"Record-Breaking" Sales for Ethernet Data Center Switches

According to Dell'Oro Group, Ethernet data center switch sales ended the year on a high note, with strong double-digit growth and a new sales record.

The analysts point to AI, of course, as driving investment in this area, but they also highlight bright spots in more "traditional" applications.

"While the majority of the sales increase continues to be fueled by AI-related investments, we're also encouraged by early signs of recovery in traditional front-end networks," said Sameh Boujelbene, Vice President at Dell'Oro Group. "The recovery in front-end networks began with Cloud Service Providers in early 2024, but 4Q 2024 marked the first quarter where we saw a return to growth in spending from large enterprises, signaling the end of the digestion cycle," added Boujelbene.

Dell'Oro said that Toronto-based electronics manufacturer Celestica captured the highest share gain during the quarter.

The firm also said that 200 Gbps, 400 Gbps, and 800 Gbps were the only high-speed ports to experience shipment growth during the quarter, collectively representing nearly 40% of total port shipments and 50% of total sales.

The Dell'Oro Group Ethernet Switch – Data Center Quarterly Report includes Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains 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, ≥1600 Gbps); revenue split by market segments as well as regional breakouts.