Broad-Based Growth across All Regions, Except China
REDWOOD CITY, Calif. – March 7, 2023 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, global Data Center Switch sales grew 15 percent in 4Q 2022, marking the fifth consecutive quarter of strong double-digit growth in the market. This staggering performance sent sales to a new record level for the quarter and full year 2022. Revenue growth was broad-based across all regions, except China which was down nearly 20 percent in the quarter. This is particularly remarkable given that the only decline ever recorded in the region was back in 1Q 2020 and was due to the Covid-19 pandemic. Even then, the decline was very modest and was followed by a swift recovery.
“Despite only a slight improvement in the supply situation from the prior quarter, the data center switch market maintained its impressive growth trajectory,” Sameh Boujelbene, Vice President at Dell’Oro Group. “This was driven by the release of more backlog, with Cloud Service Providers (SPs) accounting for over 80 percent of the sales increase during the quarter. While this strong market performance was in line with our expectations, the significant decline in China came as a surprise. This decline can be attributed to various factors, including reduced spending from major Chinese Cloud SPs such as Alibaba and Tencent, the latest Covid-related disruptions, and the impact from currency exchange rates,” added Boujelbene.
Additional highlights from the 4Q 2022 Ethernet Switch – Data Center Report:
- Arista was the primary beneficiary of the revenue growth during the quarter, capturing the majority of the increase, followed by Juniper and White Box vendors. Arista’s revenue share rose by almost seven points during the quarter, and the company’s market share surpassed 20 percent for the full year.
- Full-year shipments of 200 Gbps and 400 Gbps reached almost 10 million ports, accounting for more than 10 percent of total shipments and almost 20 percent of revenues. This growth was largely driven by the ongoing adoption of these speeds by large Cloud SPs; namely Google, Amazon, Microsoft, and Facebook; along with improvements in supply.
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. To purchase these reports, please contact us by email at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunication, security, enterprise networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
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