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Ethernet switches are essential networking infrastructure devices that connect multiple devices within a network for transmission of data, voice and video. They enable high-speed connection of servers, workstations, networking equipment like routers and storage devices. Ethernet switches offer faster data transfer rates compared to traditional hubs through dedicated ports that reduce network collisions and improve overall network performance. They deliver carrier-class reliability and help businesses scale their network capacity as demands grow. Ethernet switches enable robust industrial automation through industrial ethernet which has simplified plant networking and enabled real-time communication between machines, controllers, sensors and operators.
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:
One of the key trends in the global ethernet switches market is the growing adoption of artificial intelligence in industrial settings. Manufacturers are increasingly leveraging AI and machine learning algorithms to automate industrial processes and optimize productivity. This has fueled the demand for high-speed networking infrastructure compatible with industrial applications. AI-enabled sensors, robots, machines need fast and reliable connectivity to function autonomously as well as share real-time production data with centralized systems. Ethernet switches with properties like ruggedized casing, wide temperature tolerance and support for industrial protocols are well-suited for integrating AI systems on the plant floor. Their integration is expected to drive innovations in predictive maintenance, quality control, supply chain optimization and overall improve manufacturing efficiency over the forecast period.
Porter’s Analysis
Threat of new entrants: The global ethernet switches market is competitive due to the presence of large number of players. However, the market requires significant investment and technical expertise which adds to the entry barriers.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are multiple options available at competitive prices. However, switching cost may influence buyer decisions.
Bargaining power of suppliers: Major suppliers have a moderate bargaining power due to a sufficient presence of component manufacturers. However, the components required are relatively generic.
Threat of new substitutes: Substitutes include wifi routers and other wireless technologies. However, ethernet switches have established usage in data centers and large enterprises making the threat moderate.
Competitive rivalry: The market is dominated by few large players. Intense competition exists based on product performance, features and pricing.
Key players: Key players operating in the Ethernet Switches market are Cisco, Huawei Technologies, HP Enterprise, Arista Networks, New H3C Group, HPE, Juniper Networks, NEC, Lenovo, and Dell. Cisco leads the market supported by its comprehensive product portfolio and global presence. New entrants are focusing on product development centered around high bandwidth and low latency capabilities to gain market share.
Key Takeaways
The global Ethernet Switches market is expected to witness high growth over the forecast period supported by increasing deployment in data centers. North America region currently dominates the market supported by heavy investments in networking infrastructure by major enterprises. The Asia Pacific region is expected to grow at fastest pace due to rapid digitalization and heavy infrastructure investments by governments in countries like China and India.
Regional analysis: North America holds the highest market share currently majorly driven by the US where data center deployment is prominent. Asia Pacific region is projected to grow at highest CAGR during the forecast period supported by increase in number of data centers and adoption of high-speed networking solutions across China, India and other developing APAC countries.
Key Takeaways
The global Ethernet Switches Market is expected to witness high growth over the forecast period supported by increasing deployment in data centers. North America region currently dominates the market supported by heavy investments in networking infrastructure by major enterprises. The Asia Pacific region is expected to grow at fastest pace due to rapid digitalization and heavy infrastructure investments by governments in countries like China and India.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
