Campus Switch Market Returns to Growth Quicker Than Expected, $100B between 2021 and 2026, According to Dell’Oro Group

Written by Sameh Boujelbene

 

Multi-Gigabit to Drive Nearly 20 Percent of the Sales by 2026 

REDWOOD CITY, Calif. – February 02, 2022 – According to a recently published report by Dell’Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, more than $100B will be spent on campus switches over the next five years. Multi-gigabit switches (2.5/5/10 Gbps) are expected to comprise nearly 20 percent of the sales by 2026.

“When the pandemic first hit the market and spurred the work-from-home phenomenon, many people thought that campus switch sales might collapse and never recover. Yet our initial forecast issued at the beginning of the pandemic portrayed a more optimistic view of the market and projected that sales should go back to growth and eclipse their pre-pandemic level in 2022. The pace of recovery, however, has exceeded our expectations,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Although the current surge in market demand was partially propelled by some short-term drivers, such as pent-up demand from 2020, orders pulled in from future quarters due to supply challenges, and strong government spending and stimulus around the world, we believe some fundamental growth drivers are here to stay.

Our interviews with various system and component vendors, as well as end-users, revealed that digital transformation initiatives have been accelerated by the pandemic, spurring new network requirements and putting pressure on IT managers to upgrade their networks. We believe that digital transformation is a multi-year journey that will benefit the campus switch market for many years to come and currently project sales to exceed $20B by 2026,” added Boujelbene.

Additional highlights from the Ethernet Switch – Campus 5-Year Forecast Report:

  • The accelerated ramp of Wi-Fi 6 and the anticipated introduction of Wi-Fi 7 WLAN Access Points will fuel the need for 2.5 Gbps, 5 Gbps and even 10 Gbps switch ports.
  • The introduction of new software features and Artificial Intelligence capabilities are expected to increase over our forecast horizon.
  • Interest in Network-As-a-Service (NaaS) offerings is expected to rise but adoption may take time.

About the Report

The Dell’Oro Group Ethernet Switch – Campus 5-Year Forecast Report offers a complete overview of Ethernet switches built and optimized for deployment outside the data center, for the purpose of connecting users and things to the Local Area Networks. The report contains tables covering manufacturers’ revenue, average selling prices, and port/unit shipments by speed (100 Mbps, 1/2.5/5/10/25/40/50/100 Gbps Ethernet) plus regional breakouts. To purchase this report, please contact dgsales@delloro.com.

About Dell’Oro Group

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT 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 www.delloro.com.

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About the Author

Sameh Boujelbene

Vice President

Sameh Boujelbene joined Dell’Oro Group in 2011 and is responsible for the Ethernet Data Center Switch market research. To ensure the Data Center Switch market research captured the impact from AI and ML workloads, she authored an Advanced Research Report

Sameh Boujelbene

Vice President

Sameh Boujelbene joined Dell’Oro Group in 2011 and is responsible for the Ethernet Data Center Switch market research. To ensure the Data Center Switch market research captured the impact from AI and ML workloads, she authored an Advanced Research Report

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