Market Slowdown Expected in 2023 from Inventory Correction and Cloud Digestion

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Update time : 2023-03-10 11:03:53
“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 increase, 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.


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