“Next generation processors and accelerators, from the likes of AMD, Intel, and NVIDIA, are rapidly changing the power and thermal management requirements for data center physical infrastructure,” said Lucas Beran, Principal Analyst at Dell’Oro Group.

“Although we expect to see some near-term slowdown in revenue growth in 2023, we forecast data center switch sales to grow high-single-digit to double-digits for every year of our forecast horizon,” said Sameh Boujelbene, Vice President at Dell’Oro Group. “Most of the growth will be propelled by Cloud Service Providers (SPs) which are expected to comprise 60 percent of the data center switch sales by 2027 and to drive significant adoption of 400 Gbps, 800 Gbps, and 1600 Gbps speeds.

“Despite recent supply chain and near-term market demand challenges, we predict Ethernet adapter revenues to grow double-digits over the next five years,” said Baron Fung, Research Director at Dell’Oro Group. “Price of Ethernet adapter ports will increase overtime, as a result of hyperscale migration to server port speeds of 200 Gbps to connect to next-generation networks.