Global Server and Switching Equipment Market to Reach USD 237.5 Billion by 2034, Driven by 7.6% CAGR

Server and Switching Equipment Market
Server and Switching Equipment Market

 

The global server and switching equipment market is poised for significant growth, driven by rising demand across various end-use sectors. With a projected CAGR of 7.6% over the forecast period, the market is expected to expand from USD 114.4 billion in 2024 to USD 237.5 billion by 2034. This growth is fueled by increasing data center deployments, cloud computing adoption, and advancements in networking technologies. The surge in AI-driven workloads, edge computing, and the expansion of hyperscale data centers further contribute to the escalating demand for high-performance servers and switching equipment, making this sector a crucial component of the digital economy.

As businesses worldwide accelerate their digital transformation, the need for robust and scalable IT infrastructure is fueling investments in next-generation server and switching solutions.

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Key Market Drivers

  1. Rise of Cloud Computing and Data Centers
    With businesses shifting operations to the cloud, major cloud service providers (CSPs) like AWS, Microsoft Azure, and Google Cloud are expanding their data center footprints. Hyperscale data centers are deploying high-density servers and advanced switching equipment to support dynamic workloads and ensure seamless connectivity.

  2. Increasing 5G and Edge Computing Deployment
    The rapid rollout of 5G infrastructure is amplifying demand for low-latency networking solutions. Edge computing, which processes data closer to the source, requires compact and efficient switching solutions to enhance real-time processing and minimize latency.

  3. AI and Machine Learning Workloads
    AI-driven applications require high-performance computing (HPC) servers and advanced networking equipment to manage vast datasets and real-time analytics. Enterprises are investing in GPU-accelerated servers and high-bandwidth switches to optimize AI workloads.

  4. Cybersecurity and Network Resilience
    As cyber threats become more sophisticated, businesses are prioritizing secure and resilient network infrastructures. Switching equipment with enhanced security protocols, encryption features, and AI-powered threat detection is gaining traction to safeguard mission-critical operations.

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Future Outlook and Industry Trends

Looking ahead, software-defined networking (SDN) and network function virtualization (NFV) are transforming how enterprises manage IT infrastructure. Automation and AI-driven network optimization will play a crucial role in enhancing scalability and efficiency. Additionally, green data centers and energy-efficient networking solutions are gaining prominence, aligning with global sustainability initiatives.

As digital connectivity continues to evolve, the server and switching equipment market is expected to witness sustained innovation and investment, driving the next phase of IT infrastructure modernization.

Leading players in the market include:

  • Hewlett Packard Enterprise (HPE)
  • Dell Technologies
  • Cisco Systems
  • IBM
  • Lenovo
  • Supermicro
  • Fujitsu
  • Huawei Technologies
  • Netgear
  • Arista Networks
  • MikroTik
  • ZTE Corporation
  • TP-Link

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Key Segments of Market Report

By Type of Equipment:

In terms of type of equipment, the industry is segmented into servers (rack servers, blade servers, tower servers, micro servers, high-density servers) and switching (fixed configuration switches, managed switches, unmanaged switches, PoE switches, modular switches).

By Data Transfer Rate:

By data transfer rate, the industry is divided into 1G Ethernet, 10G Ethernet, 25G Ethernet, 40G Ethernet, 100G Ethernet, 200G & 400G Ethernet.

By Deployment Type:

By deployment type, the industry is segmented into On-Premise, Cloud-Based, Public Cloud, Private Cloud, Hybrid Cloud, and Edge Computing.

By Port Density:

By port density, the industry is segmented into low port density (Up to 24 Ports), medium port density (25-48 Ports), and high port density (Above 48 Ports).

By End User:

By end user, the industry is segmented into IT & Telecommunications, Banking, Financial Services, and Insurance (BFSI), Healthcare, Government, Retail, Manufacturing, Energy & Utilities, Education, Transportation & Logistics, and Media & Entertainment.

By Region:

Regions considered in the study are North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa.

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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. Join us as we commemorate 10 years of delivering trusted market insights. Reflecting on a decade of achievements, we continue to lead with integrity, innovation, and expertise.

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About the Author

Nikhil Kaitwade

Associate Vice President at Future Market Insights, Inc. has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.

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