Server-Class Ethernet NIC Market Increased by $2 Billion in 2024, Reports
Crehan Research
Data Center Customers Spending a Greater Portion of Networking Budgets on
Ethernet NICs
SAN FRANCISCO, CA, March 4, 2025 — Server-Class Ethernet NIC revenues
increased by $2 billion in calendar-year 2024, according to the latest report from
Crehan Research. The increase reflects a continuation in the trend of strong
investment in server-class Ethernet NICs, resulting in a doubling of market revenues
in just three years — despite one of those years having seen relatively weak
performance due to a
general
market
inventory correction.
Analysis
of
the
strong growth also
reveals
that
data
center customers are
spending a greater
portion
of
networking budgets
on Ethernet NICs
(see accompanying
chart).
“Data Center Ethernet NICs have gone from low-cost commodity chips soldered
down on volume server motherboards to high-performance, differentiated, add-in
cards that provide a multitude of high-value network functions, including ones
formerly handled by CPUs," said Seamus Crehan, president of Crehan Research.
"As a result, Ethernet NICs have seen an upward trend in share of data center
networking budgets, even as those budgets grew robustly."
Crehan also reported a strong surge in demand for the highest speed NICs during the
year, with combined 100GbE, 200GbE and 400GbE NICs increasing more than 50%
in both shipment and revenues. "Although generative AI was a driver of the high-
speed Ethernet NIC demand surge," Crehan said, "there were numerous other areas
contributing to the growth, including general cloud compute and storage.”
About Crehan Research Inc.
Crehan Research Inc. produces reports with very detailed statistics and information
on the data center switch and server-class adapter & LOM/controller (NIC) markets.
The company’s reports are supported with rich insights and context to deliver
increased value. For more information about Crehan Research Inc., phone 650-273-
8400, or visit www.CrehanResearch.com.
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