SAN FRANCISCO, March 24, 2025 (GLOBE NEWSWIRE) — A late-year acceleration in branded switch sales helped propel the total data center Ethernet switch market to beyond $20 billion and 100 million port shipments in 2024, according to the latest report from Crehan Research. The increase resulted in a record-high year for revenue and shipments, with annual growth in both branded and ODM-direct data center Ethernet switching. Key drivers were 400 gigabit Ethernet (GbE) and 800GbE, with these two technologies increasing 50% year-on-year to comprise a third of total annual market revenues (see accompanying chart).
“The data center Ethernet switch market growth was the result of a number of factors,” said Seamus Crehan, president of Crehan Research. “There was a return to buying new switches by customers who had overbought as a result of the market’s earlier supply constraints. And in addition to that, we had cloud service providers buying switches to network generative AI clusters.”
Crehan’s report notes that while the adoption of 400GbE data center switching has been broad-based across applications and customer segments, the strong adoption of 800GbE has so far been primarily driven by generative AI. “The strong early 800GbE adoption is in line with our expectation that this technology will likely see the fastest ever data center Ethernet switch speed ramp,” Crehan said.
About Crehan Research Inc.
Crehan Research Inc. produces reports with very detailed statistics and information on the data center switch and server-class adapter & LOM/controller (NIC) markets. The company’s reports are supported with rich insights and context to deliver increased value. For more information visit www.CrehanResearch.com.
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