Data Center Switch Market Analysis & Forecast: 2025-2032

Data Center Switch Market Size and Forecast – 2025 to 2032

Data Center Switch Market is estimated to be valued at USD 17,878.2 Mn in 2025 and is expected to reach USD 25,869.3 Mn in 2032, exhibiting a compound annual growth rate (CAGR) of 5.42% from 2025 to 2032.

Key Takeaways

• By Switch Type, Core Switches hold the largest market share of 42.40% in 2025 owing to the surge in cloud, hyperscale & multi‑cloud adoption.
• By Region, North America dominates the overall market with an estimated share of 40.17% in 2025 owing to the early adoption of advanced technologies.

Market Overview

The Data Center Switch Market is rapidly expanding as organizations adopt cloud computing, hyperscale data centers, and AI-driven workloads. Rising data traffic from big data, IoT, and 5G networks drives the need for high-speed, low-latency, and energy-efficient switches. Companies are transforming network infrastructure through advances in Ethernet technology, leaf-spine architectures, and software-defined networking. Enterprises and hyperscale operators in North America and Asia-Pacific are actively deploying scalable, high-performance switches to support digital transformation and meet growing data demands.

Current Events and Its Impact on the Data Center Switch Market

Uncover macros and micros vetted on 75+ parameters: Get instant access to report

Segmental Insights 

To learn more about this report, Download Free Sample

Data Center Switch Market Insights, By Switch Type: Core Switches contribute the highest share of the market owing to its energy efficiency, power & operational cost pressure.

Core Switches hold the largest market share of 42.40% in 2025. The demand for core switches in the Data Center Switch Market is rising as organizations expand cloud services, hyperscale data centers, and AI-driven applications that require fast, reliable data transfer. Increasing east-west traffic from big data, IoT, and 5G networks drives the need for high-bandwidth, low-latency, and energy-efficient switching solutions. Companies are enhancing performance and flexibility through high-speed Ethernet, scalable leaf-spine architectures, and programmable network technologies. Enterprises and hyperscale operators actively deploy core switches to maintain seamless connectivity, improve network efficiency, and handle growing data workloads. For instance, At the China International Information and Communication Exhibition, Huawei unveiled the world’s first 800GE data center core switch, the CloudEngine 16800-X series. As 400GE gains widespread adoption in ultra-large-scale data centers, data center networks are now evolving even faster toward 800GE.

Role of AI (Artificial Intelligence) in the Data Center Switch Market

Artificial Intelligence (AI) is reshaping the Data Center Switch Market by allowing organizations to manage networks more intelligently, quickly, and efficiently. Companies use AI-powered analytics to optimize traffic routing, anticipate failures, and improve load balancing, minimizing latency and downtime. Intelligent automation helps them configure and monitor complex switch infrastructures, supporting dynamic workloads in cloud and hyperscale data centers. AI also enhances energy efficiency by controlling power use and resource allocation, enabling enterprises and service providers to maintain resilient, high-performance, and scalable networks amid growing data demands. For instance, in October 2025, FS launched its PicOS AI Switch System, a complete networking solution for large-scale AI, HPC, and inference workloads. Using Broadcom Tomahawk chips, the PicOS OS, and AmpCon-DC management, it delivers lossless RoCEv2 networking, ultra-low latency, and intelligent traffic optimization, ensuring efficient GPU utilization and reliable cluster performance.

Regional Insights

To learn more about this report, Download Free Sample

North America Data Center Switch Market Trends

North America dominates the overall market with an estimated share of 40.17% in 2025. Enterprises and cloud providers in North America are rapidly evolving the Data Center Switch Market by upgrading infrastructure to handle increasing data volumes and advanced workloads. They are adopting high-speed Ethernet, leaf-spine architectures, and software-defined networking to enhance performance and scalability. Hyperscale data centers and AI-driven applications are fueling demand for low-latency, energy-efficient switches. Companies are also deploying automation, network virtualization, and edge computing, reshaping data center designs to deliver faster, more reliable, and flexible network operations across the region. For instance, in July 2025, American data center operator Novva has opened a new facility in Nevada. The data center sits in the Tahoe-Reno Industrial Center, an industrial park east of Reno in Storey County, which also hosts operators such as Google, Switch, PowerHouse, and Tract.

