AI backend network switch sales surpass front-end markets

The market for AI backend network switches has reached a turning point. According to Dell’Oro Group, sales of switches in AI backend networks surpassed sales in front-end networks for the first time in the second quarter of 2026.

This shift is driven by rapid investments in the next phase of AI development, including agentic and physical artificial intelligence. Projections suggest that the AI backend switch market could approach $1 trillion within five years. Experts note that the market is currently expected to be limited by supply rather than demand for at least the next one to two years.

Ethernet has strengthened its leadership position in AI backend networks. In terms of market share for AI Ethernet backend switches, Celestica maintains a leading position, followed by Nvidia, Arista, and Cisco. Currently, 800 Gb/s switches represent the vast majority of Ethernet switch shipments and revenue in this sector, while testing for 1.6 Tb/s switches has commenced.