Data Center Switch Market Updates

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.