Managed Switches Market

Managed Switches Market Outlook (2024 to 2034)

The global managed switches market is analyzed to increase from a value of US$ 20.45 billion in 2024 to US$ 43.34 billion by the end of 2034. Worldwide sales of managed switches have been evaluated to rise at 7.8% CAGR from 2024 to 2034.

Advancements in networking technology, increasing demand for high-performance and secure networks, and focus on the establishment of data centers and enterprise network expansion are primarily contributing to market growth. Since the 1960s, Ethernet has been a standard technology for computer networks. It is widely used by household and office LANs owing to its user-friendliness and has become deeply integrated into networking. Ethernet switches differ in types, such as unmanaged and managed network switches as well as smart switches.

Unlike unmanaged switches, managed Ethernet switches are more capable of handling extra network loads. However, they require a skilled engineer or administrator to make the most of them. Managed switches enable better control of the data frames and networks moving through switches. The use of managed switches in process automation (PA) and factory automation (FA) for industrial applications is growing at a significant pace.

Conventional switches are believed to be unable to endure the harsher industrial usage environment, which includes active gases, dust, and humidity, as compared to the office environment. With the growing trend of digitization, usage of managed switches is increasing owing to rising penetration in residential end use.

Key Market Growth Drivers

• Network settings are becoming increasingly complex as companies expand their digital infrastructure, necessitating efficient network administration tasks such as traffic control, monitoring, and optimization, which managed switches provide.
• The key factor driving managed switch market growth is the rapid expansion of data centers, spurred by the rise of big data analytics, cloud computing, and internet services.
• Demand for managed switches is rising at a significant pace because they fulfill data centers' needs for high-performance, dependable, and scalable networking solutions with their feature-rich functionality and robust performance.
• Surging global use of Internet of Things (IoT) devices and smart technologies is also driving the need for effective network management, further propelling market expansion.
• Managed switches enable the integration of numerous connected devices into IoT networks by providing seamless connectivity and data management.
• Network security is becoming increasingly important for enterprises due to the heightened risk of cyberattacks and data breaches.
• Managed switches offer advanced security features such as network segmentation, access control lists (ACLs), and virtual local area networks (VLANs), which help protect sensitive information by preventing unauthorized access.
• Businesses undergoing digital transformation require reliable and high-performance networking solutions to support remote work, corporate operations, and the growing use of digital applications, where managed switches deliver reliability, control, and bandwidth.

Report Attribute	Detail
Managed Switches Market Size (2024E)	US$ 20.45 Billion
Forecasted Market Value (2034F)	US$ 43.34 Billion
Global Market Growth Rate (2024 to 2034)	7.8% CAGR
North America Market Share (2024E)	25.5%
East Asia Market Value (2024E)	US$ 4.7 Billion
Offline Segment Value (2034F)	US$ 34.68 Billion
Less than 500 Mbps Segment Value (2034F)	US$ 13 Billion
Key Companies Profiled	Huawei Technologies; Juniper Networks; NVIDIA Corporation; Dell Technologies; Larch Networks; IP Infusion; Cisco Systems; Arista Networks; Alcatel-Lucent; Brocade Communication Systems, Inc.; Honeywell International.

How is Use of Managed Switches Helping Organizations?

“Managed Switches Ensuring Business Continuity and Efficient Disaster Recovery Planning”

Increasing end-user devices and virtualization are adding complexity to data centers. Business organizations aiming to expand geographically need to implement efficient data center networking management techniques.

Conventional data center management methods struggle to adapt to rapidly evolving security threats and new market technologies. To address these issues, more businesses are adopting managed switches to enhance data center security and agility. Another factor driving the managed switches market is their benefits for business continuity and disaster recovery planning.

Managed switches support business continuity and recovery plans, including storage transport and metro Ethernet, for both small and large businesses. Adoption of software-defined networking (SDN), where network administrators manage services by abstracting lower-level functionalities, is a significant managed switches market trend.

What is Restraining the Application of Managed Switches Slightly?

