Network Switches Market Report 2025

The network switches market size has grown strongly in recent years. It will grow from $35.79 billion in 2024 to $38.1 billion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to increased internet penetration, data center modernization, growth of cloud computing, demand for high-speed connectivity, and globalization of businesses.

The network switches market size is expected to see strong growth in the next few years. It will grow to $51.79 billion in 2029 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to edge computing adoption, increasing cybersecurity concerns, focus on network automation, smart city initiatives, energy efficiency and green networking. Major trends in the forecast period include intent-based networking, edge computing and IoT integration, multi-gigabit ethernet for wireless access points, cloud-managed switches, open networking, and white-box switches.

The adoption of cloud computing is anticipated to drive the growth of the network switch market in the future. Cloud computing refers to the provision of computer services over the internet (commonly known as the cloud), including servers, storage, databases, networking, software, analytics, and intelligence. The transition towards cloud-based infrastructure is increasing the demand for network switches that offer higher bandwidth and improved management capabilities, as they are essential for connecting cloud servers, storage systems, and end-users. For instance, in December 2023, Eurostat, the statistical office of the European Union based in Luxembourg, reported that 45.2% of European Union (EU) enterprises purchased cloud computing services in 2023, reflecting a 4.2 percentage point increase compared to 2021. Thus, the adoption of cloud computing is driving the growth of the network switch market.

The growing adoption of IoT devices is expected to propel the growth of the network switch market moving forward. IoT, or the Internet of Things, refers to a network of interconnected physical devices that communicate and exchange data over the internet. Network switches are crucial for providing scalable, secure, and high-performance connectivity for the increasing number of IoT devices. They facilitate efficient data management, support edge computing, and enhance the reliability and security of IoT deployments. For example, in December 2022, the National Highway Traffic Safety Administration, a US-based government agency, projected that there would be 3.5 million self-driving vehicles on U.S. roads by 2025 and 4.5 million by 2030. Therefore, the rising adoption of IoT devices is driving the growth of the network switch market.

A prominent trend gaining traction in the network switch market is the focus on product innovations, with major companies leveraging advanced technologies to maintain their market standing. Notably, Rackus Networks, a US-based software development company, exemplified this trend by introducing the ICX 8200 series in January 2023. This innovative line of entry-level, scalable edge switches features 25 Gbps uplink ports and represents the first enterprise switch in its category to provide fiber-to-the-room connectivity. The ICX 8200 series is strategically designed to support the evolving needs of wireless-first and Internet of Things (IoT) campus networks, emphasizing optimization for wireless service delivery.

Leading companies in the network switches market are investing in the development of cutting-edge technologies, such as ethernet platforms, to gain a competitive advantage. In May 2023, Nvidia Corporation, a US-based software company, launched the NVIDIA Spectrum-X platform. This platform enhances the performance and efficiency of ethernet-based AI clouds by integrating the advanced NVIDIA Spectrum-4 Ethernet switch with the BlueField-3 Data Processing Unit (DPU). The result is a significant 1.7x improvement in overall AI performance and power efficiency. The Spectrum-X platform, supported by Nvidia's acceleration software and development kits, enables the creation of software-defined, cloud-native AI applications, streamlining run-times for extensive generative AI models. Its versatility, interoperability with Ethernet-based stacks, and the unprecedented 51Tb/sec capacity of the Spectrum-4 switch make it a powerful solution. Advanced RoCE extensions and automated fabric validation ensure multi-tenancy with performance isolation, delivering superior AI performance visibility.

In February 2022, Juniper Networks Inc., a US-based networking solutions company, acquired WiteSand Systems Inc. The acquisition enhanced Juniper's capabilities in delivering next-generation Network Access Control (NAC) solutions by integrating WiteSand's cloud-native zero trust technology. This strategic move strengthened Juniper's AI-driven enterprise portfolio and underscored its commitment to disrupting the NAC space with cloud agility and AI-driven intelligence. WiteSand Systems Inc., known for its expertise in cloud-based network operations and zero trust network access control, further fortified Juniper Networks' position in providing innovative solutions for wired and wireless enterprise networking. The acquisition marked a significant step towards advancing Juniper's vision for an intelligent and secure networking landscape.

Major companies operating in the network switches market include Dell Technologies Inc., Huawei Technologies Co., Cisco Systems Inc., Quanta Computer Incorporated, Broadcom Inc., Hewlett Packard Enterprise Development LP, Fujitsu Limited, NEC Corporation, ALE International SAS, ZTE Corporation, Microchip Technology Inc., Juniper Networks Inc., Super Micro Computer Inc., Fortinet Inc., Arista Networks Inc., Ciena Corporation, Avaya LLC, Advantech Co. Ltd., Ubiquiti Inc., Extreme Networks, Adtran Inc., Netgear Inc., D-Link Corporation, Mellanox Technologies Ltd., Allied Telesis Inc., Ruckus Networks, PLANET Technology Corporation, Alaxala Networks Corp.

North America was the largest region in the network switches market in 2024. The regions covered in the network switches market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the network switches market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A network switch is a crucial hardware component facilitating efficient data relay between networks and destination endpoints through multiport bridge technology and packet switching. It serves as a vital link connecting users, applications, and equipment, enabling seamless communication and resource sharing across the network.

In the realm of network switches, several key types exist, including fixed configuration switches, managed switches, unmanaged switches, POE switches, and modular switches. Fixed-configuration switches have a predetermined number of ports, often non-expandable. Examples include switches with 8 gigabit and 16 Ethernet ports, making them ideal for small networks with budget constraints and corporate applications. These switches cater to various switching ports, such as 100 MbE and 1 GbE, 2.5 GbE and 5 GbE, 10 GbE, 25 GbE and 50 GbE, 100 GbE, and 200 GbE and 400 GbE, catering to the diverse needs of telecommunication providers, servers and storage providers, as well as enterprise and industrial applications.

The network switches market research report is one of a series of new reports that provides network switches market statistics, including the network switches industry's global market size, regional shares, competitors with a network switches market share, detailed network switches market segments, market trends, and opportunities, and any further data you may need to thrive in the network switches industry. This network switches market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The network switches market consists of sales of layer 3 switches and stackable switches. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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