Data Center Switch Market Overview
Data Center
Switch Market is analysed to grow at a CAGR of 5.9% during the forecast 2022-2027
to reach $19.7 billion by 2027. The data center switch is emerging as a new class of
switch since data center networking infrastructure become more disaggregated.
Unlike the network switch for traditional three-tier hierarchical
networks, data center class switches are designed to support data and storage
for mission critical applications. With the rising demand for simplified data
center management and automation system in various sectors, data center switch
market has witnessed a market boom across the globe in a positive direction. Generally,
the memory of data center switches are stored in content-addressable memory
(CAM) as it returns the address where the data is stored. Data center
switches shares information among different devices in the network with the
help of Simple Network Management Protocol (SNMP). It allows devices to
communicate even if the devices are different hardware and run different
software. Programmable application-specific integrated circuit allow the data
plane of switches to support new technologies, such as software-defined
networking. This feature tends to enhance its market growth in the forecast
period. Tree based network topology is used for Data center switch solutions
which works efficiently in today’s cloud computing ecosystem, which brings
significant growth in the Cloud-based services segment. Moreover, multi-chassis
link aggregation (MLAG) takes the benefits of link aggregation and spreads them
across a pair of data center switches to deliver system with high level
redundancy as well network level resiliency. These features tend to enhance the
global Data Center Switch Market size in the forecast period.
Report Coverage
The
report: “Data Center Switch Industry
Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis
of the following segments of the Data Center Switch Market.
By Type: Core switches, Distribution
Switches and Access Switches.
By Technology: Ethernet, Fibre Channel and Infiniband
By Bandwidth: >1 GBPS, >1 GBPS to >10
GBPS, >10 GBPS to >40 GBPS and >40 GBPS to >100 GBPS.
By End-Use Industry: IT & Telecommunication,
Government Organizations, Enterprise, Cloud-based Service Providers, BFSI and
Others.
By Geography: North America(U.S., Canada and
Mexico); Europe (U.K., Germany, Italy, France, Spain, Russia, Rest of Europe);
APAC (China, Japan, South Korea, India, Australia, Rest of APAC); South
America(Brazil, Argentina, Rest of Americas); RoW (Middle East & Africa)
Key Takeaways
- Rising demand of simplified data center management and automation system has brought a significant drive in the market growth of Data Center switches in the global market during the forecast period 2022-2027.
- Ethernet technology is analysed to hold a significant share in 2021 owing to its operational flexibility anywhere from 10 Mbps to 400Gbps. For instance, most high-speed Internet home services are currently maxing out at about 60 Mbps for copper-based services, while Fibre services are now offering near gigabit Ethernet speeds. This tend to bring major growth in the demand of Ethernet technology further propelling the Data Center Switch Market growth.
- Cloud-based Service Providers are expected to hold the highest market share in the forecast period among other end-use industries owing to the increasing enterprise applications which requires high-performance connectivity, constant uptime, high throughput and high reliability to manage vast amounts of data.
- North America is analysed to hold the highest share in 2021 owing to the increasing IT industry requirements and rising adoption of new data center technologies. The market in the United States is expected to experience greater traction as a significant number of organizations are likely to set-up for cloud services to save their upfront cost of building new data centres for business continuity. These factors tend to boosts the Data center switch market growth in this region.
Global Data Center Switch Market Share, By Region, 2021 (%)
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Data Center Switch Market Segment Analysis - By Type
By
Type, the Data Center Switch Market Report is segmented into Core switches,
Distribution Switches and Access Switches. Access
Switches are analysed to hold highest share and grow at the highest CAGR of 8.6%
during the forecast period 2022-2027 owing to the extensive network
connectivity offered by these switches to distribution layers as well as
different end-users. Access tier switches are the only ones that directly interact
with end-user devices because it connects the majority of devices to the
network and offers the highest port density among all other switch types. Despite
the high port-count, Access switches usually provide the lowest
throughput-per-port of all switches. For instance, most modern access switches
provide a 10/100/1000 Mbps copper Ethernet connection to end devices.
By contrast, core and distribution tier switches commonly use between 10 Gbps
and 100 Gbps fiber-optic ports. Thus, these switches ensure connectivity
between servers and networks. These factors further helps in the market growth
of Access switches in the global Data center switches Market in the forecast
period.
