PCI Express Market Size, Share, Growth, and Industry Analysis, By Type (PCIe 1.0, PCIe 2.0, PCIe 3.0, PCIe 4.0, PCIe 5.0), By Application (Storage, Data Center, Others), and Regional Forecast to 2032

PCI EXPRESS MARKET OVERVIEW

The PCI Express market size was USD 32.4 billion in 2024, and is expected to be highly growth USD 232.9 Billion by 2032, with a CAGR of 27% during the forecast period 2024-2032.

Demand for high-speed data transfer and connectivity solutions continues across various computing platforms. PCI Express is, of course, the emerging marketplace but also de facto standard for internal computer expansion. Primarily, it is used as a primary interface for the most powerful peripherals - graphics cards, solid-state drives, and many others. Scalability and, of course, backward compatibility coupled with its continuous evolution through newer generations makes it a crux in modern computing architecture.

It grows mainly because of the rapidly increasing demand for high-performance computing solutions, growth of data centers, and the gaming industry. Emerging technologies such as artificial intelligence, machine learning, and analytics related to big data are further speeding the need for speed data transfer and connectivity systems in order to set modern computing infrastructure right. Hence, the role of PCIe is very critical in modern computing infrastructure.

COVID-19 IMPACT

The industry also saw mixed results because of the supply chain disruption that occurred due to the COVID-19 pandemic.

The global COVID-19 pandemic that has ravaged various parts of the world has indeed been unprecedented and staggering; bringing about lower-than-expected demand in all regions compared to pre-pandemic times. For the most part, the observed market growth in the form of increase in CAGR is also a result of market growth and demand back on track from the pre-pandemic times.

The pandemic initially disrupted the supply chains and manufacturing capacities but, in effect, acted as a catalyst to accelerate all the digital transformation initiatives and raise demand for computing infrastructure. It further fueled demand for computers and servers due to the ever-increasing trend of remote work, online learning, and digital entertainment-a boost that indirectly would propel demand for PCI Express. However, once the peak of the pandemic subsided, semiconductor shortages and logistics issues temporarily halted market growth.

LATEST TREND

"Backbone of Data Center Modernization and High-Performance Computing"

This rapid evolution of data centers is highly driving the adoption of PCIe technology. High demand for high-speed storage solutions, enhanced server connectivity, and rapid growth in cloud infrastructure are the key factors propelling PCIe implementation. Furthermore, in the gaming and graphics industry, it moves the limits with advanced support requirements from GPUs, while real-time gaming demands and applications in virtual reality call for very high bandwidth and low latency in the transfer of data..

PCI EXPRESS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into PCIe 1.0, PCIe 2.0, PCIe 3.0, PCIe 4.0, PCIe 5.0

• PCIe 1.0: The first generation of the PCI Express standard was PCI Express 1.0. It exists since 2003, when it was founded. Whilst the PCIe 1.0 did indeed represent a multiple improvement with regards to performances, and thereby reduced latency rates, it compared somewhat against what nowadays has become the classic PCI slots. From the first generations of graphics cards, network interface cards, and other high-speed add-in cards to the present day, PCIe 1.0 has largely been adopted in early-generation devices. Although it has become relatively outdated in recent years, legacy systems and low-bandwidth devices are still using it.
• PCIe 2.0: This is the second generation that came in 2007, doubling the data transfer rate of its predecessor. It included some improvements-among them are better signal integrity and power efficiency. Mostly, PCIe 2.0 is used with many mainstream products and hardware items, like graphics cards, solid-state drives, and so on. It has good performance in relation to the cost, so it is found getting used on a very large scale for a lot of purposes.
• PCIe 3.0: The biggest performance leap is yet in PCIe 3.0, released way back in 2010. Data transfer was four times faster than the PCIe 2.0 generation and thus a greater acceleration from device to device. PCIe 3.0 has been adopted in contemporary applications that demand high performance, like computers, games, and professional fields. Although it has been mostly supplanted by PCIe 4.0 in the latest systems, it is still contemporary in many modern systems up to marketplaces today where higher bandwidth devices such as a new graphics card or NVMe SSD may still make use of it.
• PCIe 4.0: PCIe 4.0 was released in 2019. This can double the speed, doubling the rate at which data will be transferred. Bandwidth and latency improved significantly more; otherwise, velocities of data transfer between devices went even higher. These PCIe 4.0 are mainly used on high-end systems that include gaming PCs and workstations where applications are more intensive on high-speed data transfer. It is used in data centers and servers to speed up most of the work done in data processing and storag
• PCIe 5.0: The newest generation, PCIe 5.0, was released in 2022. Once again, it doubles up the data transfer rate, making performance capabilities never seen before. It was designed with the applications in mind that demand tremendous potential from high-performance computing, AI, and machine learning. Dubbed leaders in the future, PCIe 5.0 is set to appear with the next-generation designs in high-end systems, such as gaming PCs, workstations, and servers.

