Global Network Processors Output Is Estimated To Reach About 339.4 M Units By The End Of 2017

The global Network Processors Output is estimated to reach about 339.4 M Units by the end of 2017, which is expected to get 705.4 M Units in 2022. Overall, the Network Processors products performance is positive with the current environment status.

The markets for network processors are intensely competitive, rapidly evolving and subject to rapid technological change. Currently, there are many vendors in the Network Processors industry. The main market players internationally are Intel, Cisco, Broadcom, Cavium, Qualcomm, Ericsson, Mellanox ARM, Marvell, Fortinet, AMCC and etc... The R&D and Manufacturing locations are concentered in China, USA, South Korea, Taiwan and some European countries.

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Taiwan is the biggest production areas for Network Processors, taking about 48.67% market share in 2016 (based on revenue). China Mainland followed the second, with about 17.11% market share in 2016 (based on revenue). In Consumption market, sales of Network Processor in Taiwan and China Mainland also occupied the most consumption market share, with 38.33% and 22.73% separately in 2016.

There are many different kinds of Network Processors which can be categorized by Clock Frequency, RAM size, Data Bus Width, packaging type, MMAC/MIPS/FLOPS and I/O Voltage. And networking processors can be found in network equipment including routers, packet switches, firewalls, session border controllers, intrusion detection and prevention devices and network monitoring systems. Leading vendors in Commercial Network Processor include Intel, Mellanox (EZchip), AMCC and etc.

In the past few years, the price of Network Processors show a decreasing trend and we expect the price may keep the trend in a short period. However, the improvement of energy, transportation costs, employee wages, and equipment depreciation will play a significant role in promoting the cost of Network Processors. Therefore, to some extent, the companies are facing a risk of profit decline.

There are companies adding capacities and aiming at the cost and quality leadership which shall improve profitability. At the same time, companies are focusing on technological innovation, equipment upgrades, and process improvements, to reduce costs and improve quality. The total competition market for Network Processors may become more weakened, while the market is going to be more concentrated for high end Network Processors.

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