Digital information travels through fiber optic cables through the network and data servers behind glass panels in the server room of the data center. High speed digital lines 3d illustration

Data center switch market hits all time high

Sales of data center switches have soared over the past quarter driven by major investment in capacity.


These findings are from a recently published report by Dell’Oro Group which identified that shipments in that product category grew in excess of 20 percent during 2Q 2022. The figures show an all-time high for the quarter as well as for the first half of the year. Growth was broad-based across a number of vendors, with Arista and white box vendors particular beneficiaries.


“We have been forecasting a double-digit growth in the market driven by ongoing strong customer demand, balanced by supply challenges,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “However, vendors’ ability to work through these supply challenges and deliver the level of shipment witnessed during the quarter beat our expectations, although it came at higher logistics and component costs. We expect supply constraints to persist through the remainder of the year and to continue to shape the market as well as vendors’ performance.”


She added that double-digit growth was recorded across all major customer segments, from cloud service providers to telcos to large enterprises. Each one of these segments reached a record revenue level for the quarter and the first half of the year.


“To our surprise, this robust growth was broad-based across all regions, including China which has experienced several weeks of lockdown in multiple cities during the quarter,” she noted, adding that the 200 Gbps and 400 Gbps categories approached volumes of two million ports and comprised more than 10 percent of the shipments and nearly 20 percent of the revenues during the quarter. As anticipated, this growth was driven by an accelerated adoption from large cloud SPs as well as some deferred revenues that got recognized during the quarter.


Data center technologies will be central to discussions at the following event:


Global Media Summit 2022 – NetEvents

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