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Data Center switch sales hit a new record in 3Q 2022

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 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. Arista, Huawei, Juniper, and White Box vendors all gained revenue share, with Arista gaining more than six points of share during the quarter.

“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,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “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,” added Boujelbene.

Additional highlights from the 3Q 2022 Ethernet Switch – Data Center Report:

  • Growth was broad-based across all major segments: 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.
  • North America (NA), China, and Asia Pacific (excluding China) recorded double-digit growth each, with NA accounting for more than 90 percent of the revenue increase during the quarter. In the meantime, Europe, Middle East and Africa (EMEA) was down due to macroeconomic headwinds in the region.
  • 200 Gbps and 400 Gbps approached 2 M ports and comprised more than 10 percent of the shipments and more than 20 percent of the revenues during the quarter. This growth was driven by an accelerated adoption from large Cloud SPs combined with supply improvement.

CT Bureau

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