A new report from Dell'Oro Group projects 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.
