Global Data Center Switch Market to Reach US$ 24.5 Billion by 2032, fueled by Increasing Demand of Data Centers

April 10, 2023 | Technology & Media

According to the latest report by IMARC Group, titled “Data Center Switch Market Report by Type (Core Switches, Distribution Switches, Access Switches), Bandwidth (< 1 Gbps, >1 Gbps to <10 Gbps, >10 Gbps to <40 Gbps, >40 Gbps), Technology (Ethernet, Fibre Channel, InfiniBand), End User (Enterprises, Telecommunications Industry, Government Organizations, Cloud Service Providers), and Region 2024-2032,” the global data center switch market size reached US$ 16.4 Billion in 2023. A data center switch refers to a multiport network bridge that connects servers and multiple storage and network devices within a data center. Its primary facilitates communication between these devices by receiving, processing, and routing data packets between them. In addition to this, it helps enhance security, simplify operations, automate processes, and manage application traffic flows in the cloud network. A data center switch is designed to provide high performance, low latency, and superior reliability to support various requirements of modern data center applications. It comes in multiple sizes and types and is extensively employed in data centers across large enterprises and cloud providers that depend on virtualization.

Global Data Center Switch Market Trends:

The rising demand for high-performance and scalable data center switches in data centers is primarily driving the market growth. Besides this, the escalating demand for simplified data center management and automation across various industrial verticals is presenting remunerative growth opportunities for the market. Moreover, the rapid proliferation of connected devices, internet multimedia content, and web applications, the increasing demand for high-speed data connectivity, and the expanding adoption of cloud computing are fuelling the need for data centers and associated switches. In line with this, the surge in cloud and data traffic moving from and within data centers and the exponentially growing demand for data are prompting cloud vendors to invest extensively in numerous data center projects, which, in turn, is propelling the market growth. In addition to this, favorable initiatives and investments by governments of various countries to localize data centers and develop green data centers are acting as significant growth-inducing factors. Furthermore, the introduction of innovative data center switches integrated with advanced technologies, such as artificial intelligence (AI), emerging trends of bare-metal switches, and ongoing advancements in edge computing are aiding in market expansion. Looking forward, the market value is projected to reach US$ 24.5 Billion by 2032, expanding at a CAGR of 4.4% during 2024-2032.

Market Summary:

On the basis of the type, the market has been divided into core, distribution, and access switches.
Based on the bandwidth, the market is classified into < 1 Gbps, >1 Gbps to <10 Gbps, >10 Gbps to <40 Gbps, and >40 Gbps. Currently, >10 Gbps to <40 Gbps holds the largest market share.
On the basis of technology, the market has been segregated into ethernet, fibre channel, and InfiniBand. Amongst these, ethernet is the largest market segment.
Based on the end user, the market is categorized into enterprises, telecommunications industry, government organizations, and cloud service providers.
On a regional basis, the market has been segmented into North America (the United States and Canada), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa. Currently, North America is the leading market of data center switch.
The competitive landscape of the market has also been examined, with some of the key players being Arista Networks Inc., Cisco Systems Inc., Dell Technologies Inc., D-Link Corporation, Extreme Networks Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co. Ltd., Juniper Networks Inc., New H3C Technologies Co. Ltd. (Tsinghua Unisplendour), Nvidia Corporation, Silicom Ltd. (Rad Group) and ZTE Corporation.

Report Scope:

Report Features	Details
Base Year of the Analysis	2023
Historical Period	2018-2023
Forecast Period	2024-2032
Units	US$ Billion
Segment Coverage	Type, Bandwidth, Technology, End User, Region
Region Covered	Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered	United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered	Arista Networks Inc., Cisco Systems Inc., Dell Technologies Inc., D-Link Corporation, Extreme Networks Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co. Ltd., Juniper Networks Inc., New H3C Technologies Co. Ltd. (Tsinghua Unisplendour), Nvidia Corporation, Silicom Ltd. (Rad Group) and ZTE Corporation.
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Global Data Center Switch Market to Reach US$ 24.5 Billion by 2032, fueled by Increasing Demand of Data Centers

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