Amazon and Microsoft Propelled the Smart NIC Market by 51 Percent in 2Q 2021, According to Dell’Oro Group

Dell’Oro Group, the trusted source for information about the telecommunications and networking industries, Amazon and Microsoft propelled the Smart NIC market by 51 percent sequentially in 2Q 2021. The Ethernet Controller and Adapter market achieved record revenue, as vendors proactively increased purchases in anticipation of strong data center demand later this year.

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“Amazon and Microsoft increased their server deployments compared to the prior quarter, which in turn lifted the Smart NIC market,” said Baron Fung, Research Director at Dell’Oro Group. “These two Cloud service providers, which command more than 80 percent of the Smart NIC market by revenue, have scaled their internally developed Smart NICs with their Cloud server deployments. However, we expect the Ethernet adapter vendors, such as Broadcom, Intel, Marvell, and Nvidia, to increase their share of the Smart NIC market with recent product introductions targeted at the Cloud and Enterprise markets,” added Fung.

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Additional highlights from the 2Q 2021 Ethernet Controller and Adapter report include:

• Total Ethernet controller and adapter revenue forecast to grow 5 percent in 2021.
• 25 Gbps port shipments forecast to surpass 10 Gbps port shipments in 2022.
• Major cloud service providers transitioning to 100 Gbps port speeds in conjunction with network upgrades.

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