25/50/100 Gbps Ethernet Controller and Adapter Revenue Accounted for Half of the Market in 2Q 2020, According to Dell’Oro Group

Written by Baron Fung

10 Gbps Controller Port Shipments Slipped Due to Inventory Correction

REDWOOD CITY, Calif. – September 3, 2020 – In a newly published report by Dell’Oro Group, the trusted source for information about the telecommunications and networking industries, 25/50/100 Gbps Ethernet controller and adapter revenue accounted for half of the market in 2Q 2020, gaining 15 share points year-over-year. Meanwhile, shipments of 10 Gbps controller ports declined after a build-up of inventory in the prior two quarters.

“Shipment of 25 Gbps and 50 Gbps ports grew double-digits quarter-over-quarter as the Tier 1 and 2 Cloud service providers added server capacity to meet a surge of demand for Cloud services stemming from the pandemic. Adoption of 100 Gbps for server connectivity continues to rise to meet the growing demands of high-performance computing and AI,” said Baron Fung, Research Director at Dell’Oro Group. “However, shipments of 25/50/100 Gpbs ports are expected to ease in the second half of the year as inventories for components and Cloud capacity have been on the rise,” added Fung.

Additional highlights from the 2Q 2020 Controller and Adapter report include:

  • Total controller and adapter port shipments decreased ten percent quarter-over-quarter, with growth weighed down by the inventory correction of 10 Gbps ports.
  • Microsoft, Google, and Facebook accounted for 91 percent of the 50 Gbps controller and adapter port shipments.
  • Amazon commanded 70 percent revenue share of the Smart NIC market in 2Q 2020. Broadcom led all adapter vendors with a 16 percent revenue share.

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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About the Author

Baron Fung

Vice President

Baron Fung joined Dell’Oro Group in 2017 and is responsible for Data Center IT Capex, and Semiconductors & Components research programs. Since joining the firm, Mr. Fung has significantly expanded our coverage on data center infrastructure, with an emphasis in

Baron Fung

Vice President

Baron Fung joined Dell’Oro Group in 2017 and is responsible for Data Center IT Capex, and Semiconductors & Components research programs. Since joining the firm, Mr. Fung has significantly expanded our coverage on data center infrastructure, with an emphasis in

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