Ethernet Adapter Market - Forecasts from 2024 to 2029

The ethernet adapter market is projected to grow at a CAGR of 6.59% over the forecast period, increasing from US$4.601 billion in 2022 to reach US$7.192 billion by 2029.

An ethernet adapter is a physical network adapter that allows a physical machine and a virtual machine to connect to a network or the internet at the same time. An ethernet adapter operates like an ordinary network standard created for various networking surroundings, applications, and services.

Such adapters are used for a variety of purposes, including testing networking protocols and providing isolated network environments for virtual machines. Increasing cloud service and internet infrastructure have emerged as a significant driving force behind the substantial growth of the ethernet adapter market industry.

Market Drivers

• Increasing cloud services bolsters the ethernet adapter market growth-

Ethernet adapters have become more important with the rise of cloud computing as they deliver an abstraction layer between physical networking hardware and software-defined networks. This provides greater flexibility and scalability while deploying and managing applications across various cloud environments.

Due to the increasing demand for cloud services, numerous industry leaders are investing in such technology which is expected to provide a positive market outlook for ethernet adapters. For instance, in February 2023, Akamai Technologies, Inc. announced the launch of Akamai Connected Cloud, a significantly distributed edge and cloud platform for cloud computing, security, and content delivery that brings services and experiences closer while pushing threats further away.

• The rise in technology advancements drives the ethernet adapter market growth-

Ethernet adapters have evolved in combination with technological advancements, efficiently connecting disparate systems. They connect computers and devices, allowing them to communicate with greater speed and safety than before, allowing industries to run smoothly.

As organizations seek more efficient and scalable solutions to manage their network infrastructure there is high demand for ethernet adapters. Due to the increasing demand businesses are offering highly efficient network adapters.

For instance, VMware offers VMXNET3, the newest generation of virtual network adapter. VMXNET3 provides new features and enhancements such as TSO6 and RSS which is useful for consumers installing IPv6-aware applications.

Restraint-

• Security concerns will restrain the growth of the ethernet adapter

Ethernet adapters allow multiple operating systems and applications to share the same physical network infrastructure which increases the attack surface, making it more difficult to maintain secure network access controls. This makes it vulnerable to safety risks such as hacking and malware attacks, which may threaten the overall network's security. Due to security concerns, it may limit the growth of the virtual network market.

Ethernet adapter market segmentation by port type into Type C and RJ45

The Ethernet adapter market is segmented by port type into Type C and RJ45. Type C adapters utilize the USB Type-C connector, which is compact and reversible, making it increasingly prevalent in laptops, smartphones, tablets, and other devices.

On the other hand, RJ45 adapters are universally compatible with wired Ethernet networks. While generally more cost-effective than Type-C adapters, they are limited to lower data transfer speeds (up to 1 Gbps) compared to the newer Type-C standards.

North America is anticipated to hold a significant share of the Ethernet Adapter Market-

North America is projected to account for a considerable market share of the ethernet adapter market owing to the region's robust growth in high-speed connectivity and cloud services. Also, increasing investments from the governments of the major North American nations have positively impacted the ethernet adapter market growth in the region.

For instance, the Biden-Harris Administration unveiled an investment of $930 Million to grow and strengthen the USA's high-speed internet networks as part of the Investing in America plan. Additionally, the booming internet penetration is also acting as an additional driving factor.

Market Developments

• February 2022- AMD completed its acquisition of Xilinx in an all-stock transaction. Initially announced on October 27, 2020, the acquisition has resulted in the creation of the industry's high-performance and adaptive computing leader, boasting significantly expanded scale and the most robust portfolio of leadership computing, graphics, and adaptive SoC products.
• January 2022- The Siemon Company, a prominent global network infrastructure specialist, announced its partnership with NETGEAR, the leading provider of networking products catering to businesses of all sizes. Both Siemon and NETGEAR played pivotal roles in supporting and advancing internet protocol (IP)--based Ethernet technologies, including software-defined video over Ethernet, AV over IP, power over Ethernet (PoE), and high-throughput Wi-Fi.
• October 2021- ATTO and Rohde & Schwarz collaborate to optimize ethernet adapter capabilities for macOS to optimize the latest version of ATTO 360 tuning, evaluation, and analytics software, in addition to ATTO Thunder Link N3 3102 and NS 3252 ThunderboltTM adapters to be used with R&S SpycerNode.

Company Products-

• HPE Synergy 6810C 25/50Gb Ethernet Adapter - The HPE Synergy 6810C 25/50Gb Ethernet Adapter supports single root I/O virtualization (SR-IOV) and can run an enormous number of virtual machines (VMs) per server, reducing the need for hardware and the associated costs of space and power required by hardware devices.
• AMD XtremeScale Series - The XtremeScale Ethernet network adapter series is designed for high-performance online trading environments and company data centers, such as artificial intelligence, big data, analytics, hyper-scale, machine learning, data storage, and telco applications.
• Broadcom NetXtreme BCM5720-2P - The Broadcom NetXtreme BCM5720-2P is a dual-port 10,100,1000 Mb/s x1 PCI Express (PCIe) Ethernet adapter that operates on a category-5 twisted-pair cable and supports the IEEE 802.3ab norms. The adapter card supports transfer technologies such as Large Send, TCP segmentation, and TCP, UDP, and IP checksum, as well as receive-side scaling (RSS), which provides optimal network throughput.

Market Segmentation

By Type

• USB Adapters
• USB Adapters
• PCI Adapters
• PCMCIA Adapters

By Port Type

• Type C
• RJ45

By Form

• Industrial
• Commercial

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• United Kingdom
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Others