Data Center Switch Market to Rear Excessive Growth During 2023

The overall Data Center Switch Market is expected to increase from USD 13.91 billion in 2018 to 17.69 billion by 2023, at a CAGR of 4.92% between 2017 and 2023. The growth of this market is driven by the need for simplified data center management and automation, high demand for cloud services, and surge in the internet multimedia content and web applications. The rising trend of bare-metal switches for cost-effective networking solutions and continuous transition toward high-bandwidth networking would provide lucrative opportunities for the manufacturers of data center switches.


The market for access switches is expected to grow at the highest CAGR during the forecast period. Access switches offer a wide network connectivity that allows workgroups and users to use the services provided by the distribution and core layers. Access switches are not high-powered switches, but the number of switches required is high over a multi-layered network compared to core and distribution switches. With technological improvements such as the increase in the bandwidth and performance, servers and data centers are being expanded across different industries. This results in the increasing requirements of access switches. Moreover, the rising adoption of cloud services and increasing cloud service providers drive the adoption of high-bandwidth access switches. Therefore, the higher requirement for access switches compared to core and distribution switches and adoption of higher bandwidth switches boost the growth of the access data center switch market.

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The data center switch market for InfiniBand switches is expected to grow at the highest CAGR during the forecast period because InfiniBand switches offers high-bandwidth solutions at a competitive price. Companies can leverage opportunities in this market by investing more in product developments and collaborating to bring standardized products in the market.

The data center switch market for >40 Gbps switches is expected to grow at the highest rate during the forecast period. One of the major drivers for the growth of the market for switches having a bandwidth of 100 Gbps and above is the expansion of data centers owing to the growing internet multimedia content and web applications. Companies can leverage the opportunity in this market by developing new products with improved bandwidth as well as the scalability for the network extension.

The data center switch market for cloud service providers is expected to grow at the highest rate in the near future. Data center switches offer high speed, mass volume data exchange, and energy-efficient hierarchical flow. Data center switches support an ever-increasing volume of information and faster data processing. Also, the major drivers for the data center switch market growth for cloud service providers include the growing trend of adopting data analytics technology, rising demand for organizations for agile, scalable, and cost-effective computing, and high penetration of hybrid clouds.

Companies can leverage opportunities in this emerging market by collaborating with the existing and emerging cloud service providers in the market to understand the requirement for increasing data management and by offering specific solutions for the development and expansion of their networks.

The data center switch market in APAC is expected to grow at the highest CAGR during 2018–2023. The increasing government initiatives and investments from technologically developing countries in APAC, including India, Japan, China, Singapore, and Australia, are driving the establishment of data centers in the region. Also, the increasing number of small- and medium-scale enterprises and the adoption of digital technologies in them further drive the demand for data centers. Moreover, increasing internet users in the region create a massive amount of data that drives the demand for cloud-based services. All these parameters bring in the need for high performing switching solutions across the network infrastructure in data centers. Companies should focus on their distribution network to tap different parts of the region. Also, collaborating with other data center solution providers and gaining opportunities through the government initiatives are also the key strategies to adopt by the companies to grow in the APAC region.

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