Record Volumes of 10 Gbps and 25 Gbps Port Shipments

REDWOOD CITY, Calif. – December 3, 2019 – In a newly published report by Dell’Oro Group, the trusted source for information about the telecommunications and networking industries, the Ethernet controller and adapter market achieved a record $515 million in 3Q 2019. This high revenue level was driven by record volumes of 10 Gbps and 25 Gbps port shipments.

“Shipments of 10 Gbps controllers and adapters were elevated compared to typical run-rates, and is not reflective of the slower growth of the Enterprise server market in 3Q 2019,” said Baron Fung, Director at Dell’Oro Group. “We expect that this growth is not sustainable and that some inventory build-up may be developing in anticipation of potential supply chain disruptions for certain Chinese server vendors. Meanwhile, inspite of the slow-down in the server market, 25 Gbps port shipments have been growing for 14 consecutive quarters, as both the general cloud and high-end enterprise segments continue to embrace the shift to 25 Gbps,” added Fung.

Additional highlights from the Controller and Adapter 3Q 2019 quarterly report include:

  • Total controller and adapter port shipments increased 12 percent quarter-over-quarter in 3Q 2019.
  • 50 Gbps port shipments grew 60 percent quarter-over-quarter driven mainly by Microsoft’s recent adoption of 50 Gbps.
  • Amazon still commands more than 94 percent share of the Smart NIC market based on ports shipped in 3Q 2019, although Broadcom and Mellanox gained share year-over-year.

About the Report

The Dell’Oro Group Controller and Adapter Quarterly Report provides complete, 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, 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.

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