Analysis of the Global Market for Data Center Switches, 2024-2032 - Surging Demand for Energy-Efficient Data Center Switches Propels Market Growth in Response to Heightened Edge Computing Needs

Dublin, May 06, 2024 (GLOBE NEWSWIRE) -- The "Global Data Center Switch Market Report by Type, Bandwidth, Technology, End User, and Region 2024-2032" report has been added to's offering.

The global data center switch market reached US$ 16.4 billion in 2023. Looking forward, the market is projected to reach US$ 24.5 billion by 2032, exhibiting a growth rate (CAGR) of 4.56% during 2023-2032. The market is thriving driven by the escalating demand for cloud services, the exponential growth in data volume, rapid technological advancements in switching, increasing focus on energy efficiency in data centers, and the rising adoption of edge computing.

Increasing demand for cloud services

The exponential growth in cloud computing is one of the primary drivers boosting the market growth. In line with this, the increasing reliance of businesses and individuals on cloud services for data storage, software applications, and infrastructure solutions, propelling the demand for efficient and reliable data center infrastructure, is creating a positive outlook for the market growth. Data center switches manage traffic and ensure smooth communication within cloud environments, enabling high-speed data transfer and reliable connectivity.

Moreover, the rising adoption of cloud services, necessitating the need for upgrades to existing infrastructure to handle the increased workload, is boosting the market growth. Additionally, the growing demand for cloud services by small and medium-sized enterprises (SMEs) to seek cost-effective and scalable information technology (IT) solutions, is favoring the market growth.

Rapid expansion of data volume

The rising digital transformation of businesses, due to the proliferation of the Internet of Things (IoT) devices, the growth of big data analytics, and the widespread adoption of artificial intelligence (AI) and machine learning (ML) technologies, is catalyzing the market growth. In line with this, data center switches are widely used to manage the vast amount of data efficiently and ensure high-speed data processing and transfer within data centers, which is essential to handle the growing data volume.

Besides this, the massive influx of unstructured data from social media and mobile devices, necessitating the need for advanced data center switches that are capable of handling various data traffic types, is bolstering the market growth. Additionally, the advent of fifth-generation (5G) communication technology, leading to an increase in the volume and velocity of data traversing through data centers, is positively impacting the market growth.

Rising technological advancements in switching technology

The rapid advancements in switching technology, such as higher port densities and faster data transfer rates, are strengthening the market growth. They enable data centers to manage larger volumes of data and complex network architectures. Moreover, the widespread integration of AI and ML for predictive analysis and automated network optimization to enhance the capabilities of data center switches, is catalyzing the market growth.

In addition to this, the rising focus on software-defined networking (SDN) and network function virtualization (NFV), which offer greater flexibility and control over data center networks, is acting as a growth-inducing factor. In addition, they allow for more efficient network management and automation, which helps in handling the dynamic and complex workloads of modern data centers.

Growing focus on energy efficiency

The increasing emphasis on sustainability and energy efficiency in data centers is a major driver stimulating the market growth. In line with this, the development of energy-efficient data center switches that lower the overall energy usage by reducing power consumption in network infrastructure is anticipated to drive the market growth. Along with this, the rising focus by manufacturers on designing switches that offer higher performance with lower power requirements is enhancing the market growth.

Besides this, the increasing demand for energy-efficient data center switches as they also help in reducing operational costs, is favoring the market growth. In addition to this, the ongoing shift towards green data centers, encouraging the introduction of new technologies, such as silicon photonics in switches that enable faster data transmission with lower energy consumption, is contributing to the market growth.

Heightened demand for edge computing

The sudden shift towards edge computing in applications, such as autonomous vehicles (AVs), smart cities, and the IoT devices to reduce latency and improve response times is creating a positive outlook for the market growth. Data center switches are vital in edge computing environments to ensure fast and reliable data processing and transfer. Moreover, they are capable of handling unique demands, such as dealing with large amounts of data being generated at the edge of the network and ensuring seamless connectivity and fast data processing. Along with this, the development of more robust and efficient switches that can operate in the diverse conditions of edge locations, like space, power, and environmental constraints, is providing an impetus to the market growth.

Data Center Switch Industry Segmentation

This report provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. The report has categorized the market based on type, bandwidth, technology, end-user, and region.

Breakup by Type:

  • Core Switches
  • Distribution Switches
  • Access Switches

Breakup by Bandwidth:

  • < 1 Gbps
  • >1 Gbps to < 10 Gbps
  • >10 Gbps to < 40 Gbps
  • >40 Gbps

According to the report, >10 Gbps to < 40 Gbps accounted for the largest market share.

Breakup by Technology:

  • Ethernet
  • Fibre Channel
  • InfiniBand

According to the report, ethernet represented the largest segment.

Breakup by End User:

  • Enterprises
  • Telecommunications Industry
  • Government Organizations
  • Cloud Service Providers

Breakup by Region:

  • North America
    • United States
    • Canada
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Russia
    • Others
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East and Africa

According to the report, North America accounted for the largest market share.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided.

Some of the key players in the market include:

  • Arista Networks Inc.
  • Cisco Systems Inc.
  • Dell Technologies Inc.
  • D-Link Corporation
  • Extreme Networks Inc.
  • Hewlett Packard Enterprise Development L.P.
  • Huawei Technologies Co. Ltd.
  • Juniper Networks Inc.
  • New H3C Technologies Co. Ltd. (Tsinghua Unisplendour)
  • Nvidia Corporation
  • Silicom Ltd. (Rad Group)
  • ZTE Corporation

Key Attributes

Report AttributeDetails
No. of Pages138
Forecast Period2023-2032
Estimated Market Value (USD) in 2023$16.4 Billion
Forecasted Market Value (USD) by 2032$24.5 Billion
Compound Annual Growth Rate4.5%
Regions CoveredGlobal

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Global Data Center Switch Market