Ethernet Switch Market Size, Share & Industry Analysis, By Port Speed (1 Gbps, 2.5 Gbps and 5 Gbps, 10 Gbps, 25 Gbps and 50 Gbps, 100 Gbps, and 200 Gbps and 400 Gbps), By Application (Carrier Ethernet, Enterprise and Campus Network, Industrial Networking, Data Centers, Network Security, and Others), By Product Type (Fixed Configuration Switches and Modular Switches), By Technology (Layer 2 Switches, Layer 3 Switches, and PoE (Power over Ethernet) Switches), By End-Use Industry (IT & Telecom, BFSI, Government & Defense, Industrial, Healthcare, and Others), and Regional Forecast, 2025 – 2032

The global Ethernet switch market size was valued at USD 41.80 billion in 2024. The market is projected to grow from USD 43.84 billion in 2025 to USD 68.04 billion by 2032, exhibiting a CAGR of 6.5% during the forecast period. Asia Pacific dominated the global market with a share of 40.67% in 2024.

An Ethernet switch, or network switch, is a piece of networking equipment that utilizes several ports to facilitate communication among devices within the Local Area Networks (LANs). The major players included in this market are Cisco Systems, Inc., Huawei, Hewlett-Packard, Arista Networks, Juniper Networks, H3C, Brocade Communications Systems, Inc., D-Link Corporation, Allied Telesis Holdings, and Alcatel-Lucent.

Ethernet switches are witnessing significant market growth mainly due to the rising need for simplified networking communication management and increasing demand for high-speed internet through consistent connectivity. The industry is undergoing a significant transformation driven by emerging technologies, including 5G. As reported by PatentPC, the uptake of 5G Internet is accelerating, with certain sectors experiencing a 50% year-over-year growth in subscribers. Additionally, the swift advancement of cloud networking combined with the increasing prevalence of virtualized technologies has led to market growth.

The COVID-19 pandemic impacted the demand for Ethernet switches both positively and negatively. While supply chain issues and economic uncertainty initially hampered growth, the accelerated shift to remote work, digitalization, and cloud adoption drove market expansion.

IMPACT OF GENERATIVE AI

Generative AI’s Integration in Ethernet Switches Improve its Network Management Capabilities

Generative AI is increasing the demand for Ethernet switches by facilitating automation, optimization, and improved security in network management for rising complexities associated with technologies such as IoT and edge computing. Furthermore, the demand for real-time processing in AI processes, high speed, and factors such as energy efficiency, cost reduction, and designing networks for the future are further boosting this integration.

IMPACT OF RECIPROCAL TARIFFS

Reciprocal tariffs have caused increased expenses and irregularity in the Ethernet switch industry, impacting manufacturers and consumers. Although certain areas address these challenges by enhancing local production, the general outcome is rising equipment costs, postponed investments, and a careful strategy toward network updates and expansions.

MARKET DYNAMICS

Ethernet Switch Market Trends

Increased Adoption of Software-Defined Networking (SDN)

Software-Defined Networking (SDN) technology enables organizations to effectively handle their networks by separating the control plane from the data plane. For example, the International Telecommunication Union (ITU) indicates that the SDN market is anticipated to experience considerable expansion in the upcoming years. The scalability and flexibility provided by SDN solutions allow companies to respond to varying network needs and improve resource allocation quickly.

Market Drivers

Rising Demand for High-Speed Internet Connectivity to Aid Market Growth

As the need for high-speed Internet connectivity, IoT, and an increasing number of connected devices rises, data transmission has become crucial. For instance, the International Telecommunication Union (ITU) predicts that global internet traffic will grow by 30% each year until 2025. This extraordinary demand for high-speed connectivity is mainly driven by the rise of connected devices and the growth of cloud services. Companies are increasingly aware of strong networking solutions to enhance operational efficiency and guarantee smooth data transfer.

Market Restraints

Rise in Technological Complexities to Hinder Market Expansion

Many switches now incorporate AI and ML capabilities for network optimization, requiring sophisticated firmware and security measures. Moreover, industrial and outdoor deployment demands switches that can bear extreme temperatures and physical shocks, which are complex in nature.

Market Opportunities

Increasing Data Volume across Enterprises to Amplify Demand for Advanced Ethernet Switches

The IT infrastructure has changed significantly with emerging technologies such as edge computing, AI, IoT, 5G, and machine learning applications. As the customer base and the number of applications expand, the volume of data has surged considerably. To manage these large data volumes, advanced network switches are essential for transferring information to servers and storage systems at greater bandwidth. According to Spacelift, Inc., approximately 2.5 quintillion bytes of data are created each day globally. By 2025, these data volumes are projected to reach 463 exabytes globally. Major companies, including Google, Facebook, Microsoft, and Amazon, each store a minimum of 1,200 petabytes of data. These trends are expected to increase opportunities for the Ethernet switches market in developing countries.

