Campus Switch Sales to Surpass $100 B Between 2024 and 2028, According to Dell'Oro Group
Double-Digit Decline Expected in 2024, Followed by Extended Revenue Growth
REDWOOD CITY, Calif., Feb. 1, 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, well in excess of $100 B will be spent on campus switches over the next five years. After experiencing three strong years in campus switch sales, we foresee a significant correction in 2024, followed by a subsequent period of improved growth trajectory throughout our forecast horizon.
"Backlog normalization, capacity digestion, and spending optimization are all expected to hit the market in 2024," said Sameh Boujelbene, Vice President at Dell'Oro Group. "Additionally, the recently announced HPE/Juniper acquisition may further depress sales performance this year and possibly even next year, since customers will be awaiting more clarity on post-acquisition roadmaps. We currently project a double-digit decline in campus switch sales in 2024.
"Despite such a steep anticipated sales decline in 2024, our analysis showed that the pandemic has effectively accelerated the growth in the campus switch market between 2019 and 2024, compared to the preceding five years. This positive impact was propelled by several factors including an accelerated pace of digital transformation, a greater portion ofhigh-priced Power-Over-Ethernet (PoE) devices, and the need for faster network speeds. We predict these factors will persist in the campus switch market and will drive better days ahead of us," added Boujelbene.
Additional highlights from the Ethernet Switch – Campus 5-Year January 2024 Forecast Report:
About the Report
About Dell'Oro Group
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SOURCE Dell'Oro Group