Europe Data Center Switch Market Trends

Organizations in Europe are actively advancing the Data Center Switch Market by modernizing networks to handle increasing data traffic and support digital transformation. They are integrating high-speed Ethernet, software-defined networking, and modular switch architectures to improve performance and flexibility. Enterprises and cloud providers are deploying energy-efficient, low-latency switches to power AI, IoT, and edge computing workloads. Additionally, they are leveraging automation, network virtualization, and hybrid cloud strategies to create more agile, scalable, and reliable data center operations across the region. For instance, in November 2025, Spanish energy company Solaria Energia has officially launched its European sustainable data center platform. The news emerged last week when the company engaged global investment bank Goldman Sachs to secure a financial partner for the platform.

United States Data Center Switch Market Trends

Organizations in the United States are actively advancing the Data Center Switch Market by expanding cloud services and modernizing infrastructure to meet rising data demands. They are deploying high-speed Ethernet, leaf-spine architectures, and software-defined networking to boost network performance and flexibility. Enterprises and hyperscale operators are implementing energy-efficient, low-latency switches to support AI, big data, and edge computing workloads. Additionally, they are leveraging automation, network virtualization, and hybrid cloud strategies to create faster, more resilient, and scalable data center operations nationwide. For instance, in August 2025, Brazil planned to unveil the "Redata" tax incentive program in early September to attract foreign tech companies to build data centers and strengthen ties with the U.S., which has imposed a 50% import tariff on Brazilian goods, according to two anonymous economic policy officials speaking to Reuters.

United Kingdom Data Center Switch Market Trends

Businesses and cloud providers in the United Kingdom are actively expanding the Data Center Switch Market by upgrading networks to handle growing data traffic and drive digital transformation. They are adopting high-speed Ethernet, software-defined networking, and modular switch architectures to improve performance and flexibility. Rising AI, IoT, and edge computing workloads are prompting organizations to deploy low-latency, energy-efficient switches. Additionally, they are leveraging automation, network virtualization, and hybrid cloud strategies to create more agile, reliable, and scalable data center operations throughout the UK. For instance, in January 2025, GPU cloud provider CoreWeave has opened its first data center locations in the UK. This week, the company confirmed that its initial facilities in Crawley and London’s Docklands are now operational.

End-User Feedback and Unmet Needs in the Data Center Switch Market

• Performance and Scalability Demands: End-users seek switches that can handle increasing data traffic and intensive workloads without compromising speed. Many report limitations in existing infrastructure for AI, big data, and IoT applications. Scalability issues, particularly during sudden workload surges, drive the need for higher-capacity, low-latency, and more flexible switching solutions.
• Energy Efficiency and Operational Costs: Data center operators frequently highlight high energy consumption as a key concern. End-users demand energy-efficient switches to reduce operational costs and environmental impact. Current solutions often lack advanced power management, prompting the need for designs that optimize energy usage while maintaining performance and reliability.
• Network Management and Automation: Users express challenges in configuring and monitoring complex switch architectures. There is a strong need for automation, centralized control, and intelligent monitoring to simplify operations, reduce human error, and ensure consistent performance across leaf-spine and hybrid cloud networks.

Data Center Switch Market Trend

Adoption of High-Speed Ethernet and Advanced Switching

Data centers are increasingly deploying high-speed Ethernet solutions, including 400G and beyond, to handle surging data traffic and demanding workloads. Enterprises and hyperscale operators are focusing on switches that provide higher throughput, low latency, and energy efficiency. These advanced switches support AI, big data, IoT, and edge computing applications, ensuring reliable performance while enabling scalable network architectures. Organizations are actively replacing legacy systems to achieve faster, more flexible, and future-ready data center operations.

Shift to Leaf-Spine and Modular Architectures

Modern data centers are embracing leaf-spine and modular switch architectures to improve network scalability, redundancy, and traffic management. This trend allows operators to manage east-west data flows more efficiently while reducing bottlenecks. Enterprises are leveraging these designs to accommodate cloud, hybrid, and multi-cloud environments. The flexibility of modular switches supports rapid expansion and easy integration with emerging technologies, enabling data centers to maintain consistent performance and adapt to evolving digital transformation requirements.

