Ethernet Adapter Shipments Stalled by Supply Constraints in 3Q 2021

“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 Microsof, 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.