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Ethernet Adapter Market Grew 40 Percent in 2022, According to Dell'Oro Group
[March 09, 2023]

Ethernet Adapter Market Grew 40 Percent in 2022, According to Dell'Oro Group


Market Slowdown Expected in 2023 from Inventory Correction and Cloud Digestion

REDWOOD CITY, Calif., March 9, 2023 /PRNewswire/ -- 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 Ethernet Adapter market grew 40 percent in 2022. However, we expect the market to moderate in 2023, as server vendors lower their inventory levels in anticipation of lower enterprise demand, and the major cloud service providers undergo a capex digestion cycle.

"The Ethernet Adapter market achieved record revenue growth in 2022, primarily from the shift of product mix to higher speed ports and higher prices," said Baron Fung, Research Director at Dell'Oro Group. "However, the market is changing rapidly, as the market shifted from a supply-constrained environment to one that is oversupplied with vendors reducing inventory levels. Enterprise demand is expected to slow this year, and we anticipate some major cloud service providers will undergo a server digestion cycle. However, there are opportunities in the market, as server access speeds continue to increae, and broader Smart NIC adoption is expected in 2023," added Fung.



Additional highlights from the 4Q 2022 Ethernet Adapter and Smart NIC report include:

  • The Ethernet Adapter market is forecast for 13 percent revenue growth in 2023.
  • 100 Gbps and higher speed ports could account for nearly half the market in 2023.
  • Smart NIC open vendors such as AMD, Intel, and NVIDIA in a position to capture opportunities in the Cloud and Enterprise markets this year.

About the Report
The Dell'Oro Group Ethernet Adapter and Smart NIC Quarterly Report┬áprovide 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 controllers and adapters. The report also covers Smart NIC controllers and adapters. To purchase this report, please contact us at [email protected].


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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SOURCE Dell'Oro Group


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