Front end networks to generate $100 billion in sales

By 2028, 51.2 and 102.4 Tbps network chips are expected to enable the deployment of nearly 100M shipments of 800 Gbps and 1.6 Tbps switch ports in front-end networks. AI infrastructure build-outs, also known as “Back-End Networks”, have the potential to double these deployments.

“While Cloud Service Providers’ focus in the near term is on building AI back-end networks to support their AI infrastructure, we anticipate an accelerated pace of investments in front-end networks in the second half of our forecast horizon," said Sameh Boujelbene, Vice President at Dell’Oro Group. "Despite exponential growth opportunities in back-end networks, front-end networks are expected to continue driving the bulk of Ethernet data center switch sales over the next few years. Maintaining robust spending in front-end networks remains, therefore, essential to boosting the performance of major Ethernet switch suppliers.

“While back-end network will be the first to migrate to higher speed, we anticipate 51.2 Tbps-based switch deployment in front-end network to debut in 2024 and to enable a swift adoption of 800 Gbps. 102.4 Tbps-based switch deployments are expected to follow in 2025/2026 time frame and enable a second wave of 800 Gbps and the initial wave of 1.6 Tbps deployment,” added Boujelbene.

Additional highlights from the Ethernet Switch—Data Center 5-Year July 2024 Forecast Report:

Linear Drive Pluggable Optics (LPOs), an alternative to Co-Packaged Optics (CPOs), are expected to gain material traction during our forecast horizon.

SONiC (Software for Open Networking in the Cloud) adoption is expected to accelerate, achieving a 10-20 percent penetration rate in Tier 2/3 Cloud service providers and large enterprises by 2028.