SerDes for Automotive Market Size, Share, Growth, and Industry Analysis, By Type (16 Bit and Less, 16 to 32 Bit & Above 32 Bit), By Application (Passenger Cars & Commercial Vehicle) and Regional Forecast to 2035

SERDES FOR AUTOMOTIVE MARKET REPORT OVERVIEW

The global SerDes for Automotive Market size estimated at USD 211.34 million in 2026 and is projected to reach USD 488.24 million by 2035, growing at a CAGR of 8.6% from 2026 to 2035.

SerDes in this industry is one of the key technologies due to which communication needs in high-speed data within vehicles can be met. Whereas personal computers became standardised in terms of data transmission at a relatively early stage and thus could be connected to conventional telephone networks, automobiles are becoming filigreed, with ADAS, HD displays, and numerous sensors generating gigabytes of data, which has to be transferred rapidly. SerDes solutions combat this by parallelising the data to be transmitted to serial data over a single wire or differential pair and then back again into parallel on the other end. This reduces the number of wires necessary and saves space and weight, as well as reduces electromagnetic crosstalk interferences. Those automotive SerDes must require reliability, safety, and electromagnetic compatibility (EMC) besides the usual synchronous and asynchronous environments in the automotive system.

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COVID-19 IMPACT

"Market Growth Restrained due to Decrease in Vehicle Demand"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

There are several negative effects faced due to the COVID-19 pandemic in this market. The first outbreak of the virus and the related restrictions, as well as general economic instability, contributed to the first decrease in vehicle demand and manufacturing across the world. This directly lowered the demand for automotive parts that such SerDes solutions were a part of. Secondly, COVID brought about disruptions to global supply chains due to factory shutdowns, closed borders, and other factors. These led to production and delivery hiccups of SerDes chips that affected automaker’s ability to manufacture automobiles. In addition, the recession implied less money being put into research for this type of automotive SerDes technology, which might have stagnated progress in automotive SerDes.

LATEST TRENDS

"Higher Data Rates for Graphics to Propel the Market Growth"

There are a number of significant trends that are ripe in this market today. One of the most conspicuous is the growing need for higher bandwidths and higher data rates for graphics, camera systems, surround view, and self-driving technology. This is making delivery of SerDes solutions that are multi-gigabit to enable the transmission with several gigabits per second. Another trend is the increasing concern about the functional safety and reliability, especially in safety-relevant systems such as ADAS. This is causing SerDes solutions to be designed with in-built safety features and also an adherence to the ASIL-B level automotive safety standard regulation ISO 26262.

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SERDES FOR AUTOMOTIVE MARKET SEGMENTATION

By Type

Based on type the market can be categorized into 16 Bit and Less, 16 to 32 Bit & Above 32 Bit

• 16 Bit and Less: This segment provides solutions that have lower bandwidth consumption as compared to the segments mentioned above. Custom applications include simple sensor connections, low-pixel panel interaction, and simple controls within a car. Typically, SerDes solutions for applications of this classification are cheaper and more power-efficient in comparison with higher bit-width SerDes designs.

• 16 to 32 Bit: This segment is a rather moderate one, as balancing between performance and costs is its main characteristic. It covers a broad spectrum of automotive use cases, including standard definition displays, multiple sensor interfaces, and some of the foundational layers of ADAS. SerDes solutions in this category should be sufficient to provide the bandwidth necessary for most of the conventional in-vehicle communication requirements.

• Above 32 Bit: This segment is intended for applications requiring transmission capacity of very high data rates. This encompasses high-resolution screens, surround view cameras, autonomous driving solutions, and high-bandwidth, intra-ECU communications. Serialisation solutions in this category have the best performance characteristics but cost more and can be more power-hungry.

By Downstream Industry 

Based on application the market can be categorized into Passenger Cars & Commercial Vehicle

• Passenger Cars: This segment holds the largest proportion of the automotive SerDes market since car manufacturing of passenger cars is high globally. Some of the uses of this technology in passenger automobiles are information display and entertainment systems with HD screens, safety and driver convenience systems such as ADAS with more than one camera and sensor, and vehicle networks or backbones for different control elements. Scaling SerDes interfaces at high data rates is required for features such as surround view monitoring systems, automated parking, and infotainment systems with streaming capabilities, among others.

• Commercial Vehicles: This segment encompasses trucking, busing, vaning, and other forms of heavy transport that include the provision of cargoes. Examples in the commercial vehicles are tracking and monitoring systems for the commercial automobile fleet, driver behaviour monitoring systems for security, and other pertinent safety aspects to include the lane change warning and adaptive speed control system. Resistance to wear and tear as well as high endurance are mandatory attributes in this segment since the operational environment is extremely aggressive, and the overall service life of the commercial vehicles is low.

MARKET DYNAMICS

Market Dynamics Include Driving and Restraining Factors, Opportunities and Challenges Stating the Market Conditions.

Driving Factors

"Increasing Adoption of Advanced Driver-Assistance Systems (ADAS) to Expand the Market"

One of the key driving factors of SerDes for Automotive Market growth is the Increasing Adoption of Advanced Driver-Assistance Systems (ADAS). ADAS features include the ones discussed below, which are already evident in today’s automobiles. Some of the most common ADAS features are explained below. These systems use numerous types of sensors, such as cameras, radar, and lidar, to feel the environment around a vehicle. The information that is sensed by these sensors requires long-haul transmission to processing units for instant analysis and decision-making. The ADAS systems make use of the SerDes technology to support this high-speed data communication.

