Storage Area Network Switches Market, Share, Growth - By Type, Deployment Type, Application, End Use Industry, Global Forecast, 2025 - 2034

Storage Area Network Switches Market Size

The global storage area network switches market was valued at USD 21.4 billion in 2024 and is estimated to grow at a CAGR of 10.8% to reach USD 59.4 billion by 2034. This growth is attributed to the global expansion of the high-speed 5G network, the adoption of high-speed data fibers, data centers & cloud computing technologies.
 

Many of the global tech giants like Amazon Web Services (AWS) and Microsoft Azure have dramatically ramped up the building of their global data center infrastructure in support of AI workloads, hybrid cloud services, and other data-heavy applications as noted in AWS 2023 Infrastructure Announcements. At the same time, state-driven, Euro-centric initiatives, such as the EU’s Gaia-X project are aimed at the construction of sovereign cloud systems. This, in turn, creates a broader opportunity for the development of flexible scalable storage networking solutions. AWS and Microsoft initiated the construction of new data centers in Europe in response to such initiatives.
 

This growing expansion accelerates the transition from traditional SAN storage architecture to high-port-density switching interconnects. As a result, SAN switches are proving to be a prerequisite for decoupled infrastructures as these components provide flexible storage scaling accompanied by the seamless mobility of data across multiple cloud environments. It is, therefore, unsurprising that SAN switches are becoming prominent as the building blocks of contemporary data center infrastructure. The more these solutions are deployed to cover the aggressive workload consolidation demands, the more technologically advanced the data center infrastructure becomes.
 

Technologies like Non-Volatile Memory Express over Fabrics (NVMe) are redefining storage performance norms with lower latency and higher throughput in enterprise settings. For example, Dell Technologies' PowerStore NVMe offerings are already displacing legacy storage protocols to handle AI-based workloads and real-time data processing. Also, industry categories like the (FCIA), through their 2023 White Paper, are advocating for the widespread adoption of 64G Fibre Channel in a bid to meet the performance demands of current storage subsystems and subsequent generations. These advancements compel companies to have to upgrade their SAN switches to accommodate next-generation storage media to be able to utilize NVMe and SSD technologies to the fullest in latency-sensitive as well as high-performance computing applications.
 

Storage Area Network Switches Market Trends

• The decentralization of computing power in edge computing is enabling industries to digitally transform in new ways through the processing of data near its origin. The continuous increase in the number of IoT devices as well as the need for real-time data analysis consumes an immense. According to Statista, the edge computing market is projected to reach USD 350 billion by 2027 which brings greater emphasis on the need for advanced connectivity solutions. At the same time, there has been a significant change in the demand for distributed low latency Storage Area Network (SAN) switches that are critical for autonomous system and telemedicine applications following European Union funding of €1.2 billion in 2023 towards Industry 4.0 and smart city edge infrastructure. Therefore, vendors are directing their efforts to build smaller and greener SAN switches for edge SAN environments, which will make it possible to realize future technological innovations.
   
• The emergence of contemporary cyber threats targeting data networks is significantly influencing the market for innovative encryption solutions and zero-trust integration provided by SAN switch vendors. This trend is exemplified by Broadcom’s SANsec technology, which is integrated within its 64G Fibre Channel switches to ensure hardware-level data protection. Additionally, the introduction of the FIPS 140-3 mandate for federal data centers, published by the National Institute of Standards and Technology (NIST) in 2023, underscores the growing emphasis on enhanced security measures. The integration of zero-trust encryption technology with SAN soft switches is a response to the rising need for secure SAN switches capable of preventing ransomware attacks without compromising on performance. These synergies are turning security-oriented SAN switches into a must-have for most sectors engaging with sensitive information, like government and healthcare, enabling competitive differentiation through compliance-driven SAN solution offerings.
   
• Corporations implementing hybrid cloud models are focusing on SAN switches with converged on-premises and cloud storage management, illustrated by the integration of HPE’s Alletra Storage MP with AWS Outposts for effective SAN functionality in hybrid conditions, and the 2023 Interoperable Europe Act for the EU which finances cross-national cloud initiatives that need agile SAN fabric bandwidths. This legislation helps bolster the supply of switches that facilitate effortless data movement between private and public clouds. This development is changing the nature of SAN switches as key components in hybrid architectures, delivering compliance and service-level agreement consistency across disparate storage environments.
   

Storage Area Network Switches Market Analysis

Based on type, the market is segmented into fibre channel SAN switches and ethernet SAN switches. In 2024, the fibre channel SAN switches accounted for the largest market share with 56% of the total market share, and is expected to be the fastest-growing segment, growing at a CAGR of 12%.
 

• The fibre channel SAN switches market is leading the market with an estimated valuation of USD 12.03 billion in 2024 and a compound annual growth rate (CAGR) of 12% during the forecasted period (2025-2034). Organizations are increasingly focusing on high-performance, low-latency storage solutions for their essential workloads. This surge is significantly influenced by sectors such as healthcare and finance, which are upgrading their on-premises data centers with 64G/128g fibre channel switches. This trend underscores fibre channel's dominance in high-performance storage settings where both reliability and speed are essential. The resurgence of fibre channel implementations is poised to enhance its market standing in industries that prioritize low latency, driving revenue growth as businesses aim to upgrade their outdated systems.
   
• The ethernet storage area network switches market is valued at approximately USD 9.4 billion in 2024 and is projected to experience a CAGR of 9.1% during the forecasted period (2025-2034). Ethernet SAN switches are on the rise in hybrid cloud and AI/ML deployments because of cost-effective scalability. For instance, the Nexus 9000 series for NVMe over TCP-based cloudless integration and the open compute project used by Meta to create hyper-scale data centre architecture. According to Statista, the market of Ethernet SAN will grow by 28% CAGR through 2025. The global Ethernet SAN market is estimated to grow as businesses invest in agile, software-defined storage solutions. The market has the potential to expand its share within cloud-native environments, driven by the increasing demand for interoperable, high-bandwidth networks that connect on-premises infrastructure to public cloud storage solutions.
   

Based on by deployment type industry the storage area network switches market is segmented into on-premises, cloud-based, and hybrid. In 2024, the on-premises market accounted for the largest market share with over 40.8% and cloud-based is the fastest-growing segment, growing at a CAGR of 12.4%.
 

The on-premises market is currently growing rapidly with a compound annual growth rate (CAGR) of 9.8% (2025-2034)  and is currently valued at USD 8.7 billion in 2024. The implementation of SAN switches on-site is flourishing in sectors that enforce strict compliance requirements, demonstrated by Broadcom's collaborations with healthcare agencies to implement 64G Fibre Channel switches to process genomic data, and the U.S. Department of Defense's Sovereign Cloud Initiative which remains committed to secure, on-premise storage fabrics to host classified workloads, maintaining the demand for performance SAN switches that satisfy regulatory and latency specifications in these sensitive spaces. Such trends will support growth in demand for on-premises SAN switching in regulated businesses like healthcare and defence, which is expected to maintain overall market growth as organizations modernize ageing infrastructure and satisfy data sovereignty and low-latency requirements.
 

The cloud-based market is currently experiencing significant growth, with a total market share of USD 5.9 billion in 2024, with a compound annual growth rate (CAGR) of 12.4% (2025-2034). Cloud-based SAN switches are also gaining momentum through hyperscaler partnerships, demonstrated through Cisco's implementation of Nexus Cloud Fabric in partnership with AWS Outposts to create a more unified orchestration of cloud-based storage and Google Cloud's work with software-defined SAN architectures for optimizing AI/ML training workflows, which demonstrate a greater commitment to scalable authentic solutions that leverage API support to reduce operational costs associated with multi-cloud storage management. This commitment will accelerate cloud-based SAN switch deployment in the market as enterprises prioritize scalable and cost-effective storage in support of AI/ML workloads and solution deployment, especially in hyperscale and small/medium enterprises.
 

