Ethernet Controller Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Ethernet Controller Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Ethernet Controller Market was valued at USD 9.46 billion in 2021 and is expected to reach USD 14.46 billion by 2027, registering a CAGR of 7.42% during the forecast period (2022-2027).

Key Highlights

• The market studied is driven by the increasing adoption of data centers and cloud computing in the modern digital economy. From scientific discoveries to Artificial Intelligence (AI), modern data centers are crucial to solving some of the world's most critical challenges. These current data centers, like Artificial Intelligence, are transforming to increase networking bandwidth and optimize workloads.
• The increasing data volume heightened the need for Ethernet controllers, thereby driving the growth of the studied market. According to the Ericsson Mobility Report, the decline in data packet charges and increased smartphone usage accelerated data traffic across India. The report estimates that the volume of mobile data traffic is expected to reach over 21 exabytes per month by 2025.
• Furthermore, according to Cisco, 66% of the global population is expected to have Internet access by 2023. The company estimates 5.3 billion total Internet users by 2023. Networked devices are expected to reach 3.6 per capita by 2023, with 29.3 billion networked devices.
• The pandemic heavily impacted Ethernet controllers' global supply chain and manufacturing industry. The industry was riddled with a high deficit and increasing demand, leading to a significant supply chain gap primarily attributed to the COVID-19 pandemic. The initial spread of the virus led to the shutting down or the reduction of capacity utilization of the controller component manufacturing plants. The diminished output led to a global shortage of components as demand increased as opposed to initial estimates by component makers of decreasing across several sectors.
• However, the recent outbreak of the COVID-19 disease posed additional stress on multiple economies across various sectors. This trend shifted the focus toward a digital economy. The new load on data centers is serious. More employees are working from home, increasing video calls and VPN usage. The early 2020 growth in data centers was aligned with governments looking to expand their data center capability; for instance, as per the Chinese government, data centers are new infrastructure with a focus on accelerating the growth of this industry. In the Union Budget for the fiscal year 2022-2023, released in February 2022, the Government of India granted infrastructure status to the data center industry. The decision is anticipated to alleviate the position of India and allow it to compete with global peers in data center infrastructure. The increasing stress on data centers creates new opportunities for applications for ethernet controllers.

Key Market TrendsServers to Hold the Largest Market Share

• Most businesses require data storage, whether for their email, website, or online transactions, and this may be done on a server. Servers are specialized computers linked to a company's local network and, in most cases, the Internet. If a company is small enough, it may decide to keep its servers in-house and run them own. However, as organizations and their demands expand, more servers and storage space are required as more data is generated. A typical data center infrastructure includes many servers, which are powerful computers.
• As servers power data centers and support cloud environments, the server industry is the backbone of innumerable mission-critical and client-side corporate computing operations. As businesses seek to power big data and advanced workload requirements, demand for higher-performing servers continues to climb. With the increasing cloud computation, AI, Big Data, and Data Centers, the demand for servers will also grow significantly; with this growing demand for servers, the demand for Ethernet Controllers will also increase.
• A Baseboard Management Controller (BMC) is responsible for monitoring temperature, voltages, and fans in most modern servers. When something in the system requires an administrator's attention (such as the CPU overheating), the BMC may generally be set to send out notifications (in the form of emails and SNMP alerts).
• Application Device Queues (ADQ), Dynamic Device Personalization (DDP), and support for both iWARP and RoCEv2 Remote Direct Memory Access (RDMA) are included in Intel Ethernet 800 Series controllers, which provide workload-optimized performance and the flexibility to meet changing network requirements. For high-performance server applications, including NFV, storage, HPC-AI, and hybrid cloud, the 800 Series controllers provide speeds up to 100GbE.
• The NetXtreme-E Series BCM57414 50G PCIe 3.0 Ethernet controller is based on Broadcom's scalable 10/25/50/100/200G Ethernet controller architecture and is designed to build highly scalable, feature-rich networking solutions in servers for enterprise and cloud-scale networking and storage applications, such as high-performance computing, telco, machine learning, storage disaggregation, and data analytics.

Asia Pacific to Witness Significant Growth in the Market

• According to Hootsuite, the internet penetration rate in India went up to nearly 45% in 2021, from just about 4% in 2007. Although these figures seem relatively low, they mean that almost half of the population of 1.37 billion will have internet access in 2021. It also ranked the country second in the world regarding active internet users.
• Further, the number of active Internet users in India is expected to rise by 45% from 2020 to 2025 and touch 900 million by 2025 from around 622 million in 2020, according to the Internet and Mobile Association of India. The report defines an active user as someone who has accessed the Internet at least once in the past month. The report said that the increase would be driven by higher adoption in rural India, which has clocked a 13% growth to 299 million internet users over 2019, or 31% of India's rural population.
• According to China Internet Network Information Center, internet users grew to 1,032 million in the fourth quarter of 2021, with an internet penetration of 73%. Furthermore, according to Ookla data, internet users in China could have anticipated the following internet connection speeds at the start of 2022. The average cellular internet connection speed is 96.84 Mbps. The average fixed internet connection speed is 146.62 Mbps. According to Ookla's data, China's median mobile internet connection speed increased by 43.01 Mbps (+79.9 %) in the twelve months to the start of 2022. Such an increase in the broadband speed will increase the demand for the studied market in the region.
• Internet traffic in Japan is steadily growing due to digitization and increased time spent at home during the pandemic. According to International Telecommunication Union, Japan had 117.4 million internet users as of January 2021.
• The Rest of the Asia Pacific regions are Singapore, Indonesia, Thailand, and South Korea. Internet usage in South Korea increased significantly, creating a need for Ethernet. According to Cisco Korea, by 2021, internet usage is expected to reach 7.7 exabytes per month compared to about 3.4 exabytes in 2016. In addition, the growth of IoT and 5G deployed are also playing a significant role in driving the market.
• ·

Competitive Landscape

The Ethernet Controller Market is fragmented in nature due to high competition. Despite the fragmentation, the market is primarily tied to the regulatory requirements for establishment and operation. Further, with increasing innovation, acquisitions, and partnerships, market rivalry tends to rise in the future. Key players are Intel Corporation and Broadcom Inc.

• December 2021 - Marvell announced the industry’s first 802.1AE MACsec integrated dual 1000BT1 and 100BT1 PHYs. The new products aid OEMs in transitioning toward software-defined vehicles, where secure data communication is a critical requirement, extending Marvell’s portfolio in automotive Ethernet PHY. These Ethernet PHY solutions enable energy-efficient, secure in-vehicle networks and assist in achieving functional safety compliance at the system level.
• November 2021 - Broadcom strengthened its commitment to the open compute project by demonstrating a leading-edge and broad range of initiatives at the 2021 Open Compute Project (OCP) Global Summit. Broadcom Ethernet switch and routing chips, Ethernet network adapters, PCIe switches, PAM4 Line card PHYs, and SAS/SATA/NVMe storage solutions were featured in a wide range of OCP designs at the summit.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.