Ethernet Switch Market to Exceed $26 Billion in 2020

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According to a recent Dell’Oro Group report, the Ethernet Switch market is forecasted to exceed US$26 billion in 2020, primarily from 2.5 Gbps and 5.0 Gbps Ethernet driving upgrades in the campus market, while 25 Gbps and 100 Gbps Ethernet will drive upgrades in data centres.

“The Ethernet Switch market remains robust despite macroeconomic uncertainties around BREXIT and general concerns for the economy,” said Alan Weckel, Vice President at Dell’Oro Group. “2016 is the start of two significant upgrade cycles. In the campus, the market is moving beyond 1 Gbps toward 2.5 Gbps and 5.0 Gbps to support higher bandwidth access points. Concurrently, data centres are migrating towards 25 Gbps and 100 Gbps across both enterprises and Cloud providers. With significant customer-demand for the increased bandwidth, we expect robust growth for the Ethernet Switch market through the rest of the decade.”

For the data centre market, the bulk of the revenue growth during the forecast period is predicted to come from 25 Gbps and 100 Gbps, while 10 Gbps and 40 Gbps will both decline significantly.