Industry News
A forecast: the global campus switch market will exceed US$100 billion in the next five years
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Author : JIUZHOU
Update time : 2023-07-28 11:29:22
A certain forecast predicts that in the next five years, global campus switch spending will exceed US$100 billion. The analyst firm also raised its forecast for 2023, while lowering its forecast for 2024.
According to a recent report released by a certain company, in the next five years (2023-2027), the cumulative global campus switch (Campus Switch) spending will exceed 100 billion US dollars.
Additionally, the analyst firm raised its outlook for revenue growth in 2023, while revising its forecast for 2024 with a further downward revision.
The analyst firm's group vice president said the company has raised its forecast for 2023, given the continued high level of backlog (Backlog) and unexpectedly fast-improving supply. Already strong double-digit growth.
However, going into 2024, after two consecutive years of significant growth, the company is now forecasting a high-single-digit decline in the campus switch market.
The analyst firm came to this conclusion after studying historical trends and interviewing various system suppliers, value-added resellers and system integrators.
The analyst firm's group vice president also said that while challenges such as backlog normalization, capacity digestion and spending optimization may temporarily affect market growth in 2024, they expect a rapid market recovery and long-term growth in the next few years.
Drivers driving this growth trajectory include the accelerating pace of digital transformation, the increasing proportion of high-priced Power over Ethernet (PoE) equipment, and user demand for faster network speeds.
Additional highlights from the Campus Ethernet Switch Forecast Report until July 2023:
❶By 2027, 2.5/5.0Gbps is expected to drive 15% of campus switch sales.
❷By 2027, POE ports will account for more than half of the total campus switch port shipments.
❸Despite some short-term headwinds, China's market revenue share is expected to increase by 3 percentage points during the forecast period.
❹IT/OT convergence will increase within the forecast horizon, but adoption may take time given the long 10-30 year life cycle of industrial network equipment.
❺The introduction of AI capabilities will continue to play a key role in the competitive positioning of vendors.
According to a recent report released by a certain company, in the next five years (2023-2027), the cumulative global campus switch (Campus Switch) spending will exceed 100 billion US dollars.
Additionally, the analyst firm raised its outlook for revenue growth in 2023, while revising its forecast for 2024 with a further downward revision.
The analyst firm's group vice president said the company has raised its forecast for 2023, given the continued high level of backlog (Backlog) and unexpectedly fast-improving supply. Already strong double-digit growth.
However, going into 2024, after two consecutive years of significant growth, the company is now forecasting a high-single-digit decline in the campus switch market.
The analyst firm came to this conclusion after studying historical trends and interviewing various system suppliers, value-added resellers and system integrators.
The analyst firm's group vice president also said that while challenges such as backlog normalization, capacity digestion and spending optimization may temporarily affect market growth in 2024, they expect a rapid market recovery and long-term growth in the next few years.
Drivers driving this growth trajectory include the accelerating pace of digital transformation, the increasing proportion of high-priced Power over Ethernet (PoE) equipment, and user demand for faster network speeds.
Additional highlights from the Campus Ethernet Switch Forecast Report until July 2023:
❶By 2027, 2.5/5.0Gbps is expected to drive 15% of campus switch sales.
❷By 2027, POE ports will account for more than half of the total campus switch port shipments.
❸Despite some short-term headwinds, China's market revenue share is expected to increase by 3 percentage points during the forecast period.
❹IT/OT convergence will increase within the forecast horizon, but adoption may take time given the long 10-30 year life cycle of industrial network equipment.
❺The introduction of AI capabilities will continue to play a key role in the competitive positioning of vendors.
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