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Smart NIC market to grow at 42% CAGR and exceed $5 billion in 2027

The Smart NIC market will grow at a 42 percent CAGR and exceed $5 Billion in 2027, according to a recently published report from Dell’Oro Group.

“We recently raised our Smart NIC revenue forecast because of strong adoption among the hyperscale cloud service providers,” said Baron Fung, Research Director at Dell’Oro Group. “An increasing share of the hyperscale servers will be deployed with 200 Gbps and higher speed server facing ports for accelerated computing, and for next-generation general-purpose servers. While the hyperscale cloud service providers mainly deploy their internally developed Smart NIC solutions, some of the major open vendors such as Intel, AMD, and NVIDIA are making progress. Furthermore, there are opportunities for the non-hyperscale market for off-the-shelf Smart NIC solutions, with use cases such as accelerated computing, distributed storage, and network security,” added Fung.

Additional highlights from the July 2023 Ethernet Adapter and Smart NIC 5-Year Forecast Report include:

  • Total Ethernet Controller and Adapter market revenue is forecast to grow 14 percent by 2027.
  • 400 Gbps Ethernet adapter port shipments are expected to account for more than 10 percent of 25 Gbps and higher speed ports by 2027.
  • Smart NICs are expected to cannibalize Standard NICs during our forecast period.


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