Ethernet PHY Chip Market Analysis

Global Ethernet PHY Chip Market Overview:

Ethernet PHY Chip Market Size was valued at USD 10.34 Billion in 2023. The Ethernet PHY Chip industry is projected to grow from USD 11.25 Billion in 2024 to USD 22.08 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.80% during the forecast period (2024 - 2032). Increased demand for small chip modules and the growing adoption of modern technological advancements are the key market drivers enhancing market growth.

Ethernet PHY Chip Market Trends

• 
  

  The growing adoption of advanced technology and high data transmission speeds is driving the market growth.

  
  

Market CAGR for ethernet PHY chip is being driven by the increasing adoption of technology that are advanced and high data transmission speeds. There is a rise in the adoption of IoTs and growing demand for high data transmissions and hiked demand for the smaller chips module to enhance the execution of the electronic device fueling the growth of the Ethernet PHY market. The rising demand for high-speed data transmission and adoption of high bandwidth switches. Different organizations and governments are taking initiatives to develop and innovate technologies.

The market of Ethernet PHY chips has been witnessing ascending growth in recent years because of the increased requirement for smaller chip modules to enhance the performance of electronic devices due to the different data transfer speeds needed by end-users in consumer-driven and industrial businesses. The rise of the Internet of Things (IoT) and the increasing number of online video streaming platforms are boosting the demand for these chips, which fuels the market. The high bandwidth switches are also anticipated to promote exponential demand for the products. The increased utilization of automation or process control technologies in various sectors like automotive, food & beverages, aerospace, oil & gas, and others are fueling the Ethernet PHY Chips growth. The amount of manual activity necessary and enhanced throughput rates requiring minimal human interaction are minimized by automation. Automation systems use industrial Ethernet chips for moving data at high speed.

The increase in the requirement for smaller chip modules is due to different data transmission speeds demanded by the end-users in consumer and industrial-focused organizations. Thus, driving the Ethernet PHY Chip market revenue.

Wi-Fi is a common network connection that has mostly supplanted Ethernet connections in various locations as Wi-Fi transmits data via wireless signals than the Ethernet cables or chips. This is owing to the increase in requirement for Wi-Fi and restraining the Ethernet chips market. The Ethernet avails deterministic service and does not suit the real-time application.

Ethernet PHY Chip Market Segment Insights:

Ethernet PHY Data Rate Insights

The Ethernet PHY Chip Market segmentation, based on data rate, includes 10-100Mbps, 100-1000Mbps, and Greater than 100 Gaps. The greater than 100Gbps segment dominates the market, accounting for the largest market revenue which is owing to the expansion of the Internet of Things (IoT) devices and increased demand across industry verticals and high-speed connectivity.

Figure 1: Ethernet PHY Chip Market, by Data Rate, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Ethernet PHY Chip Application Insights

The Ethernet PHY Chip Market segmentation, based on application, includes Telecom, Consumer Electronics, Automotive, Enterprise Networking, and Industrial Automation. Automotive segment dominates the market owing to the ongoing transition in the automobile sector towards Ethernet in-vehicle networking based on open IEEE standards. Advanced Driver Assistance System(ADAS), infotainment systems, cameras, and also other electronic control units are increasing the utilization of Ethernet PHY chips to attain high-speed automotive. The low-cost, high-speed transmission and bandwidth are becoming more crucial with the significant growth in the amount and complexity of in-car electronics. The Ethernet saves connectivity costs for the manufacturer as the Ethernet reduces the need for traditional cable for connections.

