 |
| Global Data Center Switch Market Size |
The global Data Center Switch Market is estimated to be valued at US$ 16087.09 Mn in 2023 and is expected
to exhibit a CAGR of 5.4% over the
forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Overview:
Data center switches are networking devices that connect servers, storage
systems and other network components with each other and enable data
transmission in data centers. They provide physical and logical connections for
data center infrastructure and support applications such as virtualization.
Data center switches are available in core, aggregation and edge models to
handle different types of network traffic. The growing cloud services and
increasing virtualization demand have increased the usage of data center
switches.
Market key trends:
The increased adoption of cloud computing services is anticipated to be the
major trend that drives the growth of the data center switch market during the
forecast period. Rising digitization across industries is resulting in the
generation of huge volumes of data that needs to be stored and processed
efficiently and cost-effectively. This has led to increasing reliance on
cloud-based services and solutions. Data center switches form an important
component of cloud infrastructure as they enable the interconnection of
servers. Moreover, the increasing shift towards virtualization applications is
also propelling the demand for upgraded data center switches with higher port
density and performance. Data center switches with capabilities such as
Ethernet, InfiniBand, Fibre Channel are increasingly being used as they provide
comprehensive switching solutions for complex virtualized environments.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to high
initial investment cost for research and development. However, new entrants can
adopt low-cost alternatives.
Bargaining power of buyers: The bargaining power of buyers is high as data
center switches are undifferentiated products and buyers can easily switch to
substitutes. This compels companies to offer innovative products at competitive
prices.
Bargaining power of suppliers: Being an oligopolistic market, the bargaining
power of suppliers is moderate. However, the need for technology innovation
limits their bargaining power.
Threat of new substitutes: Threat of new substitutes is low as data center
switches have numerous technical advantages over alternatives. However, virtual
switches pose a minor threat.
Competitive rivalry: The market witnesses intense competition among key players
to improve their product portfolio and service offerings.
Key Takeaways
The Global
Data Center Switch Market Size is expected to witness high growth,
exhibiting a CAGR of 5.4% over the
forecast period between 2023 to 2030, owing to increasing cloud computing and
network virtualization across industries.
North America is projected to dominate the market during the forecast period
owing to the significant presence of key players, high investment in data
center infrastructure by tech giants, and increasing demand for data centers.
The Asia Pacific region is expected to grow at the fastest pace on account of
rising internet penetration, growing digitalization, and expansion of content providers
in countries like India and China.
Key players operating in the data center switch market are Silicom Ltd
Connectivity Solutions, Cisco Systems Inc., D-Link Corporation, Arista Networks
Inc., Quanta Cloud Technology (Quanta Computer), Juniper Networks Inc., ZTE
Corporation, Hewlett Packard Enterprise, Fortinet Inc., NEC Corporation,
Mellanox Technologies (NVIDIA), Huawei Technologies Co. Ltd., Dell EMC, H3C
Holdings Limited (Hewlett Packard Enterprise), Extreme Networks Inc., and
Lenovo Group Limited. These players are focusing on new product launches and
partnerships to gain a competitive advantage in the market.
Read More: https://www.trendingwebwire.com/data-center-switch-market-scope/