Data Center Switch Market Size, Share, and Growth Analysis

Data Center Switch Market By Switchgear (Low-voltage Power Control System, Medium-voltage Power Control System), By Transfer Switch (Static Transfer Switches, Service Entrance Transfer Switches), By Port Speed (10g and Below, Above 10g up to 25g), By Region -Industry Forecast 2025-2032


Report ID: SQMIG45A2432 | Region: Global | Published Date: January, 2025
Pages: 183 |Tables: 171 |Figures: 74

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Data Center Switch Market Insights

Global Data Center Switch Market size was valued at USD 14.39 Billion in 2023 and is poised to grow from USD 15.22 Billion in 2024 to USD 25.2 Billion by 2032, growing at a CAGR of 5.80% in the forecast period (2025-2032).

The global data center switch industry is expected to witness substantial growth soon. 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.

Growing adoption artificial intelligence (AI) in data center is expected to offer growth opportunities in the global data center switch market during the forecast period. AI can be used in mechanical and electrical equipment of data centers including data center switches. It requires integration of traditional physics-based modeling approaches with state-of-the-art machine learning (ML) techniques that use data from the IoT sensors. Several companies are launching AI-driven data center switches to enhance network operations. This in turn is creating many lucrative opportunities in the market.

Furthermore, advent of 5G is anticipated to create lucrative environment for growth opportunities in the global data center switch market during the forecast period. With the emergence of 5G, novel applications such as industrial IoT process control, high-resolution cloud gaming, and onsite augmented reality guidance for workers using 5G super high speed, and machine-machine communication. The 5G rollout is likely to impact several industries including virtualized networking and data center infrastructure due to such applications. This is in turn is expected to create demand for data center switch, which is likely to create opportunities in the global data center switch market.

Market snapshot - (2025-2032)

Global Market Size

USD 14.39 Billion

Largest Segment

Low Voltage Power Control System

Fastest Growth

Medium Voltage Power Control System

Growth Rate

5.80% CAGR

Global Data Center Switch Market ($ Bn)
Country Share for North America Region (%)

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Data Center Switch Market Segments Analysis

The global data center switch market is segmented into transfer switch, switchgear, port speed, technology, switch type, industry and region. Based on transfer switch, the market is segmented into static transfer switches, automatic transfer switches, bypass isolation transfer switches and service entrance transfer switches. Based on switchgear, the market is segmented into low voltage power control system and medium voltage power control system. Based on port speed, the market is segmented into 10g and below, above 10g up to 25g, above 25g up to 40g, above 40g up to 100g and above 100g. Based on technology, the market is segmented into ethernet, infiniband and others. Based on switch type, the market is segmented into core, ToR switch and others. Based on industry, the market is segmented into IT & telecom, government & defense, BFSI, retail, manufacturing, media & entertainment and others. Based on region, the market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Analysis by Switchgear

The low-voltage power control system is the dominating segment held the largest market revenue share in 2024. The demand for the low-voltage power control system segment is increasing due to the growing need for energy efficiency and reliability in data centers. As data centers expand to handle larger volumes of data and more complex computing tasks, they require more sophisticated power control systems to manage and distribute electricity efficiently. Low-voltage power control systems ensure data centers operate with minimal energy loss and maximum uptime. Additionally, the trend towards green data centers, which focus on reducing environmental impact through energy-efficient solutions, further drives the adoption of low-voltage systems.

The medium-voltage power control system segment is projected to grow at the fastest CAGR during the forecast period. The increasing demand for medium voltage power control systems can be attributed to modern data centers rising complexity and scale. As data centers expand to accommodate growing data processing and storage needs, they require more robust and efficient power distribution systems to ensure operational reliability. Medium voltage systems offer higher power control and distribution efficiency, which is essential for managing large-scale data center operations. Additionally, these systems support the integration of renewable energy sources and provide better fault tolerance, reducing downtime risks and making them a preferred choice in data center infrastructure.

Analysis by Transfer Switch

The static transfer switches are the dominating segment and held the largest market revenue share of 38.3% in 2024. Static transfer switches offer rapid and seamless transfer of electrical loads between power sources without interruption, which is critical for maintaining data center reliability. As data centers expand and handle more critical applications, minimizing downtime becomes more pressing, and static transfer switches provide an efficient solution. Additionally, the growing adoption of cloud computing, big data analytics, and edge computing further fuels the demand for static transfer switches, as these technologies require uninterrupted power supply to maintain operational continuity.

The service entrance transfer switches segment is projected to grow at the fastest CAGR during the forecast period. The demand for service entrance transfer switches is rising due to the need for reliable power continuity and enhanced safety measures. As data centers expand to accommodate the growing volume of digital data and services, minimizing downtime during power disruptions has become paramount. Service entrance transfer switches play a crucial role in ensuring a seamless transition between power sources, from the grid to backup generators, while protecting against electrical faults. The growing emphasis on energy efficiency and compliance with regulatory standards further drives the adoption of these switches in data centers, as they help maintain operational integrity and reduce the risk of costly outages.

