Exploring The Data Center Switch And AI Networks Markets Landscape In 2024
Dell'Oro Group, Wednesday, January 10th, 2024
As usual, we're excited to start the year by reflecting on the developments in the Ethernet data center switch market throughout 2023 and exploring the anticipated trends for 2024.
First, looking back at 2023, the market performed largely in line with our expectations as outlined in our 2023 prediction blog published in January of last year. As of January 2024, data center switch sales are set to achieve double-digit growth in 2023, based on the data collected up to the 3Q23 period. Shipments of 200/400 Gbps nearly doubled in 2023.
While Google, Amazon, Microsoft, and Meta continue to dominate deployments, we observed a notable increase in 200/400 Gbps port shipments destined toward Tier 2/3 Cloud Service Providers (SPs) and large enterprises. In the meantime, 800 Gbps deployments remained sluggish throughout 2023, with expectations for acceleration in 2024.
Unforgettably, 2023 marked a transformative moment in the history of AI with the emergence of generative AI applications, propelling meaningful impact and changes on modern data center networks.
Now as we look into 2024, below are our top 3 predictions for the year: