Ethernet Controller Market

Global Ethernet Controller Market Size

The global ethernet controller market was worth USD 11.62 billion in 2024. The global market is expected to reach USD 12.48 billion in 2025 and USD 22.13 billion in 2033, with a CAGR of 7.42% during the forecast period 2025 to 2033.

The Ethernet controller is a computer hardware component that controls wired network connection. It is essential for managing Internet connections and other associated network functions. In addition, computers on a network communicate with each other using the Ethernet controller. It decodes the data received from the internet cable so that the computer can easily recognize it. The Ethernet controller examines each data packet and determines whether the data is needed by the local computer or any other computer on the network. If the information is intended for a local computer, it will be accepted, and the information intended for other computers will be deleted. Most new-generation computers have built-in Ethernet controllers; however, earlier versions used network interface cards with an Ethernet controller chip. Software drivers are used to manage Ethernet controllers.

An Ethernet controller is a computer hardware module connected to wired networks. It is essential for managing Internet connections and other associated network functions. A software driver controls the built-in functions of the network device. Ethernet controllers' advantages include flexibility, ease of expansion, control, growth capabilities, and centralized authentication.

MARKET DRIVERS

The desktop computer system is expected to grow at the highest rate in the coming years due to the increasing use of the Internet and related services globally.

This has increased demand for Ethernet controllers used in devices such as desktops and laptops. The key drivers of the Ethernet controller market are the increasing demand for high-performance applications, the integration of advanced functions, the small form factor, and the greater penetration of the easy Internet interface with integrated 16-bit and 32-bit processors. The foremost restraining factors in the Ethernet controller market are the continuous updating of drivers for optimal performance and different operating systems want different software drivers to support Ethernet controllers. Automotive Ethernet controllers that transform the driving experience are creating many opportunities for the market.

The adoption of EtherCAT for real-time networks for machine control is driving the market. EtherCAT uses the implementation of an integrated Ethernet controller through direct memory access (DMA) so that no processor capacity is required for data transfer between the controller device and the network, providing orders of magnitude faster than Profibus, DeviceNet, and Modbus TCP. Automation equipment manufacturers can use EtherCAT in their device implementations to enhance performance and flexibility, while end users and automation system designers can implement EtherCAT-compatible devices. In addition, EtherCAT is part of various IEC (61158, 61784, 61800) and ISO 15745 and is also an SEMI (E54.20) standard.

Data-intensive applications like big data and cloud computing continue to increase. Several terabits of data travel to and from the data center every second. Moving this massive data into the data center requires a robust infrastructure that delivers high-bandwidth data through high IP traffic to and from storage endpoints, servers, high-end switches (TOR), and main switches. This penetrates the demand for an Ethernet controller, which connects devices using media access control (MAC) addresses. Units such as Marvell Ethernet network controllers and adapters are designed to speed up and simplify the networking of data centers, PCs, and workstations. Marvell Ethernet controllers can provide Ethernet connectivity speeds ranging from NBASE-T for workstations to 10/25/50/100GbE data centers.

MARKET RESTRAINTS

Competitive pricing for Ethernet controllers has led to stiff profit margins, which is the main challenge in the market. Additionally, increasing power consumption and costs associated with continued data growth are leading data centers to face the challenges of providing increased bandwidth and storage capacity. To address these issues, in April 2020, Marvell's QLogic Fiber Channel and FastLinQ Ethernet MRVL adapter solutions will now enable NVMe over Fabrics (NVMe-oF) technology in VMwarevSphere 7.0, demonstrating their continued efforts to strengthen their point Ethernet storage bandwidth capacities.

Impact of COVID-19 on the Global Ethernet Controller Market

The impact of COVID-19 has limited market growth. There is almost an 80% chance of a significant contraction in global semiconductor revenue in 2020, also affecting the Ethernet controller market due to the massive supply chain slowdown. Players like Arista, Cisco, Juniper, and many others in the 400GbE ecosystem were planning to demonstrate the interoperability and increasing volume of 400GbE products at OFC (Fiber Optic Communication Exhibition & Conference) 2020. It was reported that some of the major suppliers of the networks functioned in 400GbE of 400G implementation grade. Still, the players decided to manufacture in the first half of 2021, and production has stopped.

REPORT COVERAGE

REGIONAL ANALYSIS

The APAC region is expected to account for most of the global Ethernet controller market in 2017, while North America is expected to experience the highest growth rate. The APAC region is projected to grow at the highest rate during the forecast period due to increased Ethernet controller use in servers, consumer applications, and desktop systems. The increasing demand for VoIP solutions, game consoles, and digital signage in the region also drives the growth of the Ethernet controllers market in the APAC region.

KEY PARTICIPANTS IN THE MARKET

The major players operating in the global Ethernet controller market are Renesas Electronics Corporation, Intel Corporation, OMRON Corporation, Cirrus Logic Inc., Silicon Laboratories, Microchip Technology Inc., Mindspeed Technologies, Inc., Broadcom Ltd., and Siemens AG.

RECENT HAPPENINGS IN THE MARKET

• In March 2020 - Ethernity Networks launched its ENET-D, an Ethernet controller technology, and its ACE-NIC100 SmartNIC, efficiently processing millions of data streams and providing performance acceleration for network and security devices. By accommodating a variety of FPGAs and allowing customers to avoid ASIC-based components further, ENET-D advances full unbundling at the edge of the network.

• In January 2019, US Air Force, Army, and Navy officers signed a memorandum agreeing that future acquisitions of new aviation technologies will focus on using the modular open systems approach (MOSA). In addition to MOSA, NG computers also meet the design requirements of the Ministry of Defense's Open Mission Systems (OMS) standard. This improves the market demand in this sector.

• In November 2019, Astronics Ballard announced the integration of an open architecture with a 64-bit processing base and an Ethernet backbone in its next generation of NG avionics input/output (I / O) computers.

MARKET SEGMENTATION 

This global ethernet controller market research report has been segmented and sub-segmented based on the bandwidth type, function, application, and region.

By Bandwidth Type

• Fast Ethernet

• Gigabit Ethernet

• Ethernet Switch

By Function

• PHY (Physical Layer)

• Integrated

By Application

• Servers

• Routers

• Switches

• Others

By Region

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus