North America Military Ethernet Switches Market Growth Opportunities and Forecast by 2030

The North America military ethernet switches market is expected to grow from US$ 631.45 million in 2023 to US$ 933.26 million by 2030; it is estimated to register a CAGR of 5.7% from 2023 to 2030.

Analyst Perspective:

The North America military ethernet switches market offers a variety of ethernet switch products that meet the specific needs of military applications. These products include managed switches, unmanaged switches, PoE switches, ruggedized switches, and specialized switches with advanced security features. The growth of the market is attributed to advancements in ethernet switch technologies such as increased port density, higher data transfer rates, enhanced security features, and advanced management capabilities.

Impact of COVID-19 Pandemic on North America Military Ethernet Switches Market Growth

The COVID-19 pandemic severely impacted several businesses and economies across North America. Lockdowns imposed by governments of various countries in the region adversely affected the manufacturing, supply chains, and logistics operations in North America, owing to the complete or partial discontinuation of industrial activities. The military sectors across the region experienced temporary discontinuation of operations in various production facilities. As the supply chains were disrupted, the production and delivery of aerospace and defense equipment were hampered in the region. Thus, the COVID-19 pandemic significantly impacted the North America military ethernet switches market share. 

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North America Military Ethernet Switches Market: Strategic Insights

Market Size Value in	US$ 631.45 million in 2023
Market Size Value by	US$ 933.26 million by 2030
Growth rate	CAGR of 5.7% from 2023 to 2030
Forecast Period	2023-2030
Base Year	2023

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Market Overview:

The North America military ethernet switches market players offer a variety of ethernet switch products that meet the specific needs of military applications. These products include managed switches, unmanaged switches, PoE switches, ruggedized switches, and specialized switches with advanced security features. The North America military ethernet switches market growth is attributed to advancements in ethernet switch technologies, such as increased port density, higher data transfer rates, enhanced security features, and advanced management capabilities.

Market Driver:

The change in modern warfare strategies with the advent of cutting-edge unmanned systems has been compelling governments of various countries in North America to allocate more funds toward respective military forces. The military budget allocation enables military forces to procure advanced technologies and equipment from domestic or international manufacturers. Also, military vehicle modernization practices are on the rise across countries in North America. With the need to strengthen military forces with advanced technologies, armaments, artilleries, and vehicles, defense forces across North America are investing substantially in developing and procuring these products for combat and non-combat operations. This factor is further boosting defense spending. Thus, the rising military expenditure for procurement of advanced unmanned systems is fueling the North America military ethernet switches market share.

Segmental Analysis:

The North America military ethernet switches market is segmented based on type, application, and network. Based on type, the North America military ethernet switches market is bifurcated into MIL-STD package solutions and board-level ruggedized configurations.

Based on application, the North America military ethernet switches market is segmented into unmanned systems, ground vehicles, airborne platforms, and maritime platforms. Based on network, the North America military ethernet switches market is bifurcated into managed and unmanaged.

Application-Based Insights – North America Military Ethernet Switches Market

Unmanned vehicles are becoming popular in the military as they are beneficial for gathering information in areas that are too dangerous for humans to operate. Unmanned aerial vehicles (UAVs) are widely used in exploration, search, situational awareness, and numerous other military operations. Ethernet switches are extensively used in these unmanned vehicles as they enable improved information centralization and data management. Furthermore, the growing use of unmanned systems for military operations is expected to fuel the segment growth during the forecast period. For instance, in February 2023, the US and India jointly developed air-launched unmanned aerial vehicles that will be used for surveillance missions under the Defense Technology and Trade Initiative (DTTI). The critical factor of the deal is that the two sides will jointly share the new system's intellectual property (IP) rights. Thus, the growing adoption of unmanned systems for military operations is projected to fuel the market growth for the unmanned system segment of North America military ethernet switches market.

Regional Analysis:

In terms of Country, the military ethernet switches market is categorized into US, Canada, and Mexico. The US dominated the military ethernet switches market in 2022 and is expected to continue its dominance until 2030. The US experienced an increase in military expenditure over the years. In 2020, the military expenditure was valued at US$ 778,397.2 million, which increased to US$ 806,230.2 million in 2021 and US$ 876,943.2 million in 2022, per Stockholm International Peace Research Institute (SIPRI). According to the President's Budget for Fiscal Year 2024, in March 2023, the US government announced its plan to increase its Department of Defense (DoD) budget to US$ 842 billion, registering a 3.2% rise compared to 2023. The rise in military expenditure augments the adoption and deployment of technologies in combat aircraft, unmanned systems, various types of military ground vehicles, and airborne platforms for the US military forces, which supports the demand for military ethernet switches. The US military ethernet switches market is expected to experience steady growth in the coming years owing to the increasing demand for advanced networking capabilities, secure communications, and efficient data transmission in military operations. The US military is actively modernizing its defense infrastructure, including communication and networking systems.

Key Player Analysis:

Milpower Source Inc, Amphenol Socapex, Curtiss-Wright Defense Solutions, Abaco Systems Inc, Ontime Networks LLC, Diamond Systems Corp, Red Lion, Cisco Systems Inc, Techaya, and Aeronix Incorporation are among the key North America military ethernet switches market players. The top five North America military ethernet switches market includes Microsemi, Curtiss-Wright, Cisco Systems Inc, Amphenol Corporation (Socapex), and ABACO Systems Inc.

Recent Developments:

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the North America military ethernet switches market. The North America military ethernet switches market players are mainly focused on the development of advanced and efficient systems. A few recent key market developments are listed below: 

• In April 2023, Abaco Systems Inc, an electronic system manufacturing company, launched new NETernity SWE450S and SWE550S fully managed (Layer 2/3) rugged 3U and 6U VPX Ethernet switches with fast 25/100Gb Ethernet connectivity.
• In December 2020, Red Lion is announced the release of the NT4008, an 8-port Gigabit managed Industrial Ethernet switch series. The NT4008 series switches are PROFINET PNIO v2.34 Conformance Class-B certified, allowing for easy integration into PROFINET networks using conventional PLC configuration and management tools.