Dell'Oro Group reports Ethernet switch sales tripled in AI back-end networks

Dell'Oro Group found Ethernet switch sales for Artificial Intelligence (AI) back-end networks more than tripled in 2025 and accounted for over two-thirds of data center switch sales in AI clusters, a change that affects network architecture and vendor selection.

Market Overview

The report shows Ethernet adoption expanded faster than InfiniBand in AI back-end networks during 2025, with Ethernet representing the majority of AI cluster switch activity in the fourth quarter and for the full year.

Key Findings

“The growing size of AI clusters, combined with ongoing supply chain constraints, is driving the need for vendor diversity and therefore for Ethernet,” said Sameh Boujelbene, Vice President at Dell’Oro Group.

“The Ethernet vendor landscape in AI back-end networks remains highly competitive. In 2025, Celestica and NVIDIA led the market with a combined 50 percent share. Arista ranked third, despite a significant portion of its AI-related product revenue being deferred. Cisco has also started to accelerate its switch shipments in AI back-end networks with large hyperscalers. HPE/Juniper scored new accounts. Meanwhile, other new entrants are actively pursuing this opportunity. We expect the increasing need for vendor diversity at both the chip and system levels to drive continued share shifts and keep this market highly dynamic,” said Boujelbene.

Segment or Supplier Performance

In 2025 Celestica and NVIDIA captured a combined 50 percent share of Ethernet switch sales in AI back-end networks, with Arista third; Cisco increased shipments with large hyperscalers while HPE and Juniper won new accounts.

Technology or Trend Analysis

800 Gbps switches accounted for the vast majority of Ethernet switch shipments and revenues in AI back-end networks during the quarter.

1600 Gbps is expected to begin shipping in the second half of 2026 and to drive revenue growth and share shifts.

Forecast or Analyst Outlook

The report states the increasing need for vendor diversity at both the chip and system levels will drive continued share shifts and keep the market highly dynamic for AI back-end network switching.

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