Data Center Switch Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 17.03 Billion |
| Market Size (2029) | USD 22.02 Billion |
| CAGR (2024 - 2029) | 5.27 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Data Center Switch Market Analysis
The Data Center Switch Market size is estimated at USD 17.03 billion in 2024, and is expected to reach USD 22.02 billion by 2029, growing at a CAGR of 5.27% during the forecast period (2024-2029).
Global data center investments are rising because of adopting cloud computing, data localization, and emerging technologies like 5G and IoT. Data centers are fast gaining popularity because of the shifting needs of businesses of all sizes, the ongoing creation of millions of linked devices, and the daily volume of data generated via the Internet.
- Additional computer processing and decision-making processes are needed to exploit AI technology's potential fully. Depending on aspects like performance, capacity, and cost, the location of AI processing and data storage may range from the cloud to on-premises data centers to the network's periphery. Edge computing, projected to tremendously benefit from connected devices, innovative industries, and connected cars, would significantly impact the market under examination.
- Core switches are experiencing new growth potential because of expanding traffic management. When the COVID-19 outbreak forced people to stay home, many turned to OTT services like Netflix for entertainment instead of going out to eat or to the movies. In the first three months of COVID-19, Netflix Asia-Pacific added 3.6 million new subscribers. Netflix decided to delete the highest bandwidth streams and cut traffic by tor to handle the high volume of incoming traffic while retaining the streaming service's quality.
- The COVID-19 outbreak messed up the supply chain for building the data center. Lockdown-related delays in project completion and a decline in revenue from particularly hard-hit industries, like hospitality and entertainment, impacted construction activity and data center entry locations.
- Due to the rapid adoption of cloud-based business processes, businesses have made significant investments in data management solutions to handle the massive volume of data produced by these systems. Virtual network-based servers are replacing conventional on-premises physical servers due to the growth of multi-cloud computing, which drives the global expansion of data centers and increases the demand for data center switching equipment.
- However, one of the most significant expenses for data centers is still electricity. According to the International Energy Agency, data centers consume 1% of all electricity worldwide. They will use it in the next five years. Most of this energy consumption is required to run the servers, which generate heating and cooling. Again, a lot of energy is used in the cooling process.
Data Center Switch Market Trends
Core Switches Holding the Largest Market Share
- Core switches must be given more priority than the other two switches. Companies with larger market shares, such as Amazon and Microsoft, are building additional data centers. The need for core switches will rise dramatically since data centers are expanding.
- The growing traffic must be handled effectively and reliably, with low and predictable latency. However, because vPC (virtual-port-channel) can only supply two active parallel uplinks, bandwidth becomes a constraint in a three-tier data center architecture. Another issue with a three-tier design is that server-to-server latency changes depending on the traffic path used. For Instance, Cisco introduced a new data center design known as the Clos network-based spine-and-leaf architecture to address these restrictions. This design has been demonstrated to provide a high-bandwidth, low-latency, nonblocking server-to-server connection.
- Crore Switches offer a comprehensive selection of devices to satisfy different data center requirements. Switches from their range allow clients to create effective and scalable network infrastructures for top-of-rack (ToR), spine, and leaf architectures. Additionally, offer specialized controls for particular use cases, including SANs or clusters for high-performance computing (HPC).
- In North America, cloud computing technology is becoming more widely used. For instance, Facebook Inc.'s Meta Platforms Inc. announced plans to increase its data center market share by investing USD 800 million in large-scale campuses in Idaho, United States, last year.
- The complexity and interconnectedness of many IT devices are expected to be improved by expanding data center capabilities, and the demand for data center networking components like switches and routers will be a crucial part of hyper-scale infrastructures. The use of high-performance core switches for quick data transfer by hyper-scale IT infrastructure providers will drive the growth of the data center switch market.
North America Expected to Register Significant Growth
- According to real estate expert CBRE, data center leasing in the top seven US markets was 31% greater than in the previous several years and 50% higher than the last year, which had slightly decreased owing to the pandemic. Northern Virginia was the leading market, with over 60% of the country's new data center capacity.
- Cloud service providers and social media firms account for most of the demand for colocation data centers. The market is also driven by adopting new technologies, including blockchain technology, 5G infrastructure, virtual reality communities, and autonomous car technology.
