The global high speed serial switch fabric market is dominated by Cisco Systems Inc. and Intel Corporation, says Transparency Market Research (TMR) in a new report. However, the market is competitive due to presence of several players in the medium and bottom layer of the competition pyramid.
Mergers and acquisitions is a key growth strategy that players in the high speed switch serial fabric market have been adopting for competitive advantage in this market. For example, Avago Technologies Ltd and Broadcom Corporation, the two technology giants merged in 2015. The move is expected to reduce Broadcom Corporation’s debt significantly and would improve its business outlook in the future.
The global high speed switch serial fabric market is expected to expand at a CAGR of 12.3% between 2017 and 2025 for the valuation of the market to increase from US$417.1 mn in 2016 to US$1156.2 mn by 2025.
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Asia Pacific to Display Increased Market Share between 2016 and 2025
Network core switching stood as the leading product type segment in 2016 and its market share is expected to increase by 2025. On the other hand, VLAN switching is expected to display declined market share between 2016 and 2025 owing to the growing demand for network core and layer switching in data center consolidation.
The security segment held a significant 33.6% of the global high speed switch serial fabrics market in 2016 by application.
North America dominates amongst other regional segments in the global high speed serial switch fabrics market. The region held the leading 38.5% of the overall market in 2016; the lead position of the market is due to the presence of key manufacturers followed by high adoption rate of switched fabric configuration.
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Availability of Variable Switches for Data Networks Benefits Market
The high speed serial switch fabrics market is driven by several factors which includes increasing demand for signal processing in defense and aerospace applications. The advancement of parallel processing architectures from OpenVPX Multiplane and industry standards is the key factor behind the growing popularity of high speed switch serial fabric networking applications. Moreover, the increasing use of this technology in high-performance defense and aerospace applications such as electronic warfare, radar, and signals intelligence is aiding growth.
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Advent of Silicon Switch Fabrics Hampers Growth
The growth of high speed serial switch fabrics market is negatively impacted due to lossy single chip switched fabric with reduced throughput. It is expected that high speed silicon switch fabrics will form the basis of next-generation middle-to-high-end networking routers and switches. Nevertheless, the increasing adoption of infiniband architecture not only in high performance computing environment, but also in mainstream enterprise grids is expected to extend growth opportunities to players in the high speed serial switch fabrics market.
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