Increasing Adoption Of Switching Technologies Will Grow The Data Center Switch Market Segment
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 hardware devices that direct data traffic between servers, storage systems and other network devices in a data center. They improve network performance by reducing congestion and latency. Most large data centers use top-of-rack switches to connect multiple servers in a rack and aggregation switches to connect multiple racks in a data center.
Market key trends:
Data center switches are seeing increasing adoption of switching technologies like Ethernet switching, IP routing and stacking. Stacking enables switches to operate as a single logical switch for increased scalability. Most data center switches also support virtual switching via virtual port channels which allow servers to be connected to multiple switches for fault tolerance. With more enterprises adopting cloud and achieving higher server virtualization levels, the demand for data center switches with advanced switching capabilities is growing significantly.
SWOT Analysis
Strength: The data center switch market experiences high demand for cloud-based services and data traffic. This drives the need for faster and reliable switching solutions.
Weakness: Heavy investments are required to develop technologically advanced switching solutions. This poses challenges for smaller players.
Opportunity: Growth of IoT and edge computing opens up opportunities for data center switches compatible with these technologies. Adoption of 400G switches also presents growth prospects.
Threats: Increasing preference for open networking solutions threatens proprietary protocols. Standardization efforts could impact differentiation strategies of vendors.
Key Takeaways
The Global Data Center Switch Market Size is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing adoption of cloud-based services. Growth in data volumes and increased penetration of high-speed Internet further support market expansion.
Regional analysis
The Asia Pacific data center switch market is forecast to witness the fastest growth during the analysis period owing to rapid digitalization in major economies like China and India. North America dominates currently led by widespread deployment of advanced switching solutions across diverse industries in the US and Canada.
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.
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