"Growth in In-Vehicle Infotainment and Connectivity to Advance the Market"

In particular, contemporary cars are evolving amenities and sources of entertainment and information with high-resolution and rich-functioned electro technological displays, improved sound systems, and interface compatibility with outer appliances and the Internet with no flaws. This is enhancing the need for high-bandwidth SerDes solutions to support features such as high-definition video streaming, multiple display connections, and fast data transfer for connected car services.

Restraining Factor

"High Cost to Pose Potential Impediments on this Market"

The high cost of engaging and implementing sophisticated SerDes technologies, especially for high bandwidth, is one of the major reasons that has been greatly restraining the SerDes for Automotive Market share. With the need to achieve higher data rates necessary for 4K displays, multi-sensor fusion for autonomous driving, and high-bandwidth ECU communication connectivity, SerDes solutions become more complex and costly. Such costs would include the cost of the SerDes chips incorporated into the transceivers as well as other components such as connectors, cables, and printed circuit boards to accommodate the higher signalling rates.

Opportunity

"Zonal and Central Architectures to Create Opportunity in this Market"

One potential for this market is the continuous transition of vehicle architectures toward zonal and central ones. Conventional architectures in automobile E/E architectures have many ECUs distributed around the vehicle; they are interconnected through point-to-point wiring harnesses. This causes the forming of complicated and massive wiring harnesses that are likely to raise vehicle weight and cost. Zonal architectures, in contrast, categorise ECUs according to their location or their task, and in each category, there is exactly one Central Processing Unit.

Challenge

"Electromagnetic Compatibility to Pose Potential Challenge for this Market"

One of the hurdles encountered by this market is designing for electromagnetic compatibility (EMC) and signal integrity as many automotive electronic systems become more complex and faster. With data rates increasing and mounting numbers of devices inside the vehicle, the problem of EMI and signal attenuation grows larger. Automotive environments are generally characterised by a high degree of noise, as this is suggested by other electrical and electronics systems working within the automotive environment, producing electromagnetic interference. Multigigabit SerDes links have one of the biggest susceptibilities to the influence of EMI that can result in data distortion and loss, signal dropout, and even system failures.

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SERDES FOR AUTOMOTIVE MARKET REGIONAL INSIGHTS

North America

The automotive lightweight materials market is expected to grow at a fast pace in the region, North America, because of key automotive original equipment manufacturers (OEMs), technology entities, and research organisations here. The region is known for its commitment to continued development of novel automotive technologies such as ADAS, autonomous driving, and connectivity. This leads to an increased need for high-speed SerDes in order to satisfy the bandwidth-hungry applications of such systems. Secondly, in the United States SerDes for Automotive Market is highly saturated in terms of the penetration of luxury and high-end cars with sophisticated infotainment systems and connectivity technology that require SerDes. The automobile regulatory developments that currently address vehicle safety and fuel consumption also drive the adoption of the technologies that use SerDes, including the car safety systems and electric vehicles.

Europe

Europe is a dominant force in this market owing to a robust automotive industry in the region and stringent policies related to car safety and superior product development. European OEMs have always paid heightened attention to the safety of vehicles and have been among the first to incorporate ADAS features, which in turn, proacts demand for high-performance and reliable SerDes solutions. It also has a very mature environmental consciousness, which causes the use of electric and related automotive technologies that needed efficient data exchange. In addition, Europe has first-line semiconductor manufacturers and development centres that bring SerDes technology closer to growth.

Asia

Automotive SerDes is a dynamic market in Asia due to the increasing automotive market of emerging economies such as China, Japan, and South Korea. They are leading automobile producers and know persistent growth in demand for sophisticated components such as ADAS, infotainment, and connectivity systems. As one of the fastest-growing markets and an important market in the automotive industry, China has been moving actively toward adopting new automotive technologies that bode well for the SerDes market.

KEY INDUSTRY PLAYERS

"Key Players Transforming the SerDes for Automotive Market through Technological Innovations"

Several factors within this market are managed at various levels by key industrial players. And semiconductor vendors are also more proactive in this market; main chip vendors like Texas Instruments, Analogue Devices, and Maxim Integrated are more involved, designing and manufacturing the SerDes chips themselves. Their technological innovations in signalling speed, power management, and functional safety apply to the enhancement of SerDes solutions offered to automotive original equipment manufacturers. A key role is performed by automotive OEMs because they define the requirements for SerDes for their cars; global car makers such as Volkswagen, Toyota, and GM. The need for certain features, high performance, and adherence to automotive specifications leads the SerDes technology roadmap.

List of Market Players Profiled

• Texas Instruments (U.S.)
• Maxim Integrated (U.S.)
• NXP (Netherlands)
• ON Semiconductor (U.S.)
• ROHM Semiconductor (Japan)

INDUSTRIAL DEVELOPMENT

July 2024: In July 2024, Faraday Technology, a leading ASIC design service and IP provider, released the company’s SerDes IP design on uMC 28nm and the related IPA service. Employing UMC’s 28nm process technology enables both high performance and low power consumption as well as low cost, which is important in automotive systems. To make it possible for other companies to adopt their tested SerDes technology into their chips and SoCs, Faraday considers SerDes IP (Intellectual Property) that assist in enhancing the velocity of development and diminishing on-chip design risks.

REPORT COVERAGE

This report is based on historical analysis and forecast calculation that aims to help readers get a comprehensive understanding of the global SerDes for Automotive Market from multiple angles, which also provides sufficient support to readers’ strategy and decision-making. Also, this study comprises a comprehensive analysis of SWOT and provides insights for future developments within the market. It examines varied factors that contribute to the growth of the market by discovering the dynamic categories and potential areas of innovation whose applications may influence its trajectory in the upcoming years. This analysis encompasses both recent trends and historical turning points into consideration, providing a holistic understanding of the market’s competitors and identifying capable areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.