Ethernet switches are extensively used for connecting computing devices within enterprises and providing network connectivity. Switches enable connectivity within Local Area Networks and are an integral part of networking infrastructure to allows transfer of data, files and other information. They deliver higher bandwidth, improved performance and scalability for large network deployments in datacenters. With growing digitization and deployment of cloud services, the demand for high-speed connectivity in datacenters has increased substantially. The proliferation of hyper-scale datacenters to support emerging technologies like cloud computing, autonomous machines and IoT has significantly driven the adoption of Ethernet switches in recent years.
The global Ethernet Switches Market is estimated to be valued at US$ 18.60 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increased deployment of cloud infrastructure across various industry verticals has been a major factor fueling the demand for high-speed Ethernet switches. Hyper-scale cloud datacenters require switches capable of handling enormous volumes of data traffic at faster speeds. Leading cloud providers are opting for advanced switches delivering 100GbE or higher speeds to support bandwidth intensive workloads like ML/AI training. Dedicated switches for HPC applications in scientific research organizations are also gaining traction. The growth of 5G networks and edge computing is another factor expected to drive opportunities for 5G-optimized Ethernet switches over the forecast period.
Segment Analysis
The global Ethernet switches market is dominated by the managed segment due to growth in adoption of network infrastructure that support enhanced visibility and control. Managed switches allow remote monitoring and management through centralized software, providing improved security and network optimization. Features like quality of service, port aggregation, and access control lists are increasingly driving their demand over unmanaged switches among large enterprises and data centers with complex network needs.
Key Takeaways
The global Ethernet switches market is expected to witness high growth driven by increasing digital transformation across industries. The global Ethernet Switches Market is estimated to be valued at US$ 18.60 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.
Regional analysis:
North America is expected to dominate the global Ethernet switches market during the forecast period. This is attributed to extensive network infrastructure upgrade and adoption of advanced networking technologies among enterprises in countries like the US and Canada. The region accounts for over 35% of the global market share currently.
Key players related content comprises:
Key players operating in the global Ethernet switches market are Cisco, Huawei Technologies, HP Enterprise, Arista Networks, New H3C Group, HPE, Juniper Networks, NEC, Lenovo, and Dell. Cisco continues to lead the market with over 20% market share owing to its diversified product portfolio and global customer reach. Huawei also has a significant presence, mainly driven by its strength in the telecom networking equipment space.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
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