Home Semiconductor & Electronics Ethernet Adapter Market Size, Trends & Analysis to 2032

Ethernet Adapter Market Size, Share & Trends Analysis Report By Type (External, Internal), By Interface Type (PCIe, OCP, USB), By Port Configuration (Single, Dual, Quad), By Data Rate per Port (Up to 1 GbE, 10 GbE, 25 GbE, 40 GbE, 50 GbE, 100 GbE, 200 GbE), By Application (Servers, Embedded Systems, Consumer Applications, Routers & Switches, Desktop Systems, Others), By End-User (Residential, Industrial, Commercial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRSE2066DR
Last Updated : Jul 31, 2024
Author : Straits Research
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Market Overview

The global ethernet adapter market size was valued at USD 6,250.28 million in 2023. It is projected to reach USD 12,638.06 million by 2032, growing at a CAGR of 33.7% during the forecast period (2024–2032). Factors like increasing deployment of data centers to augment market growth prospects and high reliability and signal stability stimulate market growth.

An ethernet adapter, also known as a network interface card (NIC), is a card that plugs into a motherboard slot to give a computer access to a local area network (LAN). Historically, NIC was used exclusively for desktop computers. Now, ethernet is incorporated into both desktop and laptop motherboard chipsets.

Due to the demand for better bandwidth connections across various industries, the ethernet adapter market is anticipated to grow. The expansion of data centers is also expected to fuel the market. Ethernet connections provide excellent signal stability and reliability. External involvement is kept to a minimum, and security breaches are unlikely. Consequently, the ethernet adapter industry will rise exponentially. Other reasons propelling the growth of the ethernet adapter market include an increase in the internet of things (IoT) devices and an increase in internet penetration, particularly in emerging nations.


Market Dynamics

Market Driving Factors

Increasing Deployment of Data Center to Augment Market Growth Prospect

There is an exponentially increasing deployment of data centers across various regions, owing to the favorable conditions of global digitalization. Technologies like machine learning, virtual reality, artificial intelligence, and the internet of things are rapidly escalating the need for more data storage and robust processing power. Data centers are at the core of these technological advancements.

According to an American real estate company, JLL, there are 63.4 million square feet of data center space globally and another 4.3 million square feet under construction. The increasing deployment of data centers demands various hardware, including ethernet adapters. Therefore, these factors drive the global ethernet adapter market substantially.

High Reliability and Signal Stability to Aid Market Growth

Ethernet internet connection offers superior stability and reliability. While microwave appliances, remote control systems, and Bluetooth headsets interfere with Wi-Fi connections, ethernet network connections are not susceptible to interruptions or shortages in bandwidth. Besides, the ethernet connection provides controlled security for the users connected to the network, preventing harmful security breaches. Therefore, there is growing adoption of ethernet connections, resulting in increased demand for ethernet adapters globally.

Market Restraining Factors

High Installation Cost and Limited Physical Availability for Devices to Restrict Market Growth

Ethernet adapters must be installed properly with various connections and switches for connecting several devices. The system's overall installation cost goes up due to this approach. Not all portable devices, like lightweight laptops and smartphones, can be used with ethernet adapters. These elements serve as market growth inhibitors.

Key Market Opportunities

Increased Demand for Power Over Ethernet (PoE) in Industries to Boom Market Opportunities

A single cable may now carry internet traffic and electrical power due to power over ethernet (PoE) technology. It is a recent technological advancement. A network and an electrical connection are typically required for many connected devices, such as networked security cameras or IP cameras. There are several widely used methods for power transmission over ethernet cables. Since 2003, IEEE 802.3 has standardized two of them. This benefit of PoE is anticipated to open up the attractive potential for the market for ethernet adapters.

Study Period 2020-2032 CAGR 33.7%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 6,250.28 Million
Forecast Year 2032 Forecast Year Market Size USD 12,638.06 Million
Largest Market North America Fastest Growing Market Asia Pacific
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Regional Analysis

By region, the global ethernet adapter market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

Is North America Likely to Dominate the Global Ethernet Adapter Market?

North America is the highest revenue contributor and is estimated to grow at a CAGR of 30.9% during the forecast period. In the past few decades, the internet penetration in North America has increased the use of computers, which augments the use of ethernet adapters to construct local area networks. Advancements in ethernet adapters, which provide a high data rate and broad bandwidth, contribute to the growth of the North American ethernet adapter market. Further, developing the video gaming sector that uses high-speed ethernet for LAN installation influences the demand for ethernet adapters.

Asia-Pacific is the fastest-growing region. It is one of the regions with the most significant number of growing countries, such as Japan, India, South Korea, Taiwan, and the Philippines, in terms of digital technology and infrastructure in residential, commercial, and industrial sectors. An increase in internet penetration demands ethernet adapters for network extension and installation. The advantage of ethernet adapter, such as high-speed transfer, reliability, robust nature, and efficient connection over long range, influences the demand for ethernet adapter.

