DellOro Group brief on data center and network markets - November 2025
... Analysts reported data center Capital Expenditure (CAPEX) and component revenue trends. Analysts reported Ethernet data center switch and Artificial Intelligence (AI) back-end networking shifts. Analysts reported server and accelerator demand and supplier positioning. Analysts reported optical transport and IPoDWDM forecasts. Analysts reported router and core routing market recovery. Analysts reported Secure Access Service Edge (SASE) and enterprise security budget shifts. Analysts reported Radio Access Network (RAN) and mobile core revenue outlooks. Analysts reported Wi‑Fi 7 and Local Area Network (LAN) market expectations. ...
Data Center CAPEX and Components
... Analysts reported worldwide data center capital expenditures rose 59% year over year in 3Q 2025. Analysts reported global data center server and storage component revenue rose 40% year‑over‑year in 3Q 2025. Analysts reported accelerated server spending surged in the quarter, “driven by the ramp of NVIDIA Blackwell Ultra and custom accelerator platforms” across US hyperscalers and neo cloud providers. ...
Ethernet Switches and AI Back-end Networks
... Analysts reported Ethernet overtook InfiniBand in AI back‑end networking in 2025. Analysts reported total Ethernet data center switch quarterly revenue exceeded $8 billion in 3Q 2025. Analysts reported most 800 Gbps shipments were destined predominantly for AI back‑end networks. ...
Servers and Supplier Performance
... Analysts reported Dell led all server OEMs in revenue, followed by HPE and Lenovo. Analysts reported white‑box vendors captured the majority of server shipments. Analysts reported NVIDIA led data center IT component revenues, followed by SK Hynix and Samsung. ...
Optical Transport and IPoDWDM
... Analysts reported the Optical Transport market grew 15% year over year in 3Q25. Analysts reported IPoDWDM systems are projected to grow at a 16% average annual rate to $4.4 billion by 2030. Analysts reported ZR optics are the dominant pluggable used in IPoDWDM to date and project a sharp increase in 800 ZR+ module shipments in 2026. ...
Routers and Network Infrastructure
... Analysts reported the router market moved from a deep 2024 decline to a 2025 recovery tied to AI Data Center Interconnect (DCI) and Wide Area Network (WAN) demand. Analysts reported core router revenues grew more than 40% year‑over‑year in the first nine months of 2025. Analysts reported High End Router equipment revenue rose 23% year‑over‑year in 3Q 2025, led by a 68% rebound in Core Routers. ...
SASE and Security Budgets
... Analysts reported the global SASE market grew 21% year‑over‑year in 3Q25 to nearly $3 billion. Analysts reported Access Router revenue fell 25% year‑over‑year in 3Q25. Analysts reported enterprises will shift security budgets to cloud‑delivered edge services and a centralized, AI‑assisted Security Information and Event Management (SIEM) platform by 2026. ...
RAN and Mobile Core Outlook
... Analysts reported the RAN market should hold steady in 2026 after revenue declines between 2021 and 2024. Analysts reported mobile core network revenues are projected to reach an all‑time high in 2026. Analysts reported 5G standalone rollouts have reached high population coverage in 40 countries. ...
LAN, Wi‑Fi 7 and Broadband
... Analysts reported 802.11be (Wi-Fi 7) (Wi‑Fi 7) will become mainstream in 2026. Analysts reported the Local Area Networking market will exceed $30 billion in 2026 but remain below 2023 revenue. Analysts reported broadband strategy is shifting from headline speeds to experiential quality focused on latency, jitter, and reliability. ...
- Dell’Oro Group reports data center CAPEX rose 59% in 3Q 2025
Worldwide data center CAPEX rose 59% year over year in 3Q 2025 as hyperscalers broaden AI and infrastructure spending. - Dell'Oro Group reports 59% rise in data center CAPEX
Dell'Oro Group said worldwide data center capital expenditures rose 59% year over year in 3Q 2025. - Dell'Oro Group projects mobile core network revenues peak in 2026
Dell'Oro Group predicts MCN revenues will reach an all-time high in 2026 as 5G SA rollouts and agentic AI raise capacity demand. - Dell’Oro Group reports Ethernet overtook InfiniBand in AI back-end networks
Ethernet overtook InfiniBand for AI back-end networking in 2025, and Ethernet data center switch revenues nearly doubled versus 2022. - Dell’Oro Group reports 15% growth in Optical Transport market
Dell’Oro Group reports Optical Transport market grew 15% year over year in 3Q25 as bandwidth demand resumed. - Dell'Oro Group says hyperscalers focus on CAPEX discipline in 2026
Dell'Oro Group says hyperscalers move to CAPEX discipline while scaling AI compute in 2026. - Dell’Oro Group forecasts Wi‑Fi 7 mainstream and LAN market above $30 billion
Dell’Oro Group forecasts Wi‑Fi 7 mainstream, AI Operations (AIOps) adoption gains, and the LAN market over $30 billion but below 2023. - Dell'Oro Group projects microwave transmission market to grow in 2026
Dell'Oro Group projects microwave transmission to return to growth in 2026 after a 3% 2024 decline and mixed 2025 results. - Dell’Oro Group reports router market reset and 2025 recovery
Core router revenues rose over 40% year‑over‑year in the first nine months of 2025 amid AI data center and WAN demand. - Dell'Oro Group forecasts IPoDWDM market to reach $4.4 billion by 2030
Dell'Oro Group forecasts IPoDWDM systems will reach $4.4 billion by 2030 and expects a jump in ZR+ module shipments in 2026. - Dell’Oro Group reports Ethernet data center switch revenue topped $8 billion
Ethernet data center switch revenue topped $8 billion in 3Q 2025 as AI back-end demand and front-end growth increased sales. - Dell’Oro Group reports 40% rise in data center component revenue
Dell’Oro Group says data center server and storage component revenue rose 40% year over year in 3Q 2025 driven by AI accelerators. - Dell'Oro Group reports record data center switch revenue
Dell'Oro Group said 3Q25 Ethernet data center switch revenue exceeded $8 billion and more than doubled from three years earlier. - Dell'Oro Group says security budgets will center on SASE and SIEM
Dell'Oro Group says enterprises will shift security budgets to SASE/SSE, cloud Web Application Firewall (WAF) and a centralized AI-assisted SIEM by 2026. - Dell'Oro Group reports broadband shift from speed to experiential quality
Dell'Oro Group says broadband will shift from headline speeds to latency, jitter and reliability in 2026. - Dell'Oro Group forecasts stable RAN revenue in 2026
Dell’Oro Group forecasts RAN revenue to hold steady in 2026, with mixed segment growth and regional variations. - Dell'Oro Group reports SASE market grew 21% in 3Q25
Dell'Oro Group reports SASE revenue rose 21% in 3Q25 while Access Router spending fell 25%. - Dell'Oro Group reports 21% SASE growth in 3Q2025
Dell'Oro Group said global SASE revenue rose 21% year-over-year in 3Q2025 to nearly $3 billion; Access Router revenue fell 25%. - Dell’Oro Group reports 18% growth in data center physical infrastructure
Dell’Oro Group says DCPI revenue rose 18% year‑over‑year in 3Q 2025 on hyperscaler AI buildouts and deployment conversions. - Dell’Oro Group reports 23% growth in High End Router revenue
Dell’Oro Group says High End Router revenue rose 23% in 3Q 2025, led by a 68% increase in Core Routers.