Campus Switch Market Surges as Component Shortages Push Prices Up

Vendors outside of China experienced a universal increase in average selling prices, a trend Siân Morgan, Senior Director at Dell'Oro Group, attributes directly to AI-driven component costs. Companies that successfully navigated these supply pressures—namely Cisco, Arista, Ubiquiti, and Extreme—gained market share compared to the same period last year.

While hardware remains difficult to source, the demand for switch refreshes and heightened security requirements continues to drive the market. Public cloud-managed switches are performing particularly well, outstripping total market growth as businesses shift toward recurring revenue models. Analysts expect memory shortages to persist through 2027, maintaining upward pressure on pricing while likely complicating equipment availability for the foreseeable future.