A new 650 Group report indicates that the data centre AI networking market is expected to grow to over US$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.
Study highlights
- By 2028, 1 in 5 Ethernet switch ports sold into the data centre 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.
Weckel noted that 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 centre 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,” he continued. “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.”
