Protocol Analyser Market Is Estimated To Witness High Growth Owing To Rising Demand From Semiconductor and Electronics Industry

The Protocol Analyzer Market is estimated to be valued at US$ 4.12 Bn in 2024 and is expected to exhibit a CAGR of 12.4% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

The growth of the global Protocol Analyzer market is driven by the rising demand for protocol analyzers from the semiconductor and electronics industry. Protocol analyzers help in debugging, testing and validating communication interfaces and bus structures. They are widely used during the development of chips, communication controllers, embedded systems and Internet of Things (IoT) devices. Thus, the rapid growth in the semiconductor industry globally is fueling the demand for protocol analyzers. Moreover, growing complexity of communication protocols used in various industrial applications such as wireless technologies, USB, camera links etc. has increased the need for test and measurement of these protocols. This growing complexity of communication standards is also contributing to the market growth.

Key Market Trends: Protocol analyzer migration to cloud and virtualization – Vendors are focusing on developing cloud-based protocol analyzers to analyze protocols over virtual networks. Cloud-based protocol analysis helps in remote monitoring and analysis of networks from any location.

Increasing adoption of wireless protocol analysis- With the proliferation of wireless technologies, there is growing demand for wireless protocol analyzers. Vendors are developing specialized wireless protocol analyzers for applications in Wi-Fi, Bluetooth, Zigbee etc. The ability of wireless protocol analyzers to troubleshoot issues in wireless networks without interfering with the network is driving their adoption. More coverage can be found in the sample copy.

Protocol Analyzer Market Opportunities: The protocol analyzer market by type is segmented into hardware-based, software-based, and service protocol analyzers. Hardware-based protocol analyzers held the largest market share in 2024 and are expected to continue their dominance during the forecast period. Hardware protocol analyzers provide advanced testing capabilities that help debug, monitor, and analyze complex network traffic in real-time. Their ability to decode multiple protocols simultaneously and support high-speed interfaces driving their adoption across industries.

The protocol analyzer market by end-user is segmented into banking, financial services, and insurance, manufacturing, government, and others. The manufacturing segment is expected to hold the dominant position owing to increasing deployment of IIoT technologies in the sector. Protocol analyzers help manufacturing companies test and troubleshoot IIoT connectivity and communications issues for seamless plant operations. Their network visibility capabilities aid in rapid fault detection, reducing downtime.

Key Market Takeaways: The protocol analyzer market is anticipated to witness a CAGR of 12.4% during the forecast period 2024-2031, owing to the rising need for network performance monitoring tools across sectors. On the basis of type, the hardware-based protocol analyzers segment is expected to hold a dominant position, owing to their advanced testing and decoding capabilities for complex networks.

On the basis of end-user, the manufacturing segment is expected to hold the dominant position over the forecast period, due to increasing use of IIoT and need to ensure robust industrial communications.

By region, North America is expected to hold the dominant position over the forecast period, due to high technological adoption and presence of leading protocol analyzer vendors in the region.

Competitor Insights: Keysight Technologies, Wireshark, The Tektronix Company, Anritsu Corporation, Rohde & Schwarz, Spirent Communications, Xplorer, Ixia

Recent Developments in Protocol Analyser Market

In 2023-2024, the demand for advanced protocol analyzers is expected to continue rising as networks expand in scale and complexity. According to a recent report by Industry Analysts, the global protocol analyzer market size is projected to grow at a CAGR of over 7% during this period, reaching a value of $3.5 billion. This growth is being driven by the need for solutions that can reliably capture packets across diverse environments, quickly filter relevant data, and provide deep protocol decoding and analysis.

The global protocol analyser market has witnessed significant growth over the past few years owing to increasing adoption across various industry verticals such as automotive, telecommunication, healthcare, and electronics. Advancements in wired and wireless communication technologies have fueled the demand for protocol analysers for network monitoring, debugging, and testing purposes. The protocol analyser market is projected to grow at a steady pace during the forecast period from 2023 to 2024. Full coverage of the report available here.