Dell’Oro Group Projects $19 Billion High End Router and Aggregation Switch Market by 2030

Dell’Oro Group projects the High End Router and Aggregation Switch market will reach $19 billion in revenue by 2030, with AI infrastructure buildout as the main growth driver. Enterprise and telecom buyers are likely to see demand patterns shift toward data center connectivity.

Market overview

The report forecasts High End Router and Aggregation Switch market revenue will reach $19 billion by 2030. It identifies the next five years as a period when AI infrastructure deployment affects equipment demand more than telecom infrastructure.

Key findings

“The biggest change is that router demand over the next five years will be increasingly influenced by data center connectivity and less by telecom infrastructure,” said Jimmy Yu, Vice President at Dell’Oro Group. The firm also revised its view of high-end router demand upward, linked to capacity and cloud connectivity.

“The outlook for the High End Router market has been revised upward, fueled by increased demand for capacity, cloud connectivity, and data center interconnect (DCI),” said Yu. The report cites core routers for scale-across DCI use and expects edge router demand to exceed initial estimates based on AI growth.

Segment and supplier dynamics

The report highlights that edge router and aggregation switch revenue for mobile backhaul is expected to be relatively flat for the next four years due to a slowdown in 5G deployment. It also forecasts increased demand by 2030 as communication service providers deploy 6G radios and upgrade networks for higher speeds and enhanced services.

For the regions covered, the report states that AI infrastructure expansion creates router demand across most regions, with North America as a focus area. It attributes this to the presence of leading cloud providers and new data center projects in the region.

Forecast and outlook

Global spending on high-end routers by cloud providers is expected to increase at a 16 percent compounded annual growth rate (CAGR). Dell’Oro Group links the spending growth to AI infrastructure buildout and its effect on router demand.

Methodology notes

The report described in the article includes qualitative analysis and detailed statistics for manufacturing revenue by region, customer type and use cases, average selling prices, and unit and port shipments. The article frames the study as a five-year forecast for service provider router and switch markets.

This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.