The multi-gigabit switch market is projected to grow at a CAGR of 6.48% over the forecast period, increasing from US$958.566 million in 2025 to US$1,312.350 million by 2030.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
Multi-gigabit switches are network switches that support multi-gigabit Ethernet speeds. These switches, which have multi-gigabit ports and can handle higher bandwidth requirements, serve as essential components for building robust and future-proof networks. Booming high-speed network connectivity has emerged as a significant driving force behind the substantial growth of the multi-gigabit switch industry. The market is constantly evolving with advancements in Ethernet standards, moving from 10G to faster speeds like 25G and 40G. Additionally, integrating emerging technologies such as artificial intelligence (AI) and machine learning is enhancing switch capabilities and improving network performance and efficiency.
Increasing awareness of the possible economic and social benefits of developing and applying AI is spreading globally. For example, it is estimated that 26% of China’s and 10% of the U.K.'s GDPs will be sourced from AI-related activities and businesses in 2030. The increasing adoption of cloud computing necessitates high-speed connectivity for data transfer and access to cloud services. The growth of data centers, driven by the need to store and process massive amounts of data, also creates a strong demand for high-bandwidth infrastructure. In this regard, as of July 2024, China has rolled out an action plan for the green development of data centers, providing a set of targets to hasten the sector’s low-carbon transition.
Some of the key market players are Net Gear, TP-Link Corporation Limited, Cisco, D-Link Corporation, etc. Cisco offers Cisco Catalyst C1000-48T Ethernet and Cisco Catalyst 4500-X WS-C4500X, among others. D-Link Corporation is offering 5-Port 2.5G Multi-Gigabit Desktop Switch, 8-Port 2.5G Multi-Gigabit Desktop Switch, etc.
The rising adoption of cloud computing is a key driver for the multi-gigabit switch market growth. As businesses increasingly rely on cloud services for storage, computing, and collaboration, the amount of data transferred to and from the cloud increases significantly. This necessitates higher bandwidth connections to ensure fast and reliable data transfer.
The U.S. government spent over $100 billion on information technology (IT) in fiscal year 2022, despite spending more than $12 billion on cloud services. A large chunk of money was spent on maintaining legacy systems with higher exposure to hacking, and whose maintenance is costly.
Additionally, according to a report by Oliver Wyman and NASSCOM, India's public cloud spending has the potential to expand at a CAGR of 27% over the next five years (2022 onwards) because of increased spending in IaaS and PaaS services in line with global markets
The multi-gigabit switch is at the leading edge of high-speed network connectivity, serving as a critical infrastructure component for organizations dealing with ever-increasing data demands. This advanced networking device outperforms the standard 1 Gigabit per second speed, providing a variety of faster data transfer rates, including 2.5 Gbps, 5 Gbps, and 10 Gbps. The increasing demand for high-speed network connectivity is fuelling the demand for multi-gigabit switches. For instance, PLANET Technology Communication’s “MGS-910X” multigigabit Ethernet switch is a cost-effective switch with eight 10/100/1G/2.5GMbps ports and one 10GBASE-X SFP+ uplink port, allowing to enter the 2.5G generation and high-speed network connectivity on an affordable basis.
Multi-gigabit switches are essential for providing the wired infrastructure necessary to support these high-speed wireless connections. With the adoption of Wi-Fi 6, wireless access points can deliver multi-gigabit wireless speeds. The introduction of the latest generation of Wi-Fi Certified 6TM marked the start of a new era for Wi-Fi, and regulators around the world are allocating new spectrum in the 6 GHz band for unlicensed use, establishing the way for Wi-Fi 6E to deliver an ever-increasing number of benefits to businesses and consumers.
Multi-gigabit switches play a vital role in Ethernet standards. The support for 2.5GBASE-T and 5GBASE-T technologies in the multi-gigabit switch market is growing, considering these options provide a balance between increased speed, cost-effectiveness, and compatibility, making them attractive solutions for organizations seeking to enhance their network capabilities gradually and efficiently.
The multi-gigabit managed switch market is poised for significant growth, driven by the increasing demand for high-speed network infrastructure across various sectors. This market segment, which encompasses switches capable of supporting data transfer rates from 1 Gbps to 100 Gbps and beyond, has become essential in modern enterprise networks, data centers, and service provider environments. The growth is primarily attributed to the exponential rise in data traffic and the complexity of network environments as organizations undergo digital transformation.
As businesses increasingly adopt cloud computing and data-intensive applications, the need for efficient, manageable switches has surged. Multi-gigabit managed switches provide the necessary speed, capacity, and control features to handle massive data flows generated by IoT devices and multimedia content while allowing network administrators to optimize performance and enhance security.
Key growth drivers include the proliferation of virtualization technologies, such as server virtualization and software-defined networking (SDN), necessitating high-performance managed switches that support dynamic configurations. Additionally, the rapid adoption of cloud services has intensified both north-south and east-west traffic within data centers. This shift has created a demand for switches to efficiently manage this increased traffic while providing granular control over network resources.
Furthermore, as organizations invest in advanced networking solutions to support their digital transformation initiatives, there is a growing trend towards programmable and software-defined switches that offer enhanced visibility and control.
