Spending on campus switches over the next five years will reach nearly $100 billion, Dell’Oro Group said in its report.
Some of the Value-Added Resellers (VARs) and System Integrators (SIs) revealed that some of their customers have asked them to put product delivery on hold until they digest the equipment they have on hand.
“Extraordinary levels of backlogs and rising prices underpin our optimism for 2023. As we head into 2024, we expect the market to go through a correction period,” Sameh Boujelbene, Vice President at Dell’Oro Group, said.
2.5/5.0 adoption will accelerate but shipments are expected to comprise only less than 15 percent of total campus switch ports by 2027.
Power-Over-Ethernet (PoE) ports are forecast to comprise more than half of the total campus switch port shipments by 2027.
Despite some short-term headwinds, China is expected to gain four points of revenue share over our forecast period.
The IT/OT convergence is expected to increase over our forecast horizon but adoption may take time given the very long 10-30 year lifecycle of industrial networking equipment.
The introduction of Artificial Intelligence capabilities will continue to play a key role in vendors’ competitive positioning in the market.