Ethernet Switch Market Size, By Speed (1G, 10G, 25G, 40G, 100G, Others), By Type (Modular Ethernet Switches, Fixed Configuration Ethernet Switches) By Configuration (Unmanaged, Smart, Managed L2, Managed L3, Divided) Forecast 2024 - 2032

Ethernet Switch Market Size

Ethernet Switch Market was valued at over USD 17.5 million in 2023 and is estimated to register over USD 26 million in 2032, growing at a CAGR of over 4.5% between 2024 & 2032. The industry is driven by several key factors shaping the landscape of networking infrastructure and connectivity needs across industries.
 

One prominent driver is the exponential growth of data traffic and the increasing demand for high-speed and reliable network connectivity solutions. With the proliferation of digital devices, IoT (Internet of Things) deployments, cloud computing, and data-intensive applications, organizations require robust Ethernet switch infrastructure to handle the growing volume of data traffic efficiently. Moreover, the transition to advanced networking technologies, such as 5G, edge computing, and SD-WAN (Software-Defined Wide Area Network), is fueling the adoption of Ethernet switches to support high-performance networking architectures capable of meeting the requirements of modern digital environments. Ethernet switches play a crucial role in enabling connectivity, scalability, and flexibility in these next-generation networking deployments.

Furthermore, In December 2020, ABB launched a range of load switch switches broadly used for medium-voltage (MV) secondary switchgear, e.g., in-ring main unit (RMUs), assigned with the task of switching load currents. This SF6-freeload break switches for MV applications are available with Dry Air rated up to 12 kV and AirPlus for 24 kV. The load break switch paves the way for the environment friendly RMUs.
 

The pitfall in the ethernet switch industry could be the challenge of interoperability and compatibility issues. As networking technology evolves and new standards emerge, there may be instances where different generations of Ethernet switches or equipment from different manufacturers are not fully compatible with each other. This can lead to connectivity issues, reduced performance, and increased complexity in network management. For example, when integrating new Ethernet switches into existing network infrastructure or when upgrading network components, compatibility issues may arise due to differences in protocols, firmware versions, or hardware specifications. Incompatibility between switches can result in network downtime, data transmission errors, and inefficiencies in network operations.
 

Ethernet Switch Market Trends

With the increasing demand for higher bandwidth to support data-intensive applications and emerging technologies like IoT, 5G, and cloud computing, there's a growing adoption of multi-gigabit Ethernet switches. These switches offer speeds beyond traditional Gigabit Ethernet, providing 2.5, 5, or even 10 Gigabit per second (Gbps) connectivity to meet the bandwidth requirements of modern networks. Multi-gigabit Ethernet switches enable organizations to future-proof their networks and accommodate the growing volume of data traffic. Cloud service providers and social media firms account for most of the demand for colocation data centers.
 

The market is also driven by adopting new technologies, including blockchain technology, 5G infrastructure, virtual reality communities, and autonomous car technology. With new projects from providers aiming at the enterprise sector, Atlanta has recently become another important market for data center development. To develop a 1.1 million square foot data center in Atlanta, QTS Data Centers submitted proposals the year before the current year. According to the designs in "Project Granite," QTS would create 2.3 million square feet of mixed-use space on around 36 acres of land, including data center space and commercial, retail, and residential land uses. These advances increase the need for data center switching devices in these areas.
 

Software-defined networking (SDN) is gaining traction as organizations seek more agile, flexible, and programmable network infrastructures. SDN decouples the control plane from the data plane, allowing centralized management and orchestration of network resources through software controllers. Ethernet switches that support SDN enable dynamic provisioning, automated network configuration, and policy-based traffic management, enhancing network scalability, efficiency, and security. The adoption of SDN-enabled switches is driven by the need for greater network agility, simplified management, and improved performance in modern digital environments.
 

Ethernet Switch Market Analysis

Based on speed, the market is divided into 1G, 10G, 25G, 40G, 100G, Others. The 1G, segment is expected to register a CAGR of over 5.5% during the forecast period.
 