- With new projects from providers aiming at the enterprise sector, Atlanta has recently become another important market for data center development. To develop a 1.1 million square foot data center in Atlanta, QTS Data Centers submitted proposals the year before the current year. According to the designs in "Project Granite," QTS would create 2.3 million square feet of mixed-use space on around 36 acres of land, including data center space and commercial, retail, and residential land uses. These advances increase the need for data center switching devices in these areas.
- By fusing storage, processing, and networking into a single system, hyper-convergence reduces the complexity of data centers and improves scalability, which has begun to gain the attention of businesses in the North American region. An increase in the usage of a hyper-converged infrastructure platform is driving the market for data centers.
- The Patrinely Group and its financing partner, USAA Real Estate, introduced Corscale, a new data center development platform, to the Northern Virginia market last year. The company's first project is Gainesville Crossing, a 300-megawatt complex in Prince William County with five data centers designed for hyper-scale clients.
- In recent years, the region has also widely adopted the 200GbE and 400GbE switch ports. Hewlett Packard Enterprise (HPE), for instance, in the previous and current year, introduced the 32-port 200GbE SN3700M switch, which is designed specifically for the modern data center. The switch has a groundbreaking 8.33Bpps packet processing rate and a bidirectional switching capacity of up to 12.8Tb/s when powered by the 50G PAM-4-based Spectrum-2 ASIC.
Data Center Switch Industry Overview
The Data Centre Switch market is highly competitive and has several major players. However, few significant companies currently dominate the market regarding market share. The companies follow several strategies, including expansions, mergers & acquisitions, joint ventures, collaborations, partnerships, and others; these market players have strengthened their position in the business. The major market players interpreted in the report include Cisco, Jupiter Networks, Dell EMC, Arista Networks, ZTE, Hewlett Packard Enterprise, Mellanox, Huawei, Extreme Networks, etc.
- September 2023 - Hyperscalers have chosen Arista over Cisco for data center switches. Arista focuses on cloud service providers, representing over half of the vendor鈥檚 revenue. In recent years, the networking company has also attempted to 鈥渄iversify its business鈥� by dipping its feet into the enterprise market.
- April 2023 - Edgecore launched the Ultra High-Capacity 400G Switch to provide the next-generation data center network architectures. To satisfy the demands of the next-generation data center and cloud computing environments and to bring a new level of basic network architecture, Edgecore announced the launch of the DCS520, an ultra-high capacity 400G switch.
Data Center Switch Market Leaders
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Cisco Systems, Inc.
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Arista Networks, Inc.
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Juniper Networks, Inc.
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Hewlett Packard Enterprise Development LP
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NEC Corporation
*Disclaimer: Major Players sorted in no particular order
Data Center Switch Market News
- June 2023 - Cisco unveiled its plans to develop a high-level software console that offers access to all its on-premises and cloud-based network management platforms while delivering predictive analytics and visibility across network domains.
Data Center Switch Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the Market
4.4 Technology Snapshot
4.4.1 Bandwidth
4.4.2 Technology (Ethernet, Fiber Channel, and InfiniBand)
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Augmented Demand for Cloud & Edge Computing Services
5.1.2 Government Regulations Regarding Localization of Data Centers
5.2 Market Restraints
5.2.1 High Data Center Operational Cost
6. MARKET SEGMENTATION
6.1 Switch Type
6.1.1 Core Switches
6.1.2 Distribution Switches
6.1.3 Access Switches
6.2 Geography
6.2.1 North America
6.2.1.1 Unites States
6.2.1.2 Canada
6.2.2 Europe
6.2.2.1 United Kingdom
6.2.2.2 Germany
6.2.2.3 France
6.2.2.4 Rest of Europe
6.2.3 Asia-Pacific
6.2.3.1 China
6.2.3.2 Japan
6.2.3.3 India
6.2.3.4 South Korea
6.2.3.5 Rest of Asia-Pacific
6.2.4 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Cisco Systems, Inc.
