Switching Equipment Global Market Report 2024

The switching equipment market size has grown strongly in recent years. It will grow from $44.33 billion in 2023 to $46.99 billion in 2024 at a compound annual growth rate (CAGR) of 6.0%. The expansion observed during the historical period can be attributed to factors such as the expansion of networks, the growth of broadband and the internet, modernization of data centers, and the development of enterprise networking solutions.

The switching equipment market size is expected to see strong growth in the next few years. It will grow to $61.95 billion in 2028 at a compound annual growth rate (CAGR) of 7.2%. The anticipated growth in the forecast period can be attributed to the deployment of 5G networks, the increasing use of edge computing, the expansion of cloud computing and data centers, and the growing adoption of IoT (Internet of Things) and industrial automation. Notable trends expected during the forecast period encompass the development of cloud data centers, the utilization of high-performance Ethernet switches, wireless backhaul solutions, intent-based networking (IBN), and the integration of artificial intelligence (AI) and machine learning in switching equipment.

The rising popularity of IoT devices among the general population is expected to drive an increase in the switching equipment market. IoT has gained widespread popularity as more people rely on smart devices for various tasks, work, communication, and messaging, gradually replacing traditional methods. For example, in 2021, Socomec, a French-based specialist in Low Voltage (LV) Industrial Power Switching, introduced the New SIRCOVER with enhanced features in Manual Transfer Switches. This new product incorporates essential features like Increased Terminal Clearance, Enhanced Termination Capacity through Integrated Spreaders for secure aluminum termination, Interphase barriers for added operational safety, and an ergonomic Retrofit solution for the COS legacy range.

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.

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 instance, a global study of 753 technical and business professionals in 2022, reported by the AAG IT Support Service, indicated that 63% of respondents reported heavy usage of cloud services, marking an increase from 59% in 2021 and 53% in 2020. Therefore, the growing demand for cloud services is expected to fuel the growth of the switching equipment market.

The complex installation process of network switches, requiring high accuracy and involving multiple sub-processes, has hindered the growth of the switching equipment market during the historic period. Installing network switches can be intricate due to their multifunctional nature, which includes facilitating connections to multiple devices, managing ports, configuring VLAN security settings, and more. Large enterprise networks can experience lengthy installation times, and complex projects like telecom network backhaul can take over a week to complete.

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 operating in the switching equipment market are developing innovative products, including next-generation TransferPacT automatic transfer switching equipment, to meet the growing demand for high-speed and reliable backup power solutions. Automatic transfer switching equipment, also known as automatic transfer switches (ATS), are intelligent devices that automatically switch power sources based on dedicated control logic. For instance, in October 2021, Schneider Electric SE, a French electronic company, introduced its next-generation TransferPacT Automatic Transfer Switching Equipment (ATSE). This product is designed to provide dependable backup power to critical facilities and infrastructure, offering advantages like increased speed, reduced size, scalability, and enhanced performance and reliability compared to traditional ATSEs.

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.

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 2023. 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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