Ethernet PHY Chip Market Overview

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

Ethernet was a revolution in the IT sector with various industrial sectors using the networking protocols for expediting the transfer of data. Its use in local area networks (LANs), medium area networks (MANs), and wide-area networks (WANs) have culminated in higher bit rates and transfer of information over long distances. Ethernet PHY chips are the first step in opening communication lines with other chips across different systems. Its evolution and its miniaturization according to Moore’s law will be integrated in future generation devices.

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The ethernet PHY chip market size can reach USD 14,271.1 million by 2026. This can be credited to the growth in the telecom sector and proliferation of high-speed internet which can warrant the demand for PHY chips. Rapid adoption of 25GbE servers in data centers is the primary driver of the market. This signifies the extended potential of these servers to handle voluminous data between servers and ensure consumers attain access to smooth connectivity.

High-density switches are likely to spur the ethernet PHY chip market growth owing to popularity of online video streaming sites such as Netflix. The automotive sector is likely to contribute to market revenue owing to developments in connected cars and integration of features which require hi-speed Internet. For instance, Microchip Technology has developed ethernet transceivers with high compatibility with media independent interfaces. 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.

Ethernet PHY Chip Market Competitive Landscape

Prominent players include Microchip Technology Inc. (U.S.), Intel Corporation (U.S.), Texas Instruments Incorporated (U.S.), Marvell (U.S.), Silicon Laboratories (U.S.), Cirrus Logic, Inc. (U.S.), Barefoot Networks (U.S.), NXP Semiconductors (The Netherlands), Broadcom (U.S.), and Davicom Semiconductor Inc. (Taiwan).

Ethernet PHY Chip Market Industry Opportunity

Applications in automotive and industrial sectors are expected to present new growth opportunities for the ethernet PHY chip market. The use of these integrated circuits in advanced driver assistance systems (ADAS) and infotainment systems can bode well for market growth. In addition, these chips can ensure quality noise control and reliable performance of other components. Connected cars are an emerging sector which require the services of these chips. To this regard, NXP Semiconductors have commercialized the TJA1102 PHY transceiver which lets automotive manufacturers to gain access to high speed internet.

Ethernet PHY Chip Market Segmentation Analysis

By data rate, the market is segmented into 10/100 Mbps, 10/100/1000 Mbps, and greater or equal to 100 Gbps. The greater or equal to 100 Gbps segment can evoke high market demand owing to the shift towards digital technologies by enterprises. In addition, the use of 10 gigabit ethernet switches to reduce traffic congestion is likely to boost the growth in the segment. The 10/100/1000 Mbps segment is likely to command a high share of the ethernet PHY chip market owing to its ability to provide high speeds at low power.

By number of ports, the market is segmented into single port, dual port, and others. Single ports will be the leading segment thanks to its design to cater to low power applications. Dual ports can attain a significant share of the ethernet PHY chip market owing to its applications in industries and wireless remote stations. ‘Other’ segment will enjoy the highest CAGR thanks to its application in 16, 32, and 48 port systems.

By industry application, the market is segmented into automotive, telecom, industrial automation, data enterprise & networking, and others. The automotive sector can enjoy immense market demand owing to increased production of connected and electric vehicles. PHY transceivers can support high bandwidth systems in advanced driver assistance systems and infotainment systems. Industrial automation can also elicit demand from the market owing to the need for systems to resist harsh temperatures and mechanical stress. This segment is aided by the Industry 4.0 standards which supports automation of processes.

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Ethernet PHY Chip Market Regional Analysis

Geographic segmentation of the ethernet PHY chip market is focused on the following regions – North America, Europe, Asia Pacific (APAC), and Rest-of-the-World (RoW). The APAC region can exhibit a healthy growth rate owing to demand in high-performance applications. Expanding telecom sector in large economies of China and India with high consumption rates is likely to boost the demand for ethernet PHY chips. The North America market is driven by rapid developments in the IT sector, miniaturization of integrated circuits, and high demand for lightning internet speeds. High transfer speed in data centers for running commercial and enterprise applications can contribute to regional market growth.

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