Faster than a Speeding Packet: Network Processors Hit $7 Billion in 2005

The Network Processor (NPU) market is the hottest processor market in existence today. Nowhere else can you find as many buyouts, spinoffs, and true innovations in technology. But is this activity warranted?

Yes, aside from the $7 Billion in revenue at stake just for NPUs in 2005, there is at least double that amount up for grabs when considering all of the chips ancillary to the NPU.

NPUs are one of the fastest growing segments of the semiconductor market because the number of target markets for NPUs is growing almost daily.

In-Stat compiled an in-depth analysis of 15 different target markets to get the most comprehensive forecast available today for NPUs. That information was then used to create focused projections broken out by target markets, wire speed of the NPUs, and an overall forecast that is instrumental for predicting the markets strongly influenced by NPU - like switch fabrics and Host CPUs.

There is also a detailed technology tutorial that explains how NPUs work, why they are gaining popularity, and a comprehensive lesson about the rapidly emerging world of Network Co-Processors.

The Market Overview explains where NPUs are coming from, what has happened in the last year, and where they are going - plus an identification of the sweet spot of these explosive chips.

Executive Summary

Introduction

Methodology

Technical Overview

Who's Who (Definitions)

What is "Network Processing"

Where do NPUs Fit?

Why use NPUs?

ASICs versus NPUs

The Evolving Internet

How Software Makes NPUs Possible…

Market Overview

In the beginning…

We are experiencing technical difficulties…

The Four Forces of the …

If you know it rains a lot, buy an umbrella…

The New National Speed Limit…

Network Processor Forecast

Forecast Process and Assumptions

Overall Forecasts

NPU Revenue Forecast 2000 to 2005

NPU Shipments Forecast 2000 to 2005

NPU ASP Forecast 2000 to 2005

Summary

Forecasts by Speed Grade

Mid-Range NPUs

High-End NPUs

Forecasts by Segment

ATM WAN Switches

ATM LAN Switches

Fast Ethernet Switches

Gigabit Ethernet Switches

10 Gigabit Ethernet Switches

Mid-Range Routers

High-End Routers

Terabit Routers

Purpose-Built VoIP Gateways

Remote Access Concentrators

Base Station Controllers (BSCs)

Mobile Switching Centers (MSCs)

SAN Switches

Wireless Base Transceiver Stations (BTSs)

Digital Subscriber Line Access Multiplexers (DSLAMs)

Network Processor Vendors

Mid-Range Network Processors Vendors

Agere Systems

Applied Micro Circuits Corporation (AMCC)

Broadcom

Conexant

Intel

International Business Machines (IBM)

Motorola

Vitesse

High-End Network Processors

Agere Systems

Applied Micro Circuits Corporation (AMCC)

Bay Microsystems

Cognigine

EZchip Technologies

Internet Machines Corp. (IMC)

Navarro Networks

ONEX Communications

Silicon Access Networks, Inc.

TERAGO Communications

Vitesse

Xelerated Packet Devices (XPD)

Summary

Appendix A: Glossary

List of Tables

Table 1. Terms used in NTC Layout Diagram

Table 2. Bits of Header handled per clock on ATM over OC-48

Table 3. Possible format of a Personal Global Number (PGN)

Table 4. Network Processor Revenue Forecast 2000 - 2005

Table 5. Network Processor Shipment Forecast 2000 - 2005

Table 6. Network Processor ASP Forecast 2000 - 2005

Table 7. Summary of Network Processor Market 2000 - 2005

Table 8. Mid-Range NPU Shipments 2000 - 2005

Table 9. Mid-Range NPU Revenues 2000 - 2005

Table 10. High-End NPU Shipments 2000 - 2005

Table 11. High-End NPU Revenues 2000 - 2005

Table 12. ATM WAN Switches

Table 13. ATM LAN Switches

Table 14. Fast Ethernet Switches

Table 15. Gigabit Ethernet Switches

Table 16. 10 Gigabit Ethernet Switches

Table 17. Mid-Range Routers

Table 18. High-End Routers

Table 19. Terabit Routers

Table 20. Purpose-Built VoIP Gateways

Table 21. Remote Access Concentrators

Table 22. Base Station Controllers

Table 23. Mobile Switching Centers

Table 24. Storage Area Networks

Table 25. Wireless Base Stations

Table 26. DSLAMs

List of Figures

Figure 1. Network Processor Forecast by Rated Wire Speeds

Figure 2. Types of Processor Architectures and Stage Timing

Figure 3. Generalized NTC Layout Diagram

Figure 4. Use of VT-3s in an STS-1 Frame

Figure 5. UUNet's Internet Backbone Map

Figure 6. Network Processor Revenue Forecast 2000 - 2005

Figure 7. Network Processor Shipment Forecast 2000 - 2005

Figure 8. Network Processor ASP Forecast 2000 - 2005

Figure 9. Mid-Range NPU Revenue Forecast ($M) 2000 - 2005

Figure 10. High-End NPU Revenue Forecast ($M) 2000 - 2005

Figure 11. NP10 and TM10 configuration for OC-192

Figure 12. RCUs and RSFs scaled to OC-192

Figure 13. NP-1 Superscalar Architecture

Figure 14. Free Mountain Bike Given To Each New Employee

Figure 15. Internals of ONEX's Service Processor and Switch