SEGMENTATION ANALYSIS

By Port Speed

Rising Need for Enhanced Features Provided by 1Gbps Boosted Segment Expansion

Based on port speed, the market is classified into 1 Gbps, 2.5 Gbps and 5 Gbps, 10 Gbps, 25 Gbps and 50 Gbps, 100 Gbps, and 200 Gbps and 400 Gbps.

From the point of view of share, the 1 Gbps segment dominated the market in 2024 due to its extensive use and compatibility with several tools and programs. It provides sufficient bandwidth for common network activities, including internet browsing, file sharing, video streaming, and VoIP services.

The 25 Gbps and 50 Gbps segment is expected to observe the highest CAGR throughout the forecast period. This segment's growth is driven by the fulfillment of multi-gigabit Ethernet for wireless connections and the requirement to accommodate advanced applications.

By Application

Carrier Ethernet Application Leads Owing to Increasing Demand for High-Bandwidth Connectivity across Various Sectors

Based on application, the market is sub-segmented into carrier Ethernet, enterprise and campus network, industrial networking, data centers, network security, and others.

Carrier Ethernet produced the highest revenue in 2024 due to rising demand for high-bandwidth connectivity across telecom, industrial, and transportation sectors. Moreover, the integration of AI for network automation and diagnostics further enhanced the capabilities of carrier Ethernet.

The data centers segment is anticipated to register the highest CAGR during the forecast period due to advanced digital services, surging data traffic, and high-performance network infrastructure requirements.

By Product Type

Fixed Configuration Switches Dominate with Their Cost-Effectiveness and Compact Design

Based on product type, the market is sub-divided into fixed configuration switches and modular switches.

In terms of share, in 2024, the fixed configuration switches segment dominated the market. Fixed configuration switches, unlike modular switches, allow for a more cost-effective and compact design. The increasing adoption of fixed switches in environments including small office networks, branch locations, and edge devices is positively impacting the growth of this segment globally.

The modular switches segment is expected to record the highest CAGR during the forecast period. Critical networks and data centers generally need to experience very few interruptions. Modular switches usually provide capabilities such as hot-swappable modules. This improves uptime and ensures network functionality by allowing users to swap out a defective module without interfering with network traffic. Consequently, the swift growth of data centers is driving the advancement of this segment.

By Technology

Layer 2 Switches Dominate Due to their Improved Compatibility with Intricate Networking

Based on technology, the market is categorized into layer 2 switches, layer 3 switches, and PoE (Power over Ethernet) switches.

In 2024, the layer 2 switches segment led the market share. This segment is gaining popularity due to its configurable features, such as VLAN support, link aggregation, and quality of service, making it a general option for companies with intricate networking requirements.

The PoE switches segment is expected to record the highest CAGR during the forecast period, driven by the increasing adoption of smart infrastructure, IoT devices, and enterprise digitization.

By End-Use Industry

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IT & Telecom Industry Dominates Due to Increasing Need for High-bandwidth Internet Services

Based on end-use industry, the market is separated into IT & telecom, BFSI, government & defense, industrial, healthcare, and others.

In terms of market share, IT & telecom was the largest end-use industry in 2024. The growing need for strong networking solutions to control mobile data traffic and high-speed internet services drives product demand in the telecommunications sector. The IT industry is also important, as companies gradually depend on networking infrastructure to support their cloud-based applications and operations.

The industrial segment is expected to register the highest CAGR during the forecast period due to the increasing need for remote monitoring, predictive maintenance, and real-time data transmission in industrial environments.

ETHERNET SWITCH MARKET REGIONAL OUTLOOK

By region, the market is divided into North America, Europe, South America, the Middle East & Africa, and Asia Pacific

Asia Pacific

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Asia Pacific held the largest Ethernet switch market share in 2024 fueled by the rise in population and economy, which increased the need for Ethernet switches to facilitate the growth of telecommunications, data centers, and cloud computing. Additionally, the government's funding for digital infrastructure and the increasing adoption of technology by both businesses and consumers are contributing to the region’s market growth.

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Several industries, including industrial, telecom, and healthcare, drive the demand for Ethernet switches in China. This demand is largely a result of the swift industrialization and urbanization trends contributing to the Ethernet switch market growth in China.

