Ethernet adapter market exceeds $1B for third consecutive quarter: Dell’Oro

Dec. 6, 2022
Meanwhile, the industry analyst reports that revenue in the Smart NIC segment is poised for 30% growth in 2023.

According to a recently published report by Dell’Oro Group, the Ethernet controller and adapter market has surpassed $1 billion for the third consecutive quarter.

The market's shift of product mix to higher speed ports and rising prices drove recent revenue growth, said the analyst firm.

Dell'Oro's 3Q 2022 Ethernet Adapter and Smart NIC report projects that the Ethernet controller and adapter market is on track for 43 percent revenue growth in 2022.

However, the analyst suggests that Ethernet controller and adapter port shipments are expected to decline in 2023 as "the market undergoes digestion."

Meanwhile, Dell'Oro states that the Smart NIC market is poised for strong growth in 2023, with major vendors AMD, Intel, and NVIDIA in a position to capture opportunities in the cloud and enterprise markets.

Baron Fung, research director at Dell’Oro Group, commented:

“The Ethernet controller and adapter market achieved strong double-digit growth year-over-year in 3Q 2022. Vendors are able to command higher prices, which contributed to topline growth. Furthermore, the supply constraints that have limited shipments in the prior quarters have been improving. However, demand is starting to soften in some sectors, with the server vendors reducing inventory levels of certain products."

The Dell’Oro Group Ethernet Adapter and Smart NIC Quarterly Report provides in-depth coverage of the market with tables covering manufacturers’ revenue; average selling prices; and unit and port shipments by speed (1 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps, 100 Gbps, and 200 Gbps) for Ethernet controllers and adapters. The report also covers Smart NIC controllers and adapters.

Learn more about the report.

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