Ethernet Card Market Size and Trends

The Ethernet Card Market is estimated to be valued at USD 6.82 billion in 2024 and is expected to reach USD 12.57 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 9.1% from 2024 to 2031.

The Ethernet card market is experiencing steady growth driven by increasing demand for higher connectivity speeds across industries.

Ethernet Card Market Key Factors

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Factors such as the development of smart applications and adoption of advanced technologies such as autonomous driving, industrial IoT, and AI are fuelling the need for high-speed connectivity. Furthermore, the faster adoption of 5G networks globally is also augmenting demand for high-speed Ethernet cards to support connectivity requirements of various end-use verticals. Growing network infrastructure and transition towards cloud-based applications offer lucrative opportunities for vendors in this market.

Increased Adoption of Cloud Computing and Virtualization

As businesses across industries increasingly adopt cloud computing and virtualization technologies, the demand for high-performance Ethernet cards is expected to rise significantly. With cloud and virtual environments allowing businesses to flexibly spin up and manage virtual machines on-demand, there is a growing need for network interface cards that can support numerous simultaneous connections and handle high-bandwidth tasks. Ethernet network adapters play a vital role in enabling seamless connectivity between physical and virtual devices, delivering high-speed data transmission for storage access, inter-VM communication, and other performance-intensive operations.

A major factor driving this transition is the cost advantages that cloud and virtualization provide. Migrating IT infrastructure and applications to the cloud allows smaller and medium enterprises to eliminate upfront capital expenditures on expensive hardware and shift to an operational expenditure model. It also relieves them of the responsibilities of managing physical servers and other infrastructure. For larger enterprises, virtualization offers improved hardware utilization through server consolidation. This translates into significant savings on power, cooling, and real estate costs associated with data centers. As more workloads shift to virtual and cloud platforms, there will be a growing need for Ethernet cards with advanced features like SR-IOV, VM queue support, and robust switching capabilities to enable high-speed networking between large numbers of virtual machines and cloud instances.

According to stats from the UN Broadband Commission's 2021 report on the socioeconomic benefits of connectivity, the global IP traffic grew by 26% in 2020 alone and is projected to grow nearly threefold between 2020 and 2025.

/p>Increased Deployment of IoT Applications and Edge Computing

Another major driver fuelling growth in the Ethernet card market is the proliferation of IoT applications and edge computing deployments across different verticals. The growing number of connected devices generating and consuming data at the edge is driving the need for robust network infrastructure to support these decentralized computing environments. Edge networking plays a vital role in minimizing latency and improving performance and reliability for bandwidth-intensive and latency-sensitive IoT applications. With many industrial enterprises and manufacturing facilities implementing IoT sensor networks, production line connectivity, and robotics/automation solutions, reliable edge networking using high-performance Ethernet cards is becoming increasingly indispensable.

Areas seeing increased IoT deployments like smart cities, logistics, healthcare, and retail are especially promising markets. For instance, connected infrastructure elements in smart cities will rely on edge computing nodes embedded with multiple Ethernet ports to support a large number of sensors, cameras and networked devices. Logistics facilities are deploying networked robots, conveyor systems, barcode scanners and more to optimize warehouse operations.

According to the International Telecommunications Union, in 2022, the number of individuals using the internet increased by 7.6% between 2020 and 2021, reaching 4.9 billion users globally by January 2022. With more people and devices coming online every day, there is massive opportunity for components like Ethernet cards that build out networking infrastructure.