Ethernet Card Market Is Estimated To Witness High Growth Owing To Growing Demand From Data Centers
Ethernet cards are network interface cards that connect devices like computers, servers and networking equipment to an Ethernet-based local area network (LAN). They are commonly used in data centers to allow fast communication between servers and storage devices.
The global ethernet card market is estimated to be valued at US$ 6.25 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Ethernet cards enable devices to communicate with each other through wired connections using Ethernet standards like 10 gigabit Ethernet or 25 gigabit Ethernet. They allow high-speed data transfer between devices for applications like file sharing, backups and access to applications. With the growth of data and increasing reliance on cloud-based applications and services, data centers have become vital infrastructure for businesses. This has driven up demand for high-performance server infrastructure including ethernet cards that support 10GbE or 25GbE connections for smooth internal communication.
Market Dynamics:
One of the key drivers for the ethernet card market is growing demand from data centers. As data usage increases exponentially driven by video streaming, social media and other digital services, more data needs to be stored and processed requiring expansion of existing data centers and construction of new larger facilities. This has increased procurement of servers, storage systems and networking equipment including ethernet cards that support high-speed 10GbE or 25GbE connections between servers and storage. Additionally, upgrades of existing infrastructure within data centers to faster ethernet standards also contributes to market growth. Growing reliance on cloud-based applications during the COVID-19 pandemic has further accelerated data center expansion placing the ethernet card market on a higher growth trajectory over the forecast period.
SWOT Analysis
Strength: Ethernet cards provide high-speed wired internet connectivity for devices and are widely compatible with operating systems such as Windows, Linux, and macOS. They enable faster data transfer rates and lower latency compared to wireless networks. Majority of enterprises still rely on wired connections for mission critical applications.
Weakness: Ethernet cards require cabling infrastructure which involves initial setup costs. Wireless technologies are gaining popularity due to ease of use as they do not require cable runs. Newer wireless standards such as WiFi 6 threaten the demand outlook of Ethernet cabling over time.
Opportunity: Upgradation of existing infrastructure to higher speed 10G Ethernet and 25G/40G Ethernet provides opportunities for OEMs to tap into the replacement demand. Growth of high performance computing applications in data centers fuels the need for low latency connections through Ethernet.
Threats: Free and open-source network interface controller drivers present competition to proprietary Ethernet controller chipsets. Virtualization trend allows consolidating wired network adapters, reducing volumes for dedicated Ethernet cards.
Key Takeaways
The global Ethernet Card Market Demand is expected to witness high growth driven by upgrades of existing networks and expansion of digital infrastructure. Growth is anticipated to be highest in Asia Pacific region owing to infrastructure investments and rise of cloud computing. China dominates Asia Pacific Ethernet card sales owing to presence of manufacturing base of major OEMs and growth of local data center operators.
Regional analysis:
Asia Pacific region is poised to be the fastest growing and dominating region in the Ethernet card market during the forecast period. This can be attributed to heavy investments by countries such as China and India towards development of digital infrastructure including 5G rollout, hyperscale data center build outs, and smart city projects. Increasing localization of hyperscale cloud infrastructure by global service providers also augments the demand outlook.
Key players:
Key players operating in the Ethernet card market are Regeneron Pharmaceuticals, Inc., Eli Lilly and Company, AstraZeneca PLC, GlaxoSmithKline plc, Sanofi SA, Roche Holding AG, Novartis AG, Merck & Co.Inc., Pfizer Inc., Johnson & Johnson, Takeda Pharmaceutical Company Limited, Moderna, Inc., BioNTech SE, CSL Limited, Sinovac Biotech Ltd.
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