Network Switches Market by Type (Fixed Configuration Switches, Modular Switches), End User, Switching Port (100 MBE & 1 GBE, 2.5 GBE & 5 GBE, 10 GBE, 25 GBE & 50 GBE, 100 GBE, 200 GBE & 400 GBE) and Region Global Forecast 2023 – 2030

Network Switches Market: Overview

The network switches market is projected to grow from USD 33.0 billion in 2022 to reach USD 45.5 billion by 2030; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 6.6 % from 2023 to 2030.

The network switches market is a rapidly growing sector of the information technology industry. Network switches are devices that connect multiple devices, such as computers, servers, printers, and other devices, together within a local area network (LAN) or wide area network (WAN). These switches enable data transmission between devices by forwarding data packets to their intended destinations. The global network switches market is driven by the increasing demand for high-speed connectivity and efficient data transfer across different devices. The adoption of cloud computing, big data analytics, and the Internet of Things (IoT) has also contributed to the growth of the market. Additionally, the rise of e-commerce, online gaming, and social media has led to the need for reliable and high-performance networks, which in turn has increased the demand for network switches.

COVID-19 Impact:

The COVID-19 pandemic has had a significant impact on the global economy, including the network switches market. With the widespread adoption of remote work and virtual learning, the demand for network switches has increased as businesses and educational institutions require reliable and secure network connectivity. However, the pandemic has also caused supply chain disruptions and manufacturing delays, leading to a shortage of network switches in some regions. This has resulted in price increases and longer lead times for customers. Additionally, the shift towards cloud computing and software-defined networking has impacted the network switches market, as businesses increasingly opt for virtual switches rather than physical ones. This trend is expected to continue even after the pandemic subsides. Overall, the COVID-19 pandemic has had a mixed impact on the network switches market, with increased demand for some products but also supply chain disruptions and changing market trends.

Network Switches Market Drivers:

The demand for data centers is increasing due to the growth of cloud computing, big data analytics, and the Internet of Things (IoT). Data centers require network switches to connect servers, storage devices, and other networking equipment to the network. Virtualization is becoming increasingly popular as it allows organizations to run multiple operating systems and applications on a single physical server. Network switches play a critical role in virtualization by providing connectivity between virtual machines. Ethernet switches are widely used in industrial automation to connect various devices such as sensors, controllers, and actuators. The use of Ethernet switches in industrial automation is increasing due to the benefits of Ethernet such as high-speed data transfer, scalability, and flexibility. With the increasing adoption of wireless devices such as smartphones, tablets, and laptops, the demand for wireless network infrastructure is increasing. Network switches play a critical role in wireless network infrastructure by providing connectivity between wireless access points and the wired network. The network switches market is driven by technological advancements such as software-defined networking (SDN), network function virtualization (NFV), and the Internet of Things (IoT). These technologies are driving the demand for network switches that are more agile, scalable, and secure.

Network Switches Market: Restraints

With the rapid advancement of technology, newer and more advanced network switches are being developed regularly. This can make older models obsolete, leading to a decline in sales for companies that are not able to keep up with the pace of technological change. The network switches market is affected by economic conditions, such as recessions and fluctuations in exchange rates. Economic uncertainty can lead to a decrease in demand for network switches and a decrease in revenue for companies. Network switches are an integral part of network security infrastructure. Any security breach can lead to a loss of trust among customers and a decrease in demand for network switches. The production and disposal of network switches can have a significant impact on the environment. Companies that do not take these concerns into account may face public backlash and a decline in sales.

Network Switches Market: Segmentation

This includes managed switches, unmanaged switches, and smart switches. Managed switches allow for greater control and customization, while unmanaged switches are simpler and more affordable. Smart switches combine some of the features of both managed and unmanaged switches. This includes enterprise, data center, and service provider. Enterprises typically use switches for their internal networks, while data centers and service providers use switches for their own infrastructure and to provide services to customers. This includes switches with different port speeds, such as 1 Gigabit Ethernet (GbE), 10 GbE, 40 GbE, and 100 GbE. Higher port speeds allow for faster data transfer and are typically used in larger networks. This includes regions such as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Different regions have different market dynamics, such as varying levels of network infrastructure and adoption. This includes switches used for different applications, such as campus switching, data center switching, and industrial Ethernet switching. Different applications have different requirements, such as scalability, reliability, and security. This includes various verticals such as government and defense, BFSI, healthcare, manufacturing, retail, and education. Different verticals have different network requirements and thus use switches accordingly.

