#United States #Redwood City #Wi-Fi 7 #Dell'Oro Group #AIOps

Introduction

According to a recent report by the renowned Dell'Oro Group, a highly respected market research firm, the sales of campus Ethernet switches are poised for a remarkable resurgence. This upswing follows a notable slowdown in 2024 and is primarily driven by the increased demand for sophisticated network technologies that cater to the needs of AI and high-capacity systems. The report's predictions suggest that the overall revenue generated from these sales will exceed an impressive $20 billion by 2025.

Market Overview

The emergence of Wi-Fi 7 and the advent of AIOps functionalities are key factors contributing to this anticipated growth. Siân Morgan, the Research Director at Dell'Oro Group, emphasizes that the integration of AI agents into enterprise networks introduces new requirements for Local Area Networks (LANs). Although it remains early to definitively ascertain how these technological shifts will manifest, it is clear that they will significantly alter traffic patterns and create opportunities for product differentiation among campus switch manufacturers.

As more enterprises recognize the critical importance of maintaining a high-performance LAN, especially for AI applications, investment in enhanced network capabilities has become a top priority. The demand for increased capacity and improved performance is set to reshape the market landscape.

Wi-Fi 7 Adoption

Globally speaking, the adoption of Wi-Fi 7 technology witnessed robust growth in 2024, particularly outside of North America. This trend is expected to continue, with American vendors poised to capture substantial growth in Wi-Fi 7 sales in 2025. The implications of this rise will likely further stimulate the demand for multi-gigabit, Power over Ethernet (PoE) switch ports, which are essential for supporting the advanced features expected from next-generation networks.

Key Highlights from the Forecast Report

Dell'Oro Group's latest forecast report outlines several pivotal growth metrics and trends:
1. Revenue Growth: The revenue from 5.0 Gbps ports is expected to see an impressive compound annual growth rate (CAGR) exceeding 20% between 2024 and 2029. This surge is largely driven by the adoption of higher-speed Wi-Fi access points (APs).
2. Market Opportunities for HPE: The report identifies HPE as having significant potential in terms of new switch sales, particularly in markets outside North America, aided by its recent acquisition of Juniper Mist.
3. Increased Vendor Revenues: As vendors enhance their product offerings with richer feature sets—including AIOps functionality—software revenue is predicted to rise.
4. Product Refresh Cycles: End-of-life dates for various switch models fallen in 2025 and 2026 are poised to trigger refresh cycles for both modular and fixed switch forms, driving additional sales.

Conclusion

The insights provided in the Dell'Oro Group Ethernet Switch – Campus 5-Year Forecast Report bring to light the evolving needs of campus networks amid the integration of AI technologies. As the landscape of network infrastructure continues to change, both vendors and enterprises must adapt to leverage these advancements effectively. With projected sales surpassing $20 billion in 2025, stakeholders in the telecommunications and enterprise networking domains should remain vigilant and proactive in their strategies to capitalize on this burgeoning opportunity. For more detailed insights and data analysis, interested parties are encouraged to access the full report from Dell'Oro Group.