According to a new report from Dell’Oro Group, global data center switch sales grew nearly 20 percent year-over-year in 3Q 2022 -- reaching a new high for the quarter and for the first nine months of the year.
According to the latest research from the analyst of the telecommunications, security, networks, and data center industries, Arista, Huawei, Juniper, and white box vendors all gained revenue share, with Arista gaining more than six points of share during the quarter.
Dell'Oro's 3Q 2022 Ethernet Switch – Data Center Report further notes that market growth was broad-based across all major segments, including cloud service providers (SPs), telco SPs as well as large enterprises, with the cloud segment accounting for nearly 80 percent of the year-over-year increase in sales during the quarter.
Per the analysis, 200 Gbps and 400 Gbps switches approached 2 million ports shipped and comprised more than 10 percent of the shipments, and more than 20 percent of revenues, during the quarter. This growth was driven by an accelerated adoption from large cloud SPs combined with supply improvement.
Geographically, North America (NA), China, and Asia Pacific (excluding China) each recorded double-digit growth in the quarter, with NA accounting for more than 90 percent of the revenue increase during the reporting period. Meanwhile, according to data, Europe, Middle East and Africa (EMEA) sales were down due to macroeconomic headwinds in the region.
Sameh Boujelbene, senior research director at Dell’Oro Group, remarked:
“As the supply environment continues to improve, more orders are finally being fulfilled, which is evidenced by the strong double-digit port shipment growth during the quarter. With such a strong performance for the first nine months of the year, the market is on track to achieve a strong double-digit growth in 2022. For 2023, despite a potential worsening macroeconomic situation, we expect the strong backlog carried over from 2022, combined with accelerated 200/400 Gbps adoption and ongoing strong demand from the hyperscalers, to drive another year of solid growth in the market."
The Dell’Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.)
The report contains in-depth 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 Gbps); revenue split by market segments, as well as regional breakouts.