Ethernet Switch ICs Market Research: the market is expected to increase to USD 8.37 billion by 2031
公開 2025/12/16 10:45
最終更新
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QY Research Inc. (Global Market Report Research Publisher) announces the release of 2025 latest report “Ethernet Switch ICs- Global Market Share and Ranking, Overall Sales and Demand Forecast 2026-2032”. Based on current situation and impact historical analysis (2020-2024) and forecast calculations (2026-2032), this report provides a comprehensive analysis of the global Ethernet Switch ICs market, including market size, share, demand, industry development status, and forecasts for the next few years.
The global market for Ethernet Switch ICs was estimated to be worth US$ 4856 million in 2024 and is forecast to a readjusted size of US$ 8367 million by 2031 with a CAGR of 7.3% during the forecast period 2025-2031.
【Get a free sample PDF of this report (Including Full TOC, List of Tables & Figures, Chart)】
https://www.qyresearch.com/reports/5515499/ethernet-switch-ics
The Ethernet Switch ICs Market: Powering the AI & Cloud Data Center Revolution
1. Market Overview: The Silicon Brain of Modern Networking
Ethernet Switch Integrated Circuits (ICs) are the fundamental processors that orchestrate data flow within networks. Embedded in network switches, these chips intelligently receive, analyze, and forward data packets to their correct destinations, enabling efficient communication between servers, storage, and end-user devices. They are critical for minimizing congestion, ensuring low latency, and providing the scalable, high-speed connectivity required by today's digital infrastructure.
Supporting speeds from 1 Gigabit to 800 Gigabit and beyond, these ICs cater to a vast spectrum of needs—from home offices to hyperscale data centers. Advanced features like Quality of Service (QoS), VLANs, and sophisticated traffic management make them indispensable for building robust, intelligent networks across enterprise, telecom, and cloud environments.
The market is undergoing a profound transformation, fueled by the explosive growth of AI, cloud computing, and 5G. According to the latest QYResearch analysis, the global Ethernet Switch ICs market was valued at USD 4.86 billion in 2024 and is projected to reach USD 8.37 billion by 2031, growing at a strong CAGR of 7.26%. This growth is directly tied to the urgent industry transition from 25G/100G to 200G, 400G, and 800G architectures to support AI clusters and next-generation data centers.
2. Competitive Landscape: A Market Defined by Concentration and Innovation
The competitive arena is highly consolidated, led by semiconductor giants with deep expertise in high-speed SerDes and networking architectures.
Broadcom stands as the undisputed leader, commanding a 54.59% revenue share in 2024, projected to grow to 58.08% by 2030. Its Tomahawk, Trident, and Jericho series are the de facto standard in hyperscale cloud data centers, prized for their performance and rapid generational advances.
Marvell holds the second position with a 12.95% share (2024), expected to expand to 14.10% by 2030. Its Prestera and OCTEON platforms have secured strong design wins in carrier and enterprise markets.
Cisco, with a 9.60% share in 2024, is forecasted to see its share decline to ~5.96% as it strategically pivots from heavy reliance on in-house silicon (UADP) to a hybrid model incorporating merchant chips.
NVIDIA (Mellanox) maintains a stable 7-8% share, driven by its Spectrum Ethernet switches optimized for GPU-centric AI and accelerated computing clusters.
Microchip and Centec Communications collectively hold about 5% of the market, focusing on industrial, SMB, and cost-sensitive data center segments.
3. Product Segment Analysis: The High-Speed Migration
The market is characterized by a decisive migration toward higher bandwidth, reshaping revenue dynamics.
Legacy Segments in Decline: The ≤25G and 25G–100G segments, once dominant, are steadily commoditizing. Their combined revenue share has fallen from over 50% in 2020 and is projected to drop below 20% by 2031, finding use in edge and industrial applications.
The Current Backbone: 100G–400G remains the revenue workhorse, representing the largest segment. It is the foundation for mainstream cloud data center spine-leaf architectures, with revenue expected to reach USD 3.03 billion by 2030.