Global Data Center Switch Market By Switchgear (%)

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Data Center Switch Market Regional Insights

North America among regions is expected to dominate the global data center switch market during the forecast period. The demand for colocation data center is increasing from social media companies and cloud providers in the region. Along with this, the adoption of novel technologies including 5G infrastructure, vehicle technology, blockchain technology, and virtual reality communities is creating demand for data center. Moreover, the adoption of a hyper-converged infrastructure platform is also increasing in the region. These factors are expected to drive growth of the market in North America region. The rapid growth of data centers drives the increasing demand due to the rise in cloud computing, the proliferation of internet services, and the expansion of IoT devices.

Furthermore, Asia-Pacific is anticipated to witness strong growth in the data center switch market during the forecast period. Countries in this region are focusing on development of next-generation networking technologies for building advanced infrastructure in 5G and Datacenters. For instance, government of China launched a three-year plan for the data center industry, which demands to increase efficiency of new facilities, having a PUE 1.3 and use 60% by the end of 2023. Moreover, countries across the region are deploying ARM based services. These factors are in turn creating demand for data center switches in the region, which is likely to support the market growth soon.

Global Data Center Switch Market By Geography
  • Largest
  • Fastest

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Data Center Switch Market Dynamics

Drivers

Government Regulations Regarding Localization of Data Centers

  • Data localization refers to restricting data flow from one country to another. Nowadays, governments of various nations enact localization laws requiring companies to collect sensitive consumer data to store and process it in data centers within the country's borders. Such data localization laws support the development of local data centers within the countries and result in increased investments in data centers, which in turn fuels the demand for data center switches. For instance, the General Data Protection Regulation (GDPR) is a comprehensive data protection law implemented by the European Union. This law regulates the processing of personal data within the EU and is an important component of the EU's privacy and human rights law.

Rising Demand for Simplified Data Center Management and Automation System

  • Organizations are looking for effective solutions to manage and streamline their operations as data centres continue to increase in size and complexity. Servers, networking hardware, storage hardware, and other infrastructure components make up data centres. Manually managing and maintaining these resources can be time-consuming and error prone. Organizations may centrally control and orchestrate their infrastructure and save time and effort by deploying simpler data centre management and automation technologies. This increases operational effectiveness and frees up IT personnel to concentrate on more strategic projects.

Restraints

Cybersecurity Threats

  • As data centers become critical hubs for storing and processing sensitive information, they are increasingly targeted by cyberattacks. The need for robust security measures to protect data center switches adds to the cost and complexity, discouraging adoption for some businesses. The increasing frequency and complexity of these attacks have compelled businesses to invest heavily in advanced cybersecurity measures.

Cost Challenges and Evolving Technologies

  • Network security, encryption, network segmentation, and access controls are essential for maintaining operational effectiveness and consistent configurations. The cost of data center switches can be high due to the inclusion of processors, memory, cabling, and connectors. However, the benefits of high-performance connectivity, network performance, and resource usage optimization far outweigh the costs. The market for data center switches is dynamic, with constant field upgrades and new technologies such as 5G and edge computing influencing the landscape.

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Data Center Switch Market Competitive Landscape

The competitive landscape in the data center switch market is very dynamic and there are presence of established players and emerging companies like Cisco Systems, Juniper Networks, Arista Networks, Huawei Technologies etc. Major players market with their wide product portfolios, strong global presence and constant innovation. These companies dominate with advanced features focus on developing high performance switches, such as support for 5G networks, edge computing, and software-defined networking (SDN).

Top Players in Data Center Switch Market

  • Cisco Systems Inc.
  • Arista Networks Inc.
  • Huawei Technologies Co. Ltd.
  • Juniper Networks Inc.
  • Dell Technologies Inc.
  • Hewlett Packard Enterprise (HPE)
  • Extreme Networks Inc.
  • Mellanox Technologies
  • Brocade Communications Systems Inc. (Broadcom Inc.)
  • Fortinet Inc.
  • Cumulus Networks
  • Big Switch Networks Inc.
  • Edgecore Networks Corporation
  • Apstra Inc.
  • Pluribus Networks Inc.

Recent Developments

  • June 2024, Switch Datacenters launched a new data center in Amsterdam, expanding its presence in the European market. This development is expected to contribute to the growth of the global data center switch market by increasing the demand for high-performance data center switches to support the new facility's operations.
  • September 2023, Hyperscalers have chosen Arista over Cisco for data center switches. Arista focuses on cloud service providers, representing over half of the vendor’s revenue. In recent years, the networking company has also attempted to “diversify its business” by dipping its feet into the market.
  • May 2022, Cisco Systems Inc. entered into partnership with PLDT for deploying a 5G standalone service platform in Manila. This service will be deployed in the existing 5G TechnoLab of PLDT in Makati City.

