Company News
A prediction: 20% of Ethernet data center switch ports will be connected to AI servers in 2027
Views : 973
Author : JIUZHOU
Update time : 2023-07-21 13:54:33
According to the latest forecast, in the next five years, the cumulative sales of global Ethernet data center switches will exceed US$100 billion. By 2027, 20% of Ethernet data center switch ports will be connected to AI servers.
According to a recently published report, by 2027, 20 percent of Ethernet data center switch ports will be connected to acceleration servers to support artificial intelligence (AI) workloads. The rise of new generative AI applications will help drive further growth in the already robust data center switch market, which is expected to exceed $100 billion in cumulative sales over the next five years.
The vice president of a certain group said: "The market performance in 2023 is expected to be very good, marking the third consecutive year of double-digit growth in the market and creating a new sales record. Although the backlog (Backlog) normalized, the data center Challenges such as capacity digestion and spend optimization may temporarily impact market growth in 2024, but we expect the market to rebound quickly, with sales returning to double-digit growth throughout the forecast period."
The group vice president added: "The current market size does not even include the full potential growth driven by new generative AI applications and the rise of large language models (LLMs). These breakthrough AI applications require a unique The AI network, i.e., the backend network, serves as the infrastructure to connect all the accelerated servers. This backend network is different from the frontend network used to connect general-purpose servers, which is the main scope of the current Ethernet data center switch report. Future research The focus will be on unlocking the market potential driven by back-end networking utilizing Ethernet and InfiniBand technologies."
Additional highlights from the Ethernet Switches - Data Center Five-Year Forecast report for July 2023:
1. By 2027, nearly half of all data center switch ports will be driven by speeds of 400Gbps and higher.
2. It is expected that by 2025, 800Gbps will exceed 400Gbps.
3. Co-packaged optics (CPO) will not become a reality during our forecast period.
4. SONiC adoption is expected to accelerate, achieving 10-20% penetration in Tier 2/3 cloud service providers and large enterprises by 2027.
According to a recently published report, by 2027, 20 percent of Ethernet data center switch ports will be connected to acceleration servers to support artificial intelligence (AI) workloads. The rise of new generative AI applications will help drive further growth in the already robust data center switch market, which is expected to exceed $100 billion in cumulative sales over the next five years.
The vice president of a certain group said: "The market performance in 2023 is expected to be very good, marking the third consecutive year of double-digit growth in the market and creating a new sales record. Although the backlog (Backlog) normalized, the data center Challenges such as capacity digestion and spend optimization may temporarily impact market growth in 2024, but we expect the market to rebound quickly, with sales returning to double-digit growth throughout the forecast period."
The group vice president added: "The current market size does not even include the full potential growth driven by new generative AI applications and the rise of large language models (LLMs). These breakthrough AI applications require a unique The AI network, i.e., the backend network, serves as the infrastructure to connect all the accelerated servers. This backend network is different from the frontend network used to connect general-purpose servers, which is the main scope of the current Ethernet data center switch report. Future research The focus will be on unlocking the market potential driven by back-end networking utilizing Ethernet and InfiniBand technologies."
Additional highlights from the Ethernet Switches - Data Center Five-Year Forecast report for July 2023:
1. By 2027, nearly half of all data center switch ports will be driven by speeds of 400Gbps and higher.
2. It is expected that by 2025, 800Gbps will exceed 400Gbps.
3. Co-packaged optics (CPO) will not become a reality during our forecast period.
4. SONiC adoption is expected to accelerate, achieving 10-20% penetration in Tier 2/3 cloud service providers and large enterprises by 2027.
Related News
Read More >>
AI Data Center Optical Evolution: Trends & Market
Sep .20.2026
With the rapid growth of artificial intelligence computing, data centers now need much more bandwidth. The physical limitations of traditional copper cable connections are becoming increasingly apparent as transmission speeds rise.
The Global OCS Market Will Exceed $8 Billion by 2030
Sep .09.2026
The latest industry forecasts indicate that by 2030, the total size of the global optical path switch market is expected to exceed $8 billion, with a compound annual growth rate (CAGR) of over 30% between 2026 and 2030.
400G Single-Lane: Next Inflection for AI Datacenters
Aug .27.2026
400G per lane is the next inflection for AI data centers, boosting bandwidth and scaling, but requires advances in materials, packaging, and cooling.
AI-driven 800G Ramp-up Amplifies Quality Risks
Aug .14.2026
Faced with a surge in orders, leading global manufacturers are increasing production line speeds and shortening delivery cycles. However, the real challenge of this growth goes beyond “can we deliver orders on time?”