The Ethernet SmartNIC market is experiencing a significant boom, with revenues more than tripling for the second half-year in a row. Key tech companies are leading this transformation, offering products that broaden the appeal in the market. Here’s the breakdown of this paradigm shift.
Impressive Surge in Ethernet SmartNIC Market
The first half of 2023 saw the merchant-built Ethernet smartNIC market, including Data Processing Units (DPUs) and Infrastructure Process Units (IPUs), triple its revenues year-over-year. This marks a consecutive period of triple growth, positioning merchant-built Ethernet SmartNICs as a major player, now accounting for over 20% of total merchant-built server-class Ethernet NIC market revenue.
Key Contributors to The SmartNIC Market Boost
Leading this dramatic market increase are Intel’s IPUs. These units have seen wide deployment in Google Cloud’s C3 instances, supporting VMS and hyperdisk block storage. Additionally, AMD/Pensando and Nvidia have experienced growth in their respective DPU deployments. These companies have garnered new and existing customers, including prominent names like Goldman Sachs, IBM Cloud, Microsoft Azure, NetApp, and Oracle Cloud.
Shifting Market Shares in Merchant-Built NICs
While the market for merchant-built Ethernet SmartNIC/DPU/IPU has experienced a sharp growth, it’s still considered to be in its early stages. With a broad spectrum of competing vendors and architectures, market shares remain fluid. For instance, Intel’s IPU growth has led to an increase in its total market share, demonstrating the potential volatility of this burgeoning market.
Despite the competitive landscape, this accelerating growth of Ethernet SmartNIC market marks a pivotal shift in the tech industry, driven by key players like Intel, AMD/Pensando, and Nvidia. As market shares continue to fluctuate, there’s no denying the significant impact these products are making, and will continue to make, in future networking and data-processing capabilities.
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