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Vendors Reported Initial Shipments of Adapters Based on 56 Gbps PAM-4 SerDes

REDWOOD CITY, Calif. – March 11, 2021 – In a newly published report by Dell’Oro Group, the trusted source for information about the telecommunications and networking industries, Ethernet controller and adapter revenue declined 13 percent quarter-over-quarter as a result of inventory correction in 4Q 2020. Meanwhile, leading vendors, Broadcom, Intel, and Nvidia, have reported initial shipments of adapters based on next-generation 56 Gbps PAM-4 SerDes.

“In 4Q 2020, the market decline was attributed to several cases of inventory correction,” said Baron Fung, Research Director at Dell’Oro Group. “First, the market’s sequential decline was attributed to a large non-reoccurring purchase by Huawei in the prior quarter ahead of the US-imposed sanctions. Second, the Cloud service providers’ high inventory levels compounded by a digestion cycle led to further market contraction. However, we project Cloud spending to return to higher growth this year, which would drive the demand for products 25 Gbps and higher,” added Fung.

Additional highlights from the 4Q 2020 Ethernet Controller and Adapter report include:

  • Total Ethernet controller and adapter port shipments declined 20 percent quarter-over-quarter.
  • Shipments of 100 and 200 Gbps ports forecast to grow 67 percent in 2021, to support the growing demands of accelerated computing and all-flash array storage. Some of these ports will be based on 56 Gbps PAM-4 SerDes.
  • Amazon commanded 60 percent revenue share of the Smart NIC market in 2020. Broadcom led the adapter vendors in Smart NIC revenue, followed by Marvell, Napatech, and Nvidia.

About the Report

The Dell’Oro Group Ethernet Controller and Adapter Quarterly Report provide 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, 100 Gbps) for Ethernet and Fibre Channel Over Ethernet 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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