Data Center Switch Market Segment Analysis - By End-Use Industry
By
End-Use Industry, the Data Center Switch Market Report is segmented into IT &
Telecommunication, Government Organizations, Enterprise, Cloud-based Service
Providers, BFSI and Others. Cloud-based Service Providers segment is analysed
to hold the highest share with a growth rate of 8.1% during the forecast period
2022-2027. Data center switches offer various advantages to the Cloud-based
service providers such as high-performance connectivity, constant uptime, high
throughput and high reliability to manage vast amounts of data. Data center
switches support an ever-increasing volume of information and offers faster
data processing. These applications for Cloud-based services offers major boost
to the demand of Data centre switches across the globe. Moreover, the major
driving factor data center switch market growth in cloud-based services segment
is the growing trend of adopting data analytics technology, scalable and
cost-effective computing and high penetration of hybrid clouds. These features
tend to boost the market growth of Data center switch in Cloud-based service
providers in forecast period. According to India Brand Equity Foundation (IBEF)
Reports, the Indian IT outsourcing services is expected to witness 6-8% growth
during the forecast period. This increasing market growth of IT services in
India will contribute significantly in the Cloud-based services sector for data
center switch market.
Data Center Switch Market Segment Analysis – By Geography
North America is analysed to be the major region with a share of 34% in 2021 for the Data Center Switch Market owing to the increasing IT industry requirements and rising adoption of new data center technologies. The market in the U.S. is expected to experience a greater traction as a significant number of organizations are likely to set-up for cloud services to save their upfront cost of building new data centres for business continuity. The U.S. currently has the highest number of data centres across the globe and is witnessing robust growth in terms of volume of big data and traffic owing to the increase in the number of data centres. For instance, in 2019, Google invested over $13 billion in data centres and offices in the United States. These investments brought significant growth in the demand of data center switches to maintain a high efficient data management system. Moreover, with the rising expansion of mobile broadband, growth in cloud computing, Big Data analytics and the development of Internet of Things (IoT) in North America region are the major factors which has brought a significant growth in the demand for new data center infrastructures in the region. This tends to further propel the Data Center switch market during the forecast period in this region.
Data Center Switch Market Drivers
Growing demand for simplified data center management and automation systems enhances the demand of Data Center Switches
The
growing demand for simplified data center management and automation systems has
brought a significant growth in the Data Center Switch Market. There has been a
significant increase in data centers service providers across the globe. According
to Enterprise Data Storage 2020, data storage needs were forecasted to reach
48,000 Exebytes by 2021 from 31,000 in 2020. This increasing need of data
storage tends to drive the demand for Data switches to maintain a simplified
data center management system in an Enterprise. For instance, according to
Cisco Systems, the volume of big data alone in data center storage worldwide is
expected to reach 403 exabytes by 2021. The data center architecture is changing
with the increasing demand of data storage, which has brought the focus on
offering integrated nodes, higher bandwidth speeds and more intelligent data
center architecture. The increasing demand for storage solutions, owing to the
Big Data and other computing and analytics platforms tend to be the primary
reasons behind the development of data centres across the world. The
introduction of the Internet of Things (IoT) has given rise to the generation
of a vast amount of data. Big Data applications, such as business analytics,
scientific computing, financial transactions, social networking sites and search
engines are increasing rapidly. All these applications handle large datasets
and require high-performance IT infrastructure to achieve fast-processing
throughput. Thus, these demands will drive the market growth of data center
switches in forecast period in global market.
Growth in cloud computing and edge computing propels the demand of Data Center switches
Growth
in cloud computing and edge computing across the globe has been a major driving
factor for the Data Center switch market growth. The major trend which is
driving the market growth of data center switch is the cloud computing and its
connection to billions of connected devices such as PCs, autonomous vehicles,
virtual reality systems, and others. When smart devices are connected to the cloud,
the data generated can be analysed in real-time, enabling these devices to be
more useful data center products. The emergence of artificial intelligence,
virtual reality systems, and 5G network has increased the number of data
centres, which drives the growth of the data center switch market. Moreover, edge
computing provides an alternative to the traditional data center paradigm by
shifting data centers physically toward network through edge computing
technology. Edge computing has emerged as an effective solution to store and
access data that require faster response time and is required for a limited
time period. Edge data centers have stringent, power, space and cooling
requirements. Edge data centers, therefore, need to be equipped with advanced
switching capabilities which can be achieved by Data center switch. This
further drives the market growth of Data Center switch during the forecast
period.
