Data Center Ethernet Switch and NIC Market to Exceed $50 Billion Within Five Years, Forecasts Crehan Research

Upcoming Ramps in 800 Gigabit, 1.6 Terabit and 3.2 Terabit Ethernet

SAN FRANCISCO, Jan. 07, 2025 (GLOBE NEWSWIRE) — In its most recent series of Data Center Networking Long-Range Forecast Reports, Crehan Research predicts that combined Ethernet switch and NIC market revenue will double within five years to surpass $50 billion. Generative AI is expected to be a major contributor to the growth, with back-end AI Ethernet networking alone increasing eight-fold to comprise over one-third of the total revenue (see accompanying chart).

“This strong predicted growth in data center Ethernet AI networking reflects customer’s plans for significant investment in the area, with numerous one-million-plus AI accelerator clusters now on the horizon,” said Seamus Crehan, president of Crehan Research. “Furthermore, there are many more customers deploying small-size Ethernet clusters, as AI grows to touch every aspect of business.”

Along with the exponential growth in generative AI, the Crehan reports also predict strong successive upcoming ramps in 800 gigabit, 1.6 terabit and 3.2 terabit data center Ethernet networking to handle these workloads. “Not only does generative AI require a lot more network bandwidth than other workloads, but it also requires it at a faster cadence,” Crehan said.

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. 

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CONTACT: For more information about Crehan Research Inc. email info@CrehanResearch.com, phone 650-273-8400, or visit www.CrehanResearch.com.