Ethernet Switch Market Forecast 2023 - 2030
Report ID : CBI_1158 |
| Published Date:
| Format :
| Base Year: | 2022 |
|---|---|
| CAGR: | 4.7% |
| Forecast Year: | 2023 - 2030 |
| Revenue 2022: | $17,924.68 Mn |
| Revenue 2030: | $25,477.18 Mn |
Ethernet Switch Market Forecast 2023 - 2030
Market Overview :
Ethernet Switch Market is estimated to reach over USD 25,477.18 Million by 2030 from a value of USD 17,924.68 Million in 2022, growing at a CAGR of 4.7% from 2023 to 2030.
Market Definition :
An Ethernet switch is a networking device that facilitates the interconnection of multiple devices within a local area network (LAN). The switch operates at the data link layer of the Open Systems Interconnection (OSI) model, enabling the efficient transfer of data between connected devices. Additionally, the switch uses the destination MAC address to determine the appropriate port to forward the data, allowing for simultaneous communication between multiple devices connected to different ports. Moreover, an Ethernet switch enhances network performance and improves data transfer speeds by providing increased bandwidth and reducing collisions.
Market Dynamics :
Drivers :
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Increasing demand of Ethernet switches to provide high-speed connectivity to data centers is propelling the market growth
Data centers are crucial for storing, processing, and managing large volumes of data, and require robust networking infrastructure to ensure efficient data transmission and connectivity. Ethernet switches play a vital role in data center networks by providing high-speed, low-latency, and reliable connections between servers, storage systems, and other network devices. Additionally, the growth of data-intensive applications including cloud computing, big data analytics, artificial intelligence, and Internet of Things (IoT) is leading to a significant increase in data center traffic. The surge in data traffic requires data centers to scale up the networking capabilities to handle the growing demands. Ethernet switches offer scalability, flexibility, and high performance, and thus are increasingly adopted in data centers. For instance, in April 2023, Edgecore Networks Corporation launched DCS520, an ultra-high capacity 400G Ethernet switch to meet the growing demands of next-generation data centers. The advanced Ethernet switch is designed to provide flexibility, low-latency, and high-efficiency data processing to cloud operators along with offering 25.6 Tbps switching capacity, hence contributing notably in driving the market growth.
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Increasing number of small-medium enterprises is raising the demand of Ethernet switches for establishing local area networks (LANs) within SME environments
SMEs require reliable and efficient network infrastructure to support day-to-day operations. Ethernet switches provide a cost-effective solution for establishing local area networks (LANs) within SME environments. The switches enable SMEs to connect computers, servers, printers, and other network devices, allowing for seamless communication, data sharing, and resource utilization. Additionally, SMEs rely heavily on internet connectivity to conduct various operations. Ethernet switches enable the establishment of reliable and high-speed internet connections within the work environment.
Moreover, with the growing reliance on cloud-based applications, online services, and remote working, SMEs require Ethernet switches to ensure a stable and faster internet connection for the employees. In conclusion, the growing number of small-medium enterprises is fueling the growth of the Ethernet switch market to provide high-speed data connectivity at an affordable price. For instance, in December 2022, according to a report by The House of Commons Library, 99% of businesses in the United Kingdom are small or medium-sized businesses and SMEs accounted for 61% of the United Kingdom's economy. Additionally, the UK has approximately 217,000 small businesses and 36,000 medium-sized enterprises, thus contributing significantly in driving the market growth.
Restraint :
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High manufacturing and maintenance cost of Ethernet switch is hindering the market growth
The cost of production of Ethernet switches is significantly high which compels the users to seek lower-quality switches that are available at cheap prices. The components utilized in Ethernet switches include Application-Specific Integrated Circuits, Dynamic RAM (DRAM), and Static RAM (SRAM) are expensive to manufacture. In addition, Ethernet switches require regular maintenance and support, including troubleshooting, firmware updates, and potential repairs. The high maintenance costs associated with switches are a deterrent for organizations, restraining market growth. Moreover, the cost of replacement and repair of the Ethernet switch is also high, leading to additional upfront costs, thus negatively impacting the growth of the global Ethernet switch market.
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Short lifecycle of the built-in fans in Ethernet switches is restraining the market growth
In an Ethernet switch, one mechanical component that wears out easily and has a short lifecycle is the fan. Ethernet switches contain built-in fans to dissipate heat generated by the switch's components and help to prevent overheating. The fans in an Ethernet switch operate continuously to maintain airflow and keep the internal temperature within acceptable limits. Over time, the constant rotation and exposure to dust and debris cause the fan's bearings to wear out resulting in reduced speed and generation of undesirable sound. Consequently, the inefficient functioning of the fan leads to thermal issues, damaging other components of the switch, thus impeding the growth of the global Ethernet switch market.
