Data Centre Switch Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global data centre switch market, valued at USD 18.54 Billion in 2024, has seen considerable growth, by improving connectivity between devices, and ensuring seamless communication within large data centres. The market is expected to grow at a compound annual growth rate (CAGR) of 6.00% from 2025 to 2034, potentially reaching USD 33.20 Billion by 2034, driven by their critical role in enabling robust performance and reliability for cloud infrastructure providers.

Global Data Centre Switch Market Growth

Data centre switches enhance device connectivity, ensuring seamless communication within large data centres, which, in turn, drives the expansion of the data centre switch market. They deliver scalable solutions to address increasing data needs, support high bandwidth for quicker transfers, optimise traffic management, and include redundancy features to minimise downtime during failures. In 2025, the RBI will launch a pilot initiative offering affordable local cloud storage solutions. The aim is to provide cost-effective cloud services specifically designed for smaller financial institutions, helping them manage their data needs efficiently.

Opportunities in the data centre switch market are growing as modern switches prioritise energy efficiency, lowering operational costs. They play a crucial role for cloud providers by ensuring reliable infrastructure performance. Additionally, these switches improve network security through encryption and access control, reduce hardware costs by optimising infrastructure, and offer high availability with failover mechanisms.

Key Trends and Recent Developments

The data centre switch market is propelled by the integration of edge computing, the need for high-speed data transfers, and the incorporation of artificial intelligence and machine learning technologies.

November 2024

Digital Realty, the largest global provider of cloud and carrier-neutral data centre solutions, announced the continued growth of ServiceFabric™ in the Asia-Pacific region. This service orchestration platform seamlessly connected workflow participants, applications, clouds, and ecosystems on PlatformDIGITAL®, its global data centre platform.

June 2024

Switch Datacenters, a Dutch colo provider, launched its fourth data centre, AMS4, at Amsterdam Science Park. The facility, built on a former logistics site, offers 15-18MW of IT capacity across 4,400 sqm. It runs on 100% green power, features closed-loop cooling, and contributes to a new heat grid in Diemen.

January 2024

NTT Ltd., a leader in IT infrastructure, launched its new Noida 2 data centre campus, opening its first facility. Spanning six acres, the campus supports a 52.8 MW IT load across two data centres. Located in Noida’s data centre corridor, it offers carrier-neutral connectivity and advanced automation features.

January 2024

Keppel requested approval from Fingal and South Dublin County Councils to install battery energy storage systems (BESS) at its data centres in Dublin. At the Dublin 1 site, the company intended to install a storage unit with new power infrastructure, while at Dublin 2, it proposed a 4MW BESS to improve power quality, provided by Grid Beyond Limited.

Edge Computing Integration is a Key Trend in the Data Centre Switch Market

Edge computing is gaining momentum, driving the need for data centre switches capable of handling distributed workloads and processing data closer to the user. This trend reduces latency and enhances performance, particularly for real-time applications, leading to increased demand for high-performance, low-latency switches in edge data centres. In July 2024, Yondr Group launched the first 20MW phase of its 30MW data centre in Slough, West London, marking a major step in its 100+MW campus project. The facility, completed in under two years, is Yondr's first UK data centre, with a second building under construction.

High-Speed Data Transfers Drives Opportunities in the Data Centre Switch Market

The growing need for high-speed data transfers is accelerating the adoption of switches with higher throughput capabilities, such as 400G and 800G Ethernet. These high-performance switches cater to data-intensive applications like big data analytics and cloud services, ensuring fast data transmission and reducing bottlenecks in large-scale data centres. On July 24, 2024, CyrusOne secured nearly USD 12 billion in debt financing, including USD 7.9 billion for new data centre and AI digital infrastructure projects in the U.S. This funding supports the company’s rapid expansion amid the AI-driven data centre investment boom.

Energy-Efficient Switches Influence the Data Centre Switch Market Dynamics and Trends

As sustainability becomes a priority, the market is shifting towards energy-efficient data centre switches. These switches are designed to optimise power consumption while maintaining performance, enabling data centres to reduce their carbon footprint and operational costs, aligning with global energy conservation and environmental initiatives. Iron Mountain Data Centres leads in security, compliance, and clean energy, helping global clients achieve zero-carbon goals through 100% renewable power and its Green Power Pass product. It also became the first company to build a BREEAM-certified data centre in North America.

