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Ethernet adapter market has record quarter at $1.2 bn

According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, the Ethernet controller and adapter market achieved its seventh record-breaking quarter at $1.2 billion in 2Q 2022 despite persistent supply chain challenges. Smart NICs accounted for 12 percent of total Ethernet adapter port shipments, its highest share ever, which added to topline growth.

“The Ethernet Controller and Adapter market grew at an astonishing rate of 61 percent year-over-year in 2Q 2022, comfortably surpassing the prior record set just a quarter ago,” said Baron Fung, Research Director at Dell’Oro Group. “Favorable product mix, list price increases, and higher supply chain costs were all factors that contributed to higher average selling prices. Supply chain constraints were mixed, with adapters still in limited supply due to shortages of board-level components, while server OEMs began to unload controller inventories in some instances,” added Fung.

Additional highlights from the 2Q 2022 Ethernet Adapter and Smart NIC report include:

  • The Ethernet Controller and Adapter market is on track for 45 percent revenue growth in 2022.
  • NVIDIA became the first vendor to report 400 Gbps Ethernet adapter port shipments.
  • Open Smart NIC vendors such as Marvell, NVIDIA, and Napatech accounted for 27 percent of the revenue in 2Q 2022, with Amazon and Microsoft accounting for the balance of the market with their internally developed solutions.

CT Bureau

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