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

Ethernet Campus Switch Market Recovery

According to a recent report published by the Dell'Oro Group, a renowned authority on telecommunications and networking markets, Ethernet campus switch revenues are projected to rebound, exceeding $20 billion in 2025. This surge follows a challenging year in 2024, which saw a significant contraction of 20% in sales compared to the record revenues of 2023. The anticipated recovery is largely attributed to ongoing refresh cycles and the rollout of Wi-Fi 7 technology.

Siân Morgan, the Research Director at Dell'Oro Group, noted that "Wi-Fi 7 access points consume double the power of the previous Wi-Fi 6 standard." This shift necessitates enterprises to upgrade their campus switches to ensure they can deliver sufficient Power over Ethernet (PoE). The importance of such upgrades is especially pronounced in regions like North America and Europe, which support the new 6 GHz band of Wi-Fi 7.

Moreover, as enterprises embrace the capacities of Artificial Intelligence (AI), the need for high-performance Local Area Networks (LAN) becomes critical. Although some organizations might redirect funding from traditional networking into AI initiatives over the next few years, the overall trend is that enterprise AI uptake will positively impact the Ethernet campus switch market.

Market Insights

The latest forecast by Dell'Oro provides key insights into the Ethernet switch market, indicating that the Compound Annual Growth Rate (CAGR) for the sale of 5.0 Gbps ports is expected to surpass 20% between 2024 and 2029. This growth is driven primarily by the increasing deployment of high-speed Wi-Fi access points.

Interestingly, the dual pressures of hybrid work models being adopted broadly across enterprises are expected to influence campus switch spending in both positive and negative ways. Regionally, the Americas experienced the most substantial decline in sales during 2024, yet it is predicted that this region will regain a larger share of Ethernet campus switch revenues in the coming years, despite broader economic challenges faced by China.

Additional factors set to influence market dynamics include richer feature sets in campus switches, such as AIOps functionality, which is poised to increase software revenue for vendors significantly. As systems grow more complex and interconnected, the demand for sophisticated management tools becomes inevitable.

About the Report

The Dell'Oro Group's Ethernet Switch – Campus 5-Year Forecast Report offers a detailed overview of Ethernet switches specifically designed for use outside of data centers. This includes analysis of manufacturers' revenues, average selling prices, and shipments by varying speeds (ranging from 100 Mbps to 400 Gbps), along with regional breakdowns. For those interested in acquiring this report, further details can be requested through their official contact channels.

About Dell'Oro Group

The Dell'Oro Group specializes in market research and strategic competitive analysis within the telecommunications, security, enterprise networking, and data center infrastructure sectors. They provide comprehensive quantitative and qualitative insights aimed at informing vital business decisions. For further inquiries, the Dell'Oro Group can be reached at +1.650.622.9400 or through their online portal at www.delloro.com.