Dell'Oro: Campus switching market takes off thanks to backlog

Worldwide Campus Switch sales were up 40 percent in 1Q2023, the highest growth level recorded in this market in over two decades. This remarkable level of growth was fueled by enormous backlog releases and higher prices. Arista, Cisco, HPE Aruba, and Juniper all recorded sales growth of well in excess of 45 percent.

“Lead times improved considerably, now ranging from three to six months, a notable improvement compared to the previous two quarters, and substantial reduction from nine to twelve months experienced about a year ago,” said Sameh Boujelbene, Vice President at Dell’Oro Group. “This is because some of the constrained commodity components have become available, as evidenced by the higher inventory levels of unfinished goods reported by many vendors. In addition, as newer backlogs began to be released, the market started to see positive impacts of list price increases implemented by most vendors about a year ago.

“What was additionally noteworthy is that the strong growth was widespread among the majority of vendors, with Cisco achieving the highest share gain of four points during the quarter. Nonetheless, the company’s market share over the trailing four quarters has remained steady. This could indicate that the share gain in 1Q 2023 might be primarily attributed to the timing of shipments rather than competitive displacements,” added Boujelbene.

Additional highlights from the 1Q 2023 Ethernet Switch – Campus Report:

• Market growth was broad-based across all regions, including China which witnessed a brief decline in 4Q 2022.
• 5/5.0 Gbps port shipments more than doubled, reflecting significant improvement in supply, especially on Cisco’s Catalyst 9300.
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https://www.delloro.com/news/enormous-campus-switch-backlog-release-propels-unprecedented-market-growth/