Increasing Rate of Data Center Infrastructure Growth as Well as Shift Towards Advanced Technologies Including Artificial Intelligence and Machine Learning Are Driving the Growth of PCIe Market

Increasing growth towards data center infrastructures is anticipated to boost the PCIe market during the forecast period 2021-2026. Peripheral Component Interconnect Express (PCle) Market is analyzed to grow at a CAGR of 20.6% during the forecast period 2021-2026 to reach $48,429.51 million.

With the rise of cloud related services, there is significant rise towards constructing new data center facilities or upgrading the existing ones driving the demand towards PCIe technology. Expansion of data center service facilities are bound to propel the need towards high speed networking devices including PCIe switches, storage devices and so on, while offering faster data transmission, processing and storage requirements.

Increasing growth towards data center infrastructures is considered as one of the major drivers impacting the growth of PCIe technology in the coming years. Growing need for high-speed devices which are capable of offering faster data transmission due to rise of data traffic while optimizing data center facilities serves as a vital factor towards its market growth. Since enterprise workloads have started migrating towards cloud, there is requirement for high-performance computing, virtualization and related application areas, which can eventually boost the growth of PCIe devices. Additionally, with the surging COVID-19 pandemic, there is rapid rise of remote work or work from home, driving the need for of data centers to massive amount of data with optimum efficiency. Moreover, focusing on leveraging hyperscale computing networks to be able to meet growing cloud-based workloads from data center operators, are also accelerating the demand towards high-speed networking devices including PCIe switches, servers, storage devices and many others. Various leading large enterprises namely Microsoft Corporation, Amazon Web Services, Google and many more have been constantly focusing towards expanding data center facilities within various regions along with renovation or upgradation of existing ones in order to cope up with the growing data traffic is further analyzed to propel the demand for PCIe based solutions. In 2021, Microsoft had revealed about its plans of investing an amount of $200 million towards constructing two data centers of around 200,000 square feet outside Chicago, anticipated to become operational by 2022. Such investments are set to propel the need for PCIe switches, storage devices, servers and many others for conducting operations like high-performance computing, optimized network connectivity and so on during the forecast period.

APAC region holds a major share of PCIe market owing to factors including growing demand for cloud computing services, shift of telecom sector towards advancing communication network infrastructures overtime and so on. High investments towards R & D activities from some of the key market vendors including Samsung Electronics Co. Ltd., Toshiba Corporation, Renesas Electronics Corporation and many others have been also helping in creating a significant market growth of PCIe. In 2020, Samsung had launched a PCIe 4.0 NVMe SSD (solid state drive), SSD 980 Pro, designed particularly to help professionals as well as consumers opting for high-performance PCs, workstations or gaming consoles, while making it an ideal choice for users working with 4K or 8K contents or playing games of high graphics. Moreover, rise of investments towards construction or expansion of data center facilities alongside shift towards improving virtualization, high-performance computing and related features within automotives is analyzed to drive the market growth further in the long run. In 2020, China had revealed about construction of one of the world's highest-altitude cloud-computing data center in Tibet as a part of meeting data storage requirements for China, Bangladesh, Pakistan and Nepal. An investment of about 11.8 billion yuan (around USD 1.8 billion) has been planned for this construction project according to Ningsuan Technology Group, which will help in providing services including video rendering, distance-learning data backup, autonomous driving with many others in the coming years. Construction of data center infrastructures are set to propel the need for various components be it high-speed switches, storage devices and others, thus positively impacting the market growth of PCIe during the forecast period.

Growth of telecom industry including technological advancements like 5G is analyzed to drive the growth of PCIe market in the long run. Rise of investments towards on 5G technology due to changing user preferences towards next-generation applications, smartphones and many others have been potentially helping in raising the need for high-speed and low latency communication devices. With the outbreak of COVID-19 pandemic, work from home or remote work have gained wide popularity while contributing towards the rise of broadband users as well as raising the need for high-speed data access. Deployment of PCIe interfaces can serve as an ideal alternative for telecom operators owing to its capability of supporting large bandwidth requirements, faster data speeds and error elimination with connectivity retrials with many others. Since PCIe protocol has characteristics which can be used for improving availability of a communication device at the physical as well as data link layers, thereby creating wider adoption across telecommunication sector. In 2020, VVDN Technologies Private Limited had revealed about the launch of a 5G IP software which supports Xilinx’s T1 Telco Accelerator PCIe card. Through this, Xilinx T1 will be able to reduce the number of CPU cores required across a virtualized system, while addressing latency and power consumption related challenges. In 2021, AT&T Inc. and Verizon Communications had invested an amount of about USD 70 billion combined on the 5G spectrum in order to provide improved network connectivity for its customers. Such advancements or investments are further set to drive the market growth of PCIe, while enabling telecom service operators towards supporting 5G communication standards in the long run.

Growing shift towards advanced technologies like artificial intelligence (AI) and machine learning (ML) act as one of the major factors driving the growth of PCIe market. Due to technological advancements, there is significant rise for AI or ML based workloads, which had been eventually raising the demand for new generation or upgraded versions of computing architectures. As applications based on artificial intelligence work by generating as well as processing of massive data amounts within real-time data speeds, the demand towards various high-speed PCIe devices including graphic processor units, switches, controllers and others gets significantly impacted due to its capability of meeting high speed large bandwidth requirements. With growing demand towards high-bandwidth and low latency communication channels, the need for computational CPU models is gaining wider adoption compared to traditional ones. In order to serve such application needs, various PCIe models based on PCIe4.0 or PCIe 5.0 generation are getting significantly affected. Leveraging PCIe technology within CPU models can help in keeping up with the rising rate of data flow from edge devices within various enterprises, creating a positive impact in its market growth. In 2020, Hailo had launched the high-performance AI acceleration modules, named M.2 and mini PCIe designed particularly for empowering edge devices. This module development was done to help end-use customers integrate high-performance AI capabilities within edge devices, alongside providing a more flexible as well as optimized solution. In addition, these modules can help in accelerating a large number of deep learning based applications with higher efficiency, further set to aid the PCIe growth in the long run.

The major companies in the PCIe market include Broadcom Inc., Nvidia Corporation, Microchip Technology Inc., Renesas Electronics Corporation, Samsung Electronics Co. Ltd, Toshiba Corporation, Xilinx Inc., Intel Corporation, PLDA and Texas Instruments among others.