#United States #Redwood City #Dell'Oro Group #Ethernet Switch #AI Back-end Networks

Data Center Switch Market Reaches New Heights

The latest report from the Dell'Oro Group highlights the significant growth in the Ethernet data center switch market, revealing that sales have more than doubled in the last three years. In the third quarter of 2025 alone, total revenue exceeded a staggering $8 billion, marking a historic milestone for the industry. This remarkable surge is largely attributed to the rapid adoption of AI technologies, which have propelled demand for both back-end and front-end networks.

Key Market Drivers

As Sameh Boujelbene, Vice President at Dell'Oro Group, noted, the substantial increase in Ethernet switch sales was primarily driven by accelerated adoption within AI back-end networks. However, front-end network sales have also demonstrated robust performance, necessitating additional capacity to support the expanding back-end operations. This dual growth highlights a notable trend within the industry, whereby vendors who manage to maintain a high percentage of sales derived from back-end networks have outperformed competitors and gained market share.

Front-end and Back-end Networks

The Dell'Oro Group's analysis emphasizes that front-end networks represent over half of total Ethernet data center switch sales. Notably, switches operating at 100, 200, and 400 Gbps accounted for more than two-thirds of sales in this segment, while the 800 Gbps products remain predominantly allocated for back-end network applications. The sales momentum during Q3 2025 was widespread, with enthusiasm noted across both cloud service providers and large enterprises.

Major Players in the Market

Leading the pack in terms of market share gains were Accton, Celestica, and NVIDIA, with Arista continuing to secure its position at the forefront of the Ethernet data center switch market. These companies have effectively capitalized on the growing demand and technological advancements to capture a larger segment of the market. Meanwhile, established players are adapting their strategies to maintain their competitive edge in this dynamic environment.

Detailed Insights from Dell'Oro's Reports

The Dell'Oro Group has published two pivotal reports regarding the Data Center Switch market. The first, the Data Center Switch – Front-end Networks Quarterly Report, targets Ethernet data center switches specifically used to connect general-purpose servers or accelerated servers to front-end networks. The second, the Data Center Switch – AI Back-end Networks Quarterly Report, focuses on switches utilized in AI back-end networks to link accelerated servers. These reports provide comprehensive market insights and detailed vendor-level information that includes revenue specifics, port shipments, and average selling prices for both modular and fixed managed or unmanaged Ethernet switches across various speeds from 1 Gbps to over 1600 Gbps.

Furthermore, the reports delve into revenue distribution based on customer segments, covering major players including the top four cloud service providers in the U.S., the leading three in China, and large enterprise segments.

Conclusion

The significant growth in the data center switch market is a clear indicator that businesses are increasingly looking to capitalize on the opportunities presented by AI technology and enhanced network capabilities. As organizations continue to invest in their data infrastructure, the demand for high-capacity Ethernet switches is projected to remain strong, shaping the landscape of telecommunications and enterprise networking for the foreseeable future. For further inquiries or deeper analysis of these reports, interested parties can reach out to Dell'Oro Group at +1.650.622.9400 or visit their website at www.delloro.com.