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Press Release -- December 10th, 2024
Source: delloro-group
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Data Center Switch Sales Hit Record High in 3Q 2024, Bolstered by AI Infrastructure Buildouts, According to Dell’Oro Group

Arista Continues to Lead the Market While Celestica Secured Largest Share Gain

REDWOOD CITY, Calif. – December 10, 2024 – 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, Ethernet Data Center Switch sales recorded strong-double digit growth in the third quarter, reaching an all-time high. Arista, H3C, Nvidia, Ruijie, Celestica, and other white box suppliers captured the majority of the revenue growth.

“While we are encouraged by the early sign of spending recovery on traditional front-end networks for general purpose servers, the bulk of sales increase during the quarter was propelled by AI infrastructure buildouts,” said Sameh Boujelbene, Vice President at Dell’Oro Group. “Majority of the sales increase was contributed by Cloud Service Providers. In the meantime, AI-related investments in other segments of the market remain insufficient to counter the ongoing slowdown in front-end network spending,”  added Boujelbene.

Additional highlights from the 3Q 2024 Ethernet Switch–Data Center Report:

  • Arista continues to lead the market and Celestica captured the largest share gain for the second quarter in a row.
  • More than 20 million of 200 Gbps, 400 Gbps, and 800 Gbps Ethernet switch ports shipped year-to-date in the market.
  • Data Center Switch revenues in 2024 are on track to achieve double-digit growth, with further acceleration anticipated in 2025. This growth will be fueled by sustained strength in AI investments and a projected recovery in spending on front-end networks.

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 dgsales@delloro.com.

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.

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