“Lack of Trained Professionals and High Costs Involved in Maintaining & Updating Managed Switches”

Lack of trained professionals to implement managed switches is restraining the growth of this market. Due to the costs involved in maintaining and updating network resources, businesses are hesitant to deploy managed switches. Although no electronic device can be 100% efficient, maximizing output and performance is crucial, and managed Ethernet switches are no exception. The complexity of the design process remains a significant challenge.

Even when gigabit-managed switch ports are not actively operational, they consume a certain amount of power, leading to higher operational costs. The high costs associated with complex designs and high energy consumption are impeding the expansion of the managed switches market size.

Country-wise Insights

In 2024, North America is estimated to lead with 25.5% of the global managed switches market share. However, the East Asia region is forecast to surpass the revenue share of North America by 2034 and is projected to hold 25.8% of the market share.

Why is Adoption of Managed Switches High in the United States?

“Rising Investments in IT Infrastructure Driving Innovation in Home Connectivity Technologies”

Attribute	United States
Market Value (2024E)	US$ 2.32 Billion
Growth Rate (2024 to 2034)	7.7% CAGR
Projected Value (2034F)	US$ 4.86 Billion

Increasing IT infrastructure spending and the growth of network operating companies are two primary factors influencing technological advancements in the United States. Rising demand for smart homes is driving innovation in home connectivity technologies, with smart-managed switches supporting this trend through their robust connectivity features.

Smart-connected homes rely on advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI), which consist of digital network connections linked through managed switches. As consumers increasingly seek to integrate connectivity into their lifestyles, the demand for smart home technology is growing, thereby expanding the application opportunities for managed switches.

What Purpose Do Managed Switches Mainly Serve in South Korea?

“Use of Managed Switches in Smart City Projects for QoS Prioritization and Remote Administration”

Attribute	South Korea
Market Value (2024E)	US$ 1.04 Billion
Growth Rate (2024 to 2034)	9.5% CAGR
Projected Value (2034F)	US$ 2.58 Billion

Use of managed switches is increasing in South Korea due to the growth of smart city projects. Smart traffic management systems, IoT sensors, and surveillance systems are examples of advanced technologies being integrated into these initiatives. For smart city solutions to work and provide the desired benefits, these diverse systems must exchange data and communicate seamlessly. The reliable and scalable network infrastructure that managed switches offer is essential for facilitating this interconnectedness.

Managed switches, with their sophisticated features such as security protocols, quality of service (QoS) prioritization, and remote administration capabilities ensure dependable and efficient data transfer across the various components of smart cities.

Category-wise Insights

Based on layer type, the market is segmented into layer 2 and layer 3. Layer 3 switches are versatile devices offering scalable performance, extensive functionality, and a variety of ports, allowing for the design of custom, cost-effective solutions. Unlike layer 2 managed switches, layer 3 switches are suitable for networks of all complexities, whether they are simple, highly complex, horizontally integrated, or vertically integrated, across all levels.

Why are Offline Channels preferred for Deployment and Management of Managed Switches?

“Offline Channels Offering Personalized Assistance in Specialty and Electronic Device Stores”

Attribute	Offline
Segment Value (2024E)	US$ 18 Billion
Growth Rate (2024 to 2034)	6.8% CAGR
Projected Value (2034F)	US$ 34.68 Billion

Sales of managed switches are higher through offline channels compared to online ones. Because managed switches are intricate networking equipment, professional advice and consultation are necessary when making a purchase. Specialty stores and electronic device stores, which are examples of offline channels, offer personalized assistance, product demos, and custom solutions tailored to the specific needs of businesses. This level of expertise and hands-on support is highly valued by enterprises and organizations deploying managed switches in mission-critical environments.

Offline channels provide various services such as installation, configuration, and maintenance, which are crucial for the seamless deployment and ongoing management of managed switches.

How are Managed Switches with Speeds under 500 Mbps Benefiting Small Enterprises?

“Cost-effectiveness and Compatibility with Existing Systems and Infrastructure”

Attribute	Less 500 Mbps
Segment Value (2024E)	US$ 7.16 Billion
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 13 Billion

Sales of managed switches with speeds less than 500 Mbps are increasing because they are budget-friendly, suitable for small-scale implementations, and compatible with existing systems. These managed switches are a cost-effective option for many small enterprises, home offices, and remote sites that do not require higher bandwidth capabilities. Higher speeds may also not be supported by outdated systems or infrastructure, maintaining the demand for these switches as a compatible option.

