Ethernet Adapter Shipments Stalled by Supply Constraints in 3Q 2021, According to Dell'Oro Group

Smart NIC Revenue Forecast for 55 Percent Growth in 2022

News provided by

Dec 07, 2021, 08:00 ET

REDWOOD CITY, Calif., Dec. 7, 2021 /PRNewswire/ -- In a newly published report by Dell'Oro Group, the trusted source for information about the telecommunications and networking industries, Ethernet adapter shipments were stalled by supply constraints in 3Q. Ethernet adapter shipments are forecast to return to double-digit growth in 2022, as supply restrictions ease, and as Smart NICs create growth opportunities.

"Ethernet adapter port shipments declined seven percent year-over-year in 3Q 2021, as vendors faced various component sourcing challenges, with lead-times extending beyond 52 weeks in some extreme cases," said Baron Fung, Research Director at Dell'Oro Group. "In contrast, Ethernet controller shipments have approached record levels, as we believe server vendors are increasing their inventories of controllers in anticipation of stronger cloud and enterprise demand ahead," added Fung.

Additional highlights from the 3Q 2021 Ethernet Controller and Adapter report include:

Total Ethernet controller and adapter revenue forecast to grow 27 percent in 2021.
Major cloud service providers are upgrading server connectivity to 100 and 200 Gbps port speeds in conjunction with network upgrades.
Smart NICs developed internally by cloud service providers, such as Amazon and Microsoft, for their data centers have accounted for the majority of the shipments. Vendors such as Marvell and Nvidia, are expected to increase their share in 2022 as customer qualifications make progress.

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, 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.

SOURCE Dell'Oro Group