Smart NICs Projected to Capture 23 Percent of the Market

REDWOOD CITY, Calif. – February 13, 2020 – According to a recently published report by Dell’Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, sales of 25 and 100 Gbps Ethernet ports are forecasted to account for 78 percent of the Controller and Adapter market by 2024. Smart NICs are projected to capture 23 percent of the market.

“We are projecting 25 Gbps to gradually replace 10 Gbps as the preferred speed for server network connectivity over the next five years,” said Baron Fung, Director at Dell’Oro Group. “Meanwhile, 100 Gbps is currently deployed for specialized applications, such as accelerated computing, high performance computing, and storage. However, as the Tier 1 Cloud service providers upgrade their networks from NRZ to PAM-4 SerDes interfaces, transitioning server network connectivity to 100 Gbps and beyond is expected to follow. These higher speeds will ramp during the next several years,” continued Fung.

Additional highlights from the Controller and Adapter 5-Year Forecast Report include:

  • The total controller and adapter market is forecasted to grow at a seven percent compound annual rate with 25 and 100 Gbps sales driving most of the growth.
  • The Smart NIC market, which is projected to reach a 25 percent compound annual rate, could offer adapter vendors an opportunity to introduce innovative new products at higher price points. This, in turn, could lower the total cost of ownership in the data center.

About the Reports

The Dell’Oro Group Controller and Adapter 5-Year Forecast Report provides complete, in-depth analysis 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, and 100 Gbps) for Ethernet and Fibre Channel Over Ethernet (FCoE) controllers and adapters. The report also covers Smart NIC and InfiniBand controllers and adapters. To purchase this report, please contact us at dgsales@delloro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions.  For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.

###