Sales of Switches for Data Centers Have Increased by 20% Over the Year

In the third quarter of this year, sales of switches for data centers have increased by 20% as compared to the same period in 2021, according to a report released in early December by the Dell'Oro Group, an analytical agency specializing in network equipment market research.

At the same time, the number of delivered ports increased by more than 10%.

Overall, sales of this class of switches set a record last quarter, as well as the first nine months of this year.

Among the vendors, the third quarter was the most successful for Arista, Huawei and Juniper. At the same time, Arista managed to significantly increase its market share (by 6%) due to a significant increase in supplies (according to the company itself, its sales in the third quarter of the year increased by 57.2%). Sales of switches for data centers supplied as a white box (i.e. not under the brand of a well-known vendor) also increased significantly.

The main growth in deliveries was observed in the sector of cloud service providers (hyperscalers), but sales to telecom operators and large enterprises also increased. In total, almost 2 million 200GbE and 400GbE ports were delivered in the third quarter, accounting for more than 10% of supplies and more than 20% of sales of switches for data centers.

North America and Southeast Asia (including China) registered strong growth in the region, but sales declined in the EMEA region due to the unfavorable macroeconomic situation.

Dell'Oro analysts attribute significant market growth to improvements in component deliveries and forecast year-on-year growth to well over 10%. In the next year of 2023, despite the possible complication of the macroeconomic situation, Dell'Oro expects further growth in sales of switches for data centers due to the supply of equipment based on orders made at the end of 2022, the active introduction of 200- and 400-gigabit Ethernet technologies, and strong demand in the hyperscaler sector.