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