The global SerDes market is projected to show steady growth during the forecast period.
SERDES, an acronym for Serializer/Deserializer, refers to a microchip that functions as a mediator between parallel data and serial data. Its role involves compressing the information through serialization and then decompressing it through deserialization at the receiving end.
SerDes plays a vital role in numerous devices by facilitating efficient data transmission between chips or over cables. They are frequently employed in high-speed communication systems to send data over a single line or a differential pair. They are utilized in computer networking, data center interconnects, mobile devices, and consumer electronics. The surge in the adoption of 5G networks, advancements in miniaturization and power-efficient electronic devices, and the growing adoption of advanced driver assistance system (ADAS) systems are driving the SerDes market growth.
5G offers much faster data transfer rates than older generations of cellular networks, requiring efficient technologies to handle high speeds. SerDes chips are essential in this process, as they facilitate the conversion of parallel data streams to serial data streams at high speeds.
For Instance, according to the Ericsson mobility report published in November 2023, Ericsson forecasts that close to one-fifth of global mobile subscriptions will consist of 5G subscriptions by the end of 2023, demonstrating robust expansion despite persistent economic challenges and geopolitical uncertainties in specific areas. The Ericsson is, projecting a total of 610 million new 5G subscriptions for the year 2023. That results in 63 percent growth compared to 2022, resulting in a worldwide total of 1.6 billion subscriptions, exceeding the previous prediction by approximately 100 million.
The SerDes market is being influenced by the increasing demand for miniaturization and power efficiency, which are essential trends. These trends are primarily driven by the shrinking size of electronic devices and the growing need for sustainable solutions.
According to a Synopsys-published article in January 2024 on embedded USB2.0 Physical Layer IP, which is an intellectual property (IP) core enabling the integration of USB 2.0 functionality. the 10G SerDes IP and eUSB2 IP, proven in silicon, are paving the way for low-power technologies in Samsung's 3nm process node. These IPs are tailored for low-power applications to meet the increasing need for energy-efficient devices in the consumer electronics sector. The seamless integration with Samsung's advanced chipmaking technology highlights advancements in miniaturization and the potential for enhanced power efficiency in upcoming devices.
ADAS, such as automatic emergency braking, lane departure warning, and adaptive cruise control, have been proven to significantly decrease the number of road accidents and fatalities. This safety advantage is a key factor for consumers when making purchasing decisions and is a top priority for car manufacturers.
For instance, according to a report published in ADAS and Autonomous Vehicle International in May 2023, Volvo has incorporated a variety of safe space technology features in its newest EX30 compact SUV to enhance safety for both passengers and pedestrians. One technology available is a door-opening alert designed to minimize 'dooring accidents', which happen when a door is opened in the way of a cyclist in motion. This system offers both audio and visual signals to alert the occupants that they are on the verge of opening the door in front of a cyclist or another road user.
North America is anticipated to account for a significant share of the global SerDes market due to an increase in investment and installation of data centers in the region. For Instance, According to JLL's published article in February 2024, in 2023, although there was a high demand, limited supply caused a shift in power towards providers. During the latter part of 2023, the main data center markets in North America experienced a surge in demand along with a shortage of power, resulting in extremely limited availability and an increase in preleasing, and 5341 data centers were constructed during the period of 2023.
For instance, in November 2023, Microsoft allocated $500 million to expand its hyperscale cloud computing and AI infrastructure in Quebec within the next two years. The initiative will result in a 750 percent growth in Microsoft's local cloud infrastructure presence throughout Canada.
Rigorous testing procedures and advanced signal integrity techniques are essential in ensuring reliable performance for high-speed data transmission with SerDes. The complexity of designing SerDes for constantly increasing data rates demands specialized expertise.
Skilled professionals specializing in high-speed signal processing and related fields are essential for the successful development, execution, and upkeep of SerDes solutions. Without these experts, the expansion of the SerDes market may face obstacles.