Data Center Switch Market, Share, Growth | Data Center Switch Industry Trends, Analysis and Market Forecast - 2023

A data center switch is a multiport network bridge designed to build a network connection in a data center that allows receiving, processing, and routing of data from one destination to another. Large enterprises and cloud service providers primarily use datacenter switches. The increasing workload in the data center today demands highly scalable, reliable, and high performing switching solutions.

The overall data center switch market is expected to reach USD 17.69 billion by 2023, at a CAGR of 4.92% during the forecast period. The data center switch market is expected to witness lucrative growth in the next five years. The high demand for switches in data centers is owing to the connectivity requirements between large numbers of servers over different tiers. The major factors driving the market growth include the need for simplified data center management and automation, high demand for cloud services, and a surge in internet multimedia content and web applications. The rising trend of bare-metal switches and growing bandwidth requirements in data centers are the key growth opportunities for the players in the data center switch market.

The highest growth of the market for access switches is due to extensive network connectivity offered by these switches to distribution layers as well as different end-users. 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. Access switches need more ports to move the data from one network to another so that the load can be balanced. Thus, these switches ensure connectivity between servers and networks. Technological improvements in the market, such as the increase in the bandwidth and performance and the expansion of servers and data centers across different industries, will increase demand for access switches.

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The growth of the Ethernet data center switch market is due to the high performance and scalability offered by Ethernet switches. The expansion of data centers and growth in virtualization technology propel the demand for switches with higher bandwidth. Ethernet is a traditional midrange technology that also offers a convenient solution to meet the increasing data center connectivity requirement. The highest growth of InfiniBand switches is significant because of the high-bandwidth solution for each port under a competitive price that InfiniBand switches offer.

The increasing enterprise applications require high-performance connectivity, constant uptime, high throughput, and high reliability to manage vast amounts of data. To address these requirements, data center switches are being adopted in enterprises. Powered by dynamic architectural solutions, these data centers are being evolved. Enterprises across different industries have been increasingly adopting digitization to improve their business processes.

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