The COVID-19 pandemic led to a major reset of our forecast assumptions and market growth profile for the next five years. For the short term through 2020, market growth will be suppressed due to supply and human resource constraints, as well as weakened macroeconomic conditions. Over the longer term, from 2021 through 2024, we expect the technology and use case drivers of our prior forecasts to remain largely intact and drive annual growth.
The Network Security and Data Center Appliance market, consisting of the Firewall, Content Security, Intrusion Detection System and Intrusion Prevention System (IDS and IPS), and Application Delivery Controller (ADC) markets, is forecasted to grow at 6% five-year CAGR and go from $14 B in 2019 to $19 B in 2024. Growth at 6% is slightly weaker than the typical high single-digit pattern we have seen over the last decade, but considering the ongoing COVID-19 pandemic is explicable. Several of the key takeaways from our forecast report include:
Dell’Oro Group published an update to its Data Center switch market five-year forecast report. The report shows that the data center switch market is expected to grow at a 4% CAGR from 2019 to 2024, approaching $17 B by the end of our forecast period. Despite the COVID-19 pandemic, our revised forecast of 4% CAGR shows only a slight downward adjustment from our prior January forecast of 5%.
Dell’Oro Group published an update to its Campus switch market five-year forecast report. The report shows that the campus switch market is expected to be profoundly impacted by the COVID19- pandemic and to decline at 1% CAGR from 2019 to 2024, compared to our prior January forecast of + 3% CAGR.
We just published the July 2020 Multi-Access Edge Computing (MEC) market forecast report. The industry collaboration and the momentum being achieved, our July 2020 five-year MEC forecast (2019 to 2024) has doubled from our January 2020 forecast. The market is still expected to start slow but greatly accelerates in the second half of the forecast period. We expect the China market will be leading in the scale of MEC deployments and will represent the largest regional market. Here are some key takeaways from the report
Stefan Pongratz, Vice President of Dell’Oro Group, an independent market analysis, and research firm, says that the increased complexity with the various 5G technologies in combination with the shift towards Open RAN will potentially introduce new challenges to CSP operational teams tasked with managing end-to-end performance.
Sameh Boujelbene, senior research director at Dell’Oro Group, agreed with Murphy in a recent blog post, in which she drove home the opinion the acquisition was a strategic and complementary one, rather than opportunistic. She argued that Inphi’s was already well positioned in the electro-optics interconnect market.
With the first phase of the Rural Digital Opportunity Fund (RDOF) reverse auction kicking off on Oct. 29, vendors are gearing up for deployments with their service provider customers, but meaningful revenue may not occur until 2022.
Open RAN technology — which refers to the separation of the hardware and software components of the radio access network (RAN) — has gained a lot of attention over the past year. And with good reason. Open RAN opens the door to more potential RAN vendors and makes hardware and software from different vendors interoperable, which in turn leads to cost savings for operators and more flexibility in the mobile network.
“SASE isn’t necessarily a completely new technology, but its integration of existing technologies in a differentiated way,” said Mauricio Sanchez, research director at Dell’Oro Group, in a call with SDxCentral.