The High-Growth Frontier: 400G+ is the fastest-growing segment, skyrocketing from USD 55 million in 2020 to a projected USD 3.24 billion in 2030. It will comprise over 40% of the total market by 2031, driven directly by the insatiable bandwidth demands of AI/ML training clusters and leading-edge cloud infrastructure.
4. Application Segmentation: The Rise of Merchant Silicon
The market is clearly bifurcating between commercial and self-developed ICs.
Commercial ICs are overwhelmingly dominant, accounting for 86.92% of 2024 revenue and projected to exceed 92% by 2031. This reflects a broad industry trend where even large system vendors and cloud providers rely on the R&D scale and innovation of specialized chipmakers like Broadcom and Marvell.
Self-developed ICs (e.g., from Cisco, Huawei) are seeing their share erode, falling from 18.37% in 2020 to a forecasted <8% by 2031. The astronomical cost and complexity of designing cutting-edge switch ICs at 5nm/3nm nodes make in-house development increasingly less viable for all but a few.
5. Key Market Drivers & Technological Evolution
The market's trajectory is locked into macro-technology trends:
AI & Hyperscale Cloud Demand: The build-out of massive GPU clusters for generative AI is the primary catalyst, necessitating 400G/800G switches for low-latency, high-throughput networking.
SerDes Innovation as a Core Battleground: The transition from 56G to 112G PAM4 SerDes has enabled current 25.6T/51.2T switches. The next leap to 224G PAM4 SerDes is already on the horizon for post-2030 products.
Advanced Packaging and Integration: To overcome power and bandwidth limitations, leading-edge switch ICs are adopting chiplet architectures, 2.5D interposers, and Co-Packaged Optics (CPO). These innovations further raise R&D barriers and favor well-capitalized merchant silicon leaders.
Geographic Demand Patterns: While North America leads in early adoption (driven by hyperscalers), the Asia-Pacific region is the largest consumption market due to rapid cloud expansion in China, Japan, and India. Europe shows steady growth focused on 5G core and green data centers.
6. Strategic Market Outlook
The Ethernet Switch ICs market is in the midst of a structural high-speed upgrade cycle that will define the next decade. Success will be determined by:
Technology Leadership: Specifically in SerDes performance, power efficiency, and advanced integration (chiplets, CPO).
Execution at Leading Nodes: Ability to design and manufacture at 5nm, 3nm, and beyond.
Ecosystem Partnerships: Deep collaboration with optical module suppliers, hyperscalers, and OEMs.
The market is consolidating around vendors who can master this complex trifecta. Broadcom, Marvell, and NVIDIA are strategically positioned as long-term leaders. With a robust 7.26% CAGR, the Ethernet Switch IC market remains a critical and high-growth pillar of the global semiconductor industry, directly enabling the AI and cloud revolution.
The report provides a detailed analysis of the market size, growth potential, and key trends for each segment. Through detailed analysis, industry players can identify profit opportunities, develop strategies for specific customer segments, and allocate resources effectively.
The Ethernet Switch ICs market is segmented as below:
By Company
Broadcom
Marvell
Cisco
NVIDIA (Mellanox)
Microchip Technology
Centec Communications
Intel
Infineon Technologies
Realtek
Segment by Type
≤25G
25G–100G
100G–400G
400G+
Segment by Application
Data Center
Enterprise Networking
Telecom Ethernet
Automotive & Industrial Ethernet
Others
About Us：
QYResearch founded in California, USA in 2007, which is a leading global market research and consulting company. Our primary business include market research reports, custom reports, commissioned research, IPO consultancy, business plans, etc. With over 19 years of experience and a dedicated research team, we are well placed to provide useful information and data for your business, and we have established offices in 7 countries (include United States, Germany, Switzerland, Japan, Korea, China and India) and business partners in over 30 countries. We have provided industrial information services to more than 60,000 companies in over the world.
Contact Us:
If you have any queries regarding this report or if you would like further information, please contact us:
QY Research Inc.