Opportunities :
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Expanding 5G network infrastructure is creating potential opportunities for the growth of the Ethernet switch market
5G networks are designed to deliver higher data speeds and lower latency compared to previous generations. The increased performance raises higher demands on the network infrastructure, including Ethernet switches, to handle the higher bandwidth requirements. Ethernet switches play a crucial role in providing the required connectivity and throughput for 5G networks, hence becoming an essential component of the infrastructure. In addition, 5G networks rely on a dense network of small cell power amplifier and base stations to provide widespread coverage and support the massive number of connected devices. Each small cell and base station require backhaul connections to the core network that are facilitated by Ethernet switches. The deployment of 5G networks, especially in urban areas is driving the demand for Ethernet switches to support network densification and ensure reliable and high-speed connectivity. Subsequently, the expanding 5G network infrastructure is creating potential opportunities for the growth of the Ethernet switch market to provide the required connectivity.
Ethernet Switch Market Report Coverage :
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 | USD 25,477.18 Million |
| CAGR (2023-2030) | 4.7% |
| By Type | Modular Ethernet Switches and Fixed Configuration Ethernet Switches |
| By Capacity | 100 Megabyte, 1 Gigabyte, 10 Gigabyte, 40 Gigabyte, and 100 Gigabyte |
| By End-User | Consumer Electronics, Healthcare, IT & Telecom, Transportation, Automotive, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Advantech Co., Ltd., NXP Semiconductors N.V., Alcatel-Lucent, Allied Telesis, Brocade Communications Systems, Inc., Cisco Systems Inc., Dell Technologies, D-Link Corporation, Eaton Corporation, Hewlett-Pack Corporation, Honeywell International, Huawei Technologies, Siemens SE |
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Download Sample ReportMarket Segmentation :
By Type :
The type segment is bifurcated into modular Ethernet switches and fixed configuration Ethernet switches. The fixed configuration Ethernet switches accounted for the largest market share in 2022 and are also projected to witness the fastest CAGR during the forecast period. Fixed configuration Ethernet switches comprise unmanaged switches, smart switches, managed L2 switches, managed L3 switches, divided switches, and modular switches. Unmanaged Ethernet switch holds the largest market share as the switches are incredibly easy to use and require no configuration and management. Additionally, unmanaged switches are plug-and-play devices, allowing users to simply connect the devices and immediately start using the network. Moreover, unmanaged Ethernet switches are more cost-effective in comparison to other fixed configuration Ethernet switches, further driving market growth. Further, the switches have the ability to withstand harsh environmental conditions and are manufactured using corrosion-resistant material, thus contributing considerably in boosting the growth of the unmanaged Ethernet switch segment. For instance, in April 2022, Versitron Inc. launched unmanaged industrial switches with 100/1G SFP slots and 10/100/1000 RJ45 ports. The switches are designed for basic plug-and-play installations and are corrosion-resistant to withstand harsh environmental conditions.
By Capacity :
The capacity segment is categorized into 100 megabytes, 1 gigabyte, 10 gigabytes, 40 gigabytes, and 100 gigabytes. 1 gigabyte Ethernet switches accounted for the largest market share in 2022 as the switches offer a good balance between speed, cost, and compatibility with existing infrastructure. In addition, many devices, namely computers, servers, and network equipment, are equipped with 1 Gigabit Ethernet port, further driving the dominance of the 1 gbps segment. Moreover, 1 Gigabit Ethernet switches are extensively adopted in various network environments, including homes, offices, schools, and small to medium-sized businesses. Furthermore, 1 Gigabit Ethernet connection provides ample bandwidth to handle network activities, including internet browsing, file sharing, video streaming, and VoIP services. Consequently, the aforementioned factors including sufficient bandwidth, cost-effectiveness, and compatibility with existing infrastructure are contributing significantly in bolstering the growth of 1 gigabyte segment.
100 gigabyte Ethernet switches are anticipated to witness the fastest CAGR during the forecast period. The growth of the market is credited to the increasing adoption of 100 gbps Ethernet switches in industrial and commercial applications namely cloud services, edge computing, and big data. In addition, data centers serve as the backbone of modern digital infrastructure, requiring high-speed and scalable networking solutions. 100 Gigabyte Ethernet switches offer the necessary throughput to connect servers, storage systems, and other networking equipment within the data center, enabling efficient data transfer and supporting the growing demands of data-intensive applications. For instance, in January 2021, Infinite Electronics International, Inc. brand L-com launched WM8-4G-4GP+ and DT10-2G-8GP+, two industrial 100/1000 gigabyte switches with eight ports and ten ports respectively. The advanced switches are introduced to fulfill various commercial and industrial applications by providing required servers and storage systems, hence contributing notably in spurring the market growth.
