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Ethernet switches are used in networking equipment to facilitate communication between different network segments. These switches are primary components of local area networks, metropolitan area networks and wide area networks that enable efficient exchange of data between digital devices. Ethernet switches allow smoother transmission of Ethernet frames within a network by filtering and forwarding data to appropriate ports. Some common uses of ethernet switches include connecting computers, printers, servers and other networking devices within an office or building. The growing adoption of cloud computing and rising number of data center deployments have increased the demand for ethernet switches. Majority of hyperscale data centers today use Ethernet switching fabrics to help provision, monitor and troubleshoot data center resources.
The global Ethernet Switches Market is estimated to be valued at US$ 18.60 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The global Ethernet Switches market is expected to be flourished by growing demand from data centers. With increasing reliance on digital infrastructure, public as well as private organizations are heavily investing in establishing local data centers as well as expanding existing hyper-scale data center facilities. Ethernet switches play a pivotal role in managing vast traffic within these data centers. Moreover, extensive rollout of 5G infrastructure will further propel the demand for ethernet switches from telecom operators aiming to modernize their networks. Additionally, rapid proliferation of smart homes and buildings integrated with IoT devices is augmenting the adoption of ethernet switches for high bandwidth, low latency connectivity. Major players are focused on introducing novel ethernet switch architectures tailored for various applications such as cloud computing, fiber deep and 5G backhaul networks to capitalize on growth opportunities. For instance, Cisco introduced 8000 series switches with new networking operating system for ultra-low latency workloads in high-performance networks.
Segment Analysis
The global ethernet switches market is dominated by managed ethernet switches segment. Managed ethernet switches allow remote monitoring and management of networks and devices connected through them. They offer advanced capabilities like traffic prioritization, network monitoring, network access control, security functions, quality of service etc. compared to unmanaged ethernet switches. This has increased their preference among large enterprises and data centers where network management is critical.
PEST Analysis
Political: Trade war between US and China has impacted the sales of Chinese networking equipment manufacturers. However, recent trade deals are expected to reduce trade tensions going forward.
Economic: Growth in data traffic driven by increase in internet users, mobile internet, video streaming, IOT etc. is driving investments in network infrastructure upgrades worldwide. Recovery in global IT spending post pandemic will further support market growth.
Social: Increased smartphone and internet penetration worldwide is raising demand for high speed network connectivity among consumers and businesses. Remote working culture during pandemic has highlighted the importance of reliable network connectivity.
Technological: Advancements in ethernet switching technologies like 400G ethernet, artificial intelligence/machine learning integrated networking solutions are enhancing network management capabilities. Adoption of cloud, 5G, edge computing is also expanding deployments of ethernet switches.
Key players
Key players operating in the global ethernet switches market are Cisco, Huawei Technologies, HP Enterprise, Arista Networks, New H3C Group, HPE, Juniper Networks, NEC, Lenovo, and Dell. Cisco continues to be the largest supplier of ethernet switches worldwide supported by its comprehensive product portfolio and global customer base across industries. Huawei Technologies also has a significant market share especially in the Asia Pacific region. The market remains competitive with all players focusing on new product
Key Takeaways
The global Ethernet Switches Market is expected to witness high growth driven by increase in network traffic worldwide, transition to high speed networks, investments in digital transformation initiatives by enterprises.
Regional analysis
North America held the largest share of the global ethernet switches market in 2023. Wide scale digitization of enterprises across sectors, strong infrastructure, and data center investments in the US and Canada are supporting market growth. Asia Pacific is expected to emerge as the fastest growing regional market during the forecast period supported by increasing deployments of ethernet switches across industries in major countries like China, Japan and India.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
