Ethernet Further Extends Its Lead in AI Back-End Networks
REDWOOD CITY, Calif. – September 03, 2026 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, 2Q 2026 marked a major inflection point as switch sales in AI back-end networks surpassed those in front-end networks for the first time. Meanwhile, Ethernet further extended its lead in AI back-end networks, helping mitigate supply constraints.
“AI back-end networks have grown at such a rapid pace that, within just three years of their emergence, spending surpassed that of the large, well-established front-end network market,” said Sameh Boujelbene, Vice President at Dell’Oro Group. “Not only is switch spending growth in back-end networks outpacing front-end networks, but the market size has also become larger in absolute terms. This represents a major shift with significant implications for Ethernet switch vendor positioning and market share. Supply availability will also play an increasingly important role in shaping the competitive landscape and overall market growth. We expect the market to remain supply-constrained, rather than demand-constrained, for at least the next one-to-two years.”
Additional highlights from the 2Q 2026 Data Center Switch – AI Back-end Networks Report:
- Ethernet AI back-end sales have been primarily dominated by scale-out and scale-across use cases. Scale-up use cases will start to emerge in the second half of the year and further fuel the growth in the market.
- Celestica retained the leading position in Ethernet AI back-end switch sales, followed closely by NVIDIA. Arista ranked third, but would have been more closely tied if deferred AI revenue were included. Cisco gained the most share and ranked fourth.
- 800 Gbps switches accounted for the vast majority of the Ethernet switch shipments and revenues in AI back-end networks during the quarter. 1.6 Tbps began sampling and is expected to ramp in the second half of 2026.
Dell’Oro Group’s Data Center Switch – AI Back-end Networks Quarterly Report provides an in-depth look at switches deployed in AI back-end networks to connect accelerated servers. The report contains in-depth market and vendor-level information on manufacturers’ revenue; ports shipped; and average selling prices for both Modular and Fixed Managed and Unmanaged Ethernet Switches, for speeds ranging from ≤100 Gbps to ≥3.2 Tbps. It also covers revenue split by various regions and various customers segments — including the Top 4 US Cloud providers, Top 3 China Cloud providers, AI Model Builders, Neocloud, and large enterprises. For more information about the report, please contact us at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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