By Application

Based on application, the global market can be categorized into Storage, Data Center, Others

• Storage: Storage is the largest and most critical segment for the PCIe industry. This is due to the fact that with this technology, SSDs and other high-performance storage devices transfer data at the blazing-fast speed that enables quite fast read and write speeds compared to traditional HDDs. Ideally, they would be applications such as gaming, video editing, and data analysis, where quick access to considerable data is obligatory. Thus, as with extremely increasing demands for capacities and performance in storage solutions, PCIe technology acts as an inevitable ingredient that should be included in the storage solutions for data centers.
• Data Center: Data center is the backbone of digital economy, and data centers heavily rely on PCIe technology to process and store huge amounts of information fast and reliably. Most of the information transfer between servers and storage systems will have to be PCI Express based through network interface cards and storage devices. Accelerators like GPUs and FPGAs are used to speed computationally intensive tasks in the data processing like machine learning and artificial intelligence. With continuous scaling and evolution of data centers, there will always be a need for high-performance PCIe solutions.
• Other: There is a broad scope of applications that uses PCIe technology in their solution. These include gaming, automotive, and industrial automation. In gaming, one requires PCIe-based graphics cards in delivering high-resolution and high-frame-rate gaming experience. In the automotive industry, advanced driver assistance systems and infotainment systems incorporate PCIe to process and transmit huge data. For industrial automation, it relies heavily on PCIe-based controllers and I/O modules for controlling and monitoring industrial processes. With these industries all utilizing advanced technologies, end demand for PCIe solutions will grow.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factor

"Growing Demand for High-Performance Computing to Boost the Market"

The growth in the demand for high-performance computing among various industries is something that provides good momentum for the PCI Express market growth. Data-intensive applications and artificial intelligence and machine learning workloads are driving the need for faster data transfer speeds and better connectivity within the system. Thus, with today's modern computing infrastructure, PCIe technology seems more than a necessity.

Upcoming Gaming Industry and Graphics Processing Needs Earlier, the gaming industry was leading with vast graphics processing needs, causing the shift to rely on the use of PCIe technology. The PCI Express-based interfaces are sought after in modern graphics cards to provide high-bandwidth connections, thus optimum gaming experiences and support for advanced visual computing applications.

Restraining factor

"Implementation costs are high and technically challenging; otherwise, this market might be growth-constrained."

Investment in infrastructure and technical know-how is substantial when migrating into newer generations of PCIe. Design and manufacturing complexity makes it difficult for smaller manufacturers to design and build PCIe-compatible devices, especially newer generations, thereby restricting market growth in segments.

Opportunity

"New Computing Applications Create Market Opportunities"

New applications of PCIe technology are developed along with emerging applications represented by edge computing, 5G infrastructures, and autonomous systems. Those emerging applications call for new needs in high-speed data transfer capabilities and proper connectivity solutions.

Challenge

"Technical Limitation and Power Consumption Could Pose Potential Threats"

As the technology evolved into PCIe, controlling power and thermal aspects becomes tough. In addition, holding backward compatibility while providing scope for innovation in the arena of performance is relatively challenging with complications in technical aspects for manufacture.

PCI EXPRESS MARKET REGIONAL INSIGHTS

• North America

North America dominates the PCI Express market; big players of technology are present there, and it also sustains one of the highest rates of adoption of advanced computing technologies. The United States PCIe market is gradually flourishing because the consumption of the same is seen to be heavy in data center applications and high-performance computing sectors. The region possesses a good gaming industry and holds growing infrastructure and works in cloud computing, thus raising the need for PCIe solutions.

• Europe

For its part, Europe is also a giant market for PCI Express technology, as demand comes from enterprise computing and the research institutions. The regional focus on digital transformation and industrial automation dictates the growth of this market, while tight regulatory standards guarantee high-quality implementations.

• Asia

Asia-Pacific is the fastest-growing PCI Express market with explosive growth due to rapid technology adoption in China and Japan. The rise in manufacturing capabilities and digital infrastructure in the region opens significant growth prospects for the market. The growth in establishing key semiconductor manufacturers and investments in computing technology further boosts market growth.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Industry leaders are, therefore, shifting their focus on innovation in the design of PCIe solutions as well as expansive product portfolios. Companies are pumping in research and development to achieve even more efficient as well as powerful implementations of PCIe that are compatible with the existing systems. Strategic collaboration is widespread as companies look to fulfill increasingly demanding market segments.

List of Top PCI Express Companies

• Intel Corporation (U.S.)
• AMD (U.S.)
• NVIDIA Corporation (U.S.)
• Broadcom Inc. (U.S.)
• Microchip Technology Inc. (U.S.)
• Samsung Electronics Co., Ltd. (South Korea)
• Texas Instruments Incorporated (U.S.)
• NXP Semiconductors N.V. (Netherlands)
• Renesas Electronics Corporation (Japan)
• Western Digital Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS

October 2023: Intel Corporation has launched its latest processors which are PCIe Gen 5.0-capable. This brings the product to market with more connectivity advantages in combination with improved performance for its data center solutions.

March 18, 2024: NVIDIA introduced the Blackwell GB100 GPU, which is the first in the world and used a total of PCIe 6.0 to upgrade data transfer rates and performance for data-intensive applications.

April 2, 2024: PCI-SIG said that a PCIe 7.0 specification version 0.5 was available. This is a step to reach the raw bit rate of up to 128 GT/s, meaning achieving up to 242 GB/s per direction for x16 configurations. The final specification will be released in 2025.

REPORT COVERAGE

The report incorporates a detailed SWOT analysis along with in-depth insights into future developments within the PCI Express market. A very strong research methodology has been employed to create this report, wherein 35% weightage is on primary research in the form of expert interviews and surveys, 45% through secondary research from industry databases and publications, and 20% through expert panel validation for technical review and validation of the forecast. It will have detailed market sizing with historical data (2020-2022), base year estimation (2023), and future projections (2024-2028). The report would also have a deep segregation analysis across PCIe generations and applications. It will elucidate the various market dynamics, including growth drivers, restraints, opportunities, and challenges, with in-depth regional insights and a competitive landscape assessment. The study ensures that intense quality control measures, comprising cross-verification of data layers and referencing data with various other sources, provide reliable insights to stakeholders. Additionally, it provides detailed analysis of technological developments, end-users' preferences, factors of risks, and components of industry ecosystems that can be helpful for making more informed decisions and strategic planning by the business.