Gartner Research

Forecast Analysis: Wired Interface Semiconductors, Worldwide

Published: 24 July 2019

ID: G00383995

Analyst(s): Anushree Verma

Summary

The overall revenue for wired interface semiconductors will grow by a 4.1% CAGR to reach $27.01 billion in 2023. Hyperscalers and data centers will account for the major share of the revenue, but connected cars and Industry 4.0 trends will be key revenue drivers during the forecast period.

Table Of Contents
  • Forecast Assumptions
  • Market Impacts
  • Notable Changes

Forecast Data Summary

Forecast Model Summary

Influencing Factors and Assumptions

  • Influencing Factor: Hyperscalers and Data Centers Drive Demand for Increased Connectivity Requirements
    • Forecast Assumption: By 2023, the total number of networking racks in data centers will be 1.33 million units, up from 0.9 million units in 2018.
    • Forecast Assumption: By 2023, the total server installed base in data centers will grow to reach 69.2 million units, up from 58 million units in 2018.
  • Influencing Factor: Increasing “Connectedness” of Automobiles
    • Forecast Assumption: Increasing motivations to reduce the weight of the wire harness within the vehicle will see accelerated adoption of new connectivity technologies, such as in-vehicle Ethernet, through 2025.
    • Forecast Assumption: Through 2023, the penetration of wired interface chips in advanced driver assistance systems (ADAS) will double from 2018.
  • Influencing Factor: Wired Connectivity Is Critical to the Adoption of Industry 4.0 and Smart Factory Applications
    • Forecast Assumption: Ethernet penetration in industrial automation equipment will reach 80% by 2023, up from 62% in 2018.
  • Influencing Factor: NVMe PCIe SSDs Are Accelerating Storage System Performance
    • Forecast Assumption: PCIe SSD unit shipments, fueled by NVMe, will grow twice as fast as SATA SSDs unit shipments in 2019 and reach about 70% of enterprise SSD shipments in 2023.

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