Smart NIC market to approach $2 billion by 2027

According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, we predict the Smart NIC market to reach $2 Billion in 2027. Server network connectivity will transition to higher speeds, with 200 Gbps and higher-speed ports accounting for 44 percent of the revenue in five years.

“Despite recent supply chain and near-term market demand challenges, we predict Ethernet adapter revenues to grow double-digits over the next five years,” said Baron Fung, Research Director at Dell’Oro Group. “Price of Ethernet adapter ports will increase over time, as a result of hyperscale migration to server port speeds of 200 Gbps to connect to next generation networks. Furthermore, we expect Smart NIC adoption outside of the hyperscale data center to lead to revenue growth opportunities for vendors,” added Fung.

Additional highlights from the Ethernet Adapter and Smart NIC 5-Year January 2023 forecast report include:

• Total Ethernet Controller and Adapter market revenue is forecast to grow 13 percent by 2027.
• 100 Gbps expected to surpass 25 Gbps in port shipments as the mainstream server port speed by 2027.
• Smart NIC opportunities for the hyperscale and non-hyperscale markets could reach parity by 2027.

CT Bureau