Data Center Switch Market Challenges
High operational cost:
One
of the major factors that hampers the growth of the Data Center Switch Market
is the high energy cost of the data centers. The location of a data center is
primarily dependent on the amount of energy sources available. As energy
comprises of such a big part of the expenses, data centers located in various
part of the world, need to take into consideration the energy prices in the
area. For instance, Cisco Systems introduced their new data center switch named
Nexus 9500 Data Center Switches with an average price range of $6,800. Further,
additional operational cost and maintenance cost of different components such
as servers and storages add a cost of $2,000 on an average. Thus, overall cost
tend to be quite high which tend to restrain the Data center switch market
growth. Moreover, energy prices in most of the metropolitan cities are
comparatively higher than those of other cities. In addition, other operational
costs such as machine, maintenance, labour and other is expected to bring major
challenges in its adoption further restraining the growth of the Data Center
Switch Market in the global market.
Data Center Switch Market Landscape
Product launches, acquisitions, and R&D activities
are key strategies adopted by players in the Data Center Switch Market. The Data
Center Switch top 10 companies includes Arista Networks, Bay Microsystem, Centec
Networks, Cisco, Cumulus Networks, Dell, H3C Technologies, Edgecore Network, HPE,
Huawei, Lenovo among others.
Acquisitions/Technology Launches/Partnerships
- In February 2020, Arista Networks acquired Big Switch Networks, a network monitoring, and Software-Defined Networking developer. The acquisition was aimed to further strengthen the company’s network monitoring and observability suite delivered through Arista’s software platform CloudVision and Data Analysers capabilities. This acquisition brought new product line-up of data center switches with network monitoring capabilities.
- In January 2019, Huawei launched their new data center switch that uses artificial intelligence (AI) chip named The Cloud Engine 16800 series. These data center switches use AI to improve the network operations and are also expected to provide an underlying network foundation for companies, in order to create new apps that utilize AI for network performance. This launch aimed to strengthen the data center switches application with the help of AI further enhancing its efficiency.
Relevant Report Titles:
Data Center Market – Forecast (2021-2026)
Report Code: ITR 0306
Next Generation Data Center Market - Forecast(2022 - 2027)
Report Code: ESR 0216
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LIST OF TABLES
1.Global Data Center Switch Market By Type Market 2023-2030 ($M)1.1 Core Switches Market 2023-2030 ($M) - Global Industry Research
1.2 Distribution Switches Market 2023-2030 ($M) - Global Industry Research
1.3 Access Switches Market 2023-2030 ($M) - Global Industry Research
2.Global Data Center Switch Market By Technology Market 2023-2030 ($M)
2.1 Ethernet Market 2023-2030 ($M) - Global Industry Research
2.2 Fibre Channel Market 2023-2030 ($M) - Global Industry Research
2.3 Infiniband Market 2023-2030 ($M) - Global Industry Research
3.Global Data Center Switch Market By End User Market 2023-2030 ($M)
3.1 Enterprises Market 2023-2030 ($M) - Global Industry Research
3.2 Telecommunication Industry Market 2023-2030 ($M) - Global Industry Research
3.3 Government Organizations Market 2023-2030 ($M) - Global Industry Research
3.4 Cloud Service Providers Market 2023-2030 ($M) - Global Industry Research
4.Global Data Center Switch Market By Type Market 2023-2030 (Volume/Units)
4.1 Core Switches Market 2023-2030 (Volume/Units) - Global Industry Research
4.2 Distribution Switches Market 2023-2030 (Volume/Units) - Global Industry Research