Data Center Switch Key Market Trends

Data Center Switch Market SkyQuest Analysis

SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to SkyQuest analysis, the global data center switch industry is experiencing growth driven by increasing global data center investments, fuelled by the adoption of cloud computing, data localization, and emerging technologies such as 5G and IoT. The expanding need for data management solutions and the shift from traditional servers to virtual network-based servers are contributing to the market's expansion. Additionally, the rise of edge computing and the growing demand for core switches due to increased traffic management requirements are further influencing the market size. The COVID-19 outbreak messed up the supply chain for building the data center. Lockdown-related delays in project completion and a decline in revenue from particularly hard-hit industries, like hospitality and entertainment, impacted construction activity and data center entry locations. Globally, with the growing demand for data, the need for data centers is expanding, as major cloud providers are focusing on commissioning various data center projects, with major investments. Such as, Amazon, a worldwide leader in terms of cloud management, is increasingly spending in building data centers across the globe, particularly in developing markets, like Asia-Pacific, Amazon Company plans to spend US$ 1.5 Bn. for building two data centers in India, mostly for its AWS wing.

Report Metric Details
Market size value in 2023 USD 14.39 Billion
Market size value in 2032 USD 25.2 Billion
Growth Rate 5.80%
Base year 2024
Forecast period (2025-2032)
Forecast Unit (Value) USD Billion
Segments covered
  • Transfer Switch
    • Static Transfer Switches, Automatic Transfer Switches, Bypass Isolation Transfer Switches and Service Entrance Transfer Switches
  • Switchgear
    • Low Voltage Power Control System and Medium Voltage Power Control System
  • Port Speed
    • 10g And Below, Above 10g Up To 25g, Above 25g Up To 40g, Above 40g Up To 100g and Above 100g
  • Industry
    • IT & Telecom, Government & Defense, BFSI, Retail, Manufacturing, Media & Entertainment and Others
  • Technology
    • Ethernet, Infiniband and Others
  • Switch Type
    • Core, Tor Switch and Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Cisco Systems Inc.
  • Arista Networks Inc.
  • Huawei Technologies Co. Ltd.
  • Juniper Networks Inc.
  • Dell Technologies Inc.
  • Hewlett Packard Enterprise (HPE)
  • Extreme Networks Inc.
  • Mellanox Technologies
  • Brocade Communications Systems Inc. (Broadcom Inc.)
  • Fortinet Inc.
  • Cumulus Networks
  • Big Switch Networks Inc.
  • Edgecore Networks Corporation
  • Apstra Inc.
  • Pluribus Networks Inc.
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Data Center Switch Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Data Center Switch Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Data Center Switch Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Switch Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Switch Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Data Center Switch Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Data Center Switch Market size was valued at USD 14.39 Billion in 2023 and is poised to grow from USD 15.22 Billion in 2024 to USD 25.2 Billion by 2032, growing at a CAGR of 5.80% in the forecast period (2025-2032).

The competitive landscape in the data center switch market is very dynamic and there are presence of established players and emerging companies like Cisco Systems, Juniper Networks, Arista Networks, Huawei Technologies etc. Major players market with their wide product portfolios, strong global presence and constant innovation. These companies dominate with advanced features focus on developing high performance switches, such as support for 5G networks, edge computing, and software-defined networking (SDN). 'Cisco Systems Inc.', 'Arista Networks Inc.', 'Huawei Technologies Co. Ltd.', 'Juniper Networks Inc.', 'Dell Technologies Inc.', 'Hewlett Packard Enterprise (HPE)', 'Extreme Networks Inc.', 'Mellanox Technologies', 'Brocade Communications Systems Inc. (Broadcom Inc.)', 'Fortinet Inc.', 'Cumulus Networks', 'Big Switch Networks Inc.', 'Edgecore Networks Corporation', 'Apstra Inc.', 'Pluribus Networks Inc. '

Data localization refers to restricting data flow from one country to another. Nowadays, governments of various nations enact localization laws requiring companies to collect sensitive consumer data to store and process it in data centers within the country's borders. Such data localization laws support the development of local data centers within the countries and result in increased investments in data centers, which in turn fuels the demand for data center switches. For instance, the General Data Protection Regulation (GDPR) is a comprehensive data protection law implemented by the European Union. This law regulates the processing of personal data within the EU and is an important component of the EU's privacy and human rights law.

Increasing adoption of AI and the advent of 5G: Increasing adoption of artificial intelligence (AI) in data centers is anticipated to create growth opportunities for data center switches during the forecast period. AI applies to mechanical and electrical data center equipment, including switches. This enables actionable insights and automation and saves operators money. It necessitates integrating conventional physics-based modeling techniques with cutting-edge machine learning (ML) techniques that utilize data from IoT sensor devices.

North America among regions is expected to dominate the global data center switch market during the forecast period. The demand for colocation data center is increasing from social media companies and cloud providers in the region. Along with this, the adoption of novel technologies including 5G infrastructure, vehicle technology, blockchain technology, and virtual reality communities is creating demand for data center. Moreover, the adoption of a hyper-converged infrastructure platform is also increasing in the region. These factors are expected to drive growth of the market in North America region. The rapid growth of data centers drives the increasing demand due to the rise in cloud computing, the proliferation of internet services, and the expansion of IoT devices.

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Data Center Switch Market

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