In the dynamic landscape of the Information Technology and Communications (ITC) sector, insights from the “Data Center Switch Market Report (2023-2028)” indicate a thriving market poised at USD 16.12 billion in 2023. A projected CAGR of 5.36% over the forecast period highlights its growth potential.
The realm of data centers is expanding as businesses, especially small and medium-sized system integrators, embrace cloud computing, data localization, and transformative technologies like 5G and IoT. The strategic shift is driven by the evolving needs of enterprises, the proliferation of interconnected devices, and the continuous surge in internet-generated data. This paradigm shift in AI processing and data storage location spans from the cloud to on-premises data centers, enabling efficient performance, capacity, and cost optimization.
Who are the Top Companies in the Data Center Switch Market?
The global data center switch market is highly competitive with several major players.
The noteworthy players holding the global data center switch market are:
Cisco Systems Inc.
Arista Networks Inc.
Juniper Networks Inc.
Hewlett Packard Enterprise Development LP
Huawei Technologies Co. Ltd
H3C Holding Limited
Lenovo Group Limited
Extreme Networks Inc.
Quanta Cloud Technology (QCT)
Silicom Ltd Connectivity Solutions
Other Reports That Might Be of Your Interest:
Australia Data Center Market Report – The Australian data center market size is estimated at USD 5.49 billion in 2023 and is expected to reach USD 7.47 billion by 2028 at a CAGR of 6.37% during the forecast period (2023-2028).
Hong Kong Data Center Market Report- The Hong Kong data center market size is expected to grow from USD 3.03 billion in 2023 to USD 5.65 billion by 2028 at a CAGR of 13.25% during the forecast period (2023-2028).
Key Highlights from the Data Center Switch Market Report:
Core Switches to Dominate the Market
Core switches are prioritized over the other two switches. Corporations with larger market shares, such as Amazon and Microsoft, are building additional data centers. The requirement for core switches is anticipated to rise dramatically since data centers are expanding.
The developing traffic is to be handled effectively and reliably, with low and predictable latency. Nevertheless, because vPC (virtual-port-channel) can only supply two active parallel uplinks, bandwidth becomes a constraint in a three-tier data center architecture.
North America to Dominate the Market
As per the real estate expert CBRE, data center leasing in the top seven US markets was 31% more than in the previous several years and 50% higher than the last year, which had slightly decreased due to the pandemic. Northern Virginia was the primary market, with over 60% of the country’s new data center capacity.
Cloud service providers and social media firms hold most of the demand for colocation data centers. The market is also steered by adopting new technologies involving blockchain technology, 5G infrastructure, virtual reality communities, and autonomous car technology.
What are the Latest Developments in the Data Center Switch Market?
In May 2022, PLDT partnered with Cisco to deploy a 5G standalone service platform in Manila to be implemented in PLDT’s 5G TechnoLab in Makati City.
In April 2022, Huawei presented simplified, intelligent, low-carbon campus networks with all-scenario AirEngine Wi-Fi 6 series products, CloudEngine S8700 series (next-generation high-density modular switches), fiber/copper hybrid cables, and remote modules.
Mordor Intelligence has Segmented the Data Center Switch Market Based on Switch Type and Geography:
By Switch Type
Access Switches (RO)
Rest of Europe
Rest of Asia-Pacific
Rest of the World