• The Ethernet switch industry, particularly the 1 Gbps segment, has experienced robust growth driven by increasing demand for high-speed networking solutions in various industries. With the proliferation of data-intensive applications, cloud computing, and the Internet of Things (IoT), organizations require reliable and high-performance networking infrastructure to handle large volumes of data traffic efficiently.
   
•  The 1 Gbps segment of the market has seen significant expansion as businesses upgrade their networks to accommodate higher bandwidth requirements and support emerging technologies. Additionally, the affordability and widespread availability of 1 Gbps Ethernet switches have contributed to their popularity among enterprises of all sizes. As the demand for fast and reliable networking continues to rise, the 1 Gbps segment is expected to sustain its growth momentum in the foreseeable future.
   

Based on configuration, the market is divided into unmanaged, smart, managed L2, managed L3, divided. The managed L2 segment dominated the global market with a share of over 32% in 2023.
 

• The Managed L2 segment of the Ethernet switch market encompasses switches that offer Layer 2 management capabilities. These switches provide features such as VLAN (Virtual Local Area Network) support, Spanning Tree Protocol (STP) for loop prevention, Link Aggregation (LAG) for increased bandwidth and redundancy, and Quality of Service (QoS) prioritization.
   
• Managed L2 switches enable network administrators to control and optimize traffic flow within the local network, ensuring efficient communication between devices while minimizing network congestion and downtime. They are commonly used in enterprise networks, data centers, and campus environments where granular control over network traffic and security features are essential.
   

North America dominated the global ethernet switch market in 2023, accounting for a share of over 35%. In North America, the market for Managed L2 Ethernet switches is robust and dynamic, driven by the region's strong demand for advanced networking infrastructure in various industries such as IT, telecommunications, healthcare, finance, and manufacturing. As businesses increasingly rely on digital technologies for their operations, there is a growing need for reliable and scalable networking solutions that can support high-speed data transmission, secure connectivity, and efficient traffic management.
 

Managed L2 switches are favored by enterprises and organizations in North America for their ability to provide granular control over network traffic, enhance security through features like VLAN segmentation and access control lists (ACLs), and optimize network performance with features like quality of service (QoS) prioritization and link aggregation. These switches are deployed in diverse environments, including corporate offices, data centers, educational institutions, government facilities, and service provider networks.
 

Ethernet Switch Market Share

Cisco Systems Inc. and Huawei hold a significant share of over 40%. As a global leader in networking equipment and solutions, Cisco has established itself as a dominant force in the North American market for Ethernet switches, including Managed L2 switches. Cisco offers a comprehensive portfolio of switches catering to various enterprise needs, from small businesses to large-scale data centers. Their Catalyst series switches, including models like the Catalyst 9000 and Catalyst 3000 series, are widely deployed across industries, and are known for their reliability, scalability, and advanced features such as intent-based networking, software-defined networking (SDN), and security integrations. Cisco's strong brand reputation, extensive partner ecosystem, and focus on innovation contribute to its leadership position in the market.
 

Some of the major players in the market are Cisco Systems Inc., Arista, Hewlett Packard, Huawei, Juniper Networks, H3C, Brocade Communications Systems, D-link Corporation, Allied Telesis Inc. These major players apply strategies such as product innovations, mergers, and acquisitions. Also, companies are involved in several growth & expansion strategies to gain a competitive advantage in the market.
 

Ethernet Switch Market Companies

Major players operating in the industry are:

• Cisco Systms Inc.
• Arista
• Hewlett Packard
• Huawei
• Juniper Networks
• H3C
• Brocade Communications Systems
   

Ethernet Switch Industry News

• In April 2023, Edgecore launched the Ultra High-Capacity 400G Switch to provide the next-generation data center network architectures. To satisfy the demands of the next-generation data center and cloud computing environments and to bring a new level of basic network architecture, Edgecore announced the launch of the DCS520, an ultra-high capacity 400G switch.
   

The ethernet switch market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

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
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA