PCIe IC Market Trends and Forecast
The future of the global PCIe IC market looks promising with opportunities in the server and SSD markets. The global PCIe IC market is expected to grow with a CAGR of 11.3% from 2025 to 2031. The major drivers for this market are the rising demand for high-speed data transfer, the growing use of advanced gpus & SSDs, and the increasing adoption of PCle in automotive & IoT devices.
• Lucintel forecasts that, within the type category, PCle 3.0 is expected to witness the highest growth over the forecast period.
• Within the application category, server is expected to witness higher growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.
Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below.
Emerging Trends in the PCIe IC Market
The PCIe IC market is evolving fast with the consistently growing data throughput, reduced latency, and enhanced power efficiency demands of contemporary computing systems. Various emerging trends are defining the future of PCIe interconnect technology, from data centers to edge devices.
• Moving to Higher PCIe Generations (Gen 6 and Beyond): The most prominent trend is the rapid movement to higher PCIe generations, with Gen 6 already underway and upcoming generations in the pipeline. Each newer generation doubles the rate of data transfer, tackling the bandwidth constrains in high-performance computing, AI accelerators, and high-speed networking. This fast transition calls for the production of new controller and switch ICs that can support these higher speeds without compromising on signal integrity.
• Compute Express Link (CXL) Integration: CXL is a new interconnect standard based on the PCIe physical layer that is aimed at enabling cache-coherent memory sharing and high-speed communication between CPUs, GPUs, and other accelerators. One of the emerging trends is integrating PCIe and CXL features into a single IC, providing a shared high-performance interconnect solution for heterogeneous computing platforms. This consolidation is expected to enhance system efficiency and flexibility within data centers.
• Enhanced Power Management and Efficiency: With rising data transfer rates, power consumption becomes a stringent requirement. New trends aim to create PCIe ICs with enhanced power management capabilities to reduce energy expenditure without compromising performance. These features include dynamic power scaling, power-saving states, and power supply optimized delivery architectures within the ICs. Enhanced power efficiency is important for sustainability and the cost-saving aspects of running operations at large scales.
• Greater Integration and System-on-Chip (SoC) Solutions: There is a move toward integrating PCIe controller functionality at the system-on-chip (SoC) level into specific applications in embedded systems, automotive, and mobile computing. Such integration minimizes discrete component count, reduces power consumption, and lowers system cost. Incorporating PCIe inside SoCs enables optimized interconnectivity along with specific application needs.
• Stronger Security Capabilities in PCIe Interconnects: As the need for data security continues to rise, there is greater focus on the inclusion of strong security capabilities within PCIe ICs. This involves hardware-based encryption, integrity protection, and authentication support to protect data flowing over the PCIe bus. Improved security is now becoming increasingly important, particularly in sensitive applications such as financial transactions and secure computing environments.
These new trends are collectively transforming the PCIe IC market by propelling innovation in the direction of higher speeds, tighter interoperation with other interconnect technologies, better power efficiency, higher integration within SoCs, and more security. The successful execution of these trends will be vital in making possible the next generation of high-performance computing and data communications systems.
Recent Development in the PCIe IC Market
The PCIe IC market is an incubator for innovation fueled by the boundless quest for quicker and more efficient data transfer in contemporary computing systems. Recent trends revolve around the migration to newer PCIe generations, improved integration capabilities, and catering to the unique requirements of new applications.
• Widespread Commercial Availability of PCIe Gen 5 Controllers and Switches: A major recent advancement is the universal commercial availability and deployment of PCIe Gen 5 controllers and switches. These semiconductors double the bandwidth of Gen 4, supporting more rapid data transfer rates for high-end GPUs, NVMe SSDs, and network interface cards in servers and high-end PCs. This development is pivotal to maintaining step with the exponentially rising data processing needs of contemporary workloads.
• PCIe Gen 6 Technology Prototyping and Early Development: As Gen 5 continues to be adopted, the market is already actively developing and prototyping PCIe Gen 6 technology. Gen 6 doubles the bandwidth again with PAM4 signaling, which demands immense improvement in SerDes (serializer/deserializer) design and signal integrity management in the PCIe ICs. Demonstrations and early silicon of Gen 6 capability are already on the horizon.
• PCIe-CXL Interconnect Features Integration: Aware of the constraints of PCIe for some heterogeneous compute workloads, IC vendors have begun to integrate CXL standard features into their PCIe controllers and switches. This enables cache-coherent memory sharing and faster communication among various processor and accelerator types over a PCIe physical layer.
• AI and Machine Learning Workload-Optimized PCIe ICs: The rampant growth of artificial intelligence and machine learning workloads is fueling the evolution of PCIe ICs engineered to specifically support these workloads. These include capabilities such as augmented peer-to-peer GPU communication, native support for high-bandwidth memory (HBM) interfaces over PCIe, and low-latency data transfer optimizations to AI accelerators.
• Low-Power PCIe Solutions for Edge Computing: With computing becoming more proximate to the data source with edge computing, the demand for PCIe ICs that provide high bandwidth and low latency with low power consumption is on the rise. New innovations include the availability of low-power PCIe switches and controllers specifically for use in embedded systems, industrial PCs, and other edge devices where power consumption takes center stage.