4.3 Access Switches Market 2023-2030 (Volume/Units) - Global Industry Research
5.Global Data Center Switch Market By Technology Market 2023-2030 (Volume/Units)
5.1 Ethernet Market 2023-2030 (Volume/Units) - Global Industry Research
5.2 Fibre Channel Market 2023-2030 (Volume/Units) - Global Industry Research
5.3 Infiniband Market 2023-2030 (Volume/Units) - Global Industry Research
6.Global Data Center Switch Market By End User Market 2023-2030 (Volume/Units)
6.1 Enterprises Market 2023-2030 (Volume/Units) - Global Industry Research
6.2 Telecommunication Industry Market 2023-2030 (Volume/Units) - Global Industry Research
6.3 Government Organizations Market 2023-2030 (Volume/Units) - Global Industry Research
6.4 Cloud Service Providers Market 2023-2030 (Volume/Units) - Global Industry Research
7.North America Data Center Switch Market By Type Market 2023-2030 ($M)
7.1 Core Switches Market 2023-2030 ($M) - Regional Industry Research
7.2 Distribution Switches Market 2023-2030 ($M) - Regional Industry Research
7.3 Access Switches Market 2023-2030 ($M) - Regional Industry Research
8.North America Data Center Switch Market By Technology Market 2023-2030 ($M)
8.1 Ethernet Market 2023-2030 ($M) - Regional Industry Research
8.2 Fibre Channel Market 2023-2030 ($M) - Regional Industry Research
8.3 Infiniband Market 2023-2030 ($M) - Regional Industry Research
9.North America Data Center Switch Market By End User Market 2023-2030 ($M)
9.1 Enterprises Market 2023-2030 ($M) - Regional Industry Research
9.2 Telecommunication Industry Market 2023-2030 ($M) - Regional Industry Research
9.3 Government Organizations Market 2023-2030 ($M) - Regional Industry Research
9.4 Cloud Service Providers Market 2023-2030 ($M) - Regional Industry Research
10.South America Data Center Switch Market By Type Market 2023-2030 ($M)
10.1 Core Switches Market 2023-2030 ($M) - Regional Industry Research
10.2 Distribution Switches Market 2023-2030 ($M) - Regional Industry Research
10.3 Access Switches Market 2023-2030 ($M) - Regional Industry Research
11.South America Data Center Switch Market By Technology Market 2023-2030 ($M)
11.1 Ethernet Market 2023-2030 ($M) - Regional Industry Research
11.2 Fibre Channel Market 2023-2030 ($M) - Regional Industry Research
11.3 Infiniband Market 2023-2030 ($M) - Regional Industry Research
12.South America Data Center Switch Market By End User Market 2023-2030 ($M)
12.1 Enterprises Market 2023-2030 ($M) - Regional Industry Research
12.2 Telecommunication Industry Market 2023-2030 ($M) - Regional Industry Research
12.3 Government Organizations Market 2023-2030 ($M) - Regional Industry Research
12.4 Cloud Service Providers Market 2023-2030 ($M) - Regional Industry Research
13.Europe Data Center Switch Market By Type Market 2023-2030 ($M)
13.1 Core Switches Market 2023-2030 ($M) - Regional Industry Research
13.2 Distribution Switches Market 2023-2030 ($M) - Regional Industry Research
13.3 Access Switches Market 2023-2030 ($M) - Regional Industry Research
14.Europe Data Center Switch Market By Technology Market 2023-2030 ($M)
14.1 Ethernet Market 2023-2030 ($M) - Regional Industry Research
14.2 Fibre Channel Market 2023-2030 ($M) - Regional Industry Research
14.3 Infiniband Market 2023-2030 ($M) - Regional Industry Research
15.Europe Data Center Switch Market By End User Market 2023-2030 ($M)
15.1 Enterprises Market 2023-2030 ($M) - Regional Industry Research
15.2 Telecommunication Industry Market 2023-2030 ($M) - Regional Industry Research
15.3 Government Organizations Market 2023-2030 ($M) - Regional Industry Research
15.4 Cloud Service Providers Market 2023-2030 ($M) - Regional Industry Research
16.APAC Data Center Switch Market By Type Market 2023-2030 ($M)
16.1 Core Switches Market 2023-2030 ($M) - Regional Industry Research
16.2 Distribution Switches Market 2023-2030 ($M) - Regional Industry Research
16.3 Access Switches Market 2023-2030 ($M) - Regional Industry Research
