SAN FRANCISCO – October 31, 2026 -- The data center Ethernet switch market exceeded $20 billion in revenue and 100 million port shipments in 2024, a record year for both measures, according to Crehan Research.
Branded and ODM-direct segments both grow as late-year branded sales accelerate
A late-year acceleration in branded switch sales lifted the full-year total. Both branded and ODM-direct data center Ethernet switching posted annual growth.
400GbE and 800GbE reach one-third of annual revenue after 50% growth
The two speed tiers grew 50% year on year and now account for a third of total annual market revenue. Crehan Research says 400GbE adoption has been broad-based across applications and customer segments. Strong 800GbE adoption has so far been driven primarily by generative AI.
Replacement buying and AI cluster builds drive demand
Seamus Crehan, president of Crehan Research, attributed the growth to several factors. Customers that had overbought during earlier supply constraints returned to buying new switches. Cloud service providers also bought switches to network generative AI clusters.
Crehan said the early 800GbE uptake matches the firm's expectation that the technology will likely see the fastest data center Ethernet switch speed ramp on record.