The overall data center switch market is expected to increase from USD 13.91 Billion in 2018 to USD 17.69 Billion by 2023, at a CAGR of 4.92% between 2018 and 2023. The key opportunities for the manufacturers of data center switches include the rising trend of bare-metal switches and growing bandwidth requirements in data centers. Some of the key factors driving this market are the need for simplified data center management and automation, high demand for cloud services, and surge in the internet multimedia content and web applications.
Key players in the data center switch market include Cisco (US), Arista Networks (US), Huawei (China), HPE (US), and Juniper Networks (US). Most of the leading companies have followed organic growth strategies such as product launches. This market is evolving worldwide with the increasing competition to offer disruptive products with increasing functionality and features. The leading strategies in this market such as technological investments and product launches help companies to grow and remain technically competitive in the market. The major companies in data center switch market are also focused on partnerships, agreements, and collaborations to expand their business.
Leading players in the data center switch market:
Cisco (US) has been at the top position because of its wide contribution to the parent market share and high financial power. In 2017, the company is expected to account for a share of about 41.41% of the data center switch market. The company has a strong technical expertise and a broad product portfolio in the data center switch market. The company is one of the leading global brands in the switching industry and has been leading for many years. The company has a strong geographic presence serving almost 165 counties across the world, with a sales and distribution facilities across 95 countries. The company’s highly innovative Nexus switches use a 16 nm technology, which provides a large end-point density with improved scalability and performance up to 50%.
Arista Networks (US) is at the second position; it is expected to account for about 12.35% of the total share of the data center switch market in 2017. The company is one of the leading suppliers of integrated cloud networking switching solutions, including extensible operating systems and software innovations. The company operates in only 1 segment and dedicatedly offers data center switches. The company has been witnessing consistent growth in terms of innovations. The company has shown a significant increase in R&D investments dedicated toward the development of data center switches. For instance, the company invested 24.23% of its revenue in R&D in 2016, which is 30.60% more compared to that in 2015. To further drive the innovation, in December 2015, the company expanded its research facility in India, working closely to address cloud-based networking requirements of large enterprises.
Data Center Switch Market by Type (Core, Distribution, and Access), Technology (Ethernet, Fiber Channel, and InfiniBand), End User (Enterprise, Telecom, Government, and Cloud), Bandwidth, and Geography - Global Forecast to 2023
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