17.APAC Data Center Switch Market By Technology Market 2023-2030 ($M)
17.1 Ethernet Market 2023-2030 ($M) - Regional Industry Research
17.2 Fibre Channel Market 2023-2030 ($M) - Regional Industry Research
17.3 Infiniband Market 2023-2030 ($M) - Regional Industry Research
18.APAC Data Center Switch Market By End User Market 2023-2030 ($M)
18.1 Enterprises Market 2023-2030 ($M) - Regional Industry Research
18.2 Telecommunication Industry Market 2023-2030 ($M) - Regional Industry Research
18.3 Government Organizations Market 2023-2030 ($M) - Regional Industry Research
18.4 Cloud Service Providers Market 2023-2030 ($M) - Regional Industry Research
19.MENA Data Center Switch Market By Type Market 2023-2030 ($M)
19.1 Core Switches Market 2023-2030 ($M) - Regional Industry Research
19.2 Distribution Switches Market 2023-2030 ($M) - Regional Industry Research
19.3 Access Switches Market 2023-2030 ($M) - Regional Industry Research
20.MENA Data Center Switch Market By Technology Market 2023-2030 ($M)
20.1 Ethernet Market 2023-2030 ($M) - Regional Industry Research
20.2 Fibre Channel Market 2023-2030 ($M) - Regional Industry Research
20.3 Infiniband Market 2023-2030 ($M) - Regional Industry Research
21.MENA Data Center Switch Market By End User Market 2023-2030 ($M)
21.1 Enterprises Market 2023-2030 ($M) - Regional Industry Research
21.2 Telecommunication Industry Market 2023-2030 ($M) - Regional Industry Research
21.3 Government Organizations Market 2023-2030 ($M) - Regional Industry Research
21.4 Cloud Service Providers Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Data Center Switch Market Revenue, 2023-2030 ($M)2.Canada Data Center Switch Market Revenue, 2023-2030 ($M)
3.Mexico Data Center Switch Market Revenue, 2023-2030 ($M)
4.Brazil Data Center Switch Market Revenue, 2023-2030 ($M)
5.Argentina Data Center Switch Market Revenue, 2023-2030 ($M)
6.Peru Data Center Switch Market Revenue, 2023-2030 ($M)
7.Colombia Data Center Switch Market Revenue, 2023-2030 ($M)
8.Chile Data Center Switch Market Revenue, 2023-2030 ($M)
9.Rest of South America Data Center Switch Market Revenue, 2023-2030 ($M)
10.UK Data Center Switch Market Revenue, 2023-2030 ($M)
11.Germany Data Center Switch Market Revenue, 2023-2030 ($M)
12.France Data Center Switch Market Revenue, 2023-2030 ($M)
13.Italy Data Center Switch Market Revenue, 2023-2030 ($M)
14.Spain Data Center Switch Market Revenue, 2023-2030 ($M)
15.Rest of Europe Data Center Switch Market Revenue, 2023-2030 ($M)
16.China Data Center Switch Market Revenue, 2023-2030 ($M)
17.India Data Center Switch Market Revenue, 2023-2030 ($M)
18.Japan Data Center Switch Market Revenue, 2023-2030 ($M)
19.South Korea Data Center Switch Market Revenue, 2023-2030 ($M)
20.South Africa Data Center Switch Market Revenue, 2023-2030 ($M)
21.North America Data Center Switch By Application
22.South America Data Center Switch By Application
23.Europe Data Center Switch By Application
24.APAC Data Center Switch By Application
25.MENA Data Center Switch By Application
26.Cisco, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Huawei, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.HPE, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Arista Networks, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Juniper Networks, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.NEC, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Lenovo, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Mellanox Technologies, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Extreme Networks, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Fortinet, Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.ZTE, Sales /Revenue, 2015-2018 ($Mn/$Bn)
37.D-Link, Sales /Revenue, 2015-2018 ($Mn/$Bn)
38.Silicom, Sales /Revenue, 2015-2018 ($Mn/$Bn)
39.Quanta Cloud Technology, Sales /Revenue, 2015-2018 ($Mn/$Bn)
40.Dell, Sales /Revenue, 2015-2018 ($Mn/$Bn)