Data center switch sales to enjoy nearly 6% CAGR to 2025: Dell’Oro
Sales of data center switches are expected to continue steady growth through 2025, according to a new 5-year forecast report from Dell’Oro Group. The market research firm says that adoption of 400-Gbps and 800-Gbps technology will be a strong driver during the forecast period, with such switches accounting for half of total revenues by 2025.
Dell’Oro notes that data center switch sales have proven fairly resilient during the COVID-19 pandemic and sees no reason this success shouldn’t continue. While sales to enterprises and communications services providers have slipped, strength among cloud network operators buttressed the market, leading to an overall decline of just 1% in 2020. Growth will return this year, enabling the market to exceed the pre-pandemic levels of 2019, Dell’Oro predicts.
Regarding interfaces, Dell’Oro notes that Google and Amazon have driven the market for 200G/400G so far. However, Facebook is expected to launch deployments of 200G switches early this year while Microsoft picks up 400G installations in the second half. Deployments of 800G, most frequently in the form of 2x400G or 8x100G, should begin in 2022 as 100G SerDes devices reach the field. Google and Amazon are again expected to lead adoption, with Microsoft jumping onboard in 2023. Dell’Oro expects 200G SerDes to become available in 2024.
Dell’Oro’s Ethernet Switch – Data Center Five Year Forecast Report covers market trends and includes tables covering manufacturers’ revenue, port shipments, and average selling price forecasts for a variety data switches, including modular and fixed by port speed and fixed managed and unmanaged by port speed. Port speeds forecasted include 1 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps, 100 Gbps, 200 Gbps, 400 Gbps, and 800 Gbps. We also provide Regional Forecast as well as forecast by different market segments (Top 4 U.S. Cloud SPs, Top 3 Chinese Cloud SPs, Telco SPs, Rest of Cloud, Large Enterprises, and Rest of Enterprises).
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
You can connect with Stephen on LinkedIn as well as Twitter.