The global Data Center Switch Market is estimated to be valued at US$ 16087.09 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Data center switches are networking devices that direct data traffic in a data center. They deliver high bandwidth, low latency connectivity between servers, storage systems and other data center infrastructure. Modern data center switches support terabit connectivity speeds, hardware-based security features, and automated provisioning to meet the needs of large-scale cloud computing and hyperconverged infrastructure.
Market key trends:
Product delimited networking is gaining popularity in large-scale data centers to provide dedicated connectivity for individual servers or workloads. With this approach, switches are provisioned to give specific servers or applications sole access to dedicated ports, thereby isolating network traffic and improving security. This meets the needs of multi-tenant public cloud infrastructure and enhances workload performance predictability. By carving the network into isolated slices, product delimited networking allows data center operators to achieve higher levels of network performance, utilization as well as enhanced security and traffic control.
The data center switch market is segmented into a core and edge segment. The core segment held a larger share in 2022 and is expected to continue its dominance over the forecast period. This is because core switches are used to form the backbone of networking infrastructure in data centers and are responsible for handling traffic with high bandwidth requirements. They require high port density, extensive buffering, and advanced features to efficiently handle terabits of traffic simultaneously.
The Global Data Center Switch Market Size is expected to witness high growth, exhibiting a CAGR of 5.4% over the forecast period, due to increasing adoption of network automation solutions and emergence of technologies like AI, ML, and analytics. This rapid growth has led organizations to extensively utilize cloud-based applications and services, placing immense pressure on data center infrastructure.
The North American region dominates the data center switch market currently owing to heavy investments in data center capacity expansion and rapid technological adoption. However, Asia Pacific is expected to register the highest CAGR during the forecast period. This is attributed to the rising demand for data center switches to support massive cloud deployments, especially in countries like China and India.
Key players operating in the data center switch market are Silicom Ltd Connectivity Solutions, Cisco Systems Inc., D-Link Corporation, Arista Networks Inc., Quanta Cloud Technology (Quanta Computer), Juniper Networks Inc., ZTE Corporation, Hewlett Packard Enterprise, Fortinet Inc., NEC Corporation, Mellanox Technologies (NVIDIA), Huawei Technologies Co. Ltd., Dell EMC, H3C Holdings Limited (Hewlett Packard Enterprise), Extreme Networks Inc., and Lenovo Group Limited. Cisco and Hewlett Packard Enterprise currently dominate the market, while Lenovo, Huawei, and H3C are expected to gain considerable share over the forecast period.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it