Industry News
Global Ethernet Switch Market Grew 42.1% in Q2
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Author : JIUZHOU
Update time : 2025-10-10 09:55:27
International Data Corporation has a new report. It shows that the global Ethernet switch market made $14.5 billion in revenue.
This was in the second quarter of 2025. This is a 42.1% increase compared to the same time last year. This growth mainly came from the data center market.
Major tech firms and cloud service providers are rapidly developing infrastructure to support the AI age. Global revenue from enterprise and service provider routers increased by 12.5% from the previous year, hitting $3.6 billion.
The data center sector in the Ethernet switch market continued to grow quickly in the second quarter. This is up from a 54.7% growth rate in the previous quarter. The primary driver was the deployment of high-speed, low-latency network infrastructure designed to support AI processing activities.
Revenue growth in the data center Ethernet switch market was primarily driven by the highest-speed ports. The revenue from 800GbE switches grew by 222.1% from the first to the second quarter of 2025. This made up 12.8% of the data center segment's revenue in the second quarter.
200/400GbE switch revenue grew 175.5% year-over-year, accounting for 49.5% of the data center segment's revenue.
OEM direct sales continued to grow, increasing 76.9% year-over-year and accounting for 19.6% of the segment's revenue. The non-data center segment includes Ethernet switches used in office networks.
Within the non-data center segment, 1GbE switch revenue, which accounts for more than half of the market's revenue, increased 11.3% year-over-year. 25/50GbE switches showed solid growth, increasing 27.5% year-over-year.
From a geographic view, the Ethernet switch market in the Americas grew by 56.8% from last year. This growth was driven by a 90.2% increase in the data center segment in the United States. The EMEA market grew 33.8% year-over-year, while the Asia Pacific market grew 24.0%.
The AI era is boosting the Ethernet switch market. This was stated by the IDC Senior Research Manager for Enterprise Networks.
"Particularly in the data center sector, hyperscalers, service providers, and enterprises are racing to build connectivity infrastructure to support AI workloads."
"At the same time, the non-data center Ethernet switch market is growing. This growth comes from more investment by businesses in campus and branch networks. They want to use AI-driven management tools and get ready for AI workloads."
In the router industry, the service provider sector earned most of the money.
This was in the second quarter of 2025. This was a 13.8% increase from the previous year. The enterprise segment accounted for the remaining market share, with a year-on-year increase of 9.1%.
Regionally, the Americas router market saw a 24.5% year-on-year increase. Meanwhile, the EMEA region saw a 1.0% year-on-year decline, while the Asia-Pacific region saw an 11.4% increase.
This was in the second quarter of 2025. This is a 42.1% increase compared to the same time last year. This growth mainly came from the data center market.
Major tech firms and cloud service providers are rapidly developing infrastructure to support the AI age. Global revenue from enterprise and service provider routers increased by 12.5% from the previous year, hitting $3.6 billion.
The data center sector in the Ethernet switch market continued to grow quickly in the second quarter. This is up from a 54.7% growth rate in the previous quarter. The primary driver was the deployment of high-speed, low-latency network infrastructure designed to support AI processing activities.
Revenue growth in the data center Ethernet switch market was primarily driven by the highest-speed ports. The revenue from 800GbE switches grew by 222.1% from the first to the second quarter of 2025. This made up 12.8% of the data center segment's revenue in the second quarter.
200/400GbE switch revenue grew 175.5% year-over-year, accounting for 49.5% of the data center segment's revenue.
OEM direct sales continued to grow, increasing 76.9% year-over-year and accounting for 19.6% of the segment's revenue. The non-data center segment includes Ethernet switches used in office networks.
Within the non-data center segment, 1GbE switch revenue, which accounts for more than half of the market's revenue, increased 11.3% year-over-year. 25/50GbE switches showed solid growth, increasing 27.5% year-over-year.
From a geographic view, the Ethernet switch market in the Americas grew by 56.8% from last year. This growth was driven by a 90.2% increase in the data center segment in the United States. The EMEA market grew 33.8% year-over-year, while the Asia Pacific market grew 24.0%.
The AI era is boosting the Ethernet switch market. This was stated by the IDC Senior Research Manager for Enterprise Networks.
"Particularly in the data center sector, hyperscalers, service providers, and enterprises are racing to build connectivity infrastructure to support AI workloads."
"At the same time, the non-data center Ethernet switch market is growing. This growth comes from more investment by businesses in campus and branch networks. They want to use AI-driven management tools and get ready for AI workloads."
In the router industry, the service provider sector earned most of the money.
This was in the second quarter of 2025. This was a 13.8% increase from the previous year. The enterprise segment accounted for the remaining market share, with a year-on-year increase of 9.1%.
Regionally, the Americas router market saw a 24.5% year-on-year increase. Meanwhile, the EMEA region saw a 1.0% year-on-year decline, while the Asia-Pacific region saw an 11.4% increase.
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