (2019-2026).
The Ethernet PHY chip interfaces between the analog domain of Ethernet’s line modulation and the digital domain of link-layer packet signaling by implementing hardware send-receive function of Ethernet frames. This technology is one of the key innovations in the area of chip packets, which further improves the operation of electronic devices.
The Ethernet PHY Chip has diverse application areas, such as data center & enterprise networking, industrial automation, consumer electronics, automotive, and telecom, among others. Also, the chip finds huge applications in gaming consoles, set-top boxes & digital televisions, and embedded telecom systems. Increasing uptake of the chip in electronics products is expected to offer ample scope of growth to the chip manufacturers.
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Over the recent years, due to the augmenting demand for small chip modules to improve operations of electronic devices the Ethernet PHY Chip market has been growing continually. Moreover, the increasing demand for Ethernet PHY Chip units from some of the burgeoning end-use industries such as medical devices, telecom, and automotive positively impacts the market growth.
The adoption of 25GB Ethernet-based servers in data centers drives the growth in the market. Various data transmission speeds requirements of end-users in industrial and consumer-driven sectors attribute to the growth of the market.
Furthermore, factors such as the emergence of the internet of things (IoT) and online video streaming sites are fuelling the demand in the Ethernet PHY chip market. High bandwidth-switches would also drive market growth exponentially.
Conversely, factors such as the lack of technical expertise and continuous innovation in the chip manufacturing processes are impeding the growth of the market, resulting in the development of alternative products. However, the consumer electronics sector that is demonstrating the largest adoption of the Ethernet PHY Chip units would support the growth of the market over the assessment period.
Players leading the global Ethernet PHY chip market include Intel Corporation (US), Broadcom (US), Texas Instruments Incorporated (US), Microchip Technology Inc. (US), Marvell (US), Cirrus Logic, Inc. (US), Silicon Laboratories (US), NXP Semiconductors (The Netherlands), Davicom Semiconductor Inc. (Taiwan), and Barefoot Networks (US) among others.
Industry/ Innovation/Related News:
May 29, 2019 – Microchip Technology Inc. (MCHP – the US), a manufacturer of microcontroller, mixed-signal, analog, and Flash-IP integrated circuits announced the development of industry’s first terabit-scale Ethernet PHY that can enable highest-density 400 Gbe and FlexE connectivity.
The development was in response to the demand from cloud and telecom service providers who need switching and routing platforms that enable them to reduce costs, optimize bandwidth and increase capacity, security and flexibility, once the network is built.
The development was through MCHP’s subsidiary – Microsemi. With its unique set of capabilities META-DX1 family of Ethernet Physical-Layer (PHY) devices uniquely combine 100 to 400 GbE, FlexE, nanosecond time-stamping accuracy, and MACsec security engine in a single chip with terabit capacity.
Ethernet PHY Chip Market – Segments
For a better scope of understanding, the report has been segmented into four key dynamics:
By Data Rate : 10/100 Mbps, 10/100/1000 Mbps, and Greater or Equal than 100 Gbps.
By Number of Ports : Single Port and Dual Port, among others.
Industry Application : Data Center & Enterprise Networking, Industrial Automation, Consumer Electronics, Automotive, and Telecom, among others.
By Regions : North America, Asia Pacific,Europe, and the Rest-of-the-World.
Ethernet PHY Chip Market – Competitive Analysis
Highly competitive, the Ethernet PHY chip market is adorned by a number of well-established as well as small players. That also makes the market to appear slightly fragmented. These players compete based upon pricing, technology, reputation, and services. Key strategies traced from recent developments of these key players include product or technology launch, agreement & partnership, acquisition, and expansion.
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Ethernet PHY Chip Market – Regional Analysis
The Asia Pacific region would continue with its dominance over the global Ethernet PHY Chip market throughout the forecast period. Heading with the vast productions and widening adoption of Ethernet PHY chip technology in respective electronic products, the region would create a substantial revenue pocket.
Rapidly developing APAC countries such as China, India, and Japan has a huge potential for revenue generation, especially from the consumer electronics industry. As a result, these countries are considered as major contributors to the growth of the regional Ethernet PHY Chip market.
Moreover, factors such as the high demand for consumer electronic devices, especially for automotive, medical, and wearable devices, give a boost to the growth of the market. The flourishing manufacturing industry is also a major driving force behind the growth of the market. China, among other APAC countries, is expected to keep its dominance over the Ethernet PHY Chip market in the APAC region.
The Ethernet PHY Chip market in the North American region accounts for the second-largest share, globally. Owing to the adoption of the latest communication network protocols and the need for high data transfer speeds in data centers, the region is estimated to grow at the fastest rate during the forecast period.
Moreover, factors such as the innovative technologies and the presence of many leading vendors in the region are pushing up the regional market. High spending on personal devices and growing technology environment in the US and Canada are some of the factor acting as major tailwinds for the growth of the regional market.
Europe Ethernet PHY chip market has been rapidly emerging as a promising market, globally. Factors such as the growing healthcare industry in the UK, Germany, France, and Italy are supporting the growth of the regional market.
Huge spending in defense and European space industry to get long-term solutions for high end, demanding devices are fostering the growth of the market. Also, the presence of notable automakers and manufacturers of advanced semiconductors such as NXP Semiconductors is impacting the growth of the market, positively.
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