Campus Switch Spending Expected to Grow as Enterprises Prepare for AI
REDWOOD CITY, Calif. – August 5, 2025 – According to a recently published report by Dell’Oro Group, the trusted source for information about the telecommunications, security, networks, and data center industries, the Campus Ethernet Switch market has returned to demand-driven growth after the slowdown in 2024. Revenue is expected to keep expanding over the next five years, as enterprises invest in higher capacity networks.
“The wide use of AI agents is expected to put new requirements on the Local Area Network,” said Siân Morgan, Research Director at Dell’Oro Group. “It is still too early to determine exactly how it will play out, but traffic patterns, volumes and sensitivity to latency are likely to change—leaving room for product differentiation by campus switch vendors. Enterprises recognize the importance of a high-performance LAN, especially as they plan for the implementation of AI use cases.
“Outside North America, Wi-Fi 7 adoption was strong in 2024. We expect that American vendors will see strong growth in Wi-Fi 7 sales in 2025, and this will continue to fuel enterprise purchases of multi-gig, Power over Ethernet switch ports”, added Morgan.
Additional highlights from the Ethernet Switch – Campus 5-Year July 2025 Forecast Report:
- Revenue CAGR (2024-2029) from the sale of 5.0 Gbps ports is expected to exceed 20 percent, driven by higher speed Wi-Fi APs.
- HPE has upside potential for new switch sales outside North America, with newly acquired Juniper Mist.
- Richer feature sets, including AIOps functionality, are expected to drive up vendor software revenues.
- End-of-Life dates in 2025 and 2026 are driving switch refreshes of both modular and fixed form factors.
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, to connect 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, 1/2.5/5/10/25/40/50/100/400 Gbps Ethernet), plus regional breakouts. To purchase this report, please contact 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 www.delloro.com.
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