Industry News
The global data center switch market will reach $24.6 billion in 2031
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Author : JIUZHOU
Update time : 2022-10-21 11:16:08
According to a research report, the global data center switch market size is 13.8 billion US dollars in 2021, and is expected to reach 24.6 billion US dollars by 2031, with a compound annual growth rate of 5.9% from 2022 to 2031.
A study published a report. According to the report, the global data center switch market size was valued at USD 13.8 billion in 2021 and is expected to reach USD 24.6 billion by 2031, growing at a CAGR of 5.9% from 2022 to 2031.
Key determinants of growth
Increasing IoT and cloud computing applications and increasing demand for switch data center security, especially in developing regions, are driving the growth of the global data center switch market. However, the high operating cost of data centers hinders the development of the market. On the contrary, the increase in smart computing devices brings new opportunities to the market in the coming years.
The Ethernet sector will maintain its lead
Based on product type (mainly including Ethernet and InfiniBand), the Ethernet segment accounted for the highest market share in 2021, accounting for more than two-thirds of the global data center switch market and is expected to maintain its leadership position throughout the forecast period. Vendors are launching Ethernet Layer 2 and Layer 3 switches designed for enterprises, branch offices, and SMBs that provide flexibility and easy-to-manage solutions that are driving this segment. However, the Infiniband segment will have the highest CAGR of 7.6% from 2022 to 2031. This is because these switches also provide high-performance computing for data centers at competitive prices.
The 100G segment will maintain its leading position
In terms of port speed (including 10G, 25G, 40G, 100G, and 400G, etc.), 100G will have the largest market share in 2021, accounting for nearly one-third of the global data center switch market, and is expected to maintain its leading position during the forecast period. 100G data center switches provide a high-performance environment that combines scalable L2 and L3 resources and high density with extensive automation and programming capabilities.
ToR switches maintain their leadership during the forecast period
In terms of switch types (including core and ToR), ToR switches will have the largest share in 2021, accounting for nearly half of the global data center switch market, and is expected to maintain its leadership over the forecast period. Furthermore, this segment is expected to exhibit the largest CAGR of 6.7% from 2022 to 2031. Rising demand for ToR switches is expected to help boost the overall market growth.
North America will maintain its dominance
Regionally, North America holds the highest market share in terms of revenue in 2021, accounting for nearly two-fifths of the global data center switch market and is likely to dominate the market during the forecast period. The popularity of cloud computing and internet services is driving the demand for data centers in North America. Furthermore, the European region will witness the fastest CAGR of 7.3% from 2022 to 2031. This is attributed to the increase in several government initiatives in the region.
A study published a report. According to the report, the global data center switch market size was valued at USD 13.8 billion in 2021 and is expected to reach USD 24.6 billion by 2031, growing at a CAGR of 5.9% from 2022 to 2031.
Key determinants of growth
Increasing IoT and cloud computing applications and increasing demand for switch data center security, especially in developing regions, are driving the growth of the global data center switch market. However, the high operating cost of data centers hinders the development of the market. On the contrary, the increase in smart computing devices brings new opportunities to the market in the coming years.
The Ethernet sector will maintain its lead
Based on product type (mainly including Ethernet and InfiniBand), the Ethernet segment accounted for the highest market share in 2021, accounting for more than two-thirds of the global data center switch market and is expected to maintain its leadership position throughout the forecast period. Vendors are launching Ethernet Layer 2 and Layer 3 switches designed for enterprises, branch offices, and SMBs that provide flexibility and easy-to-manage solutions that are driving this segment. However, the Infiniband segment will have the highest CAGR of 7.6% from 2022 to 2031. This is because these switches also provide high-performance computing for data centers at competitive prices.
The 100G segment will maintain its leading position
In terms of port speed (including 10G, 25G, 40G, 100G, and 400G, etc.), 100G will have the largest market share in 2021, accounting for nearly one-third of the global data center switch market, and is expected to maintain its leading position during the forecast period. 100G data center switches provide a high-performance environment that combines scalable L2 and L3 resources and high density with extensive automation and programming capabilities.
ToR switches maintain their leadership during the forecast period
In terms of switch types (including core and ToR), ToR switches will have the largest share in 2021, accounting for nearly half of the global data center switch market, and is expected to maintain its leadership over the forecast period. Furthermore, this segment is expected to exhibit the largest CAGR of 6.7% from 2022 to 2031. Rising demand for ToR switches is expected to help boost the overall market growth.
North America will maintain its dominance
Regionally, North America holds the highest market share in terms of revenue in 2021, accounting for nearly two-fifths of the global data center switch market and is likely to dominate the market during the forecast period. The popularity of cloud computing and internet services is driving the demand for data centers in North America. Furthermore, the European region will witness the fastest CAGR of 7.3% from 2022 to 2031. This is attributed to the increase in several government initiatives in the region.
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