Global Ethernet Controller Market Size, Segments, Outlook, and Revenue Forecast 2022-2028 By Bandwidth Type (Fast Ethernet, Ethernet, and Switch Ethernet), Function (PHY (Physical Layer) and Integrated), Application (Servers, Embedded Systems, Consumer Applications, Routers & Switches, and Desktop Systems) and Regions (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa (LAMEA))

Market Overview

An ethernet controller is a networking device that allows data communication in a network. Ethernet is among the widely used data transfer and communication technology in data centers, cloud computing, gaming, and personal computing. Due to the stable data transfer and communication in ethernet technology, it has seen wide adoption in servers and embedded systems. Moreover, as the trend of (Over-the-Top) OTT is increasing, the demand for seamless file or video streaming is taking place, which in turn is fueling the growth of high-end ethernet controllers.

According to Ken Research Analysis, the global ethernet controller market was valued at US$ 8 Bn in 2017. In recent years, the use of cloud solutions has seen rapid growth in IT, Telecom, and healthcare among others due to which the market size is estimated to be US$ 11 Bn in 2022. The market size is expected to reach US$ 15 Bn in 2028 growing with a CAGR of ~7%.

The global ethernet controller market is driven by various factors including the increased use of servers in data centers. The surging number of OTT broadcasting service providers and traditional broadcasters is another factor driving the market growth.

• Data-intensive applications like cloud computing and big data continue to drive the demand for servers in ethernet controllers. Large terabits of data from such applications to data centers and vice versa move each second and moving this data into data centers requires a strong infrastructure efficient for handling the distribution of high-bandwidth data with high IP traffic to and from storage endpoints, main switches, servers, and high-end switches.
• Ethernet controllers help link these devices with the help of media access control addresses. Thus, the rise in demand for these data-intensive applications helps in market growth.
• In March 2020, Ethernity Networks introduced its ENET-D, an Ethernet controller technology in addition to its ACE-NIC100 SmartNIC that efficiently processes millions of data streams and provides performance acceleration for network and security devices. 

The challenges faced by the Ethernet Controller Market are the high prices associated with ethernet controllers that pose a challenge to generating revenues for the companies. Another challenge is the need for continuous updates of the drivers.

• Ethernet controller requires their drivers to be up to date for enhanced performance and different operating systems require different software drivers to support Ethernet controllers.
• Windows has been updating its operating systems for better performance and with this, the ethernet drivers also need to be updated to keep up the pace and work with the latest windows updates for enhanced performance.

The pandemic heavily affected the Ethernet controllers' global manufacturing industry and supply chain.

• The initial spread of the virus led to the shutting down of the controller component manufacturing plants. Reduction in output led to a global shortage of components as demand increased as opposed to estimates made initially by component makers.
• In May 2020, Players like Cisco, Juniper, and many others in the 400 Gbe ecosystem were planning to demonstrate the interoperability and growing volume of 400gbE products at the fiber Optic communication Exhibition & Conference 2020 along with some of the major suppliers of the networks operating in 400GbE of 400G implementation grade, but the players decided to start manufacturing in the first half of 2021, as production had stopped due to the pandemic.

Scope of the Report

The Global Ethernet Controller Market is segmented by bandwidth type, function, application, and geography. Fast Ethernet and switch ethernet are widely used ethernet controller types based on bandwidth. In addition, the report also covers the market size for each of the four regions of the Global Ethernet Controller Market. The revenue used to size and forecast the market for each segment is USD billion.

Key Trends by Market Segment

By Bandwidth Type:

In the Global Ethernet Controller Market, the Fast Ethernet segment held the largest market share in 2021.

• The installation of new and advanced software and increasing transfer rates are accelerating the demand for this segment.
• According to Comnet, a manufacturer of audio, video, data, and ethernet communication products, Fast Ethernet transmission is at least 10 times faster than normal ethernet and proves to be useful in maintaining compatible connections to servers with high speed, decreasing bandwidth bottlenecks for network systems operating multiple IP videotape cameras and IoT, and seamlessly supporting complex networks that run multiple bandwidth-intense software packages at the same time.
• The BCM57414 50G PCIe3.0 Ethernet controller builds upon the success of the extensively-fixed NetXtremeE-Series framework by combining a high-bandwidth Ethernet controller with a unique set of broadly-optimized hardware acceleration machines to enhance network performance and enhance server effectiveness.

