Surge in Ethernet Campus Switch Sales in North America During Q1 2025 According to Dell'Oro Group
Significant Growth in Ethernet Campus Switch Sales
In a recently published report by Dell'Oro Group, a distinguished market research firm focusing on telecommunications and network market analysis, a notable rise in sales of Ethernet Campus Switches was observed in North America during the first quarter of 2025. The report highlights a year-over-year growth of 3% in global Ethernet Campus Switch revenues despite the challenging economic environment, particularly signaling an 8% decline in the CALA region due to various market forces. This growth trajectory in North America, which surged at 12%, is primarily attributed to enterprises accelerating orders to circumvent potential tariff-induced price hikes.
Understanding the Shift to Wi-Fi 7
One of the key factors contributing to this growth is the recent shift towards Wi-Fi 7 technology. As noted by Siân Morgan, the Research Director at Dell'Oro Group, Q1 2025 marked an important milestone: all major enterprise-class Wireless LAN (WLAN) vendors began offering at least one Wi-Fi 7 access point (AP) in the market. This technological advancement is expected to create a demand for switch renewals over the forthcoming two years, as corporations enhance their network capabilities by incorporating additional Power over Ethernet (PoE) ports and upgrading bandwidth to support the newer and faster Wi-Fi technology.
Competitive Landscape
In examining the competitive landscape, Cisco and Huawei appear to be vigorous competitors in North America; however, their performance in the CALA region is indicative of market volatility, experiencing an 8% decline. Contrastingly, companies like Arista, Huawei, and Ubiquiti were noted for their market share growth over the past four quarters in the Ethernet Campus Switch sector. Nevertheless, the increase in the 1 Gbps ports was relatively muted, with merely a 4% rise reported.
Pricing Trends
Moreover, average selling prices for Ethernet switches are trending downward, approaching levels seen prior to the pandemic. The observed decline in pricing is influenced by the evolving product mix available in the market, marking an essential aspect for buyers looking to optimize their expenditures while upgrading their network infrastructure. As the market evolves, understanding these dynamics will be crucial for stakeholders involved in the decision-making process regarding telecom and network investment.
Conclusion
In summary, the resurgence in Ethernet Campus Switch sales in North America indicates a robust shift in the market dynamics of the telecommunications sector. The transition to Wi-Fi 7 and the strategic ordering of networking equipment amidst economic uncertainties underscore the resilience and adaptability of enterprises. Dell'Oro Group's Ethernet Switch–Campus Quarterly Report provides in-depth insights into current trends, vendor performances, and projections that highlight the evolving landscape awaiting telecom professionals and enterprises alike.
For those interested in acquiring detailed data from the report, Dell'Oro Group offers extensive market information on Ethernet switches, including modular and fixed types tailored for use beyond data centers. For further inquiries regarding the report or additional service offerings, contacting Dell'Oro Group is recommended.