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The market for data center switches is growing rapidly

 
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Dołączył: 06 Lut 2025
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PostWysłany: Czw Lut 06, 2025 04:49    Temat postu: The market for data center switches is growing rapidly Odpowiedz z cytatem

According to forecasts by market researchers at the Dell'Oro Group, the market for data center Ethernet switches is expected to grow at double-digit rates on average through 2026, approaching cumulative spending of $100 billion. 400 gigabits per second are expected to account for half of spending. But by 2025, purchases in the 800 Gbps range will outstrip those at 400 Gbps.


Global sales of data center switches increased significantly in the first quarter of 2022, reaching the second highest sales ever recorded on the market. The highest quarterly sales to date were achieved by the Dell'Oro Grouprecorded in the last quarter, it was two percent higher. Compared to the same quarter last year, sales in Q1 2022 increased by 16 percent.

Arista, H3C, Juniper, Star-net Ruijie and white-box providers Philippines Phone Number Database accounted for the majority of the market growth. According to market researchers, Arista grew the fastest. Over the course of the quarter, its revenue share increased by more than two percentage points.

Looking ahead, Sameh Boujelbene, Senior Director at Dell'Oro Group, says: "Given strong bookings and unprecedented backlogs, we expect market demand to remain strong in 2022. However, looking ahead to 2023, concerns are emerging about the sustainability of demand levels. These concerns are fuelled by increasing macroeconomic uncertainties, which, combined with a potential improvement in the supply situation, could curb the panic buying behaviour we are currently seeing in the market."

Cancellations not provided
But even if revenue growth may slow somewhat in 2023, market analysts expect the data center switch market to largely weather these headwinds, particularly as the pandemic continues to reinforce the importance of the network and accelerate digital transformation initiatives. Boujelbene also said discussions with value-added resellers and system integrators have revealed that many vendors have introduced some sort of cancellation ban on their orders. And that should give confidence in a strong revenue forecast for at least the first half of next year.
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