Smart NIC Revenue Poised for 30 Percent Growth in 2023

“The Ethernet controller and adapter market achieved strong double-digit growth year-over-year in 3Q 2022,” said Baron Fung, Research Director at Dell’Oro Group. “Vendors are able to command higher prices, which contributed to topline growth. Furthermore, the supply constraints that have limited shipments in the prior quarters have been improving. However, demand is starting to soften in some sectors, with the server vendors reducing inventory levels of certain products,” added Fung.

Additional highlights from the 3Q 2022 Ethernet Adapter and Smart NIC report include:

The Ethernet controller and adapter market is on track for 43 percent revenue growth in 2022.
Ethernet controller and adapter port shipments are expected to decline in 2023 as the market undergoes digestion.
The Smart NIC market is poised for strong growth in 2023, with major vendors AMD, Intel, and NVIDIA in a position to capture opportunities in the Cloud and Enterprise markets.