REDWOOD CITY, Calif. – According to a recently published report by Dell'Oro Group, the trusted source for information about the telecommunications, networks, and data center industries, the Ethernet Switch Data Center market is forecast to grow at a nearly double-digit CAGR between 2022 and 2027, surpassing $100 B in cumulative spending over the next five years. Our current market outlook doesn't include potential additional sales associated with Co-packaged optics (CPOs) as customers' interest and technology readiness are still a moving target.
Additional highlights from the Ethernet Switch – Data Center 5-Year January 2023 Forecast Report:
- 800 Gbps is expected to eclipse 400 Gbps by 2025. The availability of 800 Gbps optics and 25.6 T chips propelled the adoption of 800 Gbps switch ports. This adoption was first spearheaded by Google but other Cloud SPs are expected to follow suit.
- SONiC adoption is expected to accelerate over our forecast horizon, achieving a 10-20 percent penetration rate in Tier 2/3 Cloud SPs and large enterprises by 2027.
Read the full press release here.
Dell'Oro