7.1.2 Arista Networks, Inc.
7.1.3 Juniper Networks, Inc.
7.1.4 Hewlett Packard Enterprise Development LP
7.1.5 NEC Corporation
7.1.6 Huawei Technologies Co., Ltd.
7.1.7 H3C Holding Limited
7.1.8 Lenovo Group Limited
7.1.9 Extreme Networks Inc.
7.1.10 Dell EMC
7.1.11 Mellanox Technologies.
7.1.12 Fortinet, Inc.
7.1.13 ZTE Corporation
7.1.14 Quanta Cloud Technology (QCT)
7.1.15 D-Link Corporation
7.1.16 Silicom Ltd. Connectivity Solutions
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE MARKET OUTLOOK
Data Center Switch Industry Segmentation
A data center switch is usually found in the server area within a data center. It is one of the indispensable necessities in the premises used to connect multiple devices on the same network within the data center.
The scope of the study covers the global data center switch market. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The recent developments in the market are also covered in the study.
The Data center switch market is segmented by switch type (core switches, access switches, distribution switches) and geography (North America [United States, Canada], Europe [United Kingdom, Germany, France, Rest of Europe], Asia Pacific [China, Japan, India, South Korea, Rest of Asia Pacific], Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Switch Type | |
| Core Switches | |
| Distribution Switches | |
| Access Switches |
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| Rest of the World |
Data Center Switch Market Research FAQs
How big is the Data Center Switch Market?
The Data Center Switch Market size is expected to reach USD 17.03 billion in 2024 and grow at a CAGR of 5.27% to reach USD 22.02 billion by 2029.
What is the current Data Center Switch Market size?
In 2024, the Data Center Switch Market size is expected to reach USD 17.03 billion.
Who are the key players in Data Center Switch Market?
Cisco Systems, Inc., Arista Networks, Inc., Juniper Networks, Inc., Hewlett Packard Enterprise Development LP and NEC Corporation are the major companies operating in the Data Center Switch Market.
Which is the fastest growing region in Data Center Switch Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Data Center Switch Market?
In 2024, the North America accounts for the largest market share in Data Center Switch Market.
What years does this Data Center Switch Market cover, and what was the market size in 2023?
In 2023, the Data Center Switch Market size was estimated at USD 16.13 billion. The report covers the Data Center Switch Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Data Center Switch Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the growth opportunities in the Data Center Switch Industry?
The growth opportunities in the Data Center Switch Industry are a) Demand for high-performance and scalable switches b) Advanced features like access control, encryption, and vulnerability management are becoming crucial considerations
Data Center Switch Industry Report
The data center switch industry is witnessing significant growth, driven by the increasing demand for high-speed data processing and efficient connectivity solutions. This growth rate is attributed to the need for switches with higher port speeds, low latency, and enhanced capacity, which are essential for applications requiring stringent performance metrics. Industry analysis indicates that innovations such as software-programmable Ethernet switch ASICs are transforming enterprise data centers, making them as adaptable and efficient as cloud operations.
The shift towards Software-Defined Networking (SDN) is a prominent trend, offering unmatched network agility, flexibility, and scalability that are crucial in today's data center environments. Industry information highlights the focus on energy-efficient switches with advanced power management features, reflecting the industry's commitment to reducing energy consumption and minimizing environmental impact. Investments in digital infrastructure are further accelerating the market's expansion.
Industry outlook reports from 糖心vlog传媒鈩� suggest that the market is experiencing substantial growth in share, size, and revenue, with a positive forecast. Market data and market forecast analyses provide a comprehensive view of the market's potential. Market growth is supported by the increasing adoption of advanced technologies and the rising demand for efficient data center solutions.
The market leaders are continuously innovating to stay ahead in this competitive landscape. Industry reports and market overview documents offer valuable insights into the current state and future predictions of the market. Market segmentation by switch type and geography provides a detailed understanding of the market dynamics.
Market value assessments and industry statistics underline the economic significance of the data center switch market. Industry trends indicate a growing preference for energy-efficient and high-performance switches. Market predictions and market review articles suggest that the industry is poised for continued growth.
For those seeking detailed industry research, a report pdf from 糖心vlog传媒鈩� is available for download, offering an in-depth analysis of market trends, industry size, and other critical factors. Research companies play a vital role in providing accurate and timely market information, ensuring stakeholders are well-informed.
The industry sales figures and market outlook are promising, with a clear trajectory towards sustained growth. This report example serves as a comprehensive guide for understanding the data center switch market's current and future landscape.
