Server Refresh and Cloud Expansion Expected to Drive Demand Later in the Year
REDWOOD CITY, Calif. – June 10, 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 grew 6 percent quarter-over-quarter in 1Q 2021 as inventory correction from the prior quarter eases. We project the server refresh and cloud expansion to drive higher demand later this year.
“In light of the tightening global semiconductor supply chain, we believe server vendors are proactively increasing inventory levels of Ethernet controllers and adapters in anticipation of higher demand later this year,” said Baron Fung, Research Director at Dell’Oro Group. “As a result, shipments of 10 and 25 Gbps ports grew moderately. Meanwhile, we observed strong momentum for 100 Gbps ports, as the Tier 1 Cloud service providers adopt higher speed ports following data center networking upgrades, and to support the growing demands of accelerated computing and all-flash array storage across the industry,” added Fung.
Additional highlights from the 1Q 2021 Ethernet Controller and Adapter report include:
- Total Ethernet controller and adapter revenue forecast to grow 4 percent in 2021.
- Next-generation adapters with 200 Gbps connectivity are starting to ramp.
- Amazon and Microsoft accounted for 90 percent of the Smart NIC port shipments in 1Q 2021. Other leading Smart NIC vendors reported include Broadcom, Marvell, Napatech, and Nvidia.
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, and 200 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.
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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