Ethernet Switch Market Size- By Speed, Type, Configuration Analysis, Share, Growth Forecast, 2025 - 2034

Ethernet Switch Market Size

The global ethernet switch market was valued at USD 18.2 billion in 2024 and is estimated to grow at a CAGR of 5.1% to reach USD 29.6 billion by 2034. The growth of the market is driven by the key factors including the surge in demand for Internet of Things (IoT) devices, as well as rapid expansion of data centers.
 

The significance of ethernet switches in an Internet of Things (IoT) devices is a major catalyst that is propelling the growth of the ethernet switch market. There are a various IoT devices linked with networks, accordingly, there is need for reliable way to handle all that traffic. Networks face sudden overloads and performance limits in case they are not efficiently managed. Consequentially, IoT these devices’ communication is enabled using ethernet switches by providing each connection with a set amount of bandwidth. The network can manageably introduce additional devices over time while enabling simple scalability through IoT integrations.
 

According to Statista, there are nearly 62.12 billion Internet of Things (IoT) connected devices currently in use, which is anticipated to increase to 75.44 billion devices by the end of 2025.
 

Furthermore, ethernet switches offer improved security against cybersecurity attacks by using virtual LANs (VLANs) or other segmentation techniques to isolate distinct network segments. This maintains critical data safe from unwanted access while granting authorized people easy access. Ethernet switches offer stable connectivity with improved security features and guarantee effective network traffic management, which are a crucial for IoT deployment. Thereby, the surge in demand for Internet of Things (IoT) devices is driving the growth of the market across the globe.
 

In addition, the rollout of 5G technology is anticipated to soar the demand for ethernet switch market due to their importance in traffic control for backhaul and edge networks to facilitate high speed connectivity. 5G networks are developed to have lower latency and higher data transfer rates than previous generations. The network infrastructure includes ethernet switches designed to support the new levels of performance. Dense deployment of base stations and amplifies are crucial for extensive coverage in 5G networks to sustain the rising number of connected devices. Ethernet switches enable the backhaul connections that each base station and small cell needs to make to the core network.
 

For instance, in September 2023, MosoLabs introduced the Moso Concord smart Ethernet switch to streamline private network deployments and the Moso Canopy 5G outdoor radio to expand its RAN offering. The Moso Canopy line of radios includes the latest 5G outdoor radio, that was developed to optimize private networks' capacity, coverage, dependability, and security. The Canopy 5G Outdoor is suitable for sectors that need to minimize dead spots, like universities or other campus environments, have a hybrid network, like ports and utilities, or need extended outdoor coverage, like transportation and agricultural. Such factors will propel the growth of ethernet switch market during the forecast period.
 

Key companies operating in the ethernet switch industry should focus their research initiatives towards developing ethernet switches with machine learning-based traffic optimization, predictive failure detection, and zero-touch provisioning. This will reduce operational costs, enhance network efficiency, and meet growing demands for autonomous infrastructure in cloud, IoT, and edge computing environments.
 

Ethernet Switch Market Trends

• The combination of residential and corporate networks and the growing use of PoE for a range of applications is a major trend that is representing a growth trajectory of the global market. Multi-gigabit ethernet switches enable all connected device to operate at the speed of the port to which it is connected. The maximum speed over Cat5e cabling is 5Gb, and 10Gb with Cat6 or above with backward compatibility with 100Mbps and 1Gb. A company can easily mix and match different speeds on the same network without affecting either device's functionality to optimize the performance of each connected device. Thereby, the rising adoption multi-gigabit switching is a key trend for the market expansion over the forecast period.
   
• Additionally, the rise in integration of artificial intelligence (AI) in networking is another key trend that is fostering the market growth. Ethernet switches are the basis of local area networks (LANs) for data handling. Artificial intelligence (AI) algorithms incorporated into the switches can identify threats, evaluate and react to traffic in real-time, and forecast when maintenance is necessary. Complex data-intensive networks are managed and optimized more effectively with these specialized switches. AI in Ethernet switches is becoming increasingly necessary as network management, including IoT and edge computing, becomes more complicated and demands for more automation, optimization, and security measures.
   
• Moreover, the adoption of cloud-based services is increasing and thereby bolstering the demand for ethernet switches as these applications enable efficient data exchange between devices on a local network and the cloud. Cloud services are available to consumers offering scalability and flexibility without requiring any local infrastructure. Remote servers over the internet provide computer resources, applications and even storage solutions. Accordingly, cloud services are beneficial for ethernet switches as they allow for online port management and monitoring without any physical interconnection between the switches. This enhances operational effectiveness and facilitates the administration through instant port configuration, monitoring, and troubleshooting. The increasing popularity of cloud-based services is another important factor that is leading to the growth of the market during the estimated period.
   

Key ethernet switch market players should partner with cloud service providers to develop cloud-managed Ethernet switches with enhanced remote monitoring, automated port configuration, and seamless SDN compatibility to optimize traffic flow and ensure scalability.
 

