Data Center Switch Market size is estimated to reach USD 44.58 Billion by the end of 2035, witnessing around 7.92%CAGR during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of data center switch was USD 17.86 Billion. The growth of the market can be attributed to the increasing adoption of data centers that are demanding reliable switching solutions across the globe. Furthermore, there has been a surge in the demand to the storage solutions, owing to which data architecture is changing for provide more benefits. Therefore, it is expected to boost the growth of global data center switch industry . As per the estimates, there are around 7,999 data centers in the entire world. Approximately 30% of them are in the United States.
Data center switch is one of the most important requirements in the premises of the data center, and is basically found in the server areas. Since the data center network infrastructure are disaggregated owing to which the new type of switch such as data center switch awareness is growing among the data centers. They are mainly used by large enterprises, that are capable of adopting technologies. There are three types of data center switches, such as the TOR switch, core, and others that are witnessing a boom in the market owing to the rising demand for easier automation systems, and data center management by the different end-users. In addition, the surging trend of bare metal switches and the growing requirement for bandwidth in the data centers are also expected to provide opportunities for the growth of the market.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~7.92% |
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Base Year Market Size (2022) |
~ USD 17.86 Billion |
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Forecast Year Market Size (2035) |
~ USD 44.58 Billion |
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Regional Scope |
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End-User (Government, IT & Telecom, Retail, BFSI, Enterprise)
The global market is segmented and analyzed for demand and supply by end user into government, IT & telecom, retail, BFSI, enterprise, and others. Among these, the IT & telecom segment is expected to hold the largest share over the forecast period. This can be attributed to the IT sector needs hyperscale data centers and on-premise private data storage for its operations, depending on the size of the company. Additionally, as SaaS providers have proliferated, cloud storage has grown in popularity. Moreover, a large amount of data is generated in the IT and telecom sectors which increases the demand for data centers and other solutions. Therefore, it is anticipated to boost the growth of the segment by the end of 2035. For instance, there are currently 29,999 or more SaaS companies functioning worldwide.
Technology (Fiber Channel, Ethernet, InfiniBand)
The global data center switch market is also segmented and analyzed for demand and supply by technology into fiber channel, ethernet, and fiber channel. Amongst these three segments, the ethernet segment is expected to garner a significant share in the year 2035. The growth of the segment in the market can be attributed to the high scalability provided by ethernet switches. Moreover, managed ethernet switches are able to meet the data center increasing connectivity requirements with higher bandwidth. In addition, the ethernet switch solutions are the most preferable option for large-scale data centers that need better internet connectivity and storage capacity. Hence, all these factors are predicted to surge the segment’s growth by the end of 2035.
Our in-depth analysis of the global market includes the following segments:
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By End User |
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By Switch Type |
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By Technology |
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North American Market Forecast
The market share of data center switch in North America, amongst the market in all the other regions, is projected to be the largest with a share of about 32% by the end of 2035. The growth of the market can be attributed on the back of rise in internet usage and a rise in energy demand from massive data centers. Moreover, the increasing adoption of technologies in the region, such as 5G technology, block chain technology, big data, AI, and others is further expected to expand the market’s growth in the region. According to the report’s estimates, more than 90 percent of the organizations in the United States are investing in big data and artificial intelligence projects. Moreover, more than 20 percent of the organizations are using big data analytics in the US. In addition, large amount of convergence has been seen in the North America region, resulting in reduced data center complexity.
Europe Market Forecast
The European data center switch market is estimated to be the second largest, registering a share of about 24% by the end of 2035. The expansion of investments in the IT industry and the existence of significant important players in this sector are both expected for the market's growth in this region. Furthermore, the increasing government initiatives for the development of IT infrastructure is further estimated to drive the industry growth in the upcoming years. In addition, the growing trend of building green data centers for managing, storing, and transferring information has helped numerous software companies reduce their energy use and overall energy expenditures. All these factors, are together expected to contribute to growth of the market in the European region.
APAC Market Statistics
Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the rising generation of data among organizations in countries such as China, India, and others, as these countries are emerging and increasing the scope of data centers. In addition, the rising construction of data centers in the region, is further predicted to surge the growth of the global data center switch market in the Asia Pacific region.
Author Credits: Abhishek Verma, Hetal Singh
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