Report Overview
Cloud-Managed Switch Market Size, Highlights
The cloud-managed switch market is estimated to grow at a CAGR of 7.29% during the forecast period.
Cloud-managed switches are network switches that can be remotely managed and configured using a cloud-based platform. They provide numerous advantages, such as simplified management, reduced complexity, and network-wide visibility and control. Such switches are used in small and medium businesses, in healthcare, education, and hospitality sectors as well. Small enterprise establishments and technology advancement have emerged as a significant driving force behind the substantial growth of the cloud-managed switch market.
Market Drivers
- Surging small business establishments bolster cloud-managed switch market growth.
Cloud-managed switches are ideal for businesses that have limited IT resources or remote locations because they can be managed and configured remotely via a cloud-based platform. Growing MSME establishments and favorable initiatives to bolster their performance are expected to boost market demand for cloud-managed switches. For instance, according to a December 2022 PIB press release, the Ministry of Micro, Small, and Medium Enterprises aims to improve the productivity and competitiveness of Micro and Small Enterprises (MSEs) by providing financial assistance for the establishment of Common Facility Centers (CFCs). From 01.01.2022 to 30.11.2022, 24 projects with a total project cost of Rs. 513.4 crore and GoI assistance of Rs. 364 crore were approved, and 5 projects were completed.
- The rise in data center establishment drives cloud-manged switch market growth.
The increasing workload in data centers demands effective solutions to manage and streamline their operations, making cloud-managed switches an appealing option for businesses and organizations. The increased demand for cloud services, growing bandwidth requirements, and the need for network security are anticipated to bolster the market growth. For instance, in September 2022, NTT Corporation announced a 40 billion yen investment through NTT Global Data Centers Corporation in the construction of a new "Keihanna Data Center” in Kyoto.
- Booming advanced security features drive the cloud-managed switch market expansion.
Cloud-managed switches provide advanced network security features such as integrated security systems, access policies, and end-to-end encryption, allowing for a more comprehensive approach to network security. Cloud-managed switches are an appealing option to organizations looking for robust and easily manageable network components. Due to their advanced security features, there is booming demand for such cloud-managed switches in different organizations which drives a signification growth of the cloud-managed switch market.
North America is anticipated to hold a significant share of the cloud-managed switch market.
North America is projected to account for a major share of the cloud-managed switch market owing to the region’s robust growth in the establishment of data centers and numerous investments in high-speed connectivity. The addition of 5G networks is projected to improve cloud computing speed and reliability, with cloud switches playing a key role in the regional market growth. The U.S. government is initially investing to increase internet connectivity access and low latency to their end-users. For instance, in June 2023, the National Telecommunications and Information Administration (NTIA) revealed $930 Million to expand middle-mile high-speed internet connections across 35 states and Puerto Rico as part of President Biden's Investments in America agenda. The Enabling Middle Mile Broadband Infrastructure Program is part of the Biden-Harris Administration's Internet for All initiative, which makes investments in projects that build local connections that link to national Internet networks.
Market Challenges
- Migration Complexity will restrain the cloud-managed switch market growth.
Cloud-managed switches provide several benefits to businesses and organizations, but the migration complexity of cloud-managed switches will limit the industry's growth. The migration process can be difficult, particularly for organizations with complex existing IT architectures or those unfamiliar with cloud technologies. Proper planning and execution are essential for a smooth migration with minimal interruptions or disruption.
Market Developments
- September 2023- Dahua Technology, a globally recognized video-centric AIoT solution and service provider, launched its cloud-managed switches to improve network connectivity via a single robust platform, allowing quick deployment, effortlessly configuration, efficient maintenance, and PoE 2.0 transmission. The Dahua Cloud Managed Switches efficiently tackle challenges due to their compatibility with the DoLynk Care cloud platform, a professional and dependable platform that allows users to remotely maintain their client's sites at any time and from any location.
Company Products
Cloud-Managed Switch Market Scope:
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR of 7.29% from 2022 to 2029 |
| Base Year | 2022 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered |
|
| Companies Covered |
|
| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Customization Scope | Free report customization with purchase |
Segmentation
- By Type
- Unmanaged
- Managed
- By Enterprise Size
- Small
- Medium
- Large
- By Application
- Voice VLAN
- PoE
- Others
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- UK
- France
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Others
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Others
- North America