A newly published report from Linley Group anticipates 20 per cent growth in the market for wired communication semiconductors during 2010.
The study looks at the likely trends shaping demand for communication semiconductors between 2009 and 2014.
Deployment of large-scale data centres capable of transmitting information at rates of up to 100 Gbps are expected to help drive growth.
This is as part of the move towards cloud computing infrastructure and distributed, scalable networks.
Meanwhile, the analyst predicts that network processors will remain among the most significant areas of the segment, achieving compound annual growth at 11 per cent.
Joseph Byrne, senior analyst at the group, says: "We anticipate a strong recovery this year and potential for modest growth in 2011 and thereafter."
In a previous study, the analyst expected change in the market for interconnects for high-speed networking, due to the emerging demands of data centres, storage and computing systems.