Small businesses are becoming more dependent on bandwidth-intensive applications such as video conferencing, cloud collaboration tools, and streaming services. These applications require much more bandwidth than traditional applications, and thus, multi-gigabit switches are a must. By providing the necessary bandwidth, multi-gigabit switches ensure smooth and efficient operations for small businesses, allowing them to communicate effectively and maintain a competitive edge.
As per the Annual Report of MSME (Government of India), there were 3.31 lakh small enterprises in India in 2023, of which 2.53 lakh were in urban areas and 0.78 lakh were in rural areas.
The demand for multi-gigabit switches in the small business market has also been significantly affected by the rise of cloud computing. Small businesses increasingly adopt cloud-based services for email, storage, and other applications.
Cloud computing requires high-speed connectivity to ensure fast and reliable access to cloud resources. Multi-gigabit switches provide the necessary bandwidth to support these cloud-based operations, enabling seamless integration with cloud services and enhancing business agility. Government Cloud (G-Cloud) is a UK government initiative to ease procurement of cloud services by government departments, encouraging the adoption of cloud computing at a government-wide level.
Another trend is increased demand for fast internet connectivity for remote work, particularly at home offices. High-bandwidth applications like video conferencing, file sharing, and others used by employees working from anywhere can be supported with multi-gigabit switches.
Japan is one of the most developed economies regarding Internet penetration. Japan's usage rate for the Internet (persons) is 82.9%, while the optical fiber development rate is 99.3%. There are 43.8M broadband subscribers, out of which there are 36.6M FTTH subscribers and 6.5M CATV Internet subscribers, while mobile broadband subscribers for 4G and 5G are 184M. Moreover, in the EU, the share of households with internet access was 94% in 2024, up from 80% in 2014.
Additionally, more small businesses are adopting IoT devices and smart office technologies such as smart security systems, smart lighting, and environmental sensors. These devices collect significant amounts of data, so efficient data collection and processing can be achieved by these devices using high-speed network connectivity. Multi-gigabit switches allow businesses to reap the rewards of IoT and smart office technology with increased network traffic generated from such devices.
North America currently holds the largest share of the global multi-gigabit switch market due to factors such as the increase in cutting-edge technology and increasing demand for high-speed networks. Additionally, the governments of the US and Canada’s investments in high-speed connectivity are also one of the driving factors of the multi-gigabit switch market For instance, in June 2023, The Biden-Harris Administration announced a $40 billion investment to connect everyone in America to affordable, dependable, high-speed internet and another $2 billion for the Tribal Broadband Connectivity Program, which offers grants to officially recognized tribal governments, tribal organizations, tribal universities, and colleges.
The multi-gigabit switch market in the United States has witnessed remarkable growth, reflecting the increasing demand for high-speed connectivity across various sectors. The proliferation of data-intensive applications, fuelled by trends such as cloud computing, IoT, and the rise of remote work, has created an urgent need for advanced networking solutions that can handle higher bandwidth requirements. Multi-gigabit switches, which support speeds ranging from 2.5 Gbps to 10 Gbps and beyond, are essential for organizations looking to enhance their network infrastructure and ensure efficient data transfer.
One of the primary growth drivers in the U.S. market is the rapid adoption of Wi-Fi 6 technology, necessitating the deployment of multi-gigabit switches to support its enhanced performance capabilities. This technology enables faster wireless connections and increased device density, further driving the demand for switches that can manage these higher speeds effectively.
Additionally, significant government investments in broadband infrastructure are propelling market growth. For instance, the Biden-Harris Administration's commitment of $40 billion towards expanding high-speed internet access across the country underscores a strategic focus on improving connectivity in both urban and rural areas. These initiatives foster greater access and stimulate demand for advanced networking equipment like multi-gigabit switches. Moreover, major players in the U.S. technology landscape, including cloud service providers and large enterprises, contribute to a thriving ecosystem for multi-gigabit switch deployment. These organizations require scalable and high-performance networking solutions to support their operations, particularly as they migrate more services to the cloud and expand their data center capabilities.
The increasing number of data centers driven by hyperscalers such as Amazon Web Services (AWS), Google Cloud, and Microsoft also plays a crucial role in this growth trajectory. These entities are continuously seeking ways to enhance their network efficiency and capacity, further boosting demand for multi-gigabit switches.
Cost considerations play a vital role in the adoption of multi-gigabit switches within the networking market. Organizations considering integrating these high-speed solutions must carefully consider various cost factors to ensure a balanced investment. The deployment of multi-gigabit switches can be associated with higher costs compared to traditional networking solutions. It is important to note that the specific cost considerations may vary based on the size of the deployment, industry requirements, and the organization's unique needs.
| Report Metric | Details |
| Multi-Gigabit Switch Market Size in 2025 | US$958.566 million |
| Multi-Gigabit Switch Market Size in 2030 | US$1,312.350 million |
| Growth Rate | CAGR of 6.48% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Million |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Multi-Gigabit Switch Market |
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| Customization Scope | Free report customization with purchase |