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AI infrastructure helped drive Ethernet-switch buying in 2023, when worldwide market revenue rose 20.1% to $44.2 billion, according to IDC figures reported by Network World on March 13, 2024. That is a historical result, not today’s market size: IDC’s later tracker update put 2Q26 revenue at $18.9 billion, up 43.4% year over year. The strongest recent growth was in datacenter switching, while campus and branch sales also increased for different reasons.
What IDC reported about Ethernet-switch buying in 2023
The original headline refers to IDC’s 2023 market findings, summarized by Network World in March 2024. IDC said total Ethernet-switch revenue grew 20.1% to $44.2 billion for the year. Datacenter-switch revenue increased 13.6% year over year as enterprises and service providers built faster networks for maturing AI workloads. Separately, revenue for 200/400GbE switches grew 68.9% for the full year; that figure covers those speed categories, not the entire datacenter segment.
The non-datacenter segment—switches commonly used in enterprise campuses and branches—grew 25.2% in 2023, but fell 1.9% in 4Q23. IDC attributed much of the annual rise to improved component availability, which helped vendors fulfill backlogs. New orders slowed late in the year as customers concentrated on implementing equipment already purchased.
How the market has changed since the 2023 report
IDC’s later figures show a faster market, particularly for datacenter equipment. Its 4Q25 update put full-year 2025 Ethernet-switch revenue at $55.1 billion, up 31.5% year over year. Datacenter revenue grew 53.5% to $32.5 billion, while campus and branch revenue rose 9.1% for the year. These full-year figures provide context between the 2023 report and the 2026 quarterly updates; they should not be compared as though annual and quarterly periods were equivalent.
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In its 2Q26 tracker update, published September 11, 2026, IDC reported $18.9 billion in worldwide Ethernet-switch revenue, up 43.4% year over year. Datacenter switching accounted for $12.3 billion, up 64.5%; campus and branch switching made up $6.6 billion, up 15.7%.
| Period and source | Total Ethernet-switch revenue | Datacenter segment | Campus/branch segment |
|---|---|---|---|
| 2023, IDC figures reported by Network World in 2024 | $44.2 billion; up 20.1% for the year | Revenue up 13.6% year over year | Revenue up 25.2% for the year; down 1.9% in 4Q23 |
| Full-year 2025, IDC | $55.1 billion; up 31.5% year over year | $32.5 billion; up 53.5% for the year | Up 9.1% for the year |
| 2Q26, IDC | $18.9 billion; up 43.4% year over year | $12.3 billion; up 64.5% year over year | $6.6 billion; up 15.7% year over year |
These are revenue figures, not counts of switches or ports shipped. Component costs and average selling prices can push revenue growth above underlying unit growth, a factor IDC specifically noted for campus and branch switching.
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Why AI is changing datacenter switch demand
AI training and inferencing clusters need networks that can move large volumes of data among accelerators and storage. IDC links the recent surge in datacenter-switch revenue to continued investment in that infrastructure. As clusters expand, bandwidth, latency, and the way switches, network adapters, optics, cables, and management software work together become central buying considerations.
Port speeds are also increasing. In 2Q26, 800GbE represented 41.2% of datacenter Ethernet-switch revenue, up from 35.9% in 1Q26, according to IDC’s 2Q26 report. This is the share of segment revenue, not the share of installed ports. 200G and 400G speeds together accounted for 33.6% of datacenter revenue in 2Q26. IDC also reported early demand signals for 1.6T ports as hyperscalers plan future AI-cluster architectures; that indicates emerging interest, not broad deployment.
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- FLEXIBLE MOUNTING OPTIONS: Compact metal design supports desktop or wall-mount placement for versatile installation.
- SILENT & ENERGY-EFFICIENT OPERATION: Fanless design ensures silent performance, while IEEE 802.3az Energy Efficient Ethernet reduces power consumption without compromising high-speed network performance.
- REGIONAL COMPATIBILITY: Made for use in U.S. & CA only
Why campus and branch switching is growing too
Campus and branch demand is not simply a smaller version of the AI-datacenter buildout. IDC points to refresh cycles, support for newer wireless standards such as Wi-Fi 7, and the needs of AI-capable workloads. Higher component prices also contributed to recent revenue growth, so a larger market value does not necessarily mean an equivalent increase in the number of switches sold.
In 2023, improved component availability helped vendors deliver older orders, even as new orders weakened in the fourth quarter. In the later 2026 update, IDC described refresh activity and higher component prices as contributors to campus and branch growth. Buyers planning a refresh should therefore distinguish the need for new capacity or capabilities from price increases in the market.
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Ethernet or InfiniBand for AI clusters?
Market growth alone does not establish that one fabric is right for every AI deployment. A January 2025 infographic from IDC Custom Solutions, sponsored by Juniper and based on IDC’s 2024 Worldwide AI in Networking Special Report, reported that 54% of organizations indicated substantial AI use or preparation to deploy Ethernet switches; 46% indicated the same for InfiniBand switches. These are separate survey results, not exclusive market shares or proof that buyers preferred Ethernet by an eight-point margin. The infographic does not supply a current, unsponsored buyer comparison with detailed methodology.
For a real deployment decision, evaluate the requirements of the workload and the complete network platform rather than choosing by market momentum alone:
- Deployment: A GPU-cluster datacenter has different needs from a campus or branch refresh.
- Traffic and performance: Define bandwidth, latency, and traffic patterns, including how workloads communicate across nodes.
- Platform scope: Consider switches together with network adapters, optics, cables, DPUs where applicable, and management tools. IDC describes NVIDIA Spectrum-X as an integrated AI-networking solution built around Spectrum Ethernet switches, BlueField DPUs, and LinkX cables; it is a platform bundle, not just a standalone switch.
- Cost and availability: Compare the whole deployment and account for component pricing and supply constraints.
- Refresh timing and operations: Align upgrades with support lifecycles, wireless plans, security requirements, and the capabilities of the team managing the network.
IDC’s market data can show where spending is moving, but it does not identify the best product or fabric for a particular environment. That decision requires deployment-specific requirements and product-level evaluation.
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- 【Ethernet Splitter】Connect to your router or modem for additional wired connections (laptop, gaming console, printer, etc)
What IDC’s vendor rankings do—and do not—show
Vendor rankings depend on which segment and period are being compared. In 2Q26, IDC ranked Cisco first in the overall Ethernet-switch market, with $5.4 billion in revenue and 28.7% share. Cisco had 18.2% of datacenter-switch revenue. NVIDIA led the branded-vendor ranking for datacenter Ethernet switching, with $2.5 billion in revenue and 20.4% share of that segment; all of NVIDIA’s Ethernet-switch revenue in the report was in datacenter switching. Arista held 13.4% of the overall market and 18.7% of datacenter revenue. HPE’s reported switch revenue includes Juniper following HPE’s July 2025 acquisition.
These are IDC-reported revenue shares, not measures of product quality, performance, or suitability. They also are not interchangeable across segments: Cisco’s overall-market lead and NVIDIA’s datacenter lead refer to different comparisons.
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The 2023 headline remains useful as a record of when AI began to feature prominently in Ethernet-switch market reporting, but it should not be presented as a current market snapshot. IDC’s 2025 annual results and 2026 quarterly updates show that growth continued and accelerated, especially in datacenters. Campus and branch switching also grew, with refresh demand and component pricing playing a role. Because the reports track revenue, not just units, spending growth should not be read as a direct count of new installations.
IDC’s public resource-center updates provide selected market and vendor figures; they are not the full paid tracker dataset. Readers needing detailed methodology, product-level forecasts, or a buying recommendation will need evidence beyond these market totals.
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