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North America

North America is anticipated to grow at the highest CAGR during the forecast period. This dominance can be attributed to the region's advanced technological infrastructure and growing embrace of networking solutions across various industries. Leading companies in the telecommunications and technology sectors, including large corporations and cloud service providers, create significant demand for Ethernet switches. The focus on digital transformation and smart city projects in the U.S. and Canada facilitates the ongoing implementation of enhanced networking technologies, ensuring that the region stays ahead in market developments.

Europe

Europe is projected to grow at the second-highest rate during the forecast period. The region's strong regulatory framework focused on data protection and privacy encourages companies to invest significantly in dependable networking technologies. Additionally, policies from the European Union designed to improve broadband availability and support the development of smart technologies aid in market expansion.

South America

The South American region has a smaller market presence. Expanding smart infrastructure projects and government initiatives have created a positive impact, while economic diversification could be challenging.

Middle East & Africa

The Middle East & Africa market is undergoing stable growth due to recent shifts in the local economy and initial government funding for research initiatives.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Notable Players to Implement Marketing Strategies to Expand Business Reach

Key players present in this market are offering Ethernet switches to provide users with enhanced network performance, security, and scalability. They focus on signing acquisition agreements with local and small companies to expand their business operations. In addition, mergers & acquisitions, partnerships, and notable investments will fuel the demand for this technology.

List of Companies Studied (including but not limited to)

• Cisco Systems, Inc. (U.S.)
• Huawei (China)
• Hewlett-Packard (U.S.)
• Arista Networks (U.S.)
• Juniper Networks (U.S.)
• H3C (China)
• Brocade Communications Systems, Inc. (U.S.)
• D-Link Corporation (Taiwan)
• Allied Telesis Holdings (U.S.)
• Alcatel-Lucent (France)
• TRENDnet (U.S.)
• Dell (U.S.)
• Moxa Inc. (Taiwan)
• Black Box Network Services (U.S.)
• Advantech Co., Ltd. (Taiwan)
• Belden Inc. (U.S.)
• Broadcom Inc. (U.S.)
• Intel Corporation (U.S.)
• Telefonaktiebolaget LM Ericsson (Sweden)
• Fortinet, Inc. (U.S.)

…and more.

KEY INDUSTRY DEVELOPMENTS

• May 2025: MaxLinear, Inc., a player in wired networking solutions, revealed that DrayTek, a manufacturer of high-performance networking devices, has chosen the MxL86282S and MxL86252S 2.5G Ethernet Switch SoCs for its 7-port and 10-port switches.
• December 2024: Arista Networks, a cloud and AI networking solutions supplier, revealed enhancements that allow customers to create scalable and robust campus networks. Arista has unveiled the Switch Aggregation Group (SWAG) feature in Arista EOS, which utilizes industry-standard Ethernet to cluster and control multiple switches through a single IP address.
• August 2024: Advantech, a supplier of industrial IoT solutions, unveiled its latest modular Ethernet switch, the EKI-8528. This switch aims to improve connectivity and network management in power utility operations and digital substations.
• January 2024: Fortinet, a key player in cybersecurity focusing on merging networking and security, unveiled a secure networking solution incorporating Wi-Fi 7 technology. The FortiAP 441K, Fortinet’s inaugural Wi-Fi 7 access point, offers enhanced speed and capacity. At the same time, the new FortiSwitch T1024 is designed specifically with 10 Gigabit Ethernet access and 90W PoE capabilities to meet the bandwidth demands of Wi-Fi 7.
• March 2023: Allied Telesis, a key participant in connectivity solutions and intelligent networking tools, launched the IE220 Series of industrial-grade switches designed to withstand and perform reliably in challenging environments, including those encountered in OT networks and outdoor setups.

INVESTMENT ANALYSIS AND OPPORTUNITIES

Strategic partnerships and acquisitions in emerging geographies should be critical focuses for major enterprises in the Ethernet switch market, along with AI, cloud, and high-speed managed switches aimed at deep learning algorithms. Focusing on security, sustainability, and modular design will help capture growth opportunities and address evolving market demands. For instance,

• In April 2025, Infineon Technologies AG enhanced its system capabilities for software-defined vehicles by acquiring Marvell Technology’s Automotive Ethernet division, complementing and broadening its microcontroller offerings. This acquisition will bolster Infineon’s solid presence in the U.S., which includes significant R&D efforts. Ethernet is a vital technology that enables low-latency, high-bandwidth communication and is essential for software-defined vehicles.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and the leading end-use industry. Besides, it offers insights into the Ethernet switch market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several aspects that have contributed to the market's growth in recent years.

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REPORT SCOPE & SEGMENTATION