Cross Point Switch Market Size & Industry Share - Growth Trends & Forecasts (2023 - 2030)

Based on the Type :

Based on the type, the market is bifurcated into digital cross point switch and analog cross point switch. The digital cross point switch segment accounted for the largest revenue share in terms of revenue in the year 2022. Digital cross point switches are designed for utilization in high-speed signal switching for transmitting digital information including data and voice traffic at a faster rate. Digital cross point switches are capable of handling numerous protocols, data streams, and clock sources among others. The above benefits of digital cross point switches are increasing its application in IT & telecommunication, and aerospace & defense sectors among others.

According to Viavi Solutions Inc., the total number of cities with 5G networks reached 1,947 worldwide as of January 2022, with the addition of 635 new 5G cities in 2021. Thus, the growth of the telecommunication sector is among the key factors driving the adoption of digital cross point switch for high-speed signal switching applications, in turn contributing to the growth of the market.

Further, the analog cross point switch segment is anticipated to register the fastest CAGR growth during the forecast period. Analog cross point switches are primarily designed for routing high speed signals including audio and video signals. Moreover, analog cross point switches offer several benefits including low power dissipation, high reliability, low power consumption, and others. Additionally, analog cross point switches are commonly used in telecommunication, electronics, medical, and aviation & defense sectors for applications including video teleconferencing, medical imaging, in-flight entertainment, surveillance, and others. For instance, Airbus, a French airline company, delivered a total of 611 commercial aircraft in 2021, witnessing an increase of around 8% in comparison to 566 deliverables in 2020. Hence, the growing aerospace & defense sector is driving the adoption of analog cross point switches, attributing to its aforementioned benefits. The above factors are anticipated to drive the market growth during the forecast period.

Based on the End-User :

Based on the end-user, the market is segregated into IT and telecommunication, electronics, aerospace and defense, and others. The IT and telecommunication segment accounted for the largest revenue share of 45.86% in the year 2022. Factors including the growing penetration of 5G infrastructure, increasing demand for wireless communication, along with rising need for high-speed data and cloud-based services are driving the growth of the IT & telecommunication sector.

For instance, according to GSM Association, the majority of countries in Europe deployed commercial 5G services in 2021, and approximately two thirds of operators in the region launched 5G networks. GSM Association also states that 5G connections across Europe are projected to reach 311 million by 2025. Therefore, the growth of IT & telecommunication sector is driving the adoption of cross point switches for application in base stations and communication systems among others, in turn proliferating the growth of the market.

The electronics segment is expected to witness the fastest CAGR growth during the forecast period. The growth of electronics segment is attributed to several factors including increasing penetration of smartphones, laptops, and other consumer devices, advancements in consumer electronics including AI (Artificial Intelligence) and IoT (Internet of Things) and increasing demand for energy-efficient devices.

For instance, according to the Brazilian Electrical and Electronics Industry Association (ABINEE), the electrical and electronics industry in Brazil was valued at USD 42.2 billion in 2022, witnessing a growth of nearly 8% in comparison to USD 39.2 billion in 2021. Cross point switches are used in PCB circuits integrated in electronic devices for providing dynamic switching functionality to electronic designs, owing to its ability to handle several data streams with various protocols. Thus, the rising production from the electronics industry is projected to drive the adoption of cross point switches, in turn driving the growth of the market during the forecast period.

Based on the Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for the largest revenue share of USD 12.04 Billion in 2022 and is expected to reach USD 28.83 Billion by 2030, registering a CAGR of 11.6% during the forecast period. In addition, in the region, the U.S. accounted for the maximum revenue share of 49.78% in the same year. The adoption of cross point switches in the North American region is mostly driven by its utilization in IT & telecommunication, aerospace & defense, and other sectors. Moreover, the increasing utilization of cross point switches in multiplexer or splitter used in networking and telecommunications infrastructure equipment for providing redundancy for data and clock signals is among the significant factors driving the market growth in the region. For instance, according to the GSM Association, approximately 140 million 5G connections were deployed across North America as of 2022. Hence, the growing telecommunication industry is propelling the deployment of cross point switch for high-speed data transfer and signal switching applications, in turn fostering market growth in the North American region. Additionally, increasing investments in the aerospace & defense industry are anticipated to promote lucrative growth aspects for the market in North America during the forecast period.

Asia-Pacific is expected to register the fastest CAGR growth during the forecast period. The growing pace of industrialization and development is creating lucrative growth aspects for the market in the region. Moreover, factors including the growth of multiple industries such as electronics, telecommunication, and others are fostering the market growth for cross point switch in the Asia-Pacific region.

For instance, according to the India Brand Equity Foundation, the consumer electronics sector in India was valued at USD 9.84 billion in 2021, and it is projected to grow at a considerable rate to reach USD 21.18 billion by 2025. Hence, the growing electronics sector is anticipated to drive the utilization of cross point switches in PCB circuits integrated in electronic devices for providing dynamic switching functionality to electronic designs, thereby, proliferating the market growth in the Asia-Pacific region during the forecast period.