These advancements are making a substantial impact in the PCIe IC market by supporting increased data rates, promoting heterogeneous computing architectures, improving AI/ML performance, and broadening the reach of PCIe into power-restricted edge use cases. The relentless drive towards increasing PCIe generations and further integration with other technologies will define the future of interconnectivity in computing systems.
Strategic Growth Opportunities in the PCIe IC Market
The PCIe IC market is filled with strategic growth opportunities triggered by the continuously growing data needs across diverse technology spheres. Targeting particular high-growth applications and adjusting PCIe solutions to their specific needs can unlock great market potential.
• Artificial Intelligence (AI) and Machine Learning (ML) Infrastructure: The highly exponential growth of AI and ML workloads in cloud computing platforms and data centers requires high-bandwidth, low-latency interconnects for communication among CPUs, GPUs, and domain-specific AI accelerators. Creating sophisticated PCIe Gen 5 and Gen 6 switches and controllers optimized for AI/ML infrastructure offers a significant growth opportunity.
• High-Performance Computing (HPC) and Data Centers: HPC and data centers need strong and scalable interconnect solutions to support huge data processing and analysis. Moving to the higher PCIe generations, combined with memory coherency via the introduction of CXL, presents tremendous growth opportunities for PCIe IC vendors serving such high-end environments.
• Automotive Electronics and Autonomous Driving: The rising automotive electronics complexity, especially with the advent of advanced driver-assistance systems (ADAS) and autonomous driving solutions, requires high-speed and dependable data communication inside the vehicle. Creating PCIe-based interconnect solutions for sensor, processor, and communication module interconnects in future vehicles offers a substantial growth opportunity.
• Gaming and Professional Graphics: The gaming market and professional graphics workloads keep stimulating the data bandwidth of graphics cards and high-speed storage. The use of newer PCIe generations guarantees adequate bandwidth for these intensive workloads, providing a steady growth prospect for PCIe controller and interface ICs in the consumer market.
• Edge Computing and IoT Devices: The growth of edge computing and Internet of Things (IoT) devices that need local processing and data aggregation is driving a need for low-power, high-bandwidth interconnects. Creating PCIe solutions optimized for power-constrained environments while providing adequate data transfer rates for edge applications is an increasing strategic opportunity.
These growth opportunities in strategy underscore the wide and growing use cases of PCIe technology. Focusing on the precise demands of growth sectors such as AI/ML, HPC, automotive, gaming, and edge computing, PCIe IC vendors can ride on growing needs for high-performance interconnect solutions.
PCIe IC Market Driver and Challenges
The PCIe IC market forms an integral part of the contemporary digital ecosystem, and its future is influenced by the intricate dance of technological innovation, economic forces, and changing requirements for applications. Recognizing these drivers and challenges is important for the stakeholders to effectively navigate this ever-changing market.
The factors responsible for driving the PCIe IC market include:
1. Rising Bandwidth Needs: The never-ending need for increased data transfer rates in applications such as AI, cloud computing, and high-performance computing is the key driver of the PCIe IC market. Each new generation of PCIe doubles the bandwidth, directly meeting this key requirement.
2. Explosion of High-Speed Peripherals: The widespread use of high-speed peripherals like NVMe solid-state drives (SSDs), high-end graphics cards, and high-speed network interface cards (NICs) requires high-bandwidth interconnects like PCIe to enjoy their full capability.
3. Computing Architecture Advancements: The move towards heterogeneous computing architectures, including CPUs, GPUs, FPGAs, and other accelerators, necessitates efficient and high-speed interconnects for smooth data exchange, leading to the use of PCIe and its extensions such as CXL.
4. Expansion of Data Centers and Cloud Infrastructure: The huge growth of data centers and cloud infrastructure to accommodate growing digital services and data storage needs requires high-performance and scale-out interconnect solutions, where PCIe is critical.
5. Adoption in Emerging Applications: PCIe‘s entry into new and emerging application segments such as automotive electronics (for high-speed sensor data and processing) and edge computing (for high-bandwidth local interconnects) further accelerates market growth.
Challenges in the PCIe IC market are:
1. Signal Integrity at High Speeds: With each new generation of PCIe, data rates are higher, making it more difficult to preserve signal integrity over the physical link. Designing systems and PCIe ICs able to deliver and receive reliable high-speed signals involves cutting-edge SerDes technology and board-level design.
2. Power Consumption Management: Increased data transfer rates generally result in higher power consumption. It is a major challenge to design PCIe ICs that can provide the necessary performance without exceeding acceptable power budgets, particularly for power-conscious applications such as mobile and edge computing.
3. Interoperability and Standardization: Maintaining interoperability across vendors‘ PCIe devices and generations necessitates rigid compliance with PCIe standards. Although the PCI-SIG has a major role to play in standardization, making interoperability completely seamless can remain challenging.
