What's Driving Growth in Ethernet Controllers

The Ethernet controller market this year is valued at more than $8 billion. It’s poised to approach $12 billion by 2023. Servers will be the leading application, according to new Markets and Markets data.

“The enterprise migration to the cloud and the role of emerging technologies such as artificial intelligence, IoT, and analytics are increasing the use of servers,” the company notes. “The increasing number of broadcasters offering direct-to-consumer propositions through OTT services, along with traditional distribution routes has also propelled the growth of servers.”

Markets and Markets also says flip-chip and grid arrays will grow significantly during the forecast period. They are attractive due to their high pin density, low thermal resistance, and low inductance, the firm says.

In fact, these kinds of solutions have led the Ethernet controller space since 2016, Markets and Markets says. The continued growth of flip-chip packaging is due to its smaller size, reduced inductance, and good heat conductivity, it explains.

“Also, the performance in high-frequency applications is superior when using flip-chips in comparison with the other interconnection methods, because the length of the connection path is minimized,” the research firm says. “Similarly, the grid array packages enable high-density connections. This is due to the ability of the grid arrays that allow the underside of a chip package to be used for connectivity.”

The company identifies Intel (News - Alert), Broadcom, Microchip, Marvell, and Microsemi (News - Alert) as the leaders in the Ethernet controller market space. And it says the Asia-Pacific region will account for the biggest Ethernet controller spend this year. North America and Europe are next in line.

“The growth of this market in APAC can be attributed to the increased use of Ethernet controller in servers, consumer applications, and desktop systems,” according to Markets and Markets. “The growth in the market for Ethernet controller in APAC is also driven by the rising demand for VoIP solutions, gaming consoles, and digital signage in the region.”