Print Friendly, PDF & Email
follow us in feedly

AI Servers Will Demand Connectivity of 200 Gbps and Higher Speeds

REDWOOD CITY, Calif. – August 1, 2023 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the Smart NIC market will grow at a 42 percent CAGR and exceed $5 Billion in 2027. Connectivity for accelerated servers for AI workloads and next generation hyperscale general-purpose servers will transition to 200 Gbps and higher-speed ports over the next several years.

“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.

About the Reports

The Dell’Oro Group Ethernet Adapter & Smart NIC 5-Year Forecast Report provides a complete, in-depth analysis of the market with tables covering manufacturers’ revenue; average selling prices; and unit and port shipments by speed (1/10/25/40/50/100/200/400 Gbps) for Ethernet controllers and adapters. The report also covers Smart NIC controllers and adapters. To purchase this report, please contact us at

About Dell’Oro Group

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center infrastructure markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell’Oro Group at +1.650.622.9400 or visit