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Rising Adoption Of Cloud Computing To Drive Market Growth: Strengthening the Growth Trajectory of the Network Switches Market
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.What Is the Expected CAGR for the Network Switches Market Through 2025?
In recent times, the size of the network switches market has experienced robust growth. The market is set to swell from $35.79 billion in 2024 to $38.1 billion in 2025, representing a compound annual growth rate (CAGR) of 6.5%. The historic expansion is primarily due to the rise in internet usage, modernization of data centers, surge in cloud computing, the need for faster connectivity, and the international expansion of businesses.
What's the Projected Size of the Global Network Switches Market by 2029?
Anticipations show robust expansion in the network switches market size over the upcoming years. The market is projected to reach $51.79 billion by 2029, growing at a compound annual growth rate (CAGR) of 8.0%. The upswing in the prediction period can be linked with the adoption of edge computing, escalating cybersecurity issues, emphasis on network automation, smart city schemes, and energy efficiency along with green networking. The main tendencies during the prediction stage encompass intent-based networking, integration of edge computing and IoT, multi-gigabit ethernet for wireless access points, cloud-controlled switches, open networking, and white-box switches.
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Top Growth Drivers in the Network Switches Industry: What's Accelerating the Market?
The network switch market's expansion is predicted to be fueled by the increasing adoption of cloud computing. This involves providing computing services via the internet - often referred to as the cloud - and includes servers, storage, databases, networking, software, analytics, and intelligence. The transition towards cloud-based infrastructure increases the need for network switches offering higher bandwidth and improved management capacities since they are vital for linking cloud servers, storage systems, and end-users. For example, Eurostat, the statistical office of the European Union based in Luxembourg, reported that in December 2023, 45.2% of European Union businesses procured cloud computing services, marking a 4.2 percent point increase from 2021. Hence, the uptake of cloud computing is propelling the network switch market's growth.
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What Trends Will Shape the Network Switches Market Through 2029 and Beyond?
One prevailing trend that is gaining traction in the network switch market is product innovation. Renowned corporations in this market are leveraging state-of-the-art technologies to maintain their market standing. For instance, Rackus Networks, an American software development company, in January 2023, introduced the ICX 8200 series, marking their entry into the production of scalable edge switches complete with a 25 Gbps uplink ports. The range is distinctive as it featured the first enterprise switch that provides fiber-to-the-room connectivity. The ICX 8200 series is a wired platform engineered to support forthcoming generations of wireless-first and IoT campus networks and is uniquely optimized to facilitate wireless services.
What Are the Main Segments in the Network Switches Market?
The network switches market covered in this report is segmented -
1) By Type: Fixed Configuration Switches, Managed Switches, Unmanaged Switches, PoE Switches, Modular Switches
2) By Switching Port: 100 MBE And 1 GBE, 2.5 GBE And 5 GBE, 10 GBE, 25 GBE And 50 GBE, 100 GBE, 200 GBE And 400 GBE
3) By End User: Telecommunication Providers, Servers And Storage Providers, Enterprise And Industrial Use
Subsegments:
1) By Fixed Configuration Switches: Layer 2 Switches, Layer 3 Switches
2) By Managed Switches: Smart Managed Switches, Fully Managed Switches
3) By Unmanaged Switches: Plug-And-Play Switches
4) By PoE Switches (Power Over Ethernet): PoE Switches (Standard), PoE+ Switches (Enhanced)
5) By Modular Switches: Chassis-Based Switches, Stackable Switches
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Which Top Companies are Driving Growth in the Network Switches Market?
Major companies operating in the network switches market include Dell Technologies Inc., Huawei Technologies Co., Cisco Systems Inc., Quanta Computer Incorporated, Broadcom Inc., Hewlett Packard Enterprise Development LP, Fujitsu Limited, NEC Corporation, ALE International SAS, ZTE Corporation, Microchip Technology Inc., Juniper Networks Inc., Super Micro Computer Inc., Fortinet Inc., Arista Networks Inc., Ciena Corporation, Avaya LLC, Advantech Co. Ltd., Ubiquiti Inc., Extreme Networks, Adtran Inc., Netgear Inc., D-Link Corporation, Mellanox Technologies Ltd., Allied Telesis Inc., Ruckus Networks, PLANET Technology Corporation, Alaxala Networks Corp.
Which Regions Will Dominate the Network Switches Market Through 2029?
North America was the largest region in the network switches market in 2024. The regions covered in the network switches market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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