Ethernet Switching Chip Market and Trend

Ethernet switching chips are dedicated chips for switching and processing large amounts of data and message forwarding and are specialized integrated circuits optimized for network applications. The logical path inside the Ethernet switching chip consists of hundreds of features that work together while maintaining extremely high data processing power, making its architectural implementation complex. The Ethernet switching chip consists of an interface module, content processing module, import/export packet modification module, MMU module, L2 processor, L3 processor, security module, and other modules.

The global Ethernet switching chip market was $5.7 billion in 2017 and grew to $6.3 billion in 2022, with a CAGR of 2.0% from 2017 to 2022. The rapid development of cloud computing, AI, and machine learning, 5G, the upgrade of communication technologies such as WiFi 6 will drive the growth of the Ethernet switching chip market. The global Ethernet switching chip market is expected to grow to $7.2 billion in 2027, with a CAGR of 2.7% from 2022 to 2027.
Ethernet switching chips are the core platform for building enterprise networks, carrier networks, data center networks, and industrial networks. Data center networks will be the main driver for the future growth of the Ethernet switching chip. The figure below shows the market share of commercial Ethernet switching chips.
Global commercial vendors of Ethernet switching chips include Broadcom, Marvell Technology (MRVL), Realtek, NVIDIA, Intel, Centec.