Industry News
Global Ethernet switch market jumps 32% in Q1？
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Author : JIUZHOU
Update time : 2025-06-27 09:15:23
The data company released its latest report on the Ethernet switch market. Global revenue in this sector hit US$11.7 billion during Q1 2025. This figure increased by 32.3% year-on-year, mainly driven by strong demand for data center switches.
It is worth mentioning that, especially high-bandwidth switches for AI workloads. The global router and carrier router market grew by 5.9%.
The latest quarterly Ethernet switch tracking report and quarterly router tracking report released by the data company show that:
In the first quarter of 2025, the global Ethernet switch market revenue reached US$11.7 billion, a year-on-year increase of 32.3%.
This growth was mainly driven by the strong growth of the data center part of the market. Hyperscale cloud service providers are expanding infrastructure capacity.
This expansion aims to meet the demands of the artificial intelligence era. Global enterprise and carrier router revenue totaled US$3.4 billion in Q1 2025.1 This represents a 5.9% year-over-year growth compared to 2024.
AI fuels 800GbE switch demand
The implementation of high-throughput, ultra-low-latency networking solutions for AI computation is rapidly advancing. At present, the data center part of the Ethernet switch market is booming. Data center Ethernet switch revenues grew 54.7% year over year in 1Q25, building on 32.1% year over year growth in 4Q24.
Data center 200/400 GbE switch revenues grew 189.7% year over year in 1Q25. The data company initiated 800 GbE market tracking in Q1 2025. This segment generated $350.8 million revenue, accounting for 5.1% of total quarterly market revenues.
Original design manufacturer (ODM) direct sales maintained strong growth in the data center sector during 4Q24. This segment achieved 67.5% year-over-year revenue growth and captured 20.6% of total segment revenues that quarter.
The non-data center segment grew 9.6% year over year in 1Q25. The non-data center Ethernet switch market experienced two years of growth volatility due to COVID-19-era supply chain disruptions. Market supply and demand dynamics are now showing continued stabilization trends. 1GbE switch revenues, which account for more than half of the non-data center market revenues, grew 7.2% in 1Q25.
Router Market Highlights
The service provider segment dominated the router market with a 75.7% share in Q1 2025. This segment also demonstrated healthy growth with a 5.8% year-over-year increase during the quarter. The enterprise segment accounted for the remainder of the market and grew 6.0% year-over-year in Q1 2025.
A little science about what Ethernet switches are:
Ethernet switches serve as fundamental connectivity components in computer networks. Their primary function is the efficient forwarding of data frames across local area networks (LANs). It intelligently directs data to the target device by identifying the MAC address in the data packet. Compared with traditional hubs, it can significantly reduce network conflicts and improve bandwidth utilization.
Modern Ethernet switches have multiple useful features. They support different speeds, provide PoE power, and enable VLAN network divisions.
Ethernet switches can be categorized into three layers based on their application scenarios. Access layer switches connect computers, phones, and other end devices. Aggregation layer switches manage traffic between different network sections. Core layer switches form the high-speed backbone for fast data transfer.
Among them, data center-level switches must also support low latency, high throughput and other characteristics. With the development of SDN technology, programmable switches are becoming a new trend.
It is worth mentioning that, especially high-bandwidth switches for AI workloads. The global router and carrier router market grew by 5.9%.
The latest quarterly Ethernet switch tracking report and quarterly router tracking report released by the data company show that:
In the first quarter of 2025, the global Ethernet switch market revenue reached US$11.7 billion, a year-on-year increase of 32.3%.
This growth was mainly driven by the strong growth of the data center part of the market. Hyperscale cloud service providers are expanding infrastructure capacity.
This expansion aims to meet the demands of the artificial intelligence era. Global enterprise and carrier router revenue totaled US$3.4 billion in Q1 2025.1 This represents a 5.9% year-over-year growth compared to 2024.
AI fuels 800GbE switch demand
The implementation of high-throughput, ultra-low-latency networking solutions for AI computation is rapidly advancing. At present, the data center part of the Ethernet switch market is booming. Data center Ethernet switch revenues grew 54.7% year over year in 1Q25, building on 32.1% year over year growth in 4Q24.
Data center 200/400 GbE switch revenues grew 189.7% year over year in 1Q25. The data company initiated 800 GbE market tracking in Q1 2025. This segment generated $350.8 million revenue, accounting for 5.1% of total quarterly market revenues.
Original design manufacturer (ODM) direct sales maintained strong growth in the data center sector during 4Q24. This segment achieved 67.5% year-over-year revenue growth and captured 20.6% of total segment revenues that quarter.
The non-data center segment grew 9.6% year over year in 1Q25. The non-data center Ethernet switch market experienced two years of growth volatility due to COVID-19-era supply chain disruptions. Market supply and demand dynamics are now showing continued stabilization trends. 1GbE switch revenues, which account for more than half of the non-data center market revenues, grew 7.2% in 1Q25.
Router Market Highlights
The service provider segment dominated the router market with a 75.7% share in Q1 2025. This segment also demonstrated healthy growth with a 5.8% year-over-year increase during the quarter. The enterprise segment accounted for the remainder of the market and grew 6.0% year-over-year in Q1 2025.
A little science about what Ethernet switches are:
Ethernet switches serve as fundamental connectivity components in computer networks. Their primary function is the efficient forwarding of data frames across local area networks (LANs). It intelligently directs data to the target device by identifying the MAC address in the data packet. Compared with traditional hubs, it can significantly reduce network conflicts and improve bandwidth utilization.
Modern Ethernet switches have multiple useful features. They support different speeds, provide PoE power, and enable VLAN network divisions.
Ethernet switches can be categorized into three layers based on their application scenarios. Access layer switches connect computers, phones, and other end devices. Aggregation layer switches manage traffic between different network sections. Core layer switches form the high-speed backbone for fast data transfer.
Among them, data center-level switches must also support low latency, high throughput and other characteristics. With the development of SDN technology, programmable switches are becoming a new trend.
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