PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1425150
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1425150
The multi-gigabit switch market was valued at US$793.261 million in 2022 and is expected to grow at a CAGR of 6.49% during the forecast period.
Multi-gigabit switches are network switches that support Multi-Gig 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.
Market Drivers
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.
North America is expected to account for a considerable market share.
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.
Market Challenges
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.
Market Developments
Company Products
Segmentation
Not an exhaustive list