Data Center Switch Market - Forecast(2024 - 2030)

Report Code: ESR 12652 Report Format: PDF + Excel

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 (%)

Data Center Switch Market

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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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1. Data Center Switch Market Overview
    1.1 Definitions and Scope
2. Data Center Switch Market- Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Service Type
    2.3 Key trends segmented by Geography
3. Data Center Switch Market
    3.1 Comparative Analysis
        3.1.1 Product/Service Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis
4. Data Center Switch Market– By Startup Company Scenario (Premium)
    4.1 Investment
    4.2 Revenue
    4.3 Venture Capital Funding
5. Data Center Switch Market– By Industry Market Entry Scenario Premium (Premium)
    5.1 Regulatory Framework
    5.2 Customer Analysis
    5.3 Case Studies
    5.4 Ease of Doing Business Index
6. Data Center Switch Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints/Challenges
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Network of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Network of substitutes
7. Data Center Switch Market– By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
    7.4 Suppliers and Distributors
8. Data Center Switch Market– By Type
    8.1 Core switches
    8.2 Distribution Switches
    8.3 Access Switches
9. Data Center Switch Market– By Technology
    9.1 Ethernet
    9.2 Fiber Channel
    9.3 Infiniband
10. Data Center Switch Market– By Bandwidth
    10.1 ?1 GBPS
    10.2 >1 GBPS to ?10 GBPS
    10.3 >10 GBPS to ?40 GBPS
    10.4 >40 GBPS to ?100 GBPS
11. Data Center Switch Market- By End-Use Industry
    11.1 IT & Telecommunication
    11.2 Government Organizations
    11.3 Enterprise
    11.4 Cloud-based Service Providers
    11.5 BFSI
    11.6 Others
12. Data Center Switch Market– By Region
    12.1 North America
        12.1.1 U.S
        12.1.2 Canada
        12.1.3 Mexico
    12.2 South America
        12.2.1 Brazil
        12.2.2 Argentina
        12.2.3 Rest of South America
    12.3 Europe
        12.3.1 Germany
        12.3.2 France
        12.3.3 UK
        12.3.4 Italy
        12.3.5 Spain
        12.3.6 Russia
        12.3.7 Rest of Europe
    12.4 APAC
        12.4.1 China
        12.4.2 Japan
        12.4.3 South Korea
        12.4.4 India
        12.4.5 Australia
        12.4.6 Rest of APAC
    12.5 RoW
        12.5.1 Middle East
        12.5.2 Africa
13. Data Center Switch Market- Industry Landscape Analysis (Premium)
    13.1 Market Share by Region
    13.2 Market Share by Industry
    13.3 Market Share by Type
14. Data Center Switch Market- Key Companies by Country (Premium)
15. Data Center Switch Market Entropy
    15.1 New Product Launches
    15.2 M&As, Collaborations, JVs and Partnerships
16. Data Center Switch Market- Company Analysis
    16.1 Arista Networks
    16.2 Bay Microsystem
    16.3 Centec Networks
    16.4 Cisco
    16.5 Cumulus Networks
    16.6 Dell
    16.7 H3C Technologies
    16.8 Edgecore Network
    16.9 HPE
    16.10 Huawei
    16.11 Lenovo

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)