Datacentre switch front-end networks expand rapidly – Dell’Oro Group

• More than 40% CAGR in new AI pull-through opportunities in front-end networks, opening doors for new and existing vendors

Redwood City, California – According to a recently published report by Dell’Oro Group, the trusted source for information about the telecommunications, networks, and data center industries, the explosive scale in AI back-end networks is driving the need for additional capacity in data center switch front-end networks for data ingest. We estimate that AI-driven pull-through opportunities will create a net new market expansion in front-end networks that will grow at a CAGR of over 40 percent from 2024 to 2029, presenting significant opportunities for both existing players and new entrants.

“Over the past few years, data center switch sales in front-end networks for general purpose non-accelerated servers have been largely driven by brownfield deployments and upgrades of the installed base, as capacity expansion slowed significantly,” said Sameh Boujelbene, Vice President at Dell’Oro Group. “AI back-end deployments are, however, breathing new life into this market. What’s often overlooked is that within front-end networks, there’s now a growing need for a new segment of connectivity—linking accelerated servers not to each other, but to the front-end network for data ingest.  This additional capacity will require high-speed connectivity and command a price premium,” added Boujelbene.

Additional highlights from the Ethernet Switch—Data Center 5-Year July 2025 Forecast Report:

• Accton, Arista, Celestica, Cisco, Juniper, Huawei, NVIDIA, and others—emerge as the primary beneficiaries of this growth
• Despite some delays, nearly 90 million 800 Gbps and 1600 Gbps switch ports will be deployed in front-end networks over the next five years, leveraging 51.2 Tbps and 102.4 Tbps chips that will be available on the market. Shipments in back-end networks are expected to exceed that by more than three times.