Ethernet Controller Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 11.62 Billion |
| Market Size (2029) | USD 16.63 Billion |
| CAGR (2024 - 2029) | 7.42 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Ethernet Controller Market Analysis
The Ethernet Controller Market size is estimated at USD 11.62 billion in 2024, and is expected to reach USD 16.63 billion by 2029, growing at a CAGR of 7.42% during the forecast period (2024-2029).
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 critical global challenges. These current data centers, like Artificial Intelligence, are transforming to increase networking bandwidth and optimize workloads.
- The growing volume of Big Data across the business ecosystem is gaining maturity. A study by Accenture indicates that about 79% of enterprise executives agreed that companies that do not embrace Big Data would lose their competitive position and are expected to face extinction. With enterprises transitioning to Big Data, the data traffic is expected to increase, fueling the demand for Ethernet controllers.
- Ethernet for Control Automation Technology (EtherCAT) is based on the CANopen protocol and Ethernet. Still, it differs from the internet or network communications in optimized explicitly for industrial automation control. Utilizing the OSI network model, Ethernet and EtherCAT rely on the same physical and data link layers. Beyond that, the two networks diverge by design as they are optimized for different tasks.
- A USB-to-Ethernet converter is helpful in a variety of circumstances. For example, a user's laptop's Wi-Fi option may be experiencing technical difficulties, or the user may discover that the Wi-Fi is disabled for security reasons in specific locations, even though users require internet access. In the circumstances like these, an Ethernet port and a simple adapter should suffice. Using a cable will provide a faster and more consistent connection.
- The market is expected to create a roadblock for itself to update faster on technology, as long-duration contracts with extensions saturate the market, thus impacting its growth. When the industry trends indicate to the solution and services providers to use new and emerging technology Ethernet controllers, long-term contracts can be counterproductive in the market. Moreover, the growing competition in the market impacts the profit margins and existing vendors' growth. The competition level between suppliers is so high that Ethernet controller products are transitioning to commoditized worldwide.
- The Work-From-Home (WFH) policies shifted information security's focus from enterprise infrastructure to cloud and virtualized infrastructure. As per IBM Security Report from the previous year, about 54% of the organizations responded positively to remote working amid the COVID-19 outbreak. Such developments in the market have contributed to the rising demand for cloud-based solutions, which will increase the need for ethernet controllers.
Ethernet Controller Market Trends
This section covers the major market trends shaping the Ethernet Controller Market according to our research experts:
Servers 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. According to Ericsson, by the next four years, global monthly traffic per mobile PC is projected to amount to 25.88 GB per active device.
- 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 need for servers will also grow significantly. With this growing demand for servers, Ethernet Controller demand will also increase.
- A Baseboard Management Controller (BMC) monitors most modern servers' temperature, voltages, and fans. 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. It provides 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 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.
North America Holds Largest Market Share
- 5G requires a flexible networking and transportation infrastructure to reach its full potential. As Ethernet becomes the most efficient transport technology, carrier routers and switches are charged with supporting a range of use cases over shared infrastructure, increasing Ethernet gear installations.
- With the 5G network growth and their growing applications, the need for ethernet controllers for 5G infrastructure will also be in demand. As in the United States, only some companies have started to provide 5G network services. For instance, after the deployment of the new wireless technology was scale delayed, telecom giants AT&T and Verizon debuted 5G service in the United States in January 2022 without significant flight delays.
- As Ethernet Controller allows wired connection to the computer network, any device requiring a high-speed internet connection will have to use Ethernet Controllers for fast internet connections. Such is the case with Cloud Infrastructure networks. With developing cloud capabilities and enterprises shifting their work to the cloud, the demand for cloud applications is increasing rapidly in the United States. In the coming years, more and more businesses will opt for Cloud storage solutions due to their low costs, less maintenance, data security, and almost unlimited scalability. Therefore this rise in cloud computing and storage will also surge in the Ethernet Controller Market.
- According to Ericsson ConsumerLab, 5G wireless technology is already transforming how Canadians use their smartphones. Compared to 4G users, early 5G adopters spend two hours per week on cloud gaming and 90 minutes more on augmented reality (AR) apps. After upgrading, 15% said they had reduced their Wi-Fi usage, even at home. It means that 5G will finally deliver the experience consumers have been waiting for in high-bandwidth apps. Furthermore, users expect 5G to provide interior coverage, which is considered more significant than speed or battery life.
- Telecommunications companies' enormous spending in the 3500 MHz spectrum (three times more than projected) further proves their commitment to 5G. Rogers spent CAD 3.3 billion (USD 2.43 billion) on the 5G spectrum, which covers 99.4% of the Canadian population, making it the country's largest single investor in the technology.
Ethernet Controller Industry Overview
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. The major players in the market are Intel Corporation, Broadcom Inc., Microchip Technology Inc, Cirrus Logic Inc., and Texas Instruments Incorporated, among others.
- December 2022 - Marvell Technology, Inc., one of the leaders in data infrastructure semiconductor solutions, announced the Alaska CX9340P, a new 5nm 1.6T Ethernet PHY with 100G I/O capability, built-in Media Access Control security (MACsec) and total Precision Time Protocol (PTP) support communications network applications and for the cloud data center. PTP enables Ethernet networks to handle ultra-reliable timing-critical services, whereas MACsec allows data center operators to enable hardware-based link-layer security. The combination of the X9340P and the previously announced Alaska C X93160 PHY provides a pin-compatible, versatile platform for retiming, gear boxing, encryption, and timing applications at speeds up to 800 GbE.