Managed switches with speeds less than 500 Mbps provide the necessary capabilities and connections for specific applications, such as IoT networks or industrial settings with low throughput needs, while keeping costs under control.

Competitive Landscape

Key players in the managed switches industry are focused on vertical integration to overcome the price volatility created by imbalanced supply-demand dynamics. Moreover, upstream activities in the market are highly capital-intensive, which limits the entry of new entrants. This, in turn, creates higher relative margins managed by switch suppliers.

• In June 2024, Layer 3 (L3) managed switches were introduced by TP-Link UK under its B2B networking brand, Omada. The software-defined networking (SDN) solution from Omada is enhanced by these switches, which meet the networking requirements of medium-sized companies that demand high availability, scalability, and dependability.
• In March 2024, Belden Inc., a global leader in network infrastructure and digitization solutions, announced the availability of Lumberg Automation's BEETLE Single Pair Ethernet (SPE) Lite Managed Switch. The new BEETLE switch, part of Belden's Single Pair Ethernet portfolio of connectivity products, enables organizations to reduce network complexity by deploying thinner, lighter SPE cables that provide connectivity via a single pair of wires rather than the two or four pairs required by standard Ethernet.
• In January 2024, to assist highly dispersed corporate enterprises in achieving better network connection, security, and application performance, Extreme Networks, Inc. unveiled two new solutions. With its ability to handle high-bandwidth, latency-sensitive apps and Internet of Things devices, the AP5020 is a new Wi-Fi 7 Universal Access Point (AP) that runs on the 6 GHz spectrum. This makes it possible for businesses to modernize and manage their operations more effectively.
• In January 2024, a new line of small, user-friendly unmanaged industrial Ethernet switches from Westermo was introduced. Westermo's managed switch line is enhanced with the affordable, plug-and-play SandCat five-port fast Ethernet switch series, which is designed for industrial use. These adaptable devices, which support 100 Mbit/s, were created to satisfy the growing bandwidth, dependability, and network complexity requirements of the energy, industrial, utilities, and maritime sectors.
• In September 2023, Hikvision introduced a new generation of Smart Managed Switches, which, when combined with the Hik-Partner Pro mobile app, allow installers to remotely deploy and configure security systems with extensive operation and maintenance capabilities. This new generation of smart managed switches has a strong architecture that includes 6 KV surge protection for PoE ports. The portfolio includes anything from low-cost 100 Mbps switches to powerful Gigabit switches designed specifically for SMB applications.
• In April 2022, NETGEAR announced the introduction of smaller M4250 desktop switches to enable quick installation in a variety of applications with limited space, as well as the new NETGEAR Engage Controller application.
• In June 2022, Cisco started providing users of catalyst switches with three steps along the path to the cloud: cloud monitoring capabilities for some catalyst switches, cloud-manageable Wi-Fi 6E access points for some catalyst wireless devices, and fully cloud-managed access networks combining catalyst switches and Meraki cloud management.

Fact.MR provides detailed information about the price points of key manufacturers of managed switches positioned across the world, sales growth, production capacity, and speculative technological expansion in this updated market report.

Segmentation of Managed Switches Market Research

• By Number of Ports :

  • Less than 8
  • 8 to 16
  • 16 to 24
  • 24 to 48
  • Above 48

• By Switch Speed :

  • Less than 500 Mbps
  • 500 Mbps to 1 Gbps
  • 1 to 10 Gbps
  • 10 to 50 Gbps
  • Above 10 Gbps

• By Layer Type :

  • Layer 2
  • Layer 3

• By Switch Type :

  • Stackable Managed Switches
  • Standalone Managed Switches

• By Device Type :

  • PoE
  • Non-PoE

• By Sales Channel :

  • Online Sales
    • Company-based Websites
    • e-Commerce Platforms
  • Offline Sales
    • Specialty Stores
    • Electronics Device Stores

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa