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A communication: Ethernet switch ASICs for cloud data centers will double in 5 years
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Author : JIUZHOU
Update time : 2022-11-04 15:51:15
A new forecast from a communications company predicts that Ethernet switch ASICs used in cloud data centers will double in the next five years, from $1.8 billion in 2023 to $3.6 billion in 2027.
Cloud computing companies' demand for Ethernet switches has created a new market segment for high-bandwidth switches and switch ASICs. It has also transformed the industry supply chain, as cloud computing companies began to use in-house designed Ethernet switches and open up these "white box" designs to the wider community.
A communication first published a report on Ethernet switch ASICs in April 2022, and recently released its first update. The report covers the most interesting segment of the switching ASIC market - high-bandwidth (3.2T and above), low-latency chips deployed in cloud data centers. The report briefly profiles the major vendors of commercial switch ASICs and system integrators supplying products to cloud companies, and forecasts 3.2-51.2T switch ASIC sales.
The updated report includes 3.2T/6.4T chips in addition to high-speed products. The change adds nearly $1 billion to the total market size, compared with an estimate in April by a newsletter. The forecast includes chips sold in the commercial market as well as those Cisco uses in its own equipment (captive market). The telecommunications company lowered its forecast for 2023 compared with an April 2022 report, reflecting the leading cloud computing company's reduced planning for data center upgrades planned for next year. Despite the downward revision in forecasts, one communication expects the overall market size to increase from $1.8 billion in 2023 to $3.6 billion in 2027.
One scenario discussed in the report considers cloud companies adopting co-packaged optics (CPO) in 25.6T and 51.2T Ethernet switches. Assuming that 15% of 25.6T and 51.2T switch chips will have half of the ports equipped with CPOs, the market size will increase by $500 million in 2027, from $2 billion to $2.5 billion. Due to revisions to the pricing of exchange ASICs, the impact of adopting CPOs is not as large as one communication estimated in the first edition of this report, published in April 2022.
Cloud computing companies' demand for Ethernet switches has created a new market segment for high-bandwidth switches and switch ASICs. It has also transformed the industry supply chain, as cloud computing companies began to use in-house designed Ethernet switches and open up these "white box" designs to the wider community.
A communication first published a report on Ethernet switch ASICs in April 2022, and recently released its first update. The report covers the most interesting segment of the switching ASIC market - high-bandwidth (3.2T and above), low-latency chips deployed in cloud data centers. The report briefly profiles the major vendors of commercial switch ASICs and system integrators supplying products to cloud companies, and forecasts 3.2-51.2T switch ASIC sales.
The updated report includes 3.2T/6.4T chips in addition to high-speed products. The change adds nearly $1 billion to the total market size, compared with an estimate in April by a newsletter. The forecast includes chips sold in the commercial market as well as those Cisco uses in its own equipment (captive market). The telecommunications company lowered its forecast for 2023 compared with an April 2022 report, reflecting the leading cloud computing company's reduced planning for data center upgrades planned for next year. Despite the downward revision in forecasts, one communication expects the overall market size to increase from $1.8 billion in 2023 to $3.6 billion in 2027.
One scenario discussed in the report considers cloud companies adopting co-packaged optics (CPO) in 25.6T and 51.2T Ethernet switches. Assuming that 15% of 25.6T and 51.2T switch chips will have half of the ports equipped with CPOs, the market size will increase by $500 million in 2027, from $2 billion to $2.5 billion. Due to revisions to the pricing of exchange ASICs, the impact of adopting CPOs is not as large as one communication estimated in the first edition of this report, published in April 2022.
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