Artificial Intelligence and Machine Learning Integration Impact Data Centre Switch Market Revenue

The integration of AI and machine learning technologies into data centre switches is enhancing network traffic optimisation, automating management, and predicting network failures before they happen. These advanced features improve network performance, reliability, and security, making AI-powered switches increasingly vital in modern data centre environments. In July 2024, Vantage Data Centres secured a loan to expand its data centres in Québec, Canada. Caisse de dépôt et placement du Québec (CDPQ) agreed to provide USD 75 million in senior financing to support the development of Vantage’s Québec City QC2 campus.

Global Data Centre Switch Market Trends

The development of the data centre switch market is driven by their ability to provide improved network management through advanced monitoring and troubleshooting capabilities. These switches are designed to accommodate future technological advancements, ensuring long-term value. By reducing latency, they enhance real-time application experiences, support load balancing, and aid in the deployment of virtual machines and network virtualisation. On November 30, 2023, Equinix, Inc. the global leader in digital infrastructure, launched its new International Business Exchange™ (IBX®) data centre at its North-East campus in Frankfurt.

The demand for the data centre switche market is driven by the ability of advanced switches to automate network configuration, boosting efficiency and minimising manual intervention. By optimising resource allocation and reducing congestion, they improve network performance. These switches also aid regulatory compliance, minimise downtime through failover and load balancing, and manage large data volumes, making them essential for big data analytics.

Global Data Centre Switch Industry Segmentation

The report titled “Global Data Centre Switch Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Core Switches
• Access Switches
• Distribution Switches

Market Breakup by Technology

• Introduction
• Ethernet
• Fibre Channel
• InfiniBand

Market Breakup by Bandwidth

• ≤1 GBPS
• >1 GBPS to ≤10 GBPS
• >10 GBPS to ≤40 GBPS
• >40 GBPS

Market Breakup by End Use

• Enterprises
• Telecommunication Industry
• Government Organisations
• Cloud Service Providers

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Global Data Centre Switch Market Share

The data centre switch market analysis indicates that government organisations lead the market due to their need for enhanced security, reliability, and scalability in managing large data volumes. These switches facilitate the efficient handling of sensitive data, ensure compliance with data protection laws, and support critical public services, improving operational efficiency. NICSI, under the Ministry of Electronics and IT, is constructing a data centre in Guwahati, Assam, set to begin operations by March 2025, with the government investing over Rs 600 crores in the project.

The growth of the data centre switch market is driven by the crucial role switches play for cloud service providers, ensuring high-speed connectivity, seamless data transfer, and network scalability. They optimise cloud infrastructure, support virtualisation, and enable efficient traffic management, improving the reliability, security, and overall user experience. In November 2024, AI reshaped the data centre industry, as noted in Vertiv's 2025 projections, with increased innovation to support high-density computing, a growing regulatory focus on AI, and heightened emphasis on sustainability and cybersecurity in future developments.

Competitive Landscape

The data centre switch market key players include companies that focus on areas such as cloud computing, cybersecurity, and the Internet of Things (IoT), catering to businesses, service providers, and government entities globally. Cisco, a prominent name in this sector, offers flagship products like routers, switches, and security solutions. Renowned for its dedication to sustainability and innovation, Cisco works towards developing intelligent networks that enhance efficiency and connectivity.

Cisco Systems, Inc.

Founded in 1984, Cisco Systems, Inc. is a global leader in networking and cybersecurity solutions, headquartered in San Jose, California. The company provides products and services for businesses, including routers, switches, and cybersecurity solutions, enhancing connectivity and security across industries worldwide.

Huawei Investment & Holding Co., Ltd.

Established in 1987, Huawei Investment & Holding Co., Ltd. is a multinational telecommunications and technology company based in Shenzhen, China. Huawei is renowned for its innovations in telecom equipment, smartphones, and networking solutions, playing a significant role in the global 5G market.

Hewlett Packard Enterprise Co.

Founded in 2015, Hewlett Packard Enterprise (HPE) is a multinational IT company headquartered in San Jose, California. HPE offers enterprise-level products and services, including data storage, cloud computing, and networking solutions, helping businesses with their digital transformation and IT infrastructure needs.

Arista Networks Inc.

Founded in 2004, Arista Networks Inc. is a leading provider of cloud networking solutions, headquartered in Santa Clara, California. Arista specialises in high-performance networking hardware and software, offering products for data centres, cloud computing, and large-scale internet applications.

Other key players in the data centre switch market report are Juniper Networks Inc., Dell Inc., ODM white-box makers, Mellanox Technologies, Ltd., Extreme Networks, Inc., Fortinet, ZTE Corporation, and D-Link, among others.