DellOro Group projects campus network switch sales will exceed $95B over five years, driven by datacenter and enterprise network expansion.
According to a recently published report by Dell'Oro Group, the trusted source for information about the telecommunications, networks, and data center industries, more than $95 B will be spent on campus switches over the next five years, with multi-gigabit switches (2.5/5/10 Gbps) expected to comprise 10 percent of the port shipments by 2026. "Due to a number of unforeseen headwinds including lingering supply chain challenges, increased macro-economic uncertainties, higher inflation, and regional political conflict, we have lowered our forecast for 2022 and 2023 compared to our prior January report," said Sameh Boujelbene, Senior Director at Dell'Oro Group.
However, while making downward adjustments to the near term, Dell'Oro Group has raised its forecast figures for the outer years. According to Boujelbene, "we believe spending over the five-year forecast period will not decline compared to our prior forecast, but rather shift from one year to the next, depending on the supply situation and macro environment." Interviews with system and component vendors, as well as with Value-Added Resellers (VARs) and System Integrators (SIs), revealed that fundamental growth drivers remain in place and that there is substantial technology debt urging customers to upgrade their networks to support their digital transformation initiatives.
Despite maintaining overall forecasts for revenue and port shipments, Dell'Oro Group has adjusted its port speed mix, shifting volumes from 2.5/5.0 Gbps to the benefit of 1 Gbps. "This adjustment is the result of a combination of supply-and-demand-related issues as explained in our report," added Boujelbene.
The Ethernet Switch – Campus 5-Year Forecast Report offers a complete overview of Ethernet switches built and optimized for deployment outside the data center, for the purpose of connecting users and things to Local Area Networks. The report contains tables covering manufacturers' revenue, average selling prices, and port/unit shipments by speed, including 100 Mbps, 1/2.5/5/10/25/40/50/100/400 Gbps Ethernet, plus regional breakouts.