DATA CENTER SWITCH MARKET ANALYSIS

Data Center Switch MarketSize and Trends

The global data center switch market size was valued at US$ 15,260 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.42% from 2023 to 2030. The global data center switch market is expected to witness substantial growth in the near future. The growing demand for data and cloud services is driving the data center switch market. Furthermore, the increased number of data centers and the emergence of edge computing are also anticipated to fuel the growth of the data center switch market. Several technological advancements are also driving the growth of this industry.   

Global Data Center Switch Market Trends:

Growing adoption of fiber optics is a recent trend

Fiber optics will be playing an important role to enable speed migration of data center switches. For instance, according to the Dell’Oro Group, optics for 400Gbps speeds and higher will compose nearly 60-70% of network expenditure, due to the rise in their cost. This in turn is leading to market vendors switching to fiber optics to cover a larger share of network expenditure. Thus, growing adoption of fiber optics is a major trend in the global data center switch market, which is expected to fuel the market pace in the coming future.

Market players focusing on offering higher bandwidth switches is growing trend

Market players are increasing involved in introducing higher bandwidth switches, which is likely to boost the global data switch market. For instance, Microsoft recently started sales of the 200/400 Gbps, and Google will also be delivering 800 Gbps soon. The advent of 800Gbps optics that offers an incredibly cheaper cost per bit compared to two standalone 400Gbps optics, is likely to increase adoption of 800Gbps implementation. Moreover, as 800Gbps offers a reduced cost at the system level, the capacity of switch chip will increase significantly from 12.8Tbps to 25.6Tbps, when the 100 G SerDes technology becomes available. Thus, this trend is likely to continue in the global data center switch market over the forecast period.