Network switches market expected to grow at CAGR of 3%, says analyst

Created August 21, 2017
News and Business

According to the latest market study released by Technavio, the global network switches market is expected to grow at a CAGR of 3% during the forecast period. This research report titled Global Network Switches Market 2017-2021 provides an in-depth analysis of the market in terms of revenue and emerging market trends.

In a data center, networking infrastructure facilitates communication between the server and storage providing the user access to resources. Advances in wireless Internet access, such as high-speed Internet in the form of 3G and 4G, also help in driving the use of network switches and routers as part of their backhaul equipment.

Technavio’s analysts categorize the global network switches market into four major segments by switching ports. They are: 100 GbE, 40 GbE, 100 GbE & 1GbE, and 10 GbE. The top three segments of the global network switches market are discussed below:

10 Gigabit Ethernet
The most adopted network switches are those with 10 GbE port speed. These are used by large branch offices, campuses, data centers, and telecommunication service providers. These network switches support up to 10 GbE and are also compatible with 1 GbE/100 ME/10 ME ports.

According to Chetan Mohan, a lead embedded systems research analyst from Technavio, “The small form-factor pluggable transceiver module is the most common hot-swappable I/O gear or device used in network and storage switches.

“Most of the enterprise class switches have the capacity for two or more SFP ports, and each SFP allows a switch to connect to fiber cables of different types, including single-mode and multimode, and thereby achieve speeds of 1 Gbps and 10 Gbps, or even Ethernet copper cables, such as CAT5e and CAT6.”

100 ME & 1GbE
Network switches with 100 ME & 1 GbE port speed are most commonly used in the home environment. These switches are also adopted by small office/home office (SOHO) users with less data traffic needs. The cheapest available network switches in the market are network switches with 100 ME & 1 GbE ports, which makes them the primary choice for low data use applications.

40 GbE
In 40 GbE network switches, Ethernet frames are transmitted at a rate of 40 gigabits per second and are preferred for data center virtualized servers that run high-density applications. These switches are also suitable for telecommunication service providers and CSPs that use blade servers in their data centers.

“The global network switches market in the 40 GbE segment will grow at a CAGR of almost 19% during the forecast period. This can be attributed to the rise of the optical fiber market and the growing demand for higher speed bandwidth. This will lead the market to replace 1 GbE and 109GbE ports with 40 GbE and 100 GbE ports,” says Chetan.

The top vendors highlighted by Technavio’s research analysts in this report are: Alcatel-Lucent Enterprise, Brocade Communications, Cisco Systems, D-Link and Juniper Networks.

Matthew Peach

This article was written
by Matthew Peach

Matthew Peach is a freelance technology journalist specialising in photonics and communications. He has previously worked for several business-to-business publishers, editing a range of high-tech magazines and websites.