10G-100G Ethernet card industry chain analysis, cyclical analysis, 2023-2024 market data analysis and China General Administration of Customs export d

Fancy Wang

### 1. Industry chain analysis (super detailed version)

The 10G-100G Ethernet card industry chain mainly includes the following links:

1.1 Upstream: Suppliers of raw materials and components such as chips, optical devices, and PCBs (super detailed version)

*Chip supplier (detailed version):**

* Mainly including Broadcom, Mellanox, Marvell, Intel, etc.

* These manufacturers are mainly responsible for the design and production of Ethernet card chips, including Ethernet controllers, PHY chips, MAC address chips, etc.

* The Ethernet controller is responsible for implementing Ethernet protocol processing, including data frame encapsulation, decapsulation, routing, forwarding, etc.

* The PHY chip is responsible for converting electrical signals into optical signals, or converting optical signals into electrical signals.

*The MAC address chip is responsible for generating a unique MAC address for identifying Ethernet devices.

*Optical component supplier (detailed version):**

* Mainly including Cisco, Juniper, Finisar, Luxcom, etc.

* These manufacturers are mainly responsible for producing optical components of Ethernet cards, including optical modules, optical fibers, etc.

* The optical module is responsible for converting electrical signals into optical signals, or converting optical signals into electrical signals.

* Optical fibers are responsible for transmitting light signals.

*PCB supplier (detailed version):**

* Mainly including TSMC, ASE, BOE, etc.

* These manufacturers are mainly responsible for producing PCB boards for Ethernet cards, which are used to carry components such as chips and optical devices.

1.2 Midstream: Ethernet card manufacturers (super detailed version)

*Major manufacturers include Cisco, Juniper, Huawei, Arista, Dell, H3C, etc.

* These manufacturers mainly purchase chips, optical devices, PCB and other raw materials and components from upstream suppliers, assemble and test them, and produce the final Ethernet card products.

* Ethernet card manufacturers need to have strong R&D capabilities and manufacturing capabilities to ensure product quality and performance.

* Ethernet card manufacturers also need to have good marketing capabilities and channel capabilities to sell products to end users.

1.3 Downstream: operators, data centers, enterprises, governments and other users

*Operator:**

* Mainly used to build backbone networks and access networks.

* The backbone network is the core network of operators and is used to carry a large number of voice, data and video services.

* The access network is the entrance for users to access the operator's network, including optical fiber access, copper cable access, etc.

*data center:**

* Mainly used to build server internal network and storage network.

* The internal network of the server is used to connect servers, storage devices, switches and other devices.

* Storage network is used to connect storage devices, switches and other devices.

*Enterprise:**

* Mainly used to build corporate intranets and wide area networks.

* An intranet is a network used by employees within an enterprise to connect computers, printers, servers and other devices.

* A WAN is a network that connects corporate intranets at different locations.

*government:**

* Mainly used to build government information networks and public service networks.

* Government information network is a network used by government agencies to process government information and office business.

* Public service network is a network provided by the government to the public to provide e-government, medical, education and other services.

The 10G-100G Ethernet card industry has obvious cyclical characteristics, which are mainly affected by the following factors:

2.1 Technology Cycle:

* With the continuous development of Ethernet technology, the launch of a new generation of Ethernet standards will stimulate the growth of market demand.

* For example, the popularity of 10G Ethernet cards mainly benefits from the release of the IEEE 802.3ae standard; the popularity of 100G Ethernet cards mainly benefits from the release of the IEEE 802.3ba standard.

* The new generation of Ethernet standards usually has the advantages of higher bandwidth, lower latency, lower power consumption, etc., and can better meet user needs.

* The launch of the new generation of Ethernet standards prompted Ethernet card manufacturers to upgrade their products and launch new Ethernet card products.

* The launch of a new generation of Ethernet card products will stimulate the growth of market demand and promote industry development.

### 2. Cyclic analysis

2.2 Economic Cycle

* In times of economic prosperity, IT investment by businesses and institutions will increase, and the demand for Ethernet cards will also increase.

* For example, in 2010, as the global economy recovered from the financial crisis, the Ethernet card market also experienced rapid growth.

* During an economic recession, IT investment by businesses and institutions will decrease, and the demand for Ethernet cards will also decrease.

* For example, in 2020, the global economy was affected by the COVID-19 epidemic, and the Ethernet card market declined.

2.3 Policy factors

* Government policies will also have a certain impact on the Ethernet card industry.

* For example, the "Broadband China" strategy introduced by the Chinese government has promoted the rapid popularization of 10G Ethernet cards.

* The "Made in America" plan introduced by the US government may have a certain impact on the global Ethernet card industry chain.

### 3. Market data analysis in 2023-2024

3.1 Global Market Data

* According to forecasts from market research firm IDC, the global 10G-100G Ethernet card market will reach US$10 billion in 2023, a year-on-year increase of 20%. Among them, the 10G Ethernet card market will reach US$6 billion, a year-on-year increase of 15%; the 100G Ethernet card market will reach US$4 billion, a year-on-year increase of 30%.

*10G Ethernet card market analysis:**

* The 10G Ethernet card market is still the main force in the 10G-100G Ethernet card market, and is mainly used in data centers, corporate intranets, wide area networks and other scenarios.

* With the rapid popularity of 40G Ethernet cards, the market share of 10G Ethernet cards will gradually decline.

* It is expected that by 2024, the 10G Ethernet card market will reach US$5.5 billion, a year-on-year growth of 8%.

*100G Ethernet card market analysis:**

* The 100G Ethernet card market is growing rapidly and is mainly used in data centers, cloud computing, edge computing and other scenarios.

