Cisco and Arista Gain Market Share as Campus Switch Prices Rise

Cisco and Arista expanded their market share in the campus switch segment for the second consecutive quarter, according to a report from Dell'Oro Group. The report, based on the company’s analysis of the 2nd quarter of 2026, reveals that component shortages have led to a 19% increase in the average selling price (ASP) of campus switches, driving overall market growth.

Siân Morgan, Senior Director at Dell'Oro Group, noted that component shortages, particularly in memory, were a significant factor. "Every vendor outside China grew campus switch ASP on a year-over-year basis," she stated. "This is a direct consequence of AI-fueled component shortages driving up component costs and resulting in nearly all campus switches facing price increases."

The report highlights that despite these challenges, public cloud-managed switch revenue bounced back and outperformed the overall market, indicating the strength of the recurring revenue model. Memory shortages are expected to continue influencing the market well into 2027, with ASPs expected to rise further and causing availability issues.

According to Morgan, vendors that manage supply effectively, redesign equipment, and find the right balance in price increases are likely to outperform the market. In the 2nd quarter, Cisco, Arista, Ubiquiti, and Extreme all gained market share, outpacing their competitors.

The market has also seen unusual growth in modular switch form factors. While these switches have faced smaller ASP increases, they have gained popularity. "The modular switch form factors have shown unusual growth, suggesting a shift in customer preferences," Morgan added.

The report further emphasizes the importance of switch refreshes and security concerns as key drivers of market growth. "Demand fundamentals remain strong," Morgan said. "Switch refreshes and security concerns continue to act as catalysts for market growth."

Dell'Oro Group's report provides a comprehensive analysis of the campus Ethernet switch market, covering vendor performance, revenue, port shipments, and average selling prices across various switch types and speeds. The research firm also tracks Power over Ethernet (PoE) trends, smart/web-managed port shipments, and sales by vertical industries and customer size.

The analysis spans regional markets including North America, EMEA, China, Asia Pacific excluding China, and CALA, offering a detailed breakdown of the market dynamics in each region.

In conclusion, the 2nd quarter of 2026 saw significant changes in the campus switch market, driven by component shortages and increased pricing. Vendors that can effectively manage supply and adapt to market conditions are likely to see continued growth in the future.