Europe is the second-largest region and is projected to reach USD 11,092 million by 2030, growing at a CAGR of 34.1%. The European ethernet adapter market growth is mainly driven by increased economic activities, a surge in industrialization, and a rise in internet users. Industrialization promotes the setup of office buildings, data centers to provide data storage services, and others. These applications require the need of ethernet adapter for the transfer of data. Further, using ethernet adapters for PoE increases its demand in control rooms, network backbones, and access links, driving the regional market.

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Segmental Analysis

On the Basis of Type

By type, the global market is segmented into External and Internal. The internal segment is the largest contributor to the market and is estimated to grow at a CAGR of 34% during the forecast period. The internal type of ethernet adapter attributes the majority market share of ethernet adapters, owing to a wide range of applications and benefits of a stable internet connection. The growing demand for high bandwidth network connections is estimated to boost the internal type of market. Furthermore, the digitalization of businesses necessitates the increased capacity of data centers and creates remunerative opportunities for market growth during the forecast period.

The External segment is the second largest. Increasing demand for ultra-light & compact laptops and other IoT devices is primarily driving the need for external ethernet adapters. Most leading computer manufacturers, such as HP, Lenovo, and Dell, have recently launched slim, lightweight laptops. Moreover, increased adoption of IoT devices is projected to further accelerate the growth of the ethernet adapter market during the forecast period.

On the Basis of Interface Type

By interface type, the global market is segmented into PCIe, OCP, and USB. The PCIe segment is the highest contributor to the market and is estimated to grow at a CAGR of 34.1% during the forecast period. PCIe was introduced to meet the needs for higher bandwidth, greater flexibility, and enhanced networking device performance. Moreover, the high-end software is continuously evolving at breakneck speed to suffice the increasing demand for efficient performance, which fuels the need for PCIe ethernet adapters. The PCIe interface type ethernet adapter is anticipated to dominate the market during the forecast period.

The USB segment is the second largest. Most modern electronic devices possess at least one USB port for charging or connecting with other devices. These devices include laptops, smartphones, cameras, flash drives, printers, external hard drives, and game consoles. These devices can transfer data or files through wired or wireless connections. Increasing adoption of these devices implicitly fuels the growth of the ethernet adapter market during the forecast period.

On the Basis of Data Rate Per Port

By data rate per port, the global market is segmented into Up to 1 GbE, 10 GbE, 25 GbE, 40 GbE, 50 GbE, 100 GbE, and 200 GbE. The Up to 1 GbE segment is the highest contributor to the market and is estimated to grow at a CAGR of 11.6% during the forecast period. The increasing penetration of the internet in developing and under-developed countries fosters the up to 1 GbE ethernet adapter market. The increased internet use, especially in the residential sector, further accelerates the ethernet adapter market growth.

The 100 GbE segment is the fastest growing. Growing industrialization and globalization of businesses are driving market growth. Automation of manufacturing plants, online inventories, and supply chain management are prominent factors fueling the ethernet adapter market growth. Deployment of data centers and server rooms in the industrial and commercial sectors is anticipated to fuel the ethernet adapter growth for 100 GbE during the forecast period.

On the Basis of Port Configuration

By port configuration, the global market is divided into Single, Dual, and Quad. The Dual segment is the highest contributor to the market and is estimated to grow at a CAGR of 34.4% during the forecast period. Embedded systems, routers, and desktops are prime applications of the dual-port configuration of ethernet. A motherboard with two ports for ethernet connections does not require an external router. The computer or laptop acts as a router connecting multiple devices to a network. It eliminates the need for routers when required to be connected to a small network. Therefore, there is a growing demand for dual-port configuration of ethernet during the forecast period.

The Single segment is the second largest. Single port ethernet adapters are generally used in laptops and external ethernet adapters. Since most laptops and desktops have the built-in single port configuration of ethernet, it has a significant market share in the ethernet adapter market. The rapid adoption of USB to ethernet adapters is estimated to fuel the single port configuration of ethernet adapters owing to the rapid adoption of compact and lightweight electronic devices.

On the Basis of Application

By application, the global market is segmented into Servers, Embedded Systems, Consumer Applications, Routers & Switches, Desktop Systems, and Others. The Embedded Systems segment is the highest contributor to the market and is estimated to grow at a CAGR of 34.4% during the forecast period. Embedded systems are an integral part of modern technological developments. The constant evolution of artificial intelligence (AI), machine learning, augmented reality (AR), virtual reality (VR), deep understanding, and the internet of things (IoT) drive the embedded systems industry. The evolving embedded systems industry necessitates using ethernet adapters, subsequently driving the market to grow rapidly.

The Servers segment is the fastest growing. Servers not only improve efficiency and productivity in a business but also help businesses to store data. It enables access to data and information from any workstation, allowing employees to work remotely or while traveling. Digitalization of businesses necessitates servers; hence, there is growing adoption of servers. Ethernet adapters are an integral component of servers. With this increasing demand for servers, the ethernet adapter market is estimated to grow rapidly.

On the Basis of End-User

By end-user, the global market is divided into Industrial, Residential, and Commercial. The Commercial segment is the highest contributor to the market and is estimated to grow at a CAGR of 32.5% during the forecast period. Ethernet in commercial sectors requires a high-speed network, broad bandwidth, and low latency for data transfer between devices. Further, the commercial sector requires security and surveillance for the safety of data & information, inventory, goods, and other management purposes. An increase in the usage of machine devices interlinked for the transfer of diagnosed data boosts market growth.

