Ethernet SmartNIC Market Triple Growth Stuns Industry

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.

Don’t miss our latest Startup News: Harnessing Fintech Solutions for Safer, Faster Business Transfers

Photo of Alex


Alex is a seasoned editor and writer with a deep passion for technology and startups. With a background in journalism, content creation, and business development, Alex brings a wealth of experience and a unique perspective to the ever-changing world of innovation. As the lead editor at Startup World, Alex is committed to discovering the hidden gems in the startup ecosystem and sharing these exciting stories with a growing community of enthusiasts, entrepreneurs, and investors. Always eager to learn and stay updated on the latest trends, Alex frequently attends industry events and engages with thought leaders to ensure Startup World remains at the forefront of startup news and insights. Alex's dedication and expertise help create an engaging platform that fosters knowledge-sharing, inspiration, and collaboration among tech-savvy readers worldwide.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button