The Ethernet controller and adapter market achieved its seventh record-breaking quarter at US$1.2 billion ($1.7 billion) in 2Q 2022 despite persistent supply chain challenges, according to a report by research firm Dell’Oro Group.
Smart NICs accounted for 12% of total Ethernet adapter port shipments—the highest share—which added to growth, Dell’Oro said.
“The Ethernet Controller and Adapter market grew at an astonishing rate of 61% year-over-year in 2Q 2022, comfortably surpassing the prior record set just a quarter ago,” stated Dell’Oro Group research director Baron Fung.
“Favourable product mix, list price increases, and higher supply chain costs were all factors that contributed to higher average selling prices. Supply chain constraints were mixed, with adapters still in limited supply due to shortages of board-level components, while server OEMs began to unload controller inventories in some instances,” explained Fung.
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Additional highlights from the 2Q 2022 Ethernet Adapter and Smart NIC report include:
1. The Ethernet Controller and Adapter market is on track for 45% revenue growth in 2022.
2. Nvidia became the first vendor to report 400Gbps Ethernet adapter port shipments.
3. Open Smart NIC vendors such as Marvell, Nvidia, and Napatech accounted for 27% of the revenue in 2Q 2022 with Amazon and Microsoft accounting for the balance of the market with their internally developed solutions.
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