Both InfiniBand and Ethernet Technologies Forecast to Achieve Record Revenues in 2024
Incline Village, Nevada – January 24, 2024 – A newly released report by 650 Group, a leading market intelligence research firm for communications, data center, and cloud markets, indicates that the Data Center AI Networking market is expected to grow to over $15B in 2024 led by Ethernet, InfiniBand and 400/800G Optical Transceivers. The report also revealed significant regional differences in vendor performance with many records set.
Highlights for 2023 include:
- Arista and NVIDIA are the largest two vendors in this segment
- By 2028, 1 in 5 Ethernet switch ports sold into the data center will be related to AI/ML and accelerated computing
- AI/ML will drive record levels of 800 Gbps ports and Optics during their first 18 months of adoption
- Hyperscaler CAPEX for 2024 will continue adjusting as AI/ML projects progress towards production
- Customers continue to evaluate different networking topologies to address AI/ML networking requirements
“2023 showed tremendous growth in vendor revenue related to AI/ML networking with 2024 set to surge as many customers’ Proof of Concepts (PoC) move towards production networks,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “AI/ML puts a tremendous amount of bandwidth performance requirements on the network, and AI/ML has become one of the major growth drivers for Data Center switching over the next five years. With bandwidth in AI growing, the portion of Ethernet switching attached to AI/ML and accelerated computing will move from a niche today to a significant portion of the market in 2028. We are about to see record shipments in 800 Gbps based switches and optics as soon as products can reach scale in production to address AI/ML.”
The Quarterly Data Center AI Networking report indicates that the top two vendors are Arista and NVidia. White box presence in AI continues to grow based on the expansion of Google’s TPU deployments. In addition, the report highlights the difference between Infiniband and Ethernet in vendor shares and market forecasts.
About the Data Center AI Networking Quarterly Report
The Data Center AI Networking Quarterly Report offers a market assessment of vendor performance and market share for Ethernet and Infiniband networkings deployed in AI/ML and HPC. The report covers the following port speeds: 25 Gbps, 50 Gbps, 100 Gbps, 200 Gbps, 400 Gbps, 800 Gbps, 1.6 Tbps, and 3.2 Tbps. 650 Group publishes additional segment-specific reports on Data Center Switching. For more information about the report, contact the sales department at 650 Group at +1 650 600 7104 or val@650group.com or www.650group.com.
About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center, and cloud markets. Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.
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