Add: 17890 Castleton Street Suite 369 City of Industry CA 91748 United States
EN: https://www.qyresearch.com
Email: global@qyresearch.com
Tel: 001-626-842-1666(US)
JP: https://www.qyresearch.co.jp
The global market for Ethernet Switch ICs was estimated to be worth US$ 4856 million in 2024 and is forecast to a readjusted size of US$ 8367 million by 2031 with a CAGR of 7.3% during the forecast period 2025-2031.
【Get a free sample PDF of this report (Including Full TOC, List of Tables & Figures, Chart)】
https://www.qyresearch.com/reports/5515499/ethernet-switch-ics
The Ethernet Switch ICs Market: Powering the AI & Cloud Data Center Revolution
1. Market Overview: The Silicon Brain of Modern Networking
Ethernet Switch Integrated Circuits (ICs) are the fundamental processors that orchestrate data flow within networks. Embedded in network switches, these chips intelligently receive, analyze, and forward data packets to their correct destinations, enabling efficient communication between servers, storage, and end-user devices. They are critical for minimizing congestion, ensuring low latency, and providing the scalable, high-speed connectivity required by today's digital infrastructure.
Supporting speeds from 1 Gigabit to 800 Gigabit and beyond, these ICs cater to a vast spectrum of needs—from home offices to hyperscale data centers. Advanced features like Quality of Service (QoS), VLANs, and sophisticated traffic management make them indispensable for building robust, intelligent networks across enterprise, telecom, and cloud environments.
The market is undergoing a profound transformation, fueled by the explosive growth of AI, cloud computing, and 5G. According to the latest QYResearch analysis, the global Ethernet Switch ICs market was valued at USD 4.86 billion in 2024 and is projected to reach USD 8.37 billion by 2031, growing at a strong CAGR of 7.26%. This growth is directly tied to the urgent industry transition from 25G/100G to 200G, 400G, and 800G architectures to support AI clusters and next-generation data centers.
2. Competitive Landscape: A Market Defined by Concentration and Innovation
The competitive arena is highly consolidated, led by semiconductor giants with deep expertise in high-speed SerDes and networking architectures.
Broadcom stands as the undisputed leader, commanding a 54.59% revenue share in 2024, projected to grow to 58.08% by 2030. Its Tomahawk, Trident, and Jericho series are the de facto standard in hyperscale cloud data centers, prized for their performance and rapid generational advances.
Marvell holds the second position with a 12.95% share (2024), expected to expand to 14.10% by 2030. Its Prestera and OCTEON platforms have secured strong design wins in carrier and enterprise markets.
Cisco, with a 9.60% share in 2024, is forecasted to see its share decline to ~5.96% as it strategically pivots from heavy reliance on in-house silicon (UADP) to a hybrid model incorporating merchant chips.
NVIDIA (Mellanox) maintains a stable 7-8% share, driven by its Spectrum Ethernet switches optimized for GPU-centric AI and accelerated computing clusters.
Microchip and Centec Communications collectively hold about 5% of the market, focusing on industrial, SMB, and cost-sensitive data center segments.
3. Product Segment Analysis: The High-Speed Migration
The market is characterized by a decisive migration toward higher bandwidth, reshaping revenue dynamics.
Legacy Segments in Decline: The ≤25G and 25G–100G segments, once dominant, are steadily commoditizing. Their combined revenue share has fallen from over 50% in 2020 and is projected to drop below 20% by 2031, finding use in edge and industrial applications.
The Current Backbone: 100G–400G remains the revenue workhorse, representing the largest segment. It is the foundation for mainstream cloud data center spine-leaf architectures, with revenue expected to reach USD 3.03 billion by 2030.
The High-Growth Frontier: 400G+ is the fastest-growing segment, skyrocketing from USD 55 million in 2020 to a projected USD 3.24 billion in 2030. It will comprise over 40% of the total market by 2031, driven directly by the insatiable bandwidth demands of AI/ML training clusters and leading-edge cloud infrastructure.
