The Ethernet Campus Switch market has experienced a significant downturn in the second quarter of 2024, continuing its year-over-year decline. Despite the contraction, some companies like Huawei are finding ways to thrive and gain market share. As the industry braces for potentially more lows, positives markers indicate a possible recovery by the end of the year.
Overview of Market Contraction in Q2 2024
The latest report from Dell'Oro Group reveals a continued downturn in Ethernet Campus Switch revenues, marking the third consecutive quarterly contraction. The global market, which reached its peak in the second quarter of 2023, now sees major manufacturers grappling to maintain their sales figures against the previous year's benchmarks. The report highlights a broad-based decline affecting all form factors, verticals, and regions, with the most substantial drop recorded in North America.
Huawei's Growth Amidst Global Decline
Contrary to the overall market trend, Huawei has successfully expanded its market share, particularly outside of China. With strategic pushes into Asia Pacific and CALA regions, Huawei has seen its revenues from campus switches grow year-over-year. Notably, over half of Huawei's campus switch sales now come from markets outside its home country, signaling robust international growth despite a soft Chinese economy.
Future Outlook and Market Predictions
The outlook for the Ethernet Campus Switch market is cautiously optimistic. According to Siân Morgan, Research Director at Dell'Oro Group, a rebound is on the horizon with the market expected to return to growth by the fourth quarter of 2024. This anticipated recovery follows a succession of quarterly contractions but shows signs of market stabilization and potential uplift in the upcoming periods.
In summary, the Ethernet Campus Switch market has endured significant challenges in 2024, with revenue dips across various sectors and regions. However, companies like Huawei have bucked the trend by capturing new markets and expanding their global footprint. Looking ahead, the market is poised for a gradual recovery, offering a glimmer of hope for vendors and stakeholders involved. The coming months could be crucial in determining the trajectory towards market rebound.
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