By End-User :
The end-user segment is classified into consumer electronics, healthcare, IT & telecom, transportation, automotive, and others. IT & telecom accounted for the largest market share of 35.4% in 2022 as Ethernet switches are the primary components to build passive optical LANs in IT and telecom environments. The switches provide connectivity and facilitate data transmission among computers, servers, printers, and other network devices within a local area network. Additionally, Ethernet switches also allow efficient and reliable communication within the LAN, enabling users to share resources and access network services. Consequently, the expanding IT industry is raising the demand for Ethernet switches for the development of LANs to provide seamless data transmission. For instance, in February 2023, according to India Brand Equity Foundation (IBEF), the IT sector accounted to 7.4% of India's GDP in FY22 and is expected to reach 10% by 2025. The expansion in the IT sector, thus contributes remarkably in driving the growth of the Ethernet switch market.
Consumer electronics segment is predicted to register the fastest CAGR in the Ethernet switch market during the forecast period. Ethernet switches play a vital role in creating home networks, enabling multiple devices to connect to the internet and communicate with each other. In addition, the switches facilitate wired connections between devices including computers, gaming consoles, smart TVs, streaming devices, and network-attached storage (NAS) devices. Ethernet switches provide the necessary ports to connect the devices and establish a reliable and high-speed wired network within the home, thus contributing significantly in driving the growth of the consumer electronics segment.
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Download Sample ReportBy Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Regional Growth Insights
Download Sample ReportNorth America accounted for the largest revenue share of USD 5.950.99 million in 2022 and is predicted to reach USD 8,509.38 million in 2030 in the Ethernet switch market. In addition, in the region, the U.S. accounted for the maximum revenue share of 65.40% in the year 2022. The growth is attributed to a large number of data centers and cloud service providers that drive the demand for Ethernet switches to power critical infrastructures. Additionally, the presence of numerous large enterprises and multinational corporations with extensive networking needs requires high-performance and scalable networking solutions, including Ethernet switches, to support the operations. Consequently, the large number of data centers and the presence of key players are the major factors responsible for driving the growth of the Ethernet switch market in the region. For instance, in July 2020, Marvell Technology, Inc. launched an Ethernet switch to enable efficient and secure data connectivity throughout enterprise networks. The Ethernet switch provides higher bandwidth and zero downtime for video and content sharing hence, contributing remarkably in propelling the market growth in the region.
Details Countries Growth Insights
Download Sample ReportAsia Pacific accounted is expected to register the fastest CAGR of 4.9% in the Ethernet switch market. The growth is credited to the rapid industrialization and infrastructure development in many Asia Pacific countries including India, China, and Japan. The infrastructure development includes smart city initiatives, transportation systems, manufacturing facilities, and energy networks. Ethernet switches play a vital role in providing connectivity and networking capabilities in these infrastructure projects, supporting efficient communication and data exchange. In addition, governments in the Asia Pacific are actively promoting digital transformation initiatives and investing in infrastructure development to foster technological innovation. Ethernet switches are essential for building the necessary networking infrastructure to support government initiatives, hence contributing to market growth.
Ethernet Switch Market Competitive Landscape:
The landscape of the Ethernet switch market is highly competitive and has been examined in the report, along with complete profiles of the key players operating in the industry. In addition, the surge in innovations, acquisitions, mergers, and partnerships has further accelerated the growth of the Ethernet switch market. Major players in the market include-
- Advantech Co., Ltd.
- NXP Semiconductors N.V.
- Alcatel-Lucent
- Allied Telesis
- Cisco Systems Inc.
- Dell Technologies
- D-Link Corporation
- Eaton Corporation
- Hewlett-Pack Corporation
- Honeywell International
- Huawei Technologies
- Siemens SE
- Brocade Communications Systems, Inc.
Recent Developments :
- In February 2020, Advantech Co., Ltd. launched 10G industrial Ethernet switches with non-blocking mass data aggregation to deliver high bandwidth needed to support machine vision and video surveillance applications.
- In January 2020, NXP Semiconductors N.V. introduced NXP SJA1110, a multi-gigabit Ethernet switch to enable automakers to provide the high-speed networks required for evolving connected vehicles.
Frequently Asked Question
What is an Ethernet switch?+
An Ethernet switch is a networking device that facilitates the interconnection of multiple devices within a local area network (LAN). The switch operates at the data link layer of the OSI model, enabling the efficient transfer of data between connected devices.
What specific segmentation details are covered in the Ethernet switch market report, and how is the dominating segment impacting the market growth?+
1 gigabyte Ethernet switches dominates the market as the switches offer a good balance between speed, cost, and compatibility with existing infrastructure. In addition, many devices namely computers, servers, and network equipment, are equipped with 1 Gigabit Ethernet port, further driving the dominance of the 1 gbps segment.
What specific segmentation details are covered in the Ethernet switch market report, and how is the fastest segment anticipated to impact the market growth?+
Consumer electronics will register the fastest CAGR as Ethernet switches play a vital role in creating home networks, enabling multiple devices to connect to the internet and communicate with each other.
Which region is anticipated to witness the highest CAGR during the forecast period, 2023-2030?+
Asia Pacific is anticipated to witness the fastest CAGR during the forecast period due to the rapid industrialization, infrastructure development and increasing investment by the government.
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