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Overview of Campus Switch Market Growth

The campus switch market is experiencing a dramatic turnaround, as reported by the latest findings from Dell'Oro Group. As component shortages continue to impact various sectors, the average selling price (ASP) for campus switches has surged by 19% in the second quarter of 2026. This price increase, which is a direct result of escalating component costs driven primarily by AI-linked shortages, has spurred overall revenue growth in this sector.

Key Market Insights

Siân Morgan, Senior Director at Dell'Oro Group, highlighted that every vendor outside of China has seen an increase in campus switch ASP year-over-year. This universal growth indicates that the demand for these devices remains robust despite the supply chain challenges faced by the industry. Key players such as Cisco, Arista, Ubiquiti, and Extreme Networks have all boosted their market shares during this period, showcasing an adeptness at navigating the adverse supply conditions.

Factors Driving Price Increases

The primary driver for the increasing prices can be attributed to the higher costs of critical components due to shortages. With AI technology playing a crucial role in current supply chains, equipment redesigns and pricing strategies are becoming essential for vendors. Companies that excel in managing these challenges, such as adjusting their equipment designs and optimizing pricing strategies, are positioned to outperform the competition effectively.

Revenue Trends

One of the standout trends observed in the second quarter of 2026 is the resurgence of revenue from public cloud-managed switches, which has outpaced growth across the overall market. This trend underscores the advantages of recurring revenue models, as these models provide a more stable financial footing compared to traditional sales driven by one-time transactions.

Outlook for the Market

Looking forward, Dell'Oro Group anticipates that memory shortages will continue to play a significant role in shaping the market dynamics well into 2027. The ASPs are expected to rise further, and availability issues for campus switches may persist. Despite these supply-related challenges, the fundamental demand for switches remains strong, driven by factors such as the need for upgrades and heightened security concerns.

Interestingly, the modular switch form factors have also seen unusual growth patterns, despite historically experiencing less substantial ASP increases. This growth illustrates a shift in market preferences and could indicate potential opportunities for innovation and development within the sector.

Conclusion

The data from Dell'Oro Group provides a comprehensive picture of a market in flux, navigating through crises while still achieving remarkable growth. As the landscape continues to evolve, vendors must remain vigilant, adapting to ongoing supply challenges while seizing growth opportunities through strategic adjustments. The information gathered serves as a crucial resource for businesses looking to make informed decisions in a rapidly changing environment, proving that even in times of adversity, growth is possible.

For continuous updates and detailed insights into the Campus Ethernet Switch market, Dell'Oro Group regularly publishes comprehensive reports that analyze vendor performance, ASP trends, and sales data across various segments of the market.

For more information on their findings and insights into the telecommunications and data center sectors, Dell'Oro Group can be contacted directly or through their website.