Ethernet PHY Chip Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific Ethernet PHY Chip market dominates the market in the Ethernet PHY Chi market globally. This is owing to the preceding demand for high-speed transmission due to the rapid industrialization in this region and the availability of a large number of leading Ethernet PHY chip market players. The significant development in the telecommunication market, demand for high-performance applications, and the electronics and semiconductors chip markers presence.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Ethernet PHY Chip Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

North American Ethernet PHY Chip market accounts for the second-largest market revenue due to the presence of a large number of players and growing investments in industrial infrastructure. The fast growth in the sector of IT and industrialization have enabled users to choose Ethernet connections. Further, the US Ethernet PHY Chip market held the largest market share, and the Canadian Ethernet PHY Chip market was the fastest-growing market in the European region.

The Asia-Pacific Ethernet PHY Chip Market is expected to grow at the rapid CAGR from 2024 to 2032. This is due to the automotive industry experiencing the highest growth and the presence of the next largest key players with high growth Moreover, the German Ethernet PHY Chip market held the largest market share, and the UK Ethernet PHY Chip market was the fastest-growing market in the Asia-Pacific region.

Ethernet PHY Chip Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to spread their product lines, which will help the Ethernet PHY Chip market grow even more. Market participants are also undertaking a various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Ethernet PHY Chip industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Ethernet PHY Chip industry to benefit clients and increase the market sector. In recent years, the Ethernet PHY Chip industry has offered some of the most significant advantages to various industries. Major players in the Ethernet PHY Chip market, including Netgear, Onsemi, Cadence, Marvell Technologies Inc, Texas Instruments Incorporated, Davison Semiconductor Inc, Cisco, NXP Semiconductors, Renesas Electronics Corp, Microchip Technology Inc., Barefoot Networks, Silicon Laboratories., and others are attempting to increase market demand by investing in the research and development operations.

Founded in 2006, Marvell Technologies Inc is a minority-owned technology company developing and delivering professional services and solutions in support of SAP applications. In December 2022,one of the global leaders in the data infrastructure semiconductor solutions declared the Alaska CX9340P, a new 5nm 1.6T Ethernet PHY with 100G I/O capability, built-in Media Access Control security and total Precision Time Protocol (PTP) support communications network applications and for the cloud data center. Ethernet for handling of the ultra-reliable timing-critical services is enabled by PTP, whereas the hardware-based link-layer security, which is enabled by data center operators allowed by MACsec. A pin-compatible, versatile platform for retiming, encryption, and timing applications at speeds up to 800 GbE will be provided by the combination of X9340P and Alaska C X93160 PHY.

Cadence is a crucial leader in electronic systems design that provides system design strategy for software, hardware, and IP. It provides chips to complete the systems for the most dynamic market applications, like 5G communication, hyper-scale computing, automotive, aerospace, mobile, industrial, and healthcare. In April 2022, the Cadence Hihg-Speed Ethernet Controller IP family, allowing complete Ethernet subsystem solutions up to 800G, was announced by Cadence Design Systems Inc.Cadence SerDes PHY IP in 7nm, 5nm, and 3nm process nodes was also introduced by the company, optimized for power, performance, and area (PPA). The high-speed, low-latency controller IP enlarges Cadence's Ethernet Controller IP portfolio and is well fit for vast applications of Ethernet in new-age artificial intelligence and machine learning, 5G, and cloud infrastructures.

Key Companies in the Ethernet PHY Chip market include

• 
  

  Netgear

  
  


• 
  

  Onsemi

  
  


• 
  

  Cadence

  
  


• 
  

  Marvell Technologies Inc.

  
  


• 
  

  Texas Instruments Incorporated

  
  


• 
  

  Davison Semiconductor Inc

  
  


• 
  

  Cisco

  
  


• 
  

  NXP Semiconductors

  
  


• 
  

  Renesas Electronics Corp

  
  


• 
  

  Microchip Technology Inc.

