Smart NIC market to grow 42% through 2027

Aug. 1, 2023
A new Dell’Oro Group reveals that AI servers will drive demand for 200 Gbps and higher speeds through the next five years.

Driven by emerging bandwidth needs from AI workloads and next-gen hyperscale general-purpose servers, Dell’Oro forecasts the Smart network interface controller (NIC) market to grow at a 42 percent CAGR and exceed $5 billion in 2027.

Dell’Oro said in a recent report that connectivity for accelerated servers for AI workloads and next-generation hyperscale general-purpose servers will transition to 200 Gbps and higher-speed ports over the next several years.

The research firm noted that total Ethernet Controller and Adapter market revenue is forecast to grow 14 percent by 2027. Specifically, 400 Gbps Ethernet adapter port shipments are expected to account for more than 10 percent of 25 Gbps and higher speed ports by 2027.

A SmartNIC is a dedicated piece of hardware that can accelerate networkingstorage, and security functions. Also, these devices can perform virtualization, load balancing, and data path optimization. During the forecast period, Dell’Oro said that Smart NICs are expected to cannibalize Standard NICs.

“We recently raised our Smart NIC revenue forecast because of strong adoption among the hyperscale cloud service providers,” said Baron Fung, research director at Dell’Oro Group. “An increasing share of the hyperscale servers will be deployed with 200 Gbps and higher speed server-facing ports for accelerated computing and for next-generation general-purpose servers.”

Fung added that various shifts are taking place in the hyperscale cloud market. “While the hyperscale cloud service providers mainly deploy their internally developed Smart NIC solutions, some of the major open vendors such as Intel, AMD, and NVIDIA are making progress,” he said. “Furthermore, there are opportunities for the non-hyperscale market for off-the-shelf Smart NIC solutions, with use cases such as accelerated computing, distributed storage, and network security.”

For related articles, visit the Optical Tech Topic Center.

For more information on optical components and suppliers, visit the Lightwave Buyer’s Guide.

To stay abreast of optical communications technology, subscribe to Lightwave’s Enabling Technologies Newsletter.

About the Author

Sean Buckley

Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.

Sponsored Recommendations

Balanced vs. Unbalanced PON: Key Differences and Deployment Impact

Nov. 7, 2023
Learn how to choose the right PON architecture for your network.

New Optical Wavelength Service Trends

July 1, 2024
Discover how optical wavelength services are reshaping the telecom landscape, driven by rapid expansion and adoption of high-speed connections exceeding 100 Gbps, championed by...

ON TOPIC: Innovation in Optical Components

July 2, 2024
Lightwave’s latest on-topic eBook, sponsored by Anritsu, will address innovation in optical components. The eBook looks at various topics, including PCIe (Peripheral...

Supporting 5G with Fiber

April 12, 2023
Network operators continue their 5G coverage expansion – which means they also continue to roll out fiber to support such initiatives. The articles in this Lightwave On ...