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Ethernet Adapter Market Expected to Reach $16.30 Billion by 2027

 

quote The 100 GbE Ethernet adapters are estimated to be increasingly deployed by enterprises and cloud service providers that operate high-performance computing clusters. Hence, there is expected to be an increase in shipment and revenue generation from 100 GbE Ethernet adapters during the forecast period quote

Ankit Prajapati
Lead Analyst, Semiconductor and Electronics

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According to a new report published by Allied Market Research, titled, “Ethernet Adapter Market by Type, Interface Type, Port Configuration, Data Rate per Port, Application, and End User: Opportunity Analysis and Industry Forecast, 2019–2027,” the Ethernet adapter market was valued at $1.77 billion in 2019, and is projected to reach $16.30 billion by 2027, registering a CAGR of 33.50% from 2020 to 2027. North America is expected to be the leading contributor to the global Ethernet adapter market, followed by Europe and Asia-Pacific.

Ethernet adapter is a hardware component that allows accessibility of a device or workstation to an Ethernet connection. Ethernet adapters can be directly installed on a motherboard of a device or a computer or can be add-ons on an expansion board. Using Ethernet adapter, computers can communicate across a network. Ethernet adapter operates at different network speeds depending on the protocol standard it supports. Businesses witness reduction in operation costs with Ethernet adapter. 

The surge in demand for higher bandwidth connections among different industries majorly drives the growth of the Ethernet adapter market, increasing internet penetration is utilizing lower bandwidth for considerably larger number of users resulting in inefficient performance. Moreover, increasing deployment of data centers, high reliability and signal stability offered by Ethernet connections are expected to boost the Ethernet adapter Industry growth. Furthermore, growing demand for power over Ethernet from various industries and digitalization of businesses are expected to provide lucrative growth opportunities for the market. However, high installation cost and limited physical availability for devices are expected to hinder the growth of the Ethernet adapter market.

The commercial end user segment was the highest contributor to the Ethernet adapter market in 2019. The commercial and residential end user segments collectively accounted for around 60% market share in 2019. The digitalization of education as well as businesses is anticipated to enhance the Ethernet adapter market growth during the forecast period.

The emergence of COVID-19 has favorable effect on the Ethernet adapter market growth. There are significant investments in deployment of data centers owing to work from remote places situations. Other applications such as routers & switches, and servers also witnessed a high growth rate during the pandemic period. 

Region wise, the Ethernet adapter market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America accounted for a major share of the global market in 2019, and is expected to dominate the market in terms of revenue during the forecast period, owing to increasing demand for higher internet speed connections. The Europe region holds the second largest share in the global Ethernet adapter market, and is expected to witness significant growth during the forecast period, owing to adoption of 5G technology and digitalization of businesses.

Key Findings Of The Study

  • In 2019, the PCIe segment accounted for the maximum revenue and is projected to grow at a notable CAGR of 33.9% during the forecast period.
  • The single and quad segment together accounted for around 56.0 % of the Ethernet adapter market share in 2019.
  • Internal segment contributed a major share of 77.0% in global Ethernet adapter market during 2019.
  • The servers and embedded systems segment together contributes for more than 40.0% of the global Ethernet adapter market share in 2019.
  • U.S. was the major shareholder in the North America Ethernet adapter industry, accounting for more than 15.0% share in 2019.

The key players profiled in the report include Anker Technology (UK) Ltd., Belkin International, Inc., Broadcom, Intel Corporation, Lenovo, LevelOne, Marvell Technology Group, Nvidia (Mellanox Technologies), Plugable Technologies, and Xilinx. Market players have adopted various strategies such as product launch, collaboration & partnership, joint venture, and acquisition, to expand their foothold in the Ethernet adapter market.

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quote Ethernet Adapter Market by Type (External, and Internal), Interface Type (PCIe, OCP, USB), Port Configuration (Single, Dual, and Quad), Data Rate Per Port (Up to 1 GbE, 10 GbE, 25 GbE, 40 GbE, 50 GbE, 100 GbE, and 200 GbE), Application (Servers, Embedded Systems, Consumer Applications, Routers and Switches, Desktop Systems, and Others), and End User (Residential, Industrial, and Commercial): Global Opportunity Analysis and Industry Forecast, 2019–2027 quote

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