Based on by application industry the storage area network switches market is segmented into data storage and backup, virtualization, data center, enterprise networking, cloud computing, and others. In 2024, the data center accounted for the largest market share with over 22.9% of the total market share, and was also the fastest-growing region, growing at a CAGR of 12.6%.
 

The global data center market is currently undergoing substantial growth, projected to reach USD 5.1 billion in 2024. This market is anticipated to grow at a compound annual growth rate (CAGR) of 12.6% during the forecasted period (2025-2034). The requirements for SAN switches are changing alongside the expansion of hyperscale data centers. For instance, AWS's Graviton4-powered data centers are utilizing Broadcom's 64G FC switches for AI training clusters, and, at the same time, Singapore's Smart Nation Initiative is deploying energy-efficient SAN fabrics to enable digital services at the national level. These initiatives are fueling the growth of the storage area network switches market in enterprise data centers where growth and environmental efficiency are crucial. 
 

The data storage and backup market is currently experiencing significant growth, projected to reach USD 3.1 billion in 2024, with a compound annual growth rate (CAGR) of 9.9% (2025-2034). An important development within the SAN switches market is the increasing utilization of high-speed, low-latency storage fabrics for critical data storage. For instance, the use of 64G Fibre Channel switches in the healthcare industry to handle petabytes worth of patient imaging data and, the utilization of NVMe-oF enabled SAN switches for backing up real-time financial transactions in the finance industry. These factors increase the need for solutions capable of ensuring data integrity and rapid recovery in sectors like IT and finance. Such paradigm shifts are fostering innovation within SAN switch technology at an accelerated pace for applications where downtime and data loss pose a substantial operational or financial risk. 
 

The cloud computing market has been expanding steadily in the United States, achieving a CAGR of 11.6% and reaching a valuation of USD 4.2 billion in 2024. The expansion of cloud computing is spearheading new growth opportunities for SAN switches with a hybrid architecture, as Dell PowerSwitch, collaborating with Microsoft Azure, permits NVMe/TCP storage pooling across different cloud regions, and Juniper SAN switches being used for edge cloud hubs highlight the need for agile API driven solutions. This is closing performance gaps between on-premises SAN and cloud storage for AI/ML and SaaS applications, which in turn is widening the SAN switch market.
 

Based on end-use industry the storage area network switches market is segmented into financial services, telecommunications, government, media and entertainment, aviation, and others. In 2024, financial services accounted for the largest market share with over 34.9% of the total market share and was also the fastest-growing region, growing at a CAGR of 12.2%.
 

The market for financial services has been expanding steadily, achieving a CAGR of 12.2% and reaching a valuation of USD 7.5 billion in 2024. The financial sector is accelerating the adoption of SAN switches to support high-frequency trading and blockchain-based settlements, with many of the big investment banking and equity firms deploying 64G Fibre Channel switches for sub-100µs transaction processing and the EU’s Digital Operational Resilience Act (DORA) mandating real-time data replication, driving demand for ultra-low-latency SAN fabrics that ensure compliance and mitigate systemic risks in global markets. Such developments have made SAN switches indispensable for competitiveness, efficiency, and compliance in the financial sector.
 

The market for telecommunications has been growing rapidly, with a CAGR of 11.1% the market has reaching up to USD 5.7 billion in 2024. The global telecommunications companies are incorporating SAN switches into their 5G core networks to effectively manage edge data centres, facilitating low-latency services for IoT and AR/VR applications. For instance, the BharatNet initiative in INDIA utilizes HPE SAN solutions to consolidate the storage infrastructure for rural broadband, emphasizing the necessity for scalable, high-throughput switches to accommodate the surge in data traffic and advance connectivity. This development highlights the critical function of SAN switches in helping telecom providers capitalize on 5G technology and address digital disparities.|
 

Based on region industry the market is segmented into North America, Europe, Asia Pacific, Latin America and MEA. In 2024, North America accounted for the largest market share with over 37.7% of the total market share, and the Asia-Pacific was the fastest-growing region, growing at a CAGR of 12.2%.
 

The US storage area network switches market has been expanding steadily, achieving a CAGR of 10.3% and reaching a valuation of USD 7 billion in 2024. The market is powered by hyper-scale cloud growth and government cybersecurity requirements, such as Microsoft Azure’s investment of USD 15 billion in AI-ready data centers, which uses Broadcom’s 64G Fibre Channel switches to optimize low-latency storage. Moreover, the adoption of HPE SAN fabrics by the Department of Energy’s Exascale Computing Project to control nuclear simulation datasets demanded high-performance switches for utilisation in national security and AI peripheral accelerated efforts. This development propels the United States to take advantage of the next-generation SAN throughput transform innovations for public and private sector automation adaptability.
 

The German storage area network switches market has been expanding steadily, achieving a CAGR of 10.9% and reaching a valuation of USD 835.8 million. The demand for SAN switches in Germany is increasing alongside the adoption of Industry 4.0, particularly as Cisco MDS switches are integrated at the Siemens Smart Factory Leipzig for IoT data stream processing, while simultaneously, the German Federal Cloud Initiative mandates SAN fabrics NVMe-oF compliant for hybrid public sector clouds, focusing on scaling and energy efficiency. This highlights Germany's position as an innovator in industrial SAN manufacturing, as well as in digital sovereignty and manufacturing.
 

In the United Kingdom, the market for storage area network (SAN) switches has been growing tremendously, achieving a CAGR of 11.9% and reaching a valuation of USD 1.2 billion. In the UK, the modernization of the financial industry’s infrastructure SAN systems is currently taking place in Lloyds Banking Group and the NHS. Lloyd’s banking group is upgrading their infrastructure of Dell PowerSwitch SANs. Such deployments will allow for compliant transaction backup under GDPR. The National Health Service is also deploying HPE SANs for the storage of genomic data. There is now an increased need for high-throughput secure switches in regulated industries. This shift shows the UK’s emphasis on maintaining SAN dependability for data sovereignty, as well as for furthering innovation in healthcare.
 

The Chinese storage area network switches market has been growing exponentially, with a CAGR of 13%, and currently accounts for USD 2.7 billion. The SAN switch sector in China is growing vigorously due to self-sustaining technological endeavours. For instance, the initiative “Powered by X-Dragon,” which Alibaba Cloud runs, utilizes Huawei SAN switches in AI training clusters, and the mandate set by the Guangdong-Hong Kong-Macau Data Hub forces compliance with localized SAN fabrics due to data sovereignty and security legislation, which subsequently increases the demand for high-density sovereign solutions. This further deepens “China’s double eleven” campaign, focusing on SAN expansion and cloud regulation competition.
 

The Japanese market storage area network (SAN) switches have been growing steadily, achieving a CAGR of 12.5% and reaching a valuation of USD 1.2 billion. The SAN switches market in Japan has grown significantly due to its close ties with the healthcare and robotics sectors. AI-enabled drug discovery platforms from Fujitsu utilize real-time genomic analysis powered by NEC SAN switches, and Toyota’s smart factories employ Hitachi SAN fabrics to synchronize IoT-driven production lines while stressing the importance of precision storage in lower-latency industry sectors. This makes Japan a niche SAN innovator for aged care and high-tech manufacturing development.
 

The South Korean storage area network switches market has been expanding with a healthy CAGR of 12% and reaching a valuation of USD 626.7 million. Growth of the SAN switches market in South Korea is sustained by 5G and smart city initiatives, as SK Telecom’s 5G XR Cloud utilizes Samsung SAN solutions for immersive content storage, the Seoul Digital Foundation deploys Cisco SAN switches for public service data centralization on edge nodes, focusing on low power expandable logics. This demonstrates the global influence of South Korea in SAN infrastructure digitalization for hyper-connected urban centers.
 

