Ethernet Switch Market Dynamics, Segments, Size and Demand, 2017 - 2027

Most business uses a switch to connect computers, printers, servers and other devices within a building or campus to form a network. Switch is a cost effective solution which increases business productivity by allocating resources and sharing information across the business network. Global Ethernet switch market is estimated to cross US$ 5 Bn in 2015 and is expected to expand with a healthy CAGR during forecast period owing to increasing demand for Ethernet switches in manufacturing industry. Also, for past few years, increasing investment of IT decision makers on Ethernet infrastructure has been witnessed due to macro-economic developments and maturing IT architectures, which further beef up the demand for Ethernet switch across the globe.

Global Ethernet Switch Market: Market Dynamics

As the demand for bandwidth & high data speed is continuously increasing along with growing number of internet users across the globe hence, Ethernet switch market is expected to experience decent growth during forecast period.

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In the global Ethernet switch market, due to intense competition vendors are more focused to target market with cost efficient and advanced technology, as top vendors are coming up with emerging terabit networking where terabit routing and switching takes place. Key drivers help to move global Ethernet switch market forward are; increased digital data traffic over the existing network and the rapid increasing demand for bandwidth, rising market of data centers, increase in cloud storage adoption by different organizations are few of them. On the flip side the key restraints acting as hurdles for the growth of Ethernet switch market are; Ethernet switches (mainly unmanaged ones) are difficult to install and use, they often need training personals if network goes down.

Global Ethernet Switch Market: Segmentation

Global Ethernet switch market is segmented on the basis of product types, end-user, verticals and geography. On the basis of product types, global Ethernet switch market is segmented into modular Ethernet switches and fixed configuration Ethernet switches. Fixed configuration Ethernet switch segment is further sub segmented into unmanaged switch, smart switches and managed L2 and L3 switches. Among aforementioned product type segments, demand for modular switches is more specially in industrial application because of its flexible nature which allows end user to add expansion modules (such as firewall, wireless and network analysis) into switch as per their requirement. On the basis of end user, global Ethernet switch market is segmented into small enterprises, medium enterprises and large enterprises. On the basis of verticals, global Ethernet switch market is segmented into automotive, consumer packaged goods, education, energy, financial services, government, healthcare, hospitality and life sciences.

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On the basis of Geography, global Ethernet switch market is segmented into seven reason which are given below; North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific (excluding Japan), Japan as a separate region and Middle East & Africa. Among all the regions, APEJ holds maximum market share in global Ethernet Switch market. A key driver of this growth is buyers in China as well as the Cloud, which is helping to move the market forward.

Global Ethernet Switch Market: Competition Overview

Global Ethernet switch market has witnessed drastic change in its supply chain; In traditional networking supply chain, contract manufacturers used to provide cost effective manufacturing supply to OEMs and these products were rebranded by OEMS with high gross margin and then reached to end user through distributors or resellers whereas, in new networking supply chain, original design manufacturers supply these products to OEMS or directly to end users. This evolution in supply chain results in reduction of selling price of network products by more than 60% compared to traditional supply chain. The augmented global demand for data centers is the key driver for the growth of this market. Due to increasing application of big data analytics and cloud-based services in various end-user segments, the global demand for data centers is expected to increase. This increase in the number of data centers is envisaged to fuel the adoption of Ethernet switches and routers during the forecast period.

Key Players

Some of few key players of global Ethernet switch market are Brocade Communications Systems, Inc., Allied Telesis, Inc., Linksys, TP-Link, Juniper Networks, TRENDnet, Inc., Hewlett-Packard, D-Link Corporation, Cisco Systems, Inc., NETGEAR Inc., Cisco Systems, Inc. and others.

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