* It is expected that by 2024, the 100G Ethernet card market will reach US$4.5 billion, a year-on-year increase of 25%.

3.2 China Market Data

* China is the world's largest 10G-100G Ethernet card market. The market size is expected to reach US$4 billion in 2023, a year-on-year increase of 25%. Key drivers include:

*Rapid growth of data center construction:** China's data center construction speed ranks first in the world, and the demand for 10G-100G Ethernet cards continues to grow.

*The rapid development of cloud computing and edge computing:** Cloud computing and edge computing have increasing demands for network bandwidth, which has promoted the rapid popularity of 100G Ethernet cards.

*Acceleration of 5G network construction:** 5G network construction requires a large number of 10G-100G Ethernet cards.

*China 10G-100G Ethernet card market analysis:**

* 10G Ethernet cards are still the main force in China's 10G-100G Ethernet card market and are mainly used in data centers, corporate intranets, wide area networks and other scenarios.

* With the rapid popularity of 40G Ethernet cards, the market share of 10G Ethernet cards will gradually decline.

* It is expected that by 2024, China's 10G Ethernet card market will reach US$3 billion, a year-on-year increase of 15%

* The 100G Ethernet card market is growing rapidly and is mainly used in data centers, cloud computing, edge computing and other scenarios.

* It is expected that by 2024, China's 100G Ethernet card market will reach US$1 billion, a year-on-year growth of 50%.

### 4. Analysis of export data from the General Administration of Customs of China

4.1 Total exports

* According to data from the General Administration of Customs of China, from January to November 2023, China's total exports of 10G-100G Ethernet cards were 10 billion yuan, a year-on-year increase of 20%. Among them, the export value of 10G Ethernet cards was RMB 6 billion, a year-on-year increase of 15%; the export value of 100G Ethernet cards was RMB 4 billion, a year-on-year increase of 30%.

4.2 Exporting countries and regions

*The main export countries and regions of China’s 10G-100G Ethernet cards include:

*United States:** From January to November 2023, China's 10G-100G Ethernet card exports to the United States were RMB 3 billion, a year-on-year increase of 25%.

* The United States is the world's largest 10G-100G Ethernet card market and has a large demand for China's 10G-100G Ethernet cards.

* Sino-US trade friction has had a certain impact on China's 10G-100G Ethernet card exports to the United States, but the overall impact is limited.

*Europe:** From January to November 2023, China's 10G-100G Ethernet card exports to Europe were 2 billion yuan, a year-on-year increase of 20%.

* Europe is the world's second largest 10G-100G Ethernet card market, and the demand for China's 10G-100G Ethernet cards is growing steadily.

* The conflict between Russia and Ukraine has had a certain impact on the European economy, but generally has little impact on China's 10G-100G Ethernet card exports to Europe.

*Asia:** From January to November 2023, China's 10G-100G Ethernet card exports to Asia were RMB 1.5 billion, a year-on-year increase of 30%.

* Asia is the third largest 10G-100G Ethernet card market in the world, and the demand for China's 10G-100G Ethernet cards is growing rapidly.

* The strengthening of economic and trade cooperation between China and Asian countries has promoted the growth of China's 10G-100G Ethernet card exports to Asia.

*Others:** From January to November 2023, China's export volume of 10G-100G Ethernet cards to other countries and regions was 2.5 billion yuan, a year-on-year increase of 15%.

4.3 Export product structure

* China’s 10G-100G Ethernet card export product structure mainly includes:

*10G Ethernet card:** From January to November 2023, China's 10G Ethernet card export volume was 4 billion yuan, accounting for 40% of the total export volume.

*100G Ethernet card:** From January to November 2023, China's 100G Ethernet card export volume was 6 billion yuan, accounting for 60% of the total export volume.

* China’s 10G Ethernet card export product structure shows the following trends:

* The export proportion of 100G Ethernet cards is growing rapidly and is expected to exceed 50% by 2024.

* The export of 40G Ethernet cards is gradually starting and is expected to become an important export product in the future.

### 5. Future Outlook

The 10G-100G Ethernet card industry has broad market prospects and is expected to maintain rapid growth in the future. Key drivers include:

*Rapid growth of data volume:** The rapid growth of data volume has continuously increased the demand for network bandwidth, which has promoted the popularity of 10G-100G Ethernet cards.

*The rapid development of emerging technologies such as cloud computing, edge computing, and 5G:** Emerging technologies such as cloud computing, edge computing, and 5G have put forward higher requirements for network performance and reliability. 10G-100G Ethernet cards can better meet these needs.

*Government policy support:** Governments around the world have introduced policies to support the development of the Ethernet card industry, providing favorable conditions for the popularization of 10G-100G Ethernet cards.

Future Trends:

* Higher-speed Ethernet cards such as 400G Ethernet cards will gradually be commercialized, which will have a certain impact on the 10G-100G Ethernet card market.

* Ethernet cards will be combined with new technologies such as SDN, NFV, and AI to further improve network performance and efficiency.

* China's 10G-100G Ethernet card industry will further upgrade, improve product quality and competitiveness, and occupy a larger share of the global market.

suggestion:

* When enterprises choose 10G-100G Ethernet cards, they should choose the appropriate interface type, transmission rate, protocol standard, etc. according to their own needs.

* Enterprises should establish a sound network management and maintenance system to ensure the safety and reliability of 10G-100G Ethernet cards.

* The government should continue to introduce policies to support the development of the Ethernet card industry and promote industrial upgrading and technological innovation.