Data Center Switch Market - By Type (Core, Distribution, Access), By Technology (Software-Defined Networking, Traditional Switching), End User, By Organization Size, By Port Speed & Forecast, 2023 - 2032

Data Center Switch Market - By Type (Core, Distribution, Access), By Technology (Software-Defined Networking, Traditional Switching), End User, By Organization Size, By Port Speed & Forecast, 2023 - 2032

Data Center Switch Market size is projected to expand at over 13% CAGR from 2023 to 2032 driven by the proliferation of data traffic worldwide.

The escalating volumes of digital data, fueled by the surge in online activities, IoT devices, and data-intensive applications is amplifying the demand for high-performance data center switches. Several industry participants are introducing innovative solutions capable of handling massive workloads with low latency, further accelerating the market growth. For instance, in December 2022, Asterfusion launched its first set of 200G and 400G open data center networking switches based on SONiC NOS with essential characteristics of low latency to ease the bandwidth demands of hyperscale cloud firms, huge organizations, and other cloud data center services.

The data center switch industry is segmented into type, technology, port speed, organization size, end-user, and region.

Based on technology, the market size from the traditional switching technology segment is expected to depict substantial growth through 2032. With newer technologies like SDN gaining traction, the need for traditional switching is rising across many data center infrastructures. Switches provide reliable and predictable networking performance in specific applications and environments. Furthermore, organizations are increasingly integrating traditional switching technology to maintain stability and compatibility with the existing systems.

In terms of end user, the data center switch market from the telecommunications segment is projected to generate considerable revenue by the end of 2032. Telecommunications providers are increasingly adopting high-performance switches to enhance network efficiency, scalability, and manageability within the data centers. The growing implementation of 5G technology and the proliferation of data-intensive applications across the telecom sector are also propelling the need for advanced data center switches to support the burgeoning data traffic.

Asia Pacific data center switch market is set to exhibit over 15.5% CAGR from 2023 to 2032 owing to the rise in edge computing in the region. Countries like China, India, and Japan are witnessing significant increase in data center investments, propelled by the growing adoption of emerging technologies. For instance, in March 2022, China announced plans to create new data center complexes in the western region to increase computing capacity and meet the ambitious carbon-cutting targets in Beijing. The surging need for data center switches capable of handling edge workloads efficiently will also augment the regional industry growth.