DUBLIN: The "Artificial Intelligence (AI) Data Center Switches - Global Strategic Business Report" report has been added to ResearchAndMarkets.com's offering.

The global market for Artificial Intelligence (AI) Data Center Switches was valued at US$4.0 Billion in 2024 and is projected to reach US$19.0 Billion by 2030, growing at a CAGR of 29.9% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.

Artificial Intelligence (AI) data center switches are becoming foundational components in modern computing infrastructure due to the increasing volume, velocity, and complexity of data processed by AI applications. These switches are responsible for routing vast amounts of information across high-speed networks with ultra-low latency, enabling real-time data processing and seamless communication between thousands of AI workloads running on interconnected servers, GPUs, and storage arrays.

Unlike traditional data center switches, AI-optimized switches are designed to handle the intense data flow generated by deep learning models, training algorithms, and inferencing systems that demand consistent high throughput and deterministic performance. As organizations across sectors adopt AI for use cases like image recognition, language modeling, fraud detection, and predictive analytics, the need for purpose-built networking solutions that support parallel computing and distributed architectures has grown exponentially.

What Is Fueling the Long-Term Growth of the AI Data Center Switches Market Globally?

The growth in the AI data center switches market is driven by several converging factors that reflect the broader transformation of the digital economy. The surging demand for AI-powered services in areas such as natural language processing, autonomous systems, fintech, healthcare diagnostics, and real-time content recommendation is placing enormous strain on existing data infrastructure. This, in turn, is creating unprecedented demand for data center switches that can support ultra-high bandwidth, low-latency, and scalable interconnectivity.

The shift from traditional CPU-centric computing to accelerated computing using GPUs, TPUs, and AI chips is amplifying the need for networking hardware that can handle the massive east-west traffic generated during model training and inference. Another key growth driver is the investment boom in hyperscale data centers by tech giants and governments alike, particularly in regions such as North America, Europe, and Asia-Pacific. These facilities are designed to host AI workloads at scale and rely heavily on high-capacity switching fabrics to maintain performance and uptime. Meanwhile, the growing emphasis on sovereign data policies and digital infrastructure autonomy is encouraging national investments in local AI data centers, further stimulating switch demand.

Technological advancements such as the adoption of 400G and 800G Ethernet, quantum-ready architectures, and network disaggregation are accelerating product development and deployment cycles. In parallel, enterprises are increasingly embracing AI for business process optimization, creating demand for switches that are both enterprise-ready and AI-optimized. Continuous improvements in software-defined networking, security integration, and operational automation are also contributing to market momentum. As AI becomes embedded in nearly every aspect of business, government, and society, the critical role of data center switches as enablers of AI performance, scalability, and reliability ensures their continued and robust global market growth.

How Do Market Demands, Cloud Expansion, and Ecosystem Interoperability Influence Product Development?

The demand for AI-capable data center switches is being strongly influenced by the rapid expansion of cloud computing, the proliferation of AI-as-a-service platforms, and the growing emphasis on open and interoperable ecosystems. Major cloud service providers including Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud are scaling their AI infrastructure at unprecedented rates, building out hyperscale data centers that require dense, high-speed, and highly reliable switching solutions.

These providers are setting the benchmark for performance, cost-efficiency, and energy optimization, which drives innovation across the broader market. As enterprises seek to adopt private and hybrid cloud models to support their own AI initiatives, vendors must ensure that their switches can integrate smoothly with heterogeneous environments and diverse compute and storage platforms. Open networking standards, including those promoted by the Open Compute Project (OCP) and SONiC (Software for Open Networking in the Cloud), are becoming increasingly important for buyers looking to avoid vendor lock-in and to deploy customizable, software-defined networking solutions.

Moreover, growing concerns around energy consumption and sustainability are prompting manufacturers to develop switches with reduced power usage per gigabit transferred, enhanced thermal efficiency, and built-in support for monitoring environmental impact. Emerging edge AI applications such as autonomous vehicles, smart cities, and industrial automation are creating new requirements for compact, ruggedized switches that can deliver enterprise-grade performance outside the traditional data center environment. The convergence of AI, cloud, and edge computing is pushing vendors to prioritize interoperability, scalability, and automation in their product roadmaps. This market dynamic ensures that data center switches are not only high-speed conduits for information but also programmable and intelligent components that are tightly integrated into the broader digital infrastructure ecosystem.

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Huawei Technologies and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the InfiniBand Switch segment, which is expected to reach US$11.1 Billion by 2030 with a CAGR of a 26.8%. The Ethernet Switch segment is also set to grow at 35.3% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $1.0 Billion in 2024, and China, forecasted to grow at an impressive 28.5% CAGR to reach $2.9 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Scope of the Report

• Segments: Product Type (InfiniBand Switch, Ethernet Switch); Organization Size (Large Enterprises, SMEs).
• Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Key Attributes:

Key Topics Covered:

MARKET OVERVIEW

• Influencer Market Insights
• World Market Trajectories
• Tariff Impact on Global Supply Chain Patterns
• Artificial Intelligence (AI) Data Center Switches - Global Key Competitors Percentage Market Share in 2025 (E)
• Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E)

MARKET TRENDS & DRIVERS

• Explosive Growth in AI Workloads and Model Training Spurs Demand for Ultra-High-Speed Data Center Switches
• Here's How Generative AI and LLM Deployments Strengthen the Business Case for Scalable, Low-Latency Switching Infrastructure
• Proliferation of GPU Clusters and AI Accelerators Throws the Spotlight on High-Bandwidth, Non-Blocking Network Architectures
• Migration to 800G and Beyond Accelerates Adoption of Next-Gen Ethernet and Optical Switching Technologies
• Here's the Story: Hyperscale Cloud Providers Drive Demand for Custom, AI-Optimized Data Center Switch Fabrics
• Rising Need for AI Model Parallelism and Distributed Training Expands the Addressable Market for High-Radix, Low-Jitter Switches
• AI-as-a-Service and Edge AI Growth Propel Demand for Software-Defined and Programmable Switch Solutions
• Here's How Open Networking Standards and Disaggregation Trends Foster Vendor-Neutral AI Switch Deployments
• Energy Efficiency and Thermal Management Requirements Influence Design of Power-Conscious AI Data Center Switches
• Integration with AI Workload Schedulers and Orchestration Layers Drives Adoption of Intelligent Network Management Capabilities
• Here's the Story: Advances in Telemetry, Flow Monitoring, and Real-Time Analytics Enhance Switch Intelligence for AI Traffic
• Enterprise AI Adoption Across Finance, Pharma, and Automotive Sectors Sustains Mid-Scale Demand for High-Capacity Switches

FOCUS ON SELECT PLAYERS: Some of the 39 companies featured in this Artificial Intelligence (AI) Data Center Switches market report

• Arista Networks
• Broadcom
• Cisco Systems
• Dell Technologies
• Huawei Technologies
• Mellanox Technologies (NVIDIA)
• Juniper Networks
• Nokia Networks
• Intel Corporation
• Amazon Web Services (AWS)
• Microsoft Azure
• Tencent Cloud
• Lenovo Data Center Group
• Supermicro
• H3C Technologies
• Fujitsu Limited
• ZTE Corporation
• Mellanox Technologies (NVIDIA)
• Edgecore Networks
• Pluribus Networks

For more information about this report visit https://www.researchandmarkets.com/r/eajr6k

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Fonte: Business Wire