By Function:

The PHY (Physical Layer) segment held the largest market share in 2021 in the Global Ethernet Controller Market.

• An Ethernet PHY is designed to deliver error-free transmission over a variety of media to reach distances that exceed 100m.
• In December 2021, Marvell declared the industry’s first 802.1 AE 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 need, extending Marvell’s portfolio in automotive Ethernet PHY. These Ethernet PHY solutions enable energy-effective, secure in-vehicle networks and help in achieving functional safety compliance at the system level.

By Application: In the Global Ethernet Controller Market, the servers segment held the largest market share in 2021.

• The enterprise migration to the cloud and the role of emerging technologies such as artificial intelligence, the Internet of Things (IoT), and analytics are increasing the use of servers.
• For instance, Oracle Big Data Appliance includes five or more servers and the technology to connect the servers to the network. The network connections allow the servers to be administered remotely and allow customers to connect to them.
• In November 2021, Broadcom Inc. released that Meta (Facebook) deployed the world’s topmost bandwidth Ethernet switch chip, the Broadcom StrataXGS Tomahawk 4 switch series, in its data center network fabric. A preeminent- edge25.6 Tbps Ethernet switch, the Tomahawk4 is dispatching in high volume in Meta’s Minipack2 platform.

By Region: The Asia Pacific Ethernet Controller Market is expected to be the fastest-growing market during the forecast period in the Global Ethernet Controller Market.

• This growth is due to the growing use of ethernet controllers in consumer usage, servers, and desktop systems in the region and increases in demand for (Voice over Internet Protocol) VoIP solutions, gaming consoles, and digital signage.
• According to Cisco Korea, in 2021, internet applications reached 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 part in driving the demand.
• Further, the number of active Internet users in India is anticipated to rise by 45% from 2020 to 2025 and touch 900 million by 2025 from around 622 million in 2020, based on the Internet and Mobile Association of India. The report defines an active user as someone who has entered the Internet at least once in the past month. 

North America held the largest market share in 2021 in the Global Ethernet Controller Market. The primary factors contributing to the region's high demand share include advancements in IT infrastructure, and an increase in the number of connected devices, and data centers.

Competitive Landscape

The global ethernet controller market is highly competitive with global, regional, and country niche players with the latter holding the largest share in terms of the number of competitors. It is estimated in Ken Research’s study that the market comprises nearly 250 players across the four major regions. It is also observed that the Asia Pacific region holds the highest number of country niche players, especially in China, Taiwan, and Korea. The leading global players generally have a long-term trade agreement with limited suppliers which allows them to maintain their position and brand awareness. Most of the country-niche players are start-ups in the Ethernet Controller market.

The large global players comprise about ~10% in terms of the number of company shares followed by regional players which account for ~30% of the number of the company share.

The Leading Country Niche players such as Netgear, Lantronix, Nomadix, and Extreme Networks are highly focused on providing a significant number of Ethernet Controller Solutions.

Recent Developments Related to Major Players

• In February 2022, Intel launched the Intel Xeon D- 1700, the following generation of Intel Xeon D processors, at MWC Barcelona 2022. This new Xeon D processor is designed and developed from the ground up with network and edge-specific features, comprising integrated AI and crypto acceleration, set up in Ethernet, support for time-sensitive networking and time-coordinated calculation, and manufactured-class duration. Furthermore, these new Intel Xeon D processors feature up to 100 GbE in the Ethernet output capability.
• In September 2019, Marvell launched the family of the high-port count, ultra-low latency automotive switches with multi-gigabit routing output capabilities. This portfolio combines the industry's first high-port count aggregation switch, offering all ports at gigabit capacity allowing clustering of safety-critical detector data in an Advanced Driver Assistance System (ADAS) and data transfer over a high-speed PCIe host uplink.
• In January 2022, Realtek announced that by the end of the year it will be launching a 5GbE Single-Chip Ethernet Controller Series which is compatible with IEEE 802.3bz Multi-Gigabit functions and also it will be the smallest  5GbE solution globally.

Conclusion

The Global Ethernet Controller Market is forecasted to continue moderate growth, which is primarily driven by the need for high precision and advancement in the banking, healthcare, retail, and logistic industries. The market size is estimated to be US$ 11 Bn in 2022 and is expected to reach US$ 15 Bn in 2028 growing with a CAGR of ~7%. North America is the dominant region in terms of revenue generation; however, the Asia Pacific region is expected to grow at a higher pace. Though the market is highly competitive with ~250 participants, few global players control the dominant share and regional players also hold a significant share.

Note: This is an upcoming/planned report, so the figures quoted here for the market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients and the report delivered within a maximum of two working weeks.

Key Topics Covered in the Report

• Snapshot of Global Ethernet Controller Market
• Industry Value Chain and Ecosystem Analysis
• Market size and Segmentation of the Global Ethernet Controller Market
• Historic Growth of Overall Global Ethernet Controller Market and Segments
• Competition Scenario of the Market and Key Developments of Competitors
• Porter’s 5 Forces Analysis of Global Ethernet Controller Industry
• Overview, Product Offerings, and Development of Key Competitors
• Covid19 Impact on the Overall Global Ethernet Controller Market
• Future Market Forecast and Growth Rates of the Total Global Ethernet Controller Market and by Segments
• Market Size of Application / End User Segments with Historical CAGR and Future Forecasts
• Analysis of Ethernet Controller Market in Major Global Countries
• Major Production/Supply and Consumption/Demand Hubs in Each Major Country
• Major Country-wise Historic and Future Market Growth Rates of the Total Market and Segments
• Overview of Notable Emerging Competitor Companies within Each Major Country 

Major Companies Profiled in the Report

• Intel Corporation
• Broadcom Inc.
• Cirrus Logic Inc.
• Silicon Laboratories
• Texas Instrument Incorporated
• Marvell Technology Group Ltd
• Microsemi Corporation
• Realtek Semiconductor Corp.
• Mindspeed Technologies Inc.
• Siemens AG
• OMRON Corp.
• Comlab Telecommunications Inc.

Notable Emerging Companies Mentioned in the Report

• Netgear
• Lantronix
• Nomadix
• Extreme Networks
• Cadence Design Systems, Inc. 

Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report

• Ethernet Controller Manufacturing Companies
• Suppliers of Ethernet Controller Manufacturing Companies
• Semiconductor Foundries
• Data Center Infrastructure Service Providers
• Telecom Companies
• Original Equipment Manufacturers (OEMs)
• Small and Large Technology centers
• Network Interface Controller (NIC) Manufacturers
• Research Institutes
• Market Research Institutes
• Technology investors
• Government Bodies
• Private Equity Firms
• Venture Capitalists

Time Period Captured in the Report

• Historical Period: 2017-2021
• Forecast Period: 2022E-2028F

Frequently Asked Questions

• What is the Study Period of this Market Report?

The Global Ethernet Controller Market is covered from 2017–2028 in this report, which includes a forecast for the period 2022-2028.

• What is the Future Growth Rate of the Global Ethernet Controller Market?

The Global Ethernet Controller Market is expected to witness a CAGR of ~7% over the next six years.

• What are the Key Factors Driving the Global Ethernet Controller Market?

It is primarily driven by the increased use of servers in data centers, the increased use of mobile phones, and the surging number of OTT broadcasting service providers & traditional broadcasters.

• Which is the largest Application Segment within the Global Ethernet Controller Market?

The servers segment holds the largest share of the Global Ethernet Controller Market.

• Who are the Key Players in Global Ethernet Controller Market?

Intel Corporation, Broadcom Inc., Cirrus Logic Inc., Silicon Laboratories, Texas Instrument Incorporated, Marvell Technology Group Ltd., Microsemi Corporation, Realtek Semiconductor Corp., Mindspeed Technologies Inc., Siemens AG, OMRON Corp., and Comlab Telecommunications Inc. among others are the major companies operating in Global Ethernet Controller Market.