According to The Global Data Center Switch Market report, the global data center switch market was estimated at $12.86 billion in 2018. It is estimated that the data center switch market will reach $28.70 billion by 2026, registering at CAGR of 10.1% during 2019–2026.
Cloud and smart computing devices are the key factors
The growth in cloud computing, growth in edge computing, government regulations regarding localization of data centers, high data center operational cost, and increase in smart computing devices are the major estimated factors that affect the growth of the global data center switch market.
Particularly, the ethernet segment accounted for nearly three-fourths of the total market share in 2018 and is expected to keep its leadership position until 2026. High usage of Ethernet switch L2 and L3 are the major growth factor for the ethernet data center switch market. However, offering high-performance specifications for data transmission between high speed, low latency, and highly scalable CPUs, the Infiniband segment is estimated to grow at the fastest CAGR of 19.1% during the study period.
There will be an increase in the demand for data center switches, particularly in the developing regions, like China, India, and others. Geographically, North America contributed to nearly two-fifths of the total market revenue.
In terms of port speed, the 10G and below segment generated the largest share in 2018, accounting for more than two-thirds of the total market. However, the above 40G up to 100G segment is predicted to showcase the fastest CAGR of 40.3% during 2019–2026.