The total addressable market for PCI Express (PCIe) technology is expected to grow at a CAGR of 14% from 2022 to 2027 in high growth verticals including data centers, edge, telcos, AI, automotive, mobile devices and wearables, according to a new report from ABI Research and PCI-SIG. The report analyzed all generations of PCIe technology currently in the marketplace and the impact of the upcoming PCIe 7.0 specification, which is targeted for release in 2025. PCI-SIG recently published the PCIe 7.0 specification, version 0.3 to its members, achieving the first milestone of specification development.
Key highlights from the report:
- Automotive and network edge verticals projecting the highest growth opportunities for PCIe technology, with total addressable market (TAM) and compound annual growth rates (CAGRs) of 53% and 38%, respectively, over the forecast period.
- The automotive industry can extract significant value from widespread PCIe technology adoption, as it enables the consolidation of Electrical/Electronic (E/E) domains, as well as helping systems overcome safety and efficiency challenges within mission-critical applications for autonomous vehicles.
- High-performance applications such as data centers will contribute to sustained long -term demand for new PCIe technology deployment. In addition to performance, other critical drivers of PCIe technology adoption are power efficiency, security and “time-to-value”.
- The low power feature (L0p) of PCIe 6.0 specification will be a major driver of deployment, as power efficiency becomes a central strategy for adopters with a closer focus on sustainability and lowering operational costs.
- AI industry adoption will be high, as PCIe technology offers decision makers agility through forwards and backwards compatibility, improving time-to-value and lowering deployment risk.
- Complex Open Radio Access Network (Open RAN or ORAN) workloads will lead to sustained demand for PCIe technology, as heterogeneous hardware becomes ubiquitous.
- PCIe technology will perform well in the mobile devices vertical, as the quick pace of market innovation will necessitate a discrete component interconnect.
“PCI Express technology leads the industry as a foundational I/O interconnect and can be found in everything from automobiles to data center servers,” said PCI-SIG President Al Yanes. “This report is proof positive that the future of PCIe technology is bright. As PCIe architecture speed increases, we will continue to expand our traditional verticals while expanding into exciting new verticals to meet the demand for a high-bandwidth, low-latency interconnect.”
