Speed drives data centre switch market growth

Created February 9, 2022
News and Business

According to the recently-published Ethernet Switch – Data Center 5-Year Forecast Report, published report by Dell’Oro Group, the Ethernet Switch Data Centre market is forecast to grow at a nearly double-digit CAGR between 2021 and 2026. 400 Gbps, 800 Gbps, and 1600 Gbps speeds are forecast to drive more than 50% of the market revenues towards the end of the period.

“In line with our expectations, the data centre switch market has not only been resilient to the pandemic, but has actually benefited from it,” said Sameh Boujelbene, senior director at Dell’Oro Group. “As digital transformation initiatives have been accelerated by the pandemic, we are seeing strong growth in the Cloud and at the edge. Towards the end of our forecast horizon, we are predicting that Cloud Service Providers will drive more than 50% of the spending on data centre switches and will propel the adoption of 400 Gbps, 800 Gbps, and 1600 Gbps speeds.”

“It will be very interesting to see how the various data centre switch speeds continue to bifurcate,” added Boujelbene. “We are not only seeing a divergence between the Cloud and the non-Cloud segments in terms of their roadmap of migration to higher speeds but we are also seeing a divergence amongst the hyperscalers. Currently, each hyperscaler is making a distinct choice in terms of switch chips, switch radix, and network topology. We expect this divergence to increase when they migrate to next-generation networks in order to accommodate the need for new workloads such as artificial intelligence and machine learning.”

The forecast Report also found that:

  • The non-Cloud segment is at least two-speed upgrade cycles behind the Cloud segment.
  • The availability of higher speed optics and higher speed SerDes will continue to drive the adoption of higher switch port speeds ahead of Ethernet Standards.
  • Co-packaged optics will start to ramp towards the end of our forecast horizon, but pluggable optics will continue to dominate.

For more information, visit www.delloro.com

speed-drives-data-centre-switch-market-growth

This article was written
by Peter Dykes

Peter Dykes is a independent telecoms and technology journalist who has over that last 30 years written for a wide range of B2B publications and companies. A former BT engineer, he specialises in networks and associated support systems. He is currently Editor of Optical Connections.

You may also be interested in...

  • Applications and Research

    JPMorgan Chase, Toshiba, Ciena, build first QKD network for Blockchain app

    New research involving JPMorgan Chase, Toshiba and Ciena, has demonstrated the viability of a QKD network for metropolitan areas. Resistant to quantum computing attacks and capable of supporting 800 Gbps data under real-world environmental conditions, it is believed to be the first demonstration of QKD securing a mission-critical blockchain application in the industry. The research […]

    Read More
  • Alam Tamboli Senior Analyst, Broadband Access Market ResearchNews and Business

    $7 billion PON Market By 2022 Says Dell’Oro Group

    Optical Transport to boom too According to a newly published report by Dell’Oro Group the worldwide PON market will grow to over $7 billion by 2022. Next-generation PON technologies, including 10 Gbits/s EPON, XGS-PON, and NG-PON2, will drive all of the increase, growing at a Compounded Annual Growth Rate of almost 40% from 2017 to 2022. “Where PON […]

    Read More
  • News and Business

    Improved component supply fuels 2023 router and switch market growth – report

    According to the Service Provider Router and Switch 5-Year July 2023 Forecast recently published by Dell’Oro Group, the cumulative revenues spent on Service Provider (SP) Router and Switch equipment are projected to approach US$77 billion over the next five years. This represents a 9% increase compared to the cumulative revenue of the previous five-year period, […]

    Read More