Back-end Ethernet Server Connectivity for AI Will Become Dominant Market Driver
REDWOOD CITY, Calif. – August 1, 2024 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, we project the Ethernet Adapter and Smart NIC market to exceed $16 billion by 2028. We raised our market outlook significantly because of strong requirements for back-end Ethernet server connectivity to support the scale out of AI server clusters.
“The advent of generative AI applications is driving the demand to interconnect accelerated servers with a back-end Ethernet network necessary for the training of large language models. This is a new market opportunity for Ethernet adapters, with significantly higher growth compared to the traditional front-end Ethernet adapter market”, said Baron Fung, Senior Research Director at Dell’Oro Group. “While the back-end network market today is predominantly InfiniBand-based today, Ethernet-based solutions are forecast for broad adoption as customers seek a multi-vendor solution,” added Fung.
Additional highlights from the Ethernet Adapter and Smart NIC 5-Year July 2024 Forecast Report:
- The total Ethernet Adapter and Smart NIC market, which includes server connectivity for both front-end and back-end networks, is projected to grow at a 27 percent compound annual growth rate by 2028.
- Server access speed for back-end networks will be at least one generation ahead compared to that of front-end networks to maintain pace with compressed GPU accelerator roadmaps.
- Smart NICs, which include DPUs and IPUs, are positioned for high growth to support the strong demands of back-end Ethernet-based networks.
The Dell’Oro Group Ethernet Adapter & Smart NIC 5-Year Forecast report provides a complete, in-depth analysis of the market with tables covering manufacturers’ revenue; average selling prices; and unit and port shipments by speed (1/10/25/40/50/100/200/400/800 Gbps) for Ethernet controllers and adapters. The report also covers Smart NIC controllers and adapters. To purchase this report, please contact us at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
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