Data Center Switch Market Opportunity

Expansion of Hyperscale and Cloud Data Centers

The rapid growth of hyperscale and cloud data centers presents significant opportunities for advanced switch deployment. Operators require high-capacity, low-latency, and scalable switches to manage increasing east-west traffic. Vendors can offer solutions tailored to AI, big data, and IoT workloads. Expanding cloud adoption and digital transformation initiatives create demand for upgraded switching infrastructure, enabling companies to position energy-efficient, high-performance switches as essential components in modern, large-scale, and multi-tenant data center environments.

Market Report Scope

Data Center Switch Market News

• In November 2025, Broadcom introduced high-speed data center switches, including the Brocade X8 Directors and G820 56-port switch, enhancing enterprise storage connectivity and driving its shares up 2.3% to $348.34.
• In June 2025, Global Switch has unveiled a liquid cooling technology showcase at its London Docklands data center. Collaborating with six vendors, the company set up the suite to demonstrate various liquid cooling solutions available for deployment in its data halls to enterprise clients.

Analyst Opinion (Expert Opinion)

• The data center switching market is undergoing a structural inflection point rather than a conventional upgrade cycle. This shift is being accelerated primarily by the rapid expansion of generative AI workloads, and recent market data reinforces this trajectory. Crehan Research reports that 400 GbE and 800 GbE switches together accounted for one-third of total annual market revenues in 2024, driven by surging demand for high-performance Ethernet switching. In the first half of 2025, branded switch revenues and shipments increased approximately 25% year over year, with deployment of 800 GbE switches accelerating sharply.
• These trends indicate that hyperscale cloud providers and AI-centric data centers — particularly those building large GPU clusters — are redefining networking requirements. Traditional 10/25/100 Gbps infrastructures are no longer sufficient. Instead, operators now require massive east–west bandwidth, deterministic latency, and ultra-dense port architectures. This is reflected in the extraordinary adoption rate of 800 GbE, which is scaling nearly 100× faster than 400 GbE did at its introduction.
• Within this environment, vendors offering integrated, high-bandwidth, low-latency Ethernet platforms optimized for AI workloads are positioned to gain the most. Solutions that tightly integrate switching silicon, optics, telemetry, and automation capabilities are emerging as clear differentiators. Market momentum underscores this shift: in Q2 2025, Arista Networks reportedly approached a 3 million-port annualized run rate for 800 GbE and claimed the leading share in that segment.

Market Segmentation

• Global Data Center Switch Market, By Switch Type
  • Core Switches
  • Distribution Switches
  • Access Switches
• Regional Insights (Revenue, USD Mn, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Silicom Ltd Connectivity Solutions
  • Cisco Systems Inc.
  • D-Link Corporation
  • Arista Networks Inc.
  • Quanta Cloud Technology (Quanta Computer)
  • Juniper Networks Inc.
  • ZTE Corporation
  • Hewlett Packard Enterprise
  • Fortinet Inc.
  • NEC Corporation
  • Mellanox Technologies (NVIDIA)
  • Huawei Technologies Co. Ltd.
  • Dell EMC
  • H3C Holdings Limited (Hewlett Packard Enterprise)
  • Extreme Networks Inc.
  • Lenovo Group Limited

Sources

Primary Research interviews

• CIOs, CTOs, and network architects from hyperscale and enterprise data centers
• IT managers and network engineers from cloud service providers
• Product managers and R&D heads from data center switch manufacturers
• Industry experts and technology evangelists in networking and data center infrastructure

Databases

• IEEE Xplore Digital Library
• IETF Datatracker (Internet Engineering Task Force)
• ITU-T Recommendations and Standards Database
• Gartner Open Data (free datasets and technology briefs)

Magazines

• Network World
• Data Center Knowledge
• Communications of the ACM
• Network Computing

Journals

• IEEE Transactions on Network and Service Management
• Journal of Cloud Computing: Advances, Systems and Applications
• ACM SIGCOMM Computer Communication Review
• International Journal of Network Management

Newspapers

• The Wall Street Journal (Technology Section)
• The New York Times (Tech / Business Section)
• Financial Times (Technology Section)
• The Washington Post (Technology Section)

Associations

• Ethernet Alliance
• Open Compute Project
• Telecommunications Industry Association (TIA)
• Data Center Alliance / Data Center Dynamics

Public Domain sources

• Company annual reports and investor presentations
• Press releases from technology vendors and cloud providers
• Government publications on IT infrastructure and data center policies
• Academic theses and white papers available online

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of information for last 8 years