Network Switches Market: Regional Landscape

North America is expected to hold a significant share of the network switches market due to the presence of major players and high adoption of advanced technologies. The region is also witnessing a rise in demand for cloud-based services, which is driving the growth of the network switches market. The Asia Pacific region is expected to witness significant growth in the network switches market during the forecast period. The region is home to several emerging economies such as China, India, and Southeast Asian countries, which are experiencing rapid digitization and adoption of advanced technologies. The increasing demand for data center consolidation and virtualization is driving the growth of the network switches market in the region. Europe is expected to hold a significant share of the network switches market due to the presence of several established players and the high adoption of advanced technologies in the region. The increasing demand for network switches in various industries, including healthcare, retail, and manufacturing, is driving the growth of the market in Europe. Latin America and the Middle East & Africa are expected to witness moderate growth in the network switches market during the forecast period due to the increasing adoption of cloud-based services and rising demand for advanced network infrastructure in the region.

Network Switches Market: Competitive Landscape

Some of the main competitors dominating the global Network Switches Market include- Cisco Systems Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co. Ltd., Dell Technologies Inc., Juniper Networks Inc., Arista Networks Inc., Extreme Networks Inc., NETGEAR Inc., Broadcom Inc., Lenovo Group Limited, D-Link Corporation, TP-Link Technologies Co. Ltd., ZTE Corporation , Allied Telesis Holdings K.K., Fortinet Inc., H3C Technologies Co. Ltd., Mellanox Technologies Ltd., Nokia Corporation, Ubiquiti Inc., Avaya Inc.

Recent Developments

  • In 2021
  • Hewlett Packard Enterprise (HPE) announced its acquisition of Silver Peak, a leading provider of software-defined wide-area networking (SD-WAN) solutions. This acquisition is expected to strengthen HPE's networking portfolio and position it as a leader in the rapidly growing SD-WAN market.
  • Cisco announced its new series of Catalyst 8000 Edge Platforms, which includes the Catalyst 8300, 8500 and 8000V. These switches are designed to help businesses manage their networks and data more efficiently and securely.
  • In May 2021, Juniper Networks announced its new QFX5110 data center switch series. The switches are designed to provide high performance, flexibility and scalability for data center networks.
  • In July 2021, Arista Networks announced its new 750 Series of switches. The switches are designed for use in data centers and cloud networks, and they offer high performance, low latency and advanced features such as telemetry and automation.
  • In 2020
  • Cisco Systems, Inc. announced in June 2020 that it was expanding its portfolio of cloud-managed SD-WAN solutions to include an integrated security feature called Cisco Umbrella, which provides protection against threats on the internet.
  • Arista Networks announced the launch of its 7360X Series, a high-performance switching platform for data center and cloud networks that delivers 50% more power efficiency and a 35% reduction in latency compared to previous models.
  • Huawei Technologies Co. Ltd. announced in September 2020 that it had launched a new series of Ethernet switches, the CloudEngine S-Series, designed for high-performance data center and campus networks. The switches use AI-powered algorithms to automate network management and optimize performance.

Global Network Switches Market is segmented as follows:

  • By type:
  • Managed switches
  • Unmanaged switches
  • Smart switches
  • By enterprise size:
  • Small and medium-sized enterprises (SMEs)
  • Large enterprises
  • By end-user:
  • Data centers
  • Service providers
  • Government and defense
  • Enterprises
  • Others

By Region

  • North America
  • The U.S.
  • Canada
  • Mexico
  • Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
  • Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
  • Rest of Southeast Asia
  • The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
  • Latin America
  • Brazil
  • Argentina
  • Rest of Latin America

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Report Detail

  • Status:Published
  • Report Code:NNRR 82
  • No. of Pages:172
  • Published DateJune 2023
  • Category:ICT
  • Delivery Timeline:48 hrs

Customized

  • => Region Level Market Share
  • => Import Export Analysis
  • => Additional Company Profiles
  • => Region Specific Market Dynamics
  • => Production Analysis
  • => Additional Countries (Apart From Mentioned Countries)
  • => Country/Region-specific Report