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| Global Data Center Switch Market |
The data center switch market comprises switches that are primarily used for
communication and connection within a data center infrastructure. These
switches help build high-speed networking infrastructures to transmit
significant amounts of data seamlessly between servers and storage arrays. With
the rapid adoption of cloud computing services, big data analytics, and IoT
technologies globally, the need for high-capacity data centers with advanced
networking capabilities has increased substantially. Data center switches play
a crucial role in facilitating data traffic and the functioning of virtual and
containerized applications hosted on cloud platforms.
The global data center switch market is estimated to be valued at US$ 18,532.33 billion in 2024 and is
expected to exhibit a CAGR of 7.8% over
the forecast period of 2024 to 2030. Increased demand for cloud-based services,
big data analytics, and higher internet usage due to the proliferation of smart
connected devices are some of the major factors driving the growth of the data
center switch market.
Key Takeaways
Key players operating in the data center switch market are Cisco Systems, Inc.,
Juniper Networks, Inc., Arista Networks, Inc., Hewlett Packard Enterprise,
Huawei Technologies Co., Ltd., Dell Technologies Inc., and Extreme Networks,
Inc. These players are focusing on new product development and partnerships
with hyperscalers to gain a competitive edge in the market.
Some of the key opportunities in the Global
Data Center Switch Market include
increasing investments in mega data centers across regions by hyperscalers and
continued demand for high-density switches from colocation providers and
enterprise data centers. The market is also witnessing significant expansion
opportunities in the Asia Pacific region due to rapid digital transformation of
industries and growth of local cloud service providers.
Additionally, the deployment of 5G networks and emerging technologies such as
edge computing, IoT, and AI are expected to significantly boost the amount of
data generated globally. This will further augment the need for high-capacity
data center infrastructure and networking equipment such as switches.
Market Drivers
Rising adoption of cloud computing - The massive growth in cloud infrastructure
and services across industries has increased the demand for efficient data
center networking solutions for virtualized environments hosting cloud applications.
This is a key factor driving the data center switch market.
Growing data traffic - Digital transformation of industries and the
proliferation of IoT/ connected devices have exponentially increased the volume
of data generated globally every day. This has accelerated the need to scale
data center capacities and networks with high-performance switches.
Market Restrains
High initial investments - Setting up next-generation hyper-scale data centers
with advanced networking equipment requires huge capital expenditure which can
restrain the market particularly for smaller enterprises and startups.
Rapid technology changes - The switches technology is continuously evolving
with new features to support higher bandwidths and server/VM densities. This poses
challenges related to technology obsolescence and additional upgrade costs for
data center operators.
Segment Analysis
The Data Center Switch market can be segmented based on type into Core Switches
and Distribution Switches. Core Switches dominates the market currently,
accounting for around 60% of the market share. This is because core switches
form the backbone of the network inside a data center and require higher port
density and scalability compared to distribution switches.
Global Analysis
Regionally, North America holds the largest share in the Data Center Switch
market currently. This is due to rapid growth in data traffic and
digitalization trends in industries and daily life in the US and Canada.
However, Asia Pacific region is projected to grow at the fastest rate during
the forecast period. This is attributed to rising investments by tech giants
like Google, Facebook and Microsoft in developing mega data center parks in
countries like India and China to cater to the growing needs of their customers
in Asia. Countries like India, China and Japan are anticipated to drive the
demand with increasing digitization of services and proliferation of 5G
technology.
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Center Switch Market