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High Speed Serial Switch Fabrics Market to Grow at a Remarkable Pace in the Coming Years

Press Release   •   Aug 28, 2017 16:09 EDT

High Speed Serial Switch Fabrics Market: Snapshot

High speed switched fabric refers to switching system that aims at connecting devices together with an objective to support multiple simultaneous data transfers usually implemented with a crossbar switch. It involves data transfer in the form of packets with the help of information contained in the packet header for error detection, identification, correcting, and routing.

The low number of smaller connectors, cables, and signal lines which result in simplified system integration, better system density, lower installation costs, and easier maintenance of data transfer networks are the most important factors boosting the high speed serial switch fabrics market. Furthermore, availability of variable fabric switches that serves data network demand of various end use industries is also driving this market. Product manufacturers are continually introducing advance networking switches in order to support end user demand. In particular, the popularity of ethernet switches has increased due to increasing demand for high speed data transfer capabilities in the telecommunication industry. With obsolescence of traditional data transfer techniques, high speed serial switch fabric integration is expected to display increased market share in the coming years.

Despite various driving factors, the growth of this market is challenged due to several factors. First and foremost, challenges pertaining to traffic management interaction and backplane interfacing are having a negative impact on the growth of this market. Nevertheless, the use of switch fabric for several applications from high-speed telecommunications to storage area to networking will extend growth opportunities to this market.

The global market for high speed serial watch fabrics market stood at a valuation of US$417.1 mn in 2016 and is projected to develop at a CAGR of 12.3% between 2017 and 2025. This will result in the market to reach a valuation of US$1156.2 mn by the end of 2025.

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Network Core Product Type to Hold Increased Market Share

On the basis of product type, the high speed serial switch fabrics market is segmented into layer switching, VLAN switching, core switching, network core switching, and others. The segment of network core switching contributed the leading revenue of 37.7% in 2016 and its revenue contribution is expected to increase to 39.2% by 2025. On the other hand, the segment of VLAN switching is expected to display a declined revenue share between 2016 and 2025 due to the increasing demand for network core and layer switching in data center consolidation.

By application, the high speed serial switch fabrics market is segmented into data center consolidation, audio and video transmission, security, and others. Security is the leading application segment with its revenue contribution expected to increase from US$140.0 mn in 2016 to US$408.8 mn by the end of 2025, expanding at a CAGR of 13.0% between 2017 and 2025.

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Asia Pacific to Emerge as Key Market

On the basis of geography, the global high speed serial switch fabrics market can be segmented into North America, Europe, Latin America, Asia Pacific, and the Middle East and Africa. In 2016, North America dominated in terms of revenue contribution accounting for 38.5% of the overall market. Supremacy of North America is due to the presence of key manufacturers that operate in this region followed by increasing adoption rate of switch fabrics in data transfer networks.

Asia Pacific held the second-leading share of 27.3% of the overall market in 2016. The growth of this region is primarily driven by increasing use of high speed switches across the semiconductor industry.

Some of the key players in the high speed serial switch fabrics market include Pentek Inc., Cisco Systems Inc., Sierra Wireless, Intel Corporation, Macom, Microsemi Corporation, Broadcom Corporation, Curtiss-Wright Corporation, and Integrated Device Technology Inc.

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