In 4Q 2023 worldwide Campus Switch sales declined by 4 percent year-over-year (Y/Y), marking the first quarter of decline since 4Q 2020 and signaling the onset of a multi-quarter digestion cycle in the market, according to a new report from Dell'Oro Group.
Vendor performance was uneven during the quarter. Among the top five vendors, Cisco declined the most and was responsible for the bulk of the market decline. Huawei and Juniper declined modestly, while HPE and H3C grew by double digits.
“The revenue decline is mostly reflective of a digestion cycle that seems to be affecting vendors, products, and speeds to varying degrees and on different timelines,” said Sameh Boujelbene, Vice President at Dell’Oro Group. “Put simply, customers that received their orders early and vendors that were faster in fulfilling their backlogs will be the first to enter the digestion cycle. For that reason, vendor performance, regional performance, and even port speed performance was uneven during the quarter,” added Boujelbene.
Additional highlights from the 4Q 2023 Ethernet Switch – Campus Report:
- Regionally, we observed a reversal of the trend seen over the last year. Regions such as North America (NA), Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC) Excluding China, grew robustly in the prior quarters but saw a significant deceleration and, in some cases, a decline, in 4Q 2023. Meanwhile, China, which experienced sluggish sales in the past few quarters, showed some signs of recovery in the quarter.
- 5/5.0 Gbps ports were up more than 60 percent, marking the seventh consecutive quarter of strong double-digit growth. This ongoing growth underscores significant improvements in supply, coupled with rising demand stimulated by the increasing adoption of Wi-Fi 6E Access Points (APs).
https://www.delloro.com/news/campus-switch-market-declines-4-percent-as-backlog-normalizes/