4. Application Segmentation: The Rise of Merchant Silicon
The market is clearly bifurcating between commercial and self-developed ICs.
Commercial ICs are overwhelmingly dominant, accounting for 86.92% of 2024 revenue and projected to exceed 92% by 2031. This reflects a broad industry trend where even large system vendors and cloud providers rely on the R&D scale and innovation of specialized chipmakers like Broadcom and Marvell.
Self-developed ICs (e.g., from Cisco, Huawei) are seeing their share erode, falling from 18.37% in 2020 to a forecasted <8% by 2031. The astronomical cost and complexity of designing cutting-edge switch ICs at 5nm/3nm nodes make in-house development increasingly less viable for all but a few.
5. Key Market Drivers & Technological Evolution
The market's trajectory is locked into macro-technology trends:
AI & Hyperscale Cloud Demand: The build-out of massive GPU clusters for generative AI is the primary catalyst, necessitating 400G/800G switches for low-latency, high-throughput networking.
SerDes Innovation as a Core Battleground: The transition from 56G to 112G PAM4 SerDes has enabled current 25.6T/51.2T switches. The next leap to 224G PAM4 SerDes is already on the horizon for post-2030 products.
Advanced Packaging and Integration: To overcome power and bandwidth limitations, leading-edge switch ICs are adopting chiplet architectures, 2.5D interposers, and Co-Packaged Optics (CPO). These innovations further raise R&D barriers and favor well-capitalized merchant silicon leaders.
Geographic Demand Patterns: While North America leads in early adoption (driven by hyperscalers), the Asia-Pacific region is the largest consumption market due to rapid cloud expansion in China, Japan, and India. Europe shows steady growth focused on 5G core and green data centers.
6. Strategic Market Outlook
The Ethernet Switch ICs market is in the midst of a structural high-speed upgrade cycle that will define the next decade. Success will be determined by:
Technology Leadership: Specifically in SerDes performance, power efficiency, and advanced integration (chiplets, CPO).
Execution at Leading Nodes: Ability to design and manufacture at 5nm, 3nm, and beyond.
Ecosystem Partnerships: Deep collaboration with optical module suppliers, hyperscalers, and OEMs.
The market is consolidating around vendors who can master this complex trifecta. Broadcom, Marvell, and NVIDIA are strategically positioned as long-term leaders. With a robust 7.26% CAGR, the Ethernet Switch IC market remains a critical and high-growth pillar of the global semiconductor industry, directly enabling the AI and cloud revolution.
The report provides a detailed analysis of the market size, growth potential, and key trends for each segment. Through detailed analysis, industry players can identify profit opportunities, develop strategies for specific customer segments, and allocate resources effectively.
The Ethernet Switch ICs market is segmented as below:
By Company
Broadcom
Marvell
Cisco
NVIDIA (Mellanox)
Microchip Technology
Centec Communications
Intel
Infineon Technologies
Realtek
Segment by Type
≤25G
25G–100G
100G–400G
400G+
Segment by Application
Data Center
Enterprise Networking
Telecom Ethernet
Automotive & Industrial Ethernet
Others
About Us：
QYResearch founded in California, USA in 2007, which is a leading global market research and consulting company. Our primary business include market research reports, custom reports, commissioned research, IPO consultancy, business plans, etc. With over 19 years of experience and a dedicated research team, we are well placed to provide useful information and data for your business, and we have established offices in 7 countries (include United States, Germany, Switzerland, Japan, Korea, China and India) and business partners in over 30 countries. We have provided industrial information services to more than 60,000 companies in over the world.
Contact Us:
If you have any queries regarding this report or if you would like further information, please contact us:
QY Research Inc.
Add: 17890 Castleton Street Suite 369 City of Industry CA 91748 United States
EN: https://www.qyresearch.com
Email: global@qyresearch.com
Tel: 001-626-842-1666(US)
JP: https://www.qyresearch.co.jp