  
  


• 
  

  Barefoot Networks

  
  


• 
  

  Silicon Laboratories

  
  

Ethernet PHY Chip Industry Developments

February 2024: Announcing the industry's first comprehensive 1.6T Ethernet IP solution in February 2024, Synopsys, Inc. significantly increased bandwidth and throughput for data-intensive AI workloads. In order to efficiently process petabytes of data, hyperscale data centers, which are fundamental in the era of pervasive intelligence, necessitate high-bandwidth, low-latency processors and interfaces. The new 1.6T Ethernet IP solution from Synopsys enables design teams to produce the fastest processors in the industry for applications involving AI and data center networking. Synopsys' silicon roadmap equips hyperscale data center providers and the ecosystem that supports them with the most comprehensive, interoperable, and proved IP portfolio in the industry, thereby enabling them to future-proof their infrastructure. Customers require the IxVerify pre-silicon test solution from Keysight and the new 1.6T Ethernet controllers and robust 224G Ethernet PHY IP from Synopsys in order to design system on a chip devices that are the quickest and most reliable in the world.

July 2023: Microchip introduced its initial automotive Ethernet short range 10Base-T1S physical layer devices with support for time-sensitive networking (TSN) and functional safety in July 2023. For use in ISO 26262 applications, the LAN8670/1/2 10BASE-T1S Ethernet PHYs connect low-speed devices that previously needed their own communication systems to a standard Ethernet network with 10Mbit/s links. Specifications include a half-duplex mode, a speed of 10 Mbps, a flexible topology featuring a point-to-point and multidrop bus line, and the utilization of a single balanced pair of conductors. Additionally, the electromagnetic compatibility and interference with electromagnetic interference (EMC/EMI) of the devices are improved. Support for Time-Synchronized Networks (TSN) enables synchronized timing across Ethernet networks and deterministic operation, which is crucial for numerous automotive zonal architecture applications.

November 2022: Two new 5-port Multi-Gigabit Unmanaged Switches, MS105, and MS305, were, launched by Netgear to help enterprises to expand their networks in cost-effective manner and with multi-gigabit speeds. MS105 and MS305, Multi-Gigabit Ethernet switches in a metal enclosure, have five 2.5G ports that can be mounted on a wall or desk. These switches are energy efficient and largely tested to make sure the reliability required by enterprises.

June 2022: The release of a new 10BASE-T1S Ethernet controller was announced by Onsemi, designed to provide dependable multi-point connectivity in industrial environments. More than forty nodes on a single twisted pair are supported by NCN26010, which is more than five times the number of nodes needed by the IEEE 802.3cg standard and minimizes the cost and complexity of installation.

Ethernet PHY Chip Market Segmentation:

Ethernet PHY Chip Data Rate Outlook

• 
  

  10-100Mbps

  
  


• 
  

  100-1000Mbps

  
  


• 
  

  Greater than 100 Gaps

  
  

Ethernet PHY Chip Application Outlook

• 
  

  Telecom

  
  


• 
  

  Consumer Electronics

  
  


• 
  

  Automotive

  
  


• 
  

  Enterprise Networking

  
  


• 
  

  Industrial Automation

  
  

Ethernet PHY Chip Regional Outlook

• 
  

  North America

  
  
  
  
  • 
    

    US

    
    
  
  
  • 
    

    Canada

    
    
  
  
  
  


• 
  

  Europe

  
  

• 
  
  
  
  • 
    

    Germany

    
    
  
  
  • 
    

    France

    
    
  
  
  • 
    

    UK

    
    
  
  
  • 
    

    Italy

    
    
  
  
  • 
    

    Spain

    
    
  
  
  • 
    

    Rest of Europe

    
    
  
  
  
  

• 
  

  Asia-Pacific

  
  
  
  
  • 
    

    China

    
    
  
  
  • 
    

    Japan

    
    
  
  
  • 
    

    India

    
    
  
  
  • 
    

    Australia

    
    
  
  
  • 
    

    South Korea

    
    
  
  
  • 
    

    Australia

    
    
  
  
  • 
    

    Rest of Asia-Pacific

    
    
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • 
    

    Middle East

    
    
  
  
  • 
    

    Africa

    
    
  
  
  • 
    

    Latin America