10 Gbps Controller Port Shipments Slipped Due to Inventory Correction
The 25/50/100 Gbps Ethernet controller and adapter revenue accounted for half of the market in 2Q 2020, gaining 15 share points year-over-year. Meanwhile, shipments of 10 Gbps controller ports declined after a build-up of inventory in the prior two quarters.
“Shipment of 25 Gbps and 50 Gbps ports grew double-digits quarter-over-quarter as the Tier 1 and 2 Cloud service providers added server capacity to meet a surge of demand for Cloud services stemming from the pandemic. Adoption of 100 Gbps for server connectivity continues to rise to meet the growing demands of high-performance computing and AI,” said Baron Fung, Research Director at Dell’Oro Group. “However, shipments of 25/50/100 Gpbs ports are expected to ease in the second half of the year as inventories for components and Cloud capacity have been on the rise,” added Fung.
Additional highlights from the 2Q 2020 Controller and Adapter sector include:
- Total controller and adapter port shipments decreased ten percent quarter-over-quarter, with growth weighed down by the inventory correction of 10 Gbps ports.
- Microsoft, Google, and Facebook accounted for 91 percent of the 50 Gbps controller and adapter port shipments.
- Amazon commanded 70 percent revenue share of the Smart NIC market in 2Q 2020. Broadcom led all adapter vendors with a 16 percent revenue share.