Switching Equipment Market Report 2025

This Switching Equipment market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The switching equipment market size has grown strongly in recent years. It will grow from $40.73 billion in 2024 to $43.43 billion in 2025 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to network expansion, broadband and internet growth, data center modernization, enterprise networking.

The switching equipment market size is expected to see strong growth in the next few years. It will grow to $55.58 billion in 2029 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to 5g deployment, edge computing, cloud computing and data centers, iot and industrial automation. Major trends in the forecast period include cloud data centers, high-performance ethernet switches, wireless backhaul, intent-based networking (ibn), ai and machine learning.

The growing popularity of IoT devices is expected to drive the expansion of the switching equipment market. As more people adopt smart devices for daily tasks, office work, communication, and messaging, IoT is becoming increasingly prevalent, replacing traditional methods. For example, in January 2024, Eurostat, the Luxembourg-based statistical office of the European Union, reported that in 2022, the number of battery-only electric passenger cars in EU countries reached nearly 3 million, a 55% increase from 1.9 million in 2021. This rise in IoT adoption is expected to propel the growth of the switching equipment market.

The growing demand for cloud services is expected to be a driving force behind the growth of the switching equipment market. Cloud services encompass a wide range of on-demand computing resources and applications delivered over the internet, often hosted on remote servers in data centers. These services are accessible to individuals, businesses, and organizations over the internet. Switching equipment plays a crucial role in cloud services by efficiently distributing and controlling traffic across various components of the cloud infrastructure, ensuring high availability and seamless data transfer between servers and clients. For example, in June 2024, reports published by AAG IT Support Service, a UK-based digital transformation service provider, revealed that in 2023, public cloud service revenue exceeded $415 billion, up from $343 billion in 2021. This surge in cloud service demand is expected to drive the growth of the switching equipment market.

Power over Ethernet (PoE) technology is gaining significance in the switching equipment market, emerging as a major trend for network switches. PoE switches are becoming more prevalent as they reduce cable clutter and can be incorporated into both smart and managed switches. PoE technology combines networking and electrical power into a single cable, providing data connectivity and electrical power to powered devices. The adoption of PoE offers various benefits such as flexibility, reliability, and cost-efficiency, eliminating the need for additional electrical wiring and outlets, ultimately saving on installation and maintenance costs.

Major companies in the switching equipment market are developing innovative products, such as compact automatic transfer switching equipment, to meet the growing demands of commercial establishments. Automatic transfer switching equipment, also known as automatic transfer switches, are intelligent, self-acting devices controlled by dedicated logic. For example, in September 2024, Socomec India, an India-based electrical equipment engineering and manufacturing company, launched the ATyS a M pre-programmed Automatic Transfer Switching Equipment (ATSE). This device enables seamless switching between two power sources, such as mains or a generator, with minimal disruption during the transfer process. It supports RS485 communication for remote monitoring of power sources and their parameters, allowing users to track availability and operational status in real time. The system also includes a cable harness for easy installation and ensures reliable connections between the controller and the transfer switch, enhancing overall system reliability.

In July 2022, Littelfuse Inc., a US-based industrial technology manufacturer, acquired C&K Switches for an undisclosed amount. This acquisition is expected to enhance the company's technological and operational capabilities, allowing it to provide comprehensive solutions across various vertical end markets. C&K Switches is a US-based company specializing in high-performance electromechanical switch and interconnect product design and manufacturing.

Switching equipment refers to mechanical, electrical, pneumatic, or hydraulic devices used to control the flow of electric current in a circuit by making or breaking connections. Its primary function is to connect and disconnect electrical circuits, ensuring effective power management and enhancing the reliability of electrical systems.

The primary applications of switching equipment span enterprise and industrial usage, telecommunications providers, as well as servers and storage providers. Telecommunications providers offer a wide array of services, including telecommunications, information and media services, content delivery, entertainment, and application services, leveraging network infrastructure as a versatile and robust platform. These types of equipment are used by businesses of various sizes, including small enterprises, medium-sized enterprises, and large enterprises across industries such as automotive, healthcare, and telecommunications.

The switching equipment market research report is one of a series of new reports that provides switching equipment market statistics, including switching equipment industry global market size, regional shares, competitors with a switching equipment market share, detailed switching equipment market segments, market trends and opportunities, and any further data you may need to thrive in the switching equipment industry. This switching equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major companies operating in the switching equipment market include ADVA, Ciena Corporation, Ericsson, Huawei Technologies, Alcatel-Lucent, ZTE, Infinera Corporation, Fujitsu Limited, ECI Telecom Ltd., Cisco Systems, Inc., Tellabs, Inc., ADTRAN Inc., Aliathon Technology Ltd., NEC Corporation, Huawei Technologies, Nokia Siemens, Cyan, Ekinops, JDS Uniphase Corporation, BTI.

North America was the largest region in the switching equipment market in 2024. Asia-Pacific is expected to be the fastest-growing region in the switching equipment market during the forecast period. The regions covered in the switching equipment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the switching equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The switching equipment market consists of sales of equipment, used to open and close electric circuits in general and build connections between nodes within a network. Information is shared on establishing of a connection between nodes. The switching equipment industry includes establishments that manufacture switching equipment including circuit breakers, contactors, switch disconnectors and disconnectors. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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