Data center Ethernet switch sales grew more than 20% in the second quarter of this year, led by Arista Networks and white box vendors, according to a new report from Dell'Oro Group.

The report highlights significant growth across all major Ethernet switch market segments including cloud service providers, telco service providers, and large enterprises, all of which saw revenue records broken in the first half of 2022. Accelerated adoption from large cloud service providers was the main growth driver during the quarter, with 200 Gb/s and 400 Gb/s switches accounting for 10% of all shipments and 20% of total revenue.

The market's growth wasn't limited by geopolitical boundaries either, according to Dell'Oro. "To our surprise, the robust growth was broad-based across all regions, including China, which has experienced several weeks of lockdown in multiple cities during the quarter," the report reads.

The market research firm noted Q2's "staggering" growth marks an all-time high for both the quarter and the first half of the year. But while the report says the market's growth was widespread across multiple vendors, Arista and white box vendors like Celestica and Accton were the only companies that actually gained revenue share during the quarter.

Arista grabbed an additional four points of revenue share during the quarter, placing it as the second largest data center ethernet switch vendor following Cisco as No. 1.

Dell'Oro Senior Research Director Sameh Boujelbene has been expecting this double-digit market growth as a result of continued customer demand balanced by supply chain challenges.

“Vendors’ ability to work through these supply challenges and deliver the level of shipment witnessed during the quarter beat our expectations, although it came at higher logistics and component costs," she noted.

Cisco executives explained during the vendor's latest earnings call that it was able to clear some of its backlog during the latest quarter by sourcing hard-to-find components through brokers, though that came at a cost.

“When you buy from the broker network you pay a premium for those, and you see that reflected in the gross margins,” Cisco CFO Scott Herren said, adding that impact will likely continue into Cisco’s new fiscal year.

Dell'Oro similarly expects supply delays and constraints will continue throughout the year, shaping both the market and vendors' performance.