The PCIe IC market is dominated by the increasing need for bandwidth, widespread use of high-speed peripherals, evolution of computing architectures, development of data centers, and uptake in new applications. The market, nonetheless, has major hurdles in ensuring signal integrity at high speeds, coping with power consumption, and interoperability. Piling these challenges upon each other with relentless innovation in IC design, materials, and system-level integration will be key to the sustained success and growth of the PCIe IC market.
List of PCIe IC Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies PCIe IC companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the PCIe IC companies profiled in this report include-
• Broadcom
• Microchip
• Texas Instruments
• ASMedia
• Diodes
PCIe IC Market by Segment
The study includes a forecast for the global PCIe IC market by type, application, and region.
PCIe IC Market by Type [Value from 2019 to 2031]:
• PCIe 2.0
• PCIe 3.0
• PCIe 4.0
• PCIe 5.0
• PCIe 6.0
PCIe IC Market by Application [Value from 2019 to 2031]:
• Server
• SSD
• Others
PCIe IC Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the PCIe IC Market
The PCIe IC industry is a foundation of computing and data communication in the modern era. PCIe technology allows for a high-bandwidth, low-latency interface for coupling different elements of a system, including graphics cards, network adapters, and storage devices. Current trends in the PCIe IC industry are largely influenced by the growing demand for data processing in applications such as artificial intelligence, cloud computing, and high-performance computing, which has created a need for higher data transfer rates and more efficient interconnects. This has led to innovation in PCIe generation development, power efficiency, and integration with other leading technologies. The regional distribution of these developments mirrors the worldwide semiconductor design and manufacturing landscape.
• United States: The US market is a hotbed of innovation in data center and high-performance computing technologies, such as triggering major advancements in advanced PCIe ICs. Recent developments include the development and verification of PCIe Gen 6 and later controllers and switches by leading semiconductor firms. There has also been intense activity toward creating PCIe-based interconnect solutions for AI accelerators as well as high-bandwidth memory interfaces. In addition, US businesses lead the way in combining PCIe with new interconnect standards such as CXL (Compute Express Link).
• China: China is quickly building up its strength in the PCIe IC segment to enable its growing digital infrastructure and local technology ecosystem. Some recent trends include greater investment in PCIe Gen 4 and Gen 5 controller and switch R&D by local IC design houses. There is a significant thrust towards self-reliance in strategic semiconductor technologies, including high-speed interconnects such as PCIe, to wean dependence on overseas suppliers. The expansion of China‘s AI and cloud computing segments is a primary demand driver.
• Germany: Germany‘s prowess in automotive electronics and industrial automation is driving its advancements in the PCIe IC market. The recent activities involve designing highly reliable and robust PCIe interfaces for industrial PCs and automobile control units. PCIe-based communication in vehicles and industrial systems is being focused on, with an emphasis on low latency and high data integrity. German firms are also part of developing PCIe solutions based on very specific automotive and industrial standards.
• India: The Indian PCIe IC market is in an emerging phase due to the growing adoption of digital technologies and government policies supporting electronics manufacturing. Recent developments have seen local design houses that have emerged with design capabilities for PCIe Gen 3 and Gen 4 controllers, catering mainly to domestic server and PC markets. There is an increasing focus on establishing high-speed interconnect technology expertise to enable India‘s growing digital infrastructure. Partnerships with foreign technology collaborators are also rising.
• Japan: Japan has a well-established position in semiconductor technology and is one of the leading players in the PCIe IC market, especially in high-quality and dependable solutions. Recent advances have involved the development of PCIe Gen 5 and preliminary investigations into Gen 6 technologies by prominent Japanese semiconductor manufacturers. Efforts are focused on creating PCIe-based interconnects for data centers, high-performance computing, and advanced electronics. Japanese manufacturers are also prominent for their power efficiency and signal integrity focus in PCIe IC design.
Features of the Global PCIe IC Market
Market Size Estimates: Pcie ic market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Pcie ic market size by type, application, and region in terms of value ($B).
Regional Analysis: Pcie ic market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the PCIe IC market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the PCIe IC market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for PCIe IC market?
Answer: The global PCIe IC market is expected to grow with a CAGR of 11.3% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the PCIe IC market?
Answer: The major drivers for this market are the rising demand for high-speed data transfer, the growing use of advanced gpus & SSDs, and the increasing adoption of PCle in automotive & IoT devices.
Q3. What are the major segments for PCIe IC market?
Answer: The future of the PCIe IC market looks promising with opportunities in the server and SSD markets.
Q4. Who are the key PCIe IC market companies?
Answer: Some of the key PCIe IC companies are as follows:
• Broadcom
• Microchip
• Texas Instruments
• ASMedia
• Diodes
Q5. Which PCIe IC market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, PCle 3.0 is expected to witness the highest growth over the forecast period.
Q6. In PCIe IC market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the PCIe IC market by type (PCIe 2.0, PCIe 3.0, PCIe 4.0, PCIe 5.0, and PCIe 6.0), application (server, SSD, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to PCIe IC Market, PCIe IC Market Size, PCIe IC Market Growth, PCIe IC Market Analysis, PCIe IC Market Report, PCIe IC Market Share, PCIe IC Market Trends, PCIe IC Market Forecast, PCIe IC Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.