As a result of a late-year surge in switch sales, the data center Ethernet switch market surpassed $20 billion and 100 million port shipments in 2024.
Crehan Research, in its latest report, stated that the increase resulted in a record-high year for revenue and shipments, with annual growth in both branded and ODM-direct data center Ethernet switching.
The research firm noted that the growth was driven by two drivers: 400 GbE and 800GbE, with these two technologies increasing 50% year-on-year to comprise a third of total annual market revenues.
www.crehanresearch.com/
“The data center Ethernet switch market's growth was the result of several factors,” said Seamus Crehan, president of Crehan Research. “There was a return to buying new switches by customers who had overbought as a result of the market’s earlier supply constraints.”
He added that “we had cloud service providers buying switches to network generative AI clusters.”
While the adoption of 400GbE data center switching has been widespread across various applications and customer segments, the advent of generative AI is a key driver of 800GbE adoption.
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