AI Infrastructure Buildouts Propel Swift Recovery in Ethernet Data Center Switch Market in 2Q 2024, According to Dell'Oro Group

News provided by

Sep 10, 2024, 08:00 ET

Arista Secures Top Revenue Spot, Celestica Achieves Largest Share Gain

REDWOOD CITY, Calif., Sept. 10, 2024 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, spending on Ethernet data center switches rebounded in 2Q 2024, after a temporary decline in the first quarter. A soaring increase in AI-related investments offset ongoing softness in traditional networks used for general-purpose servers.

"Ongoing backlog normalization, inventory digestion, and spending optimization continue to weigh on traditional front-end networks but explosive growth in AI infrastructure buildouts boosted market performance," said Sameh Boujelbene, Vice President at Dell'Oro Group. "This surge in AI-related investments benefited certain customer segments and port speeds. For instance, 200, 400, and 800 Gbps were the only speeds that exhibited revenue growth during the quarter and comprised more than a third of overall sales," added Boujelbene.

Additional highlights from the 2Q 2024 Ethernet Switch–Data Center Report:

Arista, Huawei, Nvidia, Ruijie, Celestica, and other white box suppliers captured the majority of the revenue growth. Celestica captured the largest share gain. Arista achieved a milestone by securing the top revenue position after closely rivaling Cisco over the last three quarters.
Cloud Service Providers were the only customer segment that showed revenue increase during the quarter.

About the Report
The Dell'Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains in-depth market and vendor-level information on manufacturers' revenue; ports shipped; average selling prices for both Modular and Fixed Managed and Unmanaged Ethernet Switches (1, 10, 25, 40, 50, 100, 200, 400, ≥800 Gbps); revenue split by market segments as well as regional breakouts. To purchase these reports, please contact us by email at [email protected].

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunication, security, enterprise networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

SOURCE Dell'Oro Group