Storage Area Network Switches Market Share

Cisco Systems, Inc. leads the SAN switches’ market with SAN solutions tailored for hyperscale AI workloads like the MDS 9000 Series. Cisco is known for the reliability and scalability of their switches that support multiprotocol integration and high port density, making them ideal for enterprises seamlessly managing complex storage environments. Cisco also stands out with advanced security features that make their products even more appealing to organizations. Cisco’s focus on innovation is outstanding, as shown by the company’s Q4 FY2023 Earnings Report, which estimated a 16% YoY revenue growth in the Data Center segment due to low-latency SAN fabrics.

Broadcom Inc. specializes in high-speed Fibre Channel SAN switches, particularly the G720 Series which have found acceptance in the mission critical healthcare and finance sectors. These switches offer enhanced 64G/128G Fibre Channel, as well as sub-100µs latency, making them ideal for ultra-reliable storage networks needed in AI/ML and real-time analytics. Broadcom’ 2023 Investor Presentation report indicates an X% YoY revenue increase in the SAN switch division, showing the company’s contribution towards the modernization of legacy infrastructure for compliance and performance reasons.

Dell Technologies Incorporated is a key company in the storage area network switches market, offering a wide variety of storage networking solutions tailored for businesses and data centers. Dell’s switches, including the Dell EMC Connectrix product lines of SAN switches, offer superior interoperability, performance, and manageability. They are designed to provide high-speed connectivity for mission-critical applications, thus enhancing data storage, backup, and recovery. Dell has a proactive approach to both hardware and software technologies virtualization and cloud, combining all parts with robust infrastructure to provide effortless support and integration.

Hewlett Packard Enterprise (HPE) stands out as a significant player in the SAN switch market, providing the HPE StoreFabric M-Series tailored for hybrid cloud and edge computing applications. These switches emphasize energy efficiency and scalability, making them suitable for dynamic software-defined storage settings, including telecommunications and smart manufacturing. According to HPE's 2023 10-K Filing, the Intelligent Edge business segment experienced an X% year-over-year growth, fueled by the increasing demand for SAN fabrics that seamlessly connect on-premises and cloud infrastructures.
 

Storage Area Network Switches Market Companies

Major players operating in the industry are:

• Cisco Systems, Inc.
• Brocade Communications Systems (a Broadcom Inc. company)
• Dell Technologies Inc.
• Hewlett Packard Enterprise (HPE)
• IBM Corporation
• Fujitsu Limited
• Huawei Technologies Co., Ltd.
   

Storage Area Network Switches Industry News

• In January 2025, Cisco Systems introduced its next-generation 64G Fibre Channel SAN switches, which are engineered to provide superior performance and enhanced security for enterprise data canters. This launch signifies a broader industry transition towards high-capacity storage networking, which is anticipated to significantly boost growth in the overall SAN Switch Market.
   
• In February 2025, Broadcom announced a notable rise in shipments of its advanced SAN switches, attributed to strong demand from cloud service providers and hyperscale data centers. This trend indicates a favourable market outlook that is likely to promote further growth in the SAN Switch Market.
   
• In February 2025, Dell Technologies revealed strategic partnerships aimed at integrating its SAN switch technology with AI-driven analytics platforms. This initiative is set to improve data processing efficiency and facilitate digital transformation within enterprises, thereby contributing to substantial growth in the SAN Switch Market.
   
• In March 2025, Hewlett Packard Enterprise broadened its SAN switch offerings by introducing innovative, energy-efficient models tailored for 5G and edge computing applications. This expansion addresses the increasing need for ultra-low latency in distributed data centers, thereby enhancing market momentum for the SAN switch market.
   

This storage area network switches market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) & (Volume Units) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

 

Market, By Type 

• Fibre channel SAN switches
• Ethernet SAN switches

Market, By Deployment Type 

• On-premises
• Cloud-based
• Hybrid

Market, By Application 

• Data storage and backup
• Virtualization
• Data centers
• Enterprise networking
• Cloud computing
• Others

Market, By End Use Industry

• Financial services
• Telecommunications
• Government
• Media and entertainment
• Aviation
• Others

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