The data center industry is a key contributor to the growth of the Ethernet switch market. According to research by Dell’Oro Group, the market will grow rapidly in 2013 and 2014. Migration of servers to 10Gb Ethernet is expected to fuel the growth of this market. The demand for bandwidth-intensive applications is expected to drive this growth. With the rising popularity of Ethernet switches, data center networks are becoming more complex.
The faster-speed segments of the Ethernet switch market continue to see significant growth, driven by cloud providers and hyperscalers. Market revenues for 200/400 GbE switches grew by 70.4% over the two-year period, and port shipments increased by more than two-thirds sequentially. In comparison, revenues for 25/50 GbE switches decreased by 7.8% annually, despite the fact that these segments account for 24.6% of the overall market.
The Cisco Company is the leading player in the data center ethernet switch market.
Cisco has been dominating the market for over 25 years, and continues to lead the pack with a diversified portfolio of switches. According to Cisco Systems, the demand for data center switches is expected to increase by three-fold between 2016 and 2021. Huawei’s CloudEngine-16800 is the industry’s first data center switch designed for the AI era. It features an embedded AI chip and 48 ports of 400GE line cards in a single slot. This switch is able to automatically adjust to a dynamic network, thereby efficiently handling massive data influx.
North America holds the largest share of the global data center ethernet switch market in 2014 and is projected to reach a whopping 41.8% by 2022. Growth in this industry is attributed to the high-quality features provided by the switch system, increased bandwidth at low prices, and improved power and space access. Cisco Systems, for example, holds a 67.5% share of the global market, which is a testament to its quality and reliability.
While the US has the biggest data center market, the Asia-Pacific region is predicted to be the leading region by 2025.
Active investment in data centers and AI projects will be key to the growth of the data center market in the Asia-Pacific region. Furthermore, smart homes and game streaming services are driving demand for advanced electronics and AI solutions. Further, the rapidly advancing digital economy is driving the demand for high-quality data center ethernet switches.
The report offers a complete overview of the Data Centre Networking market, including the key players and major regions. It also includes industry analysts and trends, and provides a dashboard view of leading companies. The report includes an industry expert’s analysis of each of the market segments, as well as an industry concentration ratio. It also provides an analysis of the impact COVID-19 has had on the market. With this information, aspiring data center operators can assess their business strategies and identify their growth prospects.
In 3Q21, Juniper saw a decline of 1.3% in the overall Ethernet switch market, but increased revenue by 11.0% year over year. The vendor’s combined enterprise routing and service provider (SP) market share increased by 31.3%, giving it a 2.2% market share in the quarter. Cisco and Huawei are the top three vendors in the data center ethernet switch market, based on their combined total revenue in the first three quarters of 2021.