Furthermore, the connection requires the setup of reliable ethernet services to support healthcare's most demanding digital networking requirements to ensure the bandwidth capacity and performance needed to support advanced medical applications. Therefore, the penetration of Cat6 and Cat6a has increased in many hospitals. Consequently, the ethernet adapter market foresees rapid growth in the commercial sector during the forecast period.

The Industrial segment is the fastest growing. In various industries, ethernet is used to control and transmit data among multiple machines and systems. Ethernet used in an industrial setting frequently requires more robust adapters, connectors, cables, and better performance in harsh conditions. To achieve better performance, industrial ethernet uses specialized protocols in conjunction with the ethernet. The most popular industrial ethernet protocols are PROFINET, EtherNet/IP, EtherCAT, SERCOS III, and Powerlink.

Market Size By Type

Market Size By Type
  • External
  • Internal

  • Impact of covid-19

    Covid-19 had some profound adverse impacts on the global advanced ceramics market.

    COVID-19 spread across the world from China, making the whole world stand still and to a complete lockdown situation. Covid-19 is an infectious disease that was caused by a newly discovered coronavirus. During the time, the fatality rate among the population above 40 was also high globally. The disease causes severe illness for people suffering from medical conditions like diabetes, cardiovascular disease, chronic respiratory disease, etc.

    Considering the situation during that time, it was declared a pandemic which led to numerous countries, including the major economies like China, the United States, India, and others, implementing lockdowns which adversely affected the global economy.

    In the first two quarters of 2020, the economic and industrial operations temporarily halted. Almost every manufacturing unit where advanced ceramics is used, such as electrical and electronics, transportation, industrial, chemical, and other End-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers. The lockdown implemented put a halt to global supply chains. This resulted in repercussions in terms of both production and demand for advanced ceramics.

    Market Recovery Timeline and Challenges

    With time the lockdowns were uplifted, and relaxation was made to the public. Gradually, the economy picked up the pace and started its operations, bringing the demand in the global advanced ceramics market and increasing among various industries. As the situation improved during the initial months of 2021, the economies also strengthened their fiscal policies and initiated their development process; the end-user industries began their activities, bringing the overall ceramics market back on track.


    List of key players in Ethernet Adapter Market

    1. Anker Technology (UK) Ltd.
    2. Belkin International Inc.
    3. Broadcom
    4. Intel Corporation
    5. Lenovo
    6. LevelOne
    7. NVIDIA (Mellanox Technologies)
    8. Marvell Technology Group
    9. Plugable Technologies
    10. Xilinx

    Ethernet Adapter Market Share of Key Players

    Ethernet Adapter Market Share of Key Players

    Recent Developments

    • June 2022 - Faction, a Bay Area-based startup and NVIDIA Inception member debuted its business-to-business autonomous delivery service, accelerating its commercial deployment with three-wheel production electric vehicles purpose-built for driverless services.
    • June 2022 - To move AI from the edge to the cloud, NVIDIA teamed up with HPE. The NVIDIA AI Enterprise software suite is an all-inclusive, cloud-native collection of artificial intelligence and data analytics tools. It is designed to make using AI easy for any business and doesn't need someone with extensive AI knowledge. The software may be used everywhere, from a data center to the cloud, and is fully supported by NVIDIA. Additionally, developers may streamline development and deployment and quickly create high-performing AI solutions using cloud-native AI tools and frameworks.

    Ethernet Adapter Market Segmentations

    By Type (2020-2032)

    • External
    • Internal

    By Interface Type (2020-2032)

    • PCIe
    • OCP
    • USB

    By Port Configuration (2020-2032)

    • Single
    • Dual
    • Quad

    By Data Rate per Port (2020-2032)

    • Up to 1 GbE
    • 10 GbE
    • 25 GbE
    • 40 GbE
    • 50 GbE
    • 100 GbE
    • 200 GbE

    By Application (2020-2032)

    • Servers
    • Embedded Systems
    • Consumer Applications
    • Routers & Switches
    • Desktop Systems
    • Others

    By End-User (2020-2032)

    • Residential
    • Industrial
    • Commercial

    Frequently Asked Questions (FAQs)

    What is the growth rate for the Ethernet Adapter Market?
    Ethernet Adapter Market size will grow at approx. CAGR of 33.7% during the forecast period.
    Some of the top industry players in Ethernet Adapter Market are, Anker Technology (UK) Ltd., Belkin International Inc., Broadcom, Intel Corporation, Lenovo, LevelOne, NVIDIA (Mellanox Technologies), Marvell Technology Group, Plugable Technologies, Xilinx, etc.
    North America has held a dominant position in the Ethernet Adapter Market, with the largest market share.
    The Ethernet Adapter Market has seen the most substantial growth rate in Asia Pacific.
    The global Ethernet Adapter Market report is segmented as follows: By Type, By Interface Type, By Port Configuration, By Data Rate per Port, By Application, By End-User


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