Wi-Fi 7 Deployments Will Require Campus Switch
Upgrades
REDWOOD
CITY, Calif., Jan. 30,
2025 /PRNewswire/ -- According to a recently
published report by Dell'Oro Group, the trusted source for
information about the telecommunications, security, networks, and
data center industries, 2024 was a difficult year for Ethernet
Campus Switch sales, with a 20 percent contraction compared to
record revenues in 2023. The market is expected to rebound in 2025
and beyond, fueled by refresh cycles and Wi-Fi 7 deployments.
"Wi-Fi 7 Access Points draw twice as much power as Wi-Fi 6,"
said Siân Morgan, Research Director at Dell'Oro Group. "Enterprises
will need to upgrade their switches to deliver sufficient levels of
Power over Ethernet (PoE) in order to benefit from the improvements
brought about by Wi-Fi 7. This is especially true in regions that
support the 6 GHz band, such as North America and Europe.
"Enterprises recognize the importance of a high-performance
Local Area Network (LAN), especially facing the new opportunities
brought about by Artificial Intelligence (AI). While there is
a possibility that some organizations will shift spending to AI
projects over the next two to three years, overall, we see
enterprise AI adoption as a positive lift for the Ethernet Campus
Switch market," added Morgan.
Additional highlights from the Ethernet Switch–Campus 5-Year
January 2025 Forecast Report:
- Revenue CAGR from the sale of 5.0 Gbps ports is expected to
exceed 20 percent between 2024 and 2029, driven by higher speed
Wi-Fi APs.
- Hybrid work models being adopted by enterprises will put both
downward and upward pressures on campus switch spending.
- Sales to the Americas experienced the sharpest decline among
all macro regions in 2024. Despite China's economic downturn, the region is
expected to increase its share of Ethernet Campus Switch
revenues.
- Richer feature sets, including AIOps functionality, are
expected to drive up vendor software revenues.
About the Report
The Dell'Oro Group Ethernet Switch – Campus 5-Year Forecast
Report offers a complete overview of Ethernet switches built
and optimized for deployment outside the data center, to connect
users and things to the Local Area Networks. The report contains
tables covering manufacturers' revenue, average selling prices, and
port/unit shipments by speed (100 Mbps, 1/2.5/5/10/25/40/50/100/400
Gbps Ethernet), plus regional breakouts. To purchase this report,
please contact dgsales@delloro.com.
About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in
strategic competitive analysis in the telecommunications, security,
enterprise networks, and data center infrastructure markets. Our
firm provides in-depth quantitative data and qualitative analysis
to facilitate critical, fact-based business decisions. For more
information, contact Dell'Oro Group at +1.650.622.9400 or visit
www.delloro.com.
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SOURCE Dell'Oro Group