Insights on the Data Center Switch Global Market to 2026 - Augmented Demand for Cloud & Edge Computing Services is Driving Growth - ResearchAndMarkets.com

The "Data Center Switch Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.

The data center switch was valued at USD 13.61 billion in 2020, and it is expected to be worth USD 18.44 billion by 2026, registering a CAGR of 5.2% during 2021-2026.

Companies Mentioned

• Cisco Systems, Inc.
• Arista Networks, Inc.
• Juniper Networks, Inc.
• Hewlett Packard Enterprise Development LP
• NEC Corporation
• Huawei Technologies Co., Ltd.
• H3C Holding Limited
• Lenovo Group Limited
• Extreme Networks Inc.
• Dell EMC
• Mellanox Technologies.
• Fortinet, Inc.
• ZTE Corporation
• Quanta Cloud Technology (QCT)
• D-Link Corporation
• Silicom Ltd. Connectivity Solutions

Key Market Trends

Ethernet Technology is expected to drive the market further

• Ethernet speeds are operating anywhere from 10 Mbps to 400Gbps. For instance, most high-speed Internet home services are currently maxing out at about 60 Mbps for copper-based services, while Fiber services are now offering "near gigabit Ethernet" speeds. With enterprise connectivity options from service providers hit speeds, ethernet technology has become a necessity for data center, thus offering a lucrative opportunity for data center switch market expansion.
• The steady march to 100 Gigabit Ethernet in data center networks appears to have progressed, with a prediction of 19.4 million 100GbE ports per year would be shipped by 2022, up from 4.6 million in 2017 (Dell EMC, 2018). Large service providers and some hyperscale cloud platforms have already adopted 100GbE, for running high-performance computing or cloud infrastructure services. In addition, bandwidth and low-latency needs of the workloads in mainstream data centers are also reaching the point where 100GbE can help.
• Gigabit Ethernet, moving traffic at speeds of as fast as 1 Gbps, is a de facto standard in mobile platforms that require to support higher volumes of traffic, delay-sensitive data (video, sensors, VoIP) or multiple devices on the same platform (computer, IP phone, IP camera, sensors, etc.). Huawei's Ethernet switch revenue grew 8.9% year over year in last quarter of 2019 and was up 7.8% in 2019 compared to 2018 which significantly increased the market share of Huawei in the market.
• In 2018, HMS Networks concluded that Industrial Ethernet had surpassed traditional fieldbuses for the first time, and this development continued in 2019. With a steady growth rate of 20%, Industrial Ethernet now makes up for 59% of the global market in 2019 compared to 52% in 2018. EtherNet/IP contributed 15% of the market making it the largest contributor, but PROFINET has also witnessed 14%. Other industrial ethernets are EtherCAT at 7%, Ethernet POWERLINK at 5%, and Modbus-TCP at 4%, all of which are showing stable growth.

North America Occupies a Dominant Market Share for Data Center Switches

• The United States currently has the highest number of data centers across the globe and is witnessing robust growth in terms of volume of big data and traffic owing to the increase in the number of data centers. According to Cisco Systems, the volume of big data in data center storage worldwide is expected to reach 403 exabytes by 2021 of which a huge share will be accounted for by the US.
• The expansion of mobile broadband, growth in cloud computing, and Big Data analytics are driving the demand for new data center infrastructures in the region. Moreover, the declining prices of servers have increased the adoption of cloud computing businesses across North America, which is expected to fuel the demand for switches over the forecast period.
• Several companies are investing in the expansion of their operations to strengthen their global footprint and enhance their market presence in the region. For instance, in January 2020, Stack Infrastructure, a wholesale data center colocation provider, raised more than USD 1 billion to build a massive 125 acre, 4 million square foot campus in Northern Virginia. The new data center campus is expected to offer more than 250 megawatts of critical capacity with flexible build-to-suit facilities capable of serving large data center users.

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

4.1 Market Overview

4.2 Market Drivers

4.2.1 Augmented Demand for Cloud & Edge Computing Services

4.2.2 Government Regulations Regarding Localization of Data Centers

4.3 Market Restraints

4.3.1 High Data Center Operational Cost

4.4 Industry Attractiveness - Porter's Five Force Analysis

4.5 Technology Snapshot

4.5.1 Bandwidth

4.5.2 Technology (Ethernet, Fiber Channel, and InfiniBand)

5 MARKET SEGMENTATION

5.1 Switch Type

5.1.1 Core Switches

5.1.2 Distribution Switches

5.1.3 Access Switches

5.2 Geography

5.2.1 North America

5.2.1.1 United States

5.2.1.2 Canada

5.2.2 Europe

5.2.2.1 United Kingdom

5.2.2.2 Germany

5.2.2.3 France

5.2.2.4 Rest of Europe

5.2.3 Asia-Pacific

5.2.3.1 China

5.2.3.2 Japan

5.2.3.3 India

5.2.3.4 South Korea

5.2.3.5 Rest of Asia-Pacific

5.2.4 Rest of the World

6 COMPETITIVE LANDSCAPE

6.1 Company Profiles

7 INVESTMENT ANALYSIS

8 FUTURE MARKET OUTLOOK

For more information about this report visit https://www.researchandmarkets.com/r/nxrrco

View source version on businesswire.com: https://www.businesswire.com/news/home/20210304005691/en/