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Ethernet switches have become integral parts of high-speed network infrastructure in various organizations and industries worldwide. Ethernet switches allow interconnection of devices on a computer network and enable high-speed data transmission between servers, desktops, and other network appliances. Features like low power consumption, scalability, auto-sensing ports, and diverse port configurations make Ethernet switches preferable alternatives for building networks. Growing digital transformation across industries is augmenting the demand for faster networks to support rising data traffic and bandwidth-intensive applications. This demand is fueling the installation of new network infrastructure based on high-throughput Ethernet switches.
The global Ethernet switches Market is estimated to be valued at US$ 18.60 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Incorporation of AI/Machine Learning Capabilities: Major players in the market are focusing on incorporating AI and machine learning capabilities in Ethernet switches to enable self-optimizing networks. For instance, Cisco has introduced its Catalyst 9000 series switches with machine learning enabled DNA (Digital Network Architecture) center. The DNA center uses analytics and machine learning to automatically optimize, troubleshoot, and upgrade the network.
Growth of Cloud Services: Rising dependency of organizations on public and private cloud models for compute, storage, and other services has increased the need for high-speed, scalable, and reliable network infrastructure based on Ethernet switches. Leading cloud service providers are substantially investing in network upgrades using advanced Ethernet switches. This growing need for supporting cloud infrastructure is amplifying demand in the Ethernet switches market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the global Ethernet switches market. Established vendors dominate the market and have strong brand images and customer base. However, new players can enter the market and focus on specific customer segments or geographies.
Bargaining power of buyers: The bargaining power of buyers is high in the Ethernet switches market. Buyers can negotiate on pricing and easily shift to alternative vendors due to availability of multiple options.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Established vendors integrate designing and manufacturing capabilities. However, suppliers of components can influence prices.
Threat of new substitutes: The threat of new substitutes is low. Ethernet switches face limited threat from alternative connectivity technologies.
Competitive rivalry: Competition is high among leading vendors. Vendors compete based on product features, pricing, services and distribution.
Key Takeaways
The global Ethernet switches market is expected to witness high growth. Growing adoption of cloud-based services and need for high-speed connectivity solutions is expected to drive the demand. The global Ethernet switches Market is estimated to be valued at US$ 18.60 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.
Regional analysis – North America is expected to dominate the global Ethernet switches market during the forecast period. This is attributed to early adoption of advanced technologies and strong infrastructure in the region. Asia Pacific is expected register fastest growth owing to rapid industrialization, increasing investments in digital transformation and growing data center market.
Key players operating in the global Ethernet switches market are Cisco, Huawei Technologies, HP Enterprise, Arista Networks, New H3C Group, HPE, Juniper Networks, NEC, Lenovo, and Dell. Leading vendors focus on development of switches with latest ports supporting high speeds to cater to evolving network requirements. They also offer integrated solutions and services to maximize customer lifetime value.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