Ethernet Switch Market Analysis

Based on speed, the market is divided into 1G, 10 G, 25 G, 40 G, 100 G, and Others.
 

• The 1G is accounted for 32.5% of the global market in 2024. The increased Gigabit Ethernet switches are becoming the norm in order to meet the increasing need for speed and efficiency in contemporary networks. With these switches, data transfers are made more efficient with speeds boosted to a staggering 1 gigabit per second (Gbps), which is equal to 1 billion bits or simply, 1,000,000,000 bits in a single second. This surplus in boosts permits users to enjoy a more productive online session, expedited data transfer rates, and expedient streaming owing to decreased latency. Accordingly, the increasing reliance on cloud-based applications and services is primarily driving the segment growth.
   
• In 2034, the 10 G segment is expected to account for USD 7.7 billion owing to its significantly higher bandwidth capacity. A 10 GB switch can handle more data traffic over network in less time. Also, increased information transmission paths allows network to handle more concurrent connections without lag, making it appropriate for high-traffic environments. These switches increases speeds prevent bottlenecks and guarantee that data flows smoothly even during busy periods, which is accelerating the segment growth at a substantial rate.
   

Based on type the ethernet switch market is segmented into modular ethernet switches and fixed configuration ethernet switches.
 

• Modular ethernet switches segment accounted for USD 12.9 billion in 2024. A modular switch, also referred to as a chassis switch, is a type of network switch that provides greater customization and flexibility than a fixed switch. Other interchangeable modules are housed in the chassis, which is the main component. Additional features like security features or stacking modules to link several switches for even bigger networks are offered by these components. Critical networks and data centers frequently need minimal downtime. Features like hot-swappable modules are commonly supported by modular switches. This maximizes uptime and keeps your network running by allowing you to swap out a malfunctioning module without affecting network traffic. Thereby, the rapid expansion of data centers is accelerating the segment growth over the forecast period. 
   
• Fixed configuration ethernet switches accounted as the significantly growing segment that is likely to reach USD 7.3 billion in 2034. A fixed switch, commonly referred to as a fixed port switch, is a type of network switch that has a set number of ports and features. These ports and features are set and cannot be altered or added after production. Typically, these ports have conventional rates of 10/100 Mbps, 1Gb, and even 10Gb uplinks. Generally, fixed switches are cost-effective compared to modular switches. The fixed configuration, as opposed to modular switches, enables a more economical and compact design. Fixed configuration ethernet switches are gaining high traction in application such as small office networks, branch offices, and edge devices, which is exhibiting a positive influence on the segment growth globally.
   

Based on the configuration, the market is bifurcated into Unmanaged, Smart, Managed L2, Managed L3, and Divided.
 

• The Managed L2 segment is expected to account for 35.4% of the global ethernet switch market in 2024. Layer 2 configuration is connected to the device in parallel and simultaneously. Ethernet segments that are switched only remain connected for the duration of the packet. For the subsequent packet, new connections can be established between various parts. The L2 allows device allocates each device (e.g., a server) to its own 10-, 100-, 1000-, or 10-Gigabit collision domain, hence resolving congestion issues brought on by high-bandwidth devices and masses of users. Servers operating in a switched environment are able to utilize the entire bandwidth because every LAN port is connected to a distinct Ethernet collision domain. The rise in adoption of Industry 4.0 technologies such as IoT, artificial intelligence, and robotics is driving the demand for highly efficient and scalable ethernet switches, which is propelling the segment growth.
   
• The Managed L3 segment accounted for CAGR of 5.4% in 2034. Managed L3 switches offer sophisticated routing features, such as static and dynamic routing in order to facilitate effective traffic management and routing between VLANs and subnets. They are suitable for managing high network traffic volumes as Layer 3 switches provide hardware-based switching. The hardware configurations of layer 3 switches and the ability to integrate switching and routing capabilities allow for high throughput, high port density, and fast traffic speed.
   

In 2024, the U.S. ethernet switch market accounted for USD 3.1 billion. United States market is likely to be driven by the strong demand from industries including IoT, data centers, and cloud computing. According to Statista, in February 2025, Meta Platforms is planning to build a new data center campus for its artificial intelligence initiatives, which may cost more than USD 200 billion. The company is planning to constructing the campus in Louisiana, Wyoming, or Texas. Thus, this this trend is being driven by the growing requirement for scalable and remote accessible data storage solutions that are also cost-effective. The United States is the main contributor for the regional’s growth because of its sophisticated IT infrastructure and the presence of significant companies like Analog, Cisco, Honeywell International Inc., and others. Growth is further supported by government programs that encourage digital transformation.
 

The Germany ethernet switch market is expected to grow at a CAGR of 8.2% during the forecast period. Germany is leading with a particular emphasis on improving urban connectivity. The growing expenditures on 5G technology deployment, network infrastructure, as well as the rising need for high-capacity switches is fuelling the growth of the market. The emergence of smart cities and the digital transformation of numerous sectors is further supporting the market expansion across the region.
 

