3Q22 data center switch sales set record: Dell’Oro

Dec. 6, 2022
The space saw growth across all the major customer segments, including cloud service providers (SPs), telco SPs, and large enterprises.

Worldwide sales of data center switches jumped almost 20% year-on-year in the third quarter 2022, according to a new report from Dell’Oro Group. The market research firm says in its most recent Ethernet Switch – Data Center Quarterly Report that the performance set a new high for the quarter and for the first nine months of the year.

The space saw growth across all the major customer segments, including cloud service providers (SPs), telco SPs, and large enterprises. The cloud sector carried most of the load, accounting for nearly 80% of the growth Dell’Oro reported. Strength in that sector helped drive 200-Gbps and 400-Gbps ports to nearly 2 million; such high-speed ports accounted for more than 10% of shipments and more than 20% of revenues in 3Q22.

Improvements in the supply chain helped provide a catalyst for growth. “As the supply environment continues to improve, more orders are finally being fulfilled, which is evidenced by the strong double-digit port shipment growth during the quarter,” commented Sameh Boujelbene, senior research director at Dell’Oro. “With such a strong performance for the first nine months of the year, the market is on track to achieve a strong double-digit growth in 2022.

“For 2023, despite a potential worsening macroeconomic situation, we expect the strong backlog carried over from 2022, combined with accelerated 200/400-Gbps adoption and ongoing strong demand from the hyperscalers, to drive another year of solid growth in the market,” Boujelbene added.

The quarter saw North America, China, and Asia Pacific (excluding China) each achieving double-digit growth; North America contributed more than 90% of the revenue uptick. Left behind was the Europe, Middle East, and Africa (EMEA) segment, thanks to that region’s macroeconomic conditions.

Arista, Huawei, Juniper, and white-box vendors saw the most benefit from the revenue growth, with Arista gaining more than six points of share during the quarter.

Dell’Oro’s Ethernet Switch – Data Center Quarterly Report covers Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains market and vendor-level information on manufacturers’ revenue; ports shipped; average selling prices for both modular and fixed managed and unmanaged Ethernet switches (1,10, 25, 40, 50, 100, 200, 400, ≥800 Gbps); revenue split by market segments; and regional breakouts.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.

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