Campus Switch Revenues Will Plunge in 2024, According to Dell'Oro Group
REDWOOD CITY, Calif., July 30, 2024 /PRNewswire/ -- According to a recently published report by Dell'Oro Group, the trusted source for information about the telecommunications, security, networks, and data center industries, Campus Switch sales hit a stratospheric high in 2023 but are expected to come sharply back down to earth in 2024, contracting by 16 percent. Dell'Oro Group expects to see a 6 percent rebound in Campus Switch revenues in 2025, and then steady growth until 2028.
"Vendors backlogs are now normalized," said Siân Morgan, Research Director at Dell'Oro Group. "Manufacturers are back to generating new demand instead of relying on backlogged orders for revenues.
"The Campus Switch market is in a lull, following on from the record levels of revenues experienced in 2023. However, we expect that digital transformation projects and WLAN upgrades will return the Campus Switch market to growth in 2025. While we see a risk of IT spending shift to Artificial Intelligence (AI) in the enterprise, the AI revolution will also drive some network upgrades," added Morgan.
Additional highlights from the Ethernet Switch – Campus 5-Year July 2024 Forecast Report:
AIOps features remain pivotal for vendors striving to enhance their competitive positioning in the Campus Switch market. These features will help boost prices between 2024 and 2028.
The adoption of 2.5/5.0 Gbps ports, and ports supporting PoE (Power over Ethernet), will be driven by sales of the next generation of WLAN and IoT devices.
Hybrid work models being adopted by enterprises will put both downward and upward pressures on Campus Switch spending.
The share of Campus Switch revenues from sales to enterprises in China is expected to increase in the period between 2023 and 2028.
About the Report
The Dell'Oro Group Ethernet Switch – Campus 5-Year Forecast Report offers a complete overview of Ethernet switches built and optimized for deployment outside the data center, to connect users and things to the Local Area Networks. The report contains tables covering manufacturers' revenue, average selling prices, and port/unit shipments by speed (100 Mbps, 1/2.5/5/10/25/40/50/100/400 Gbps Ethernet), plus regional breakouts. To purchase this report, please contact dgsales@delloro.com.
About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, 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.
SOURCE Dell'Oro Group