The Campus Ethernet Switch market rebounded in 2025, but did not grow enough to compensate for the 19 percent contraction in 2024 revenue, according to a new report from Dell’Oro Group.
“Vendors are dodging campus switch component shortages that are appearing because of the massive AI build out, and this is driving up costs,” said Siân Morgan, Research Director at Dell’Oro Group. “There has already been one round of price increases, and we expect more to come. Prices are growing at a time when enterprises must refresh their older switching gear to ensure security compliance, and to prepare for the proliferation of AI agents. Customer demand, combined with the higher prices will drive market growth over the next five years,” continued Morgan.
Additional highlights from the Campus Ethernet Switch 5-Year January 2026 Forecast Report:
- Demand for PoE ports is increasing, with the higher power requirements of IoT devices and WLAN APs.
- For the second time in history, spending on modular form factors will grow faster than the total market in 2025.
- Richer feature sets, including AIOps functionality, are expected to drive up vendor software revenues.
- Wi-Fi 7 adoption and the introduction of Wi-Fi 8 APs will continue to fue
