Ethernet Campus Switch Revenues Bounce Back to Exceed $20 Billion in 2025, According to Dell'Oro Group
Wi-Fi 7 Deployments Will Require Campus Switch Upgrades
REDWOOD CITY, Calif., Jan. 30, 2025 /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, 2024 was a difficult year for Ethernet Campus Switch sales, with a 20 percent contraction compared to record revenues in 2023. The market is expected to rebound in 2025 and beyond, fueled by refresh cycles and Wi-Fi 7 deployments.
"Wi-Fi 7 Access Points draw twice as much power as Wi-Fi 6," said Siân Morgan, Research Director at Dell'Oro Group. "Enterprises will need to upgrade their switches to deliver sufficient levels of Power over Ethernet (PoE) in order to benefit from the improvements brought about by Wi-Fi 7. This is especially true in regions that support the 6 GHz band, such as North America and Europe.
"Enterprises recognize the importance of a high-performance Local Area Network (LAN), especially facing the new opportunities brought about by Artificial Intelligence (AI). While there is a possibility that some organizations will shift spending to AI projects over the next two to three years, overall, we see enterprise AI adoption as a positive lift for the Ethernet Campus Switch market," added Morgan.
Additional highlights from the Ethernet Switch–Campus 5-Year January 2025 Forecast Report:
Revenue CAGR from the sale of 5.0 Gbps ports is expected to exceed 20 percent between 2024 and 2029, driven by higher speed Wi-Fi APs.
Hybrid work models being adopted by enterprises will put both downward and upward pressures on campus switch spending.
Sales to the Americas experienced the sharpest decline among all macro regions in 2024. Despite China's economic downturn, the region is expected to increase its share of Ethernet Campus Switch revenues.
Richer feature sets, including AIOps functionality, are expected to drive up vendor software revenues.
About the ReportThe 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 GroupDell'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.
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SOURCE Dell'Oro Group
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