Datacenter switch market explodes to $11.7B in Q1 2025 thanks to AI
IDC just dropped fresh numbers showing a massive 32.3% revenue jump year-over-year in datacenter network switches. Q1 2025 hit $11.7 billion, fueled by AI-driven demand for high-bandwidth, low-latency infrastructure.
The datacenter switch segment itself blew up with 54.7% revenue growth, faster than Q4 2024’s 32.1% surge. The biggest jump came from 200/400 GbE switches, which soared 189.7% in sales. 
Plus, IDC tracked 800 GbE switches for the first time, pulling in $350.8 million and grabbing 5% of the market right off the bat.
Here’s the vendor breakdown: Nvidia smashed it with 760.3% revenue growth year-over-year, hitting $1.46 billion, and jumped 183.7% since Q4 2024. Arista grew 27.1% to $1.6 billion. Cisco saw a 3.2% dip in datacenter switches, even though its overall switch revenue nudged up 4.7%. Looks like it’s losing ground to rivals in this red-hot market.
IDC also noted campus and branch switch revenues rose 9.6%, a smaller but steady gain.
On wireless LANs, IDC reported 10.6% growth in Q1. The market is stabilizing after chaos from COVID-era supply issues. AI is helping drive new technologies like 6 GHz Wi-Fi and smarter network management.
Brandon Butler, IDC senior research manager, stated:
"The fundamentals of the enterprise WLAN market remain strong, however, with exciting innovations such as 6 GHz Wi-Fi and AI-powered management capabilities continuing to power the next-generation of wireless connectivity."
