USD 14.39 Billion
Report ID:
SQMIG45A2432 |
Region:
Global |
Published Date: January, 2025
Pages:
183
|Tables:
171
|Figures:
74
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
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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.
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.
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.
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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.
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Government Regulations Regarding Localization of Data Centers
Rising Demand for Simplified Data Center Management and Automation System
Cybersecurity Threats
Cost Challenges and Evolving Technologies
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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).
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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 |
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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 |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
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.
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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.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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