Industry News
800GbE switch deployment drives market growth
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Author : JIUZHOU
Update time : 2025-01-03 10:02:03
A report shows that the data center Ethernet switch market improved in the third quarter of 2024. This recovery followed two quarters of decline and was driven by the use of 800GbE.
A recent report shows that the branded data center Ethernet switch market recovered in the third quarter of 2024. This recovery came after two quarters of decline. Total market revenue increased 7% year over year, reaching its highest quarterly level to date.
A key factor in this growth is the fast increase in using 800 GbE data center switches. These switches support the network setup for artificial intelligence computing clusters. This strong start shows that 800GbE will likely become popular in data center Ethernet switches. It is expected to grow quickly, with annual shipments of over 20 million 800GbE switches by 2027.
The research firm’s president said:
"A year ago, the industry was still dealing with a backlog of orders. This was due to supply chain issues from the epidemic."
"The data center Ethernet switch market has seen particularly impressive revenue growth this year."
"As cloud service providers deploy the highest levels of Ethernet speeds to handle the bandwidth demands of these workloads."
“Network investments in generative AI are rapidly and profoundly impacting the market.”
The new high-speed Ethernet switches are now used in AI clusters. The 400GbE NICs are the fastest Ethernet network cards available as of the third quarter of 2024. Its shipments grew six times compared to last year. This was due to a big rise in base and performance NIC and DPU/IPU shipments.
A recent report shows that the branded data center Ethernet switch market recovered in the third quarter of 2024. This recovery came after two quarters of decline. Total market revenue increased 7% year over year, reaching its highest quarterly level to date.
A key factor in this growth is the fast increase in using 800 GbE data center switches. These switches support the network setup for artificial intelligence computing clusters. This strong start shows that 800GbE will likely become popular in data center Ethernet switches. It is expected to grow quickly, with annual shipments of over 20 million 800GbE switches by 2027.
The research firm’s president said:
"A year ago, the industry was still dealing with a backlog of orders. This was due to supply chain issues from the epidemic."
"The data center Ethernet switch market has seen particularly impressive revenue growth this year."
"As cloud service providers deploy the highest levels of Ethernet speeds to handle the bandwidth demands of these workloads."
“Network investments in generative AI are rapidly and profoundly impacting the market.”
The new high-speed Ethernet switches are now used in AI clusters. The 400GbE NICs are the fastest Ethernet network cards available as of the third quarter of 2024. Its shipments grew six times compared to last year. This was due to a big rise in base and performance NIC and DPU/IPU shipments.
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