China ethernet switch market is expected to grow at a CAGR of 10% during the forecast period. Various sectors such as manufacturing, finance and healthcare are increasing the need for Ethernet switches in China due to the rapid pace of industrialization and urbanization, which are primarily attributed to the regional market growth during the estimated period. Also, the market is also benefiting from the Chinese government’s plans such as ‘Made in China 2025’ and ‘Internet Plus’ which focus on digitalization and reduce reliance on foreign technology. Thereby, these aforementioned factors is resulting into the high demand of ethernet switch in China.
 

In 2024, Japan is expected to account for a share of 15.4% of the ethernet switch market in Asia Pacific. The rising investments related data centers, growing adoption of cloud services and IoT applications, as well as soaring demand for the Wi-Fi 6, and rising technological developments across the region is acting as a major catalyst for the demand of Ethernet Switch.
 

South Korea ethernet switch market accounted for USD 454.6 million in 2024. The increasing rollout of 5G technology, high internet penetration rate, increasing adoption of industrial automation, and proliferation of IoT devices in various sectors re the key factors leads to an increased demand for ethernet switch across the region.
 

Ethernet Switch Market Share

Ethernet Switch industry is a significant level of fragmented owing to the many players offering a wide range of products. Companies such as ABB Ltd., Allied Telesis Inc., and ALE International are holding highest numbers of market shares of nearly 50%.  The market for Ethernet Switch is continuously developing with new product innovations that are tailored for advancing Ethernet Switch capabilities, along with entered a strategic alliance. For instance, in September 2024, FS unveiled its newest 400G and 800G Ethernet switches for large AI clusters. These switches offer lossless RoCEv2 networking and have a switching capacity of up to 51.2 Tbps (102.4 Tbps Full Duplex), are suitable for distributed storage, AI, big data, and high-performance computing (HPC). They are powered by the Broadcom Tomahawk 5 chipset. FS launched 400G and 800G AI switches with RoCE protocol compatibility to manage massive data volumes with low latency and high throughput, greatly lowering latency and enhancing data transmission efficiency.
 

Moreover, market players are focusing customer’s demand by expanding their fulfilling the customer’s needs and demands. For instance, in September 2024, HUBER+SUHNER introduces the Railway Ethernet Switch to provide safe turn-key rail communication solutions. , the new RES10G switch is specifically made to connect all on-board Ethernet-based devices for applications like passenger Wi-Fi, cellular/satellite uplinks, and passenger information systems. The company stated that RES10G offer the market turn-key system solutions.
 

Ethernet Switch Market Companies

Leading companies in the ethernet switch industry comprise:

• ABB Ltd.
• Allied Telesis Inc
• ALE International
• Analog Devices
• Honeywell International Inc.
• Cisco
   

ABB Ltd. is designed to provide dependable and effective performance in a range of industrial applications. This component is a popular option for companies seeking high-performance automation solutions because of its reputation for durability and sophisticated functionality. These switches are designed to withstand demanding industrial settings, advanced control, strong communication, maintains energy-efficiency, and boosts user-friendly interface.
 

Allied Telesis Inc.'s managed and unmanaged switches are designed to meet the demands of enterprise enterprises of all sizes by making dependable networking more user-friendly and secure. The company offer the appropriate products for the job, whether it's basic office connectivity or crucial applications in challenging environments. Allied Telesis Inc. utilize extensive selection of top-performing switching products to streamline network operations. With independent certifications, intelligent security, and strong network automation.
 

Ethernet Switch Industry News

• In July 2024, Moxa announced its new MRX Series Layer 3 rackmount Ethernet switches with the EDS-4000/G4000 Series Layer 2 DIN-rail Ethernet switches supporting 2.5GbE uplink options, which offering 64 ports with up to 16 ports of 10GbE speed to speed up data aggregation for industrial applications. These switches also assist users in building high-bandwidth network infrastructure to realize IT/OT convergence.
   
• In October 2024, NXP Semiconductors N.V.  unveiled the new S32J family of network controllers and high-performance Ethernet switches. The newest S32 microcontrollers and processors from NXP can function as a single extended virtual switch as they share a common switch core, NXP NETC, with the S32J family. The shared networking switch core gives OEMs more effective and reconfigurable networking options while streamlining software reuse and interaction with other solutions inside the recently announced NXP CoreRide platform.
   
• In September 2023, Westermo introduces new unmanaged industrial Ethernet switches that are plug-and-play. The company's industrial ethernet switches is an cost-effective option for industrial applications. The SandCat five-port fast Ethernet switch series enhances their existing range of managed switches. These multipurpose devices support up to 100 Mbit/s that is designed to address the growing network complexity, dependability, and bandwidth demands of the manufacturing, energy, utilities, and maritime industries.
   

This Ethernet Switch market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and Volume (Units) from 2021 to 2034, for the following segments:

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Market, By Speed

• 1G
• 10 G
• 25 G
• 40 G
• 100 G
• Others

Market, By Type

• Modular Ethernet Switches
• Fixed Configuration Ethernet Switches

Market, By Configuration

• Unmanaged
• Smart
• Managed L2
• Managed L3
• Divided

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa