Ethernet PHY Chip Market Size to Hit USD 21.33 Billion by 2032; Growing Need for Low-latency Communications Boost Market Growth | SNS Insider

GlobeNewswire On November 10, 2025 20:00 IST

The U.S. Ethernet PHY Chip Market size was USD 2.93 billion in 2024 and is expected to reach USD 5.66 billion by 2032, growing at a CAGR of 8.62% over the forecast period of 2025–2032.

Austin, Nov. 10, 2025 (GLOBE NEWSWIRE) — Ethernet PHY Chip Market Size & Growth Insights:

According to the SNS Insider,“The Ethernet PHY Chip Market size was valued at USD 10.80 billion in 2024 and is expected to reach USD 21.33 billion by 2032 and grow at a CAGR of 8.91% over 2025-2032.”

Strong investments in next-generation data centers, the construction of high-speed broadband infrastructure, the growing use of automotive ADAS systems with integrated Ethernet PHY chips, and the expansion of industrial automation applications are the main factors driving this growth in the U.S. market.

Rising Deployment of High-Speed Data Centers Across Developed and Emerging Economies Boost Market Expansion

Because of the corresponding demand for high-speed data transfer, the market is expanding quickly due to the growing use of high-speed data centers, especially in developed and emerging countries. Ethernet PHY chips that provide high-speed and low-latency communication capabilities are in increasing demand as a result of enterprises moving to cloud and virtual modes. For physical-layer connectivity, bandwidth delivery, and lossless packet transport inside data centers, they are equipped with Ethernet PHYs. The increasing use of high-speed, low-power communication devices for AI and machine learning processing makes Ethernet PHY an essential component of this growth of the global digital infrastructure.

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Leading Market Players with their Product Listed in this Report are:

Broadcom Inc.
Marvell Technology Inc.
Intel Corporation
Texas Instruments Incorporated
Microchip Technology Inc.
NXP Semiconductors N.V.
STMicroelectronics N.V.
Analog Devices Inc.
Qualcomm Technologies Inc.
Realtek Semiconductor Corp.
Renesas Electronics Corporation
Silicon Labs
MediaTek Inc.
Onsemi (ON Semiconductor)
Maxim Integrated
Infineon Technologies AG
Lattice Semiconductor Corporation
Cirrus Logic Inc.
MACOM Technology Solutions
Microsemi Corporation

Ethernet PHY Chip Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 10.80 Billion
Market Size by 2032	USD 21.33 Billion
CAGR	CAGR of 8.91% From 2025 to 2032
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation	• By Data Rate (10-100Mbps, 100-1000Mbps and Greater than 100 Gaps) • By Device Type (Switches, Automotive, Telecom Equipment, IoT / Consumer Devices, Industrial Automation Hardware and Servers / NICs) • By Integration type (Discrete PHY Chips, Integrated PHY in SoCs and Integrated in ASICs / FPGAs) • By End-User (Automotive, IT and Telecommunications, Consumer Electronics, Industrial and Others)

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Key Industry Segmentation

By Data Rate

Greater than 100 Gbps segment held the top position in the Ethernet PHY Chip Market accounting for the largest revenue share of approximately 48.10%, and is anticipated to grow with the fastest CAGR of 9.08% 2024-2032. The segment’s growth is driven by the growing demand for ultra-fast data rates for new hyperscale data centers, AI/ML computing, and top-tier telecom infrastructure.

By Device Type

Switches segment held the largest revenue contributing for about 35.10% of ethernet PHY chip market share in 2024 due to wide-deployment on enterprise network, data center and cloud infrastructure where stable and high-speed physical-layer connectivity is essential. The IoT / Consumer Devices segment is expected to be the fastest-growing segment with a compound annual growth rate (CAGR) of about 11.47% during 2024-2032. The growth is drive by an increasing need for compact and low-power PHY solutions for smart homes, wearables and other connected electronics.

By Integration Type

In 2024, Discrete PHY Chips segment led the Ethernet PHY Chip Market with maximum revenue share of 56.80% due to its flexibility and adoption in stand-alone networking elements and its versatility in accommodating different Ethernet standards. The Integrated PHY in SoCs segment is anticipated to witness the fastest growth at a CAGR of approximately 9.73% during 2024-2032 due to its growing use in developing miniature SoCs.

By End-User

In 2024, IT and Telecommunications segment generated the maximum revenue share of over 32.70% owing to the continued development of telecom infrastructure, expansion of cloud services, and broad adoption of Ethernet PHY in base stations, data servers, and telecom routers. The automotive segment is anticipated to witness the fastest CAGR of 10.12% over the forecast period of 2024-2032 fueled by the swift adoption of ethernet for ADAS, infotainment, and autonomous driving applications.

Regional Insights:

In 2024, North America has the highest revenue share of around 37.50% on the Ethernet PHY Chip Market, and it will continue to achieve this revenue share during the forecast period. The region’s growth is driven by the advanced infrastructure data centers, early evolution of 5G and strong industrial automation trends are the key contributors to this leadership in the U.S. and Canada.

Asia Pacific is projected to have the highest growth rate, with nearly 8.82% CAGR over 2024-2032. This growth is propelled by the faster digitization of emerging markets, the growing 5G rollout, and the growing demand for smart consumer electronics.

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Recent News:

In June 2025, Broadcom launched its Tomahawk 6 Ethernet switch chip, doubling bandwidth for AI data centers with 102.4 Tbps capacity and energy efficient Ethernet switching.
In June 2025, Marvell’s Alaska C X9340P 1.6T Ethernet PHY (100 G I/O, MACsec and PTP support) further supports 800 GbE links for cloud and 5G environments with improved security and timing features.

Exclusive Sections of the Ethernet PHY Chip Market Report (The USPs):

TECHNOLOGY & PERFORMANCE METRICS – helps you assess how advancements in data rate evolution, latency, and power optimization are shaping Ethernet PHY chip performance, highlighting efficiency gains and suitability for emerging high-speed applications.
PRODUCTION & MANUFACTURING STATISTICS – helps you understand fabrication node utilization, yield benchmarks, and wafer cost trends, providing insights into production scalability and cost optimization across leading foundries.
R&D AND INNOVATION STATISTICS – helps you track R&D investments, patent filings, and innovation cycles, identifying companies leading in PHY chip breakthroughs and next-generation Ethernet technologies.
STANDARDS & COMPLIANCE METRICS – helps you gauge adoption rates of IEEE 802.3 standards, monitor transitions from legacy to advanced PHY standards, and evaluate certification patterns across product categories.
SUPPLY CHAIN & LOGISTICS STATISTICS – helps you identify supplier concentration, logistics bottlenecks, and lead time variations, assisting in understanding potential vulnerabilities and regional sourcing dependencies in the Ethernet PHY ecosystem.

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