- April 2022 - Cadence Design Systems Inc. announced the Cadence High-Speed Ethernet Controller IP family, enabling complete Ethernet subsystem solutions up to 800G. The company also introduced Cadence SerDes PHY IP in 7 nm, 5 nm, and 3 nm process nodes, optimized for power, performance, and area (PPA). The low-latency, high-speed controller IP expands Cadence's Ethernet Controller IP portfolio and is well suited for vast applications of Ethernet in new-age artificial intelligence and machine learning (AI/ML), cloud, and 5G infrastructures. The new controller family supports different aggregated bandwidths for 100G, 200G, 400G, and 800G Ethernet.
Ethernet Controller Market Leaders
Intel Corporation
Broadcom Inc.
Microchip Technology Inc.
Cirrus Logic Inc.
Texas Instruments Incorporated
*Disclaimer: Major Players sorted in no particular order
Ethernet Controller Market News
- November 2022 - Netgear launched two new 5-port Multi-Gigabit Unmanaged Switches, MS105 and MS305, to assist enterprises in cost-effectively expanding their networks with multi-gigabit speeds. The MS105 and MS305, Multi-Gigabit Ethernet switches, have five 2.5G ports in a metal enclosure that can be mounted on a wall or desk. These switches are energy efficient and extensively tested to ensure the reliability required by enterprises.
- June 2022 - Onsemi, one of the global pioneers in intelligent power and sensor solutions, announced today the release of a new 10BASE-T1S Ethernet controller designed to deliver dependable multi-point connectivity in industrial environments. The NCN26010 supports more than 40 nodes on a single twisted pair, which is more than five times the number of nodes required by the IEEE 802.3cg standard and reduces installation cost and complexity.
Ethernet Controller Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Adoption of EtherCat for Realtime Network for Machine Control
4.2.2 Adoption of USB Ethernet Controllers
4.3 Market Restraints
4.3.1 Low Demand Due to Impact of COVID-19
4.3.2 Competitive Prices Led to Stiff Profit Margins
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of the Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 Bandwidth Type
5.1.1 Fast Ethernet
5.1.2 Gigabit Ethernet
5.1.3 Switch Ethernet
5.2 Function
5.2.1 PHY (Physical Layer)
5.2.2 Integrated
5.3 End User
5.3.1 Servers
5.3.2 Routers and Switches
5.3.3 Consumer Applications
5.3.4 Other End Users
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Rest of Europe
5.4.3 Asia Pacific
5.4.3.1 India
5.4.3.2 China
5.4.3.3 Japan
5.4.3.4 Rest of Asia Pacific
5.4.4 Latin America
5.4.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Intel Corporation
6.1.2 Broadcom Inc.
6.1.3 Microchip Technology Inc.
6.1.4 Cirrus Logic Inc.
6.1.5 Texas Instruments Incorporated
6.1.6 Silicon Laboratories, Inc.
6.1.7 Marvell Technology Group
6.1.8 Realtek Semiconductor Corp.
6.1.9 Cadence Design Systems, Inc.
6.1.10 Futurlec Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Ethernet Controller Industry Segmentation
An Ethernet controller is a small chip handling all the data swapped between two computers or servers through the internet. The growth in this industry is expected to be positive during the forecast period due to increased data traffic, with work cultures leaning toward remote work and BYOD devices.
The Ethernet Controller Market is segmented by bandwidth (fast ethernet, gigabit ethernet, switch ethernet), function (PHY, integrated), end-users (servers, routers and switches, consumer applications, and other end users), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are in terms of value in USD billion for all the above segments.
| Bandwidth Type | |
| Fast Ethernet | |
| Gigabit Ethernet | |
| Switch Ethernet |
| Function | |
| PHY (Physical Layer) | |
| Integrated |
| End User | |
| Servers | |
| Routers and Switches | |
| Consumer Applications | |
| Other End Users |
| Geography | ||||||
| ||||||
| ||||||
| ||||||
| Latin America | ||||||
| Middle East and Africa |
Ethernet Controller Market Research FAQs
How big is the Ethernet Controller Market?
The Ethernet Controller Market size is expected to reach USD 11.62 billion in 2024 and grow at a CAGR of 7.42% to reach USD 16.63 billion by 2029.
What is the current Ethernet Controller Market size?
In 2024, the Ethernet Controller Market size is expected to reach USD 11.62 billion.
Who are the key players in Ethernet Controller Market?
Intel Corporation, Broadcom Inc., Microchip Technology Inc. , Cirrus Logic Inc. and Texas Instruments Incorporated are the major companies operating in the Ethernet Controller Market.
Which is the fastest growing region in Ethernet Controller Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Ethernet Controller Market?
In 2024, the North America accounts for the largest market share in Ethernet Controller Market.
What years does this Ethernet Controller Market cover, and what was the market size in 2023?
In 2023, the Ethernet Controller Market size was estimated at USD 10.82 billion. The report covers the Ethernet Controller Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ethernet Controller Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Ethernet Controller Industry Report
Statistics for the 2024 Ethernet Controller market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Ethernet Controller analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
