CAGR of global data center switch market in the next five years is close to double digits

According to a recent report released by Dell'Oro, the global Ethernet switch data center market is expected to grow at a compound annual growth rate (CAGR) of nearly double digits between 2021 and 2026. By the end of the forecast period, 400Gbps, 800Gbps and 1600Gbps are expected to account for more than 50% of the market's revenue.
Sameh Boujelbene, senior director of Dell'Oro Group, said: "Consistent with our expectations, the data center switch market not only remains resilient in the context of the pandemic, but also actually benefits from the pandemic. As the pandemic has stimulated digital transformation initiatives, we see strong growth in cloud computing and edge areas. At the end of our forecast period, we expect that cloud service providers will contribute more than 50% of data center switch spending, and will promote the adoption of 400Gbps, 800Gbps and 1600Gbps speeds 。”
”We not only see the differences between cloud and non-cloud markets in terms of the road map of migration to higher speed, but also see the differences between Hypersaler. At present, every large-scale enterprise has made different choices in terms of switch chip, switch base and network topology. We expect that when they migrate to the next generation network, this difference will increase to meet the demand for new workloads such as artificial intelligence and machine learning, "Boujelbene added.
Ethernet switch - other highlights of the five-year forecast report of data center:
1. The non-cloud sector lags behind the cloud sector for at least two speed upgrading cycles.
2. The commercial use of higher speed optical devices and higher speed SerDes will continue to promote the adoption of higher switch port speed ahead of the Ethernet standard.
3. The application of co-packaged optical (CPO) devices is expected to rise at the end of the prediction period, but pluggable optical devices will continue to dominate.