Layer 2 vs Layer 3 Switch, What’s the Difference?

2025-2-20

In today’s networks, switches are integral for data management. Understanding the difference between Layer 2 and Layer 3 switches is crucial when planning a network architecture. These two types of switches serve different functions, and each excels in particular environments. In this article, we’ll explore the key differences. Use cases, and help you determine the best choice for your network needs.

Contents

What is a Layer 2 Switch?

A Layer 2 switch operates at the data link layer (Layer 2) of the OSI model. It uses MAC addresses to forward data frames between devices within the same local network. Think of the Layer 2 switch as a traffic controller for your LAN (Local Area Network), efficiently directing data to the correct device without involving IP addresses.

How Layer 2 Switches Work

  • MAC Address Learning: Layer 2 switches build a MAC address table to map devices to ports.
  • VLAN Support: They segment networks into VLANs (Virtual LANs) for better traffic management.
  • No IP Routing: Cannot communicate between different subnets or VLANs without a router.

Pros and Cons of Layer 2 Switches

Pros:

  • Cost-effective for small networks.
  • Low latency due to simple operations.
  • Ideal for basic network segmentation.

Cons:

  • Limited to broadcast domains.
  • Requires a router for inter-VLAN communication.

What is a Layer 3 Switch

A Layer 3 switch operates at both Layer 2 (data link) and Layer 3 (network) of the OSI model. It combines the MAC address switching of Layer 2 with IP routing capabilities, allowing it to manage traffic between subnets or VLANs without a standalone router.

How Layer 3 Switches Work

  • IP Routing: Uses IP addresses to route data between subnets.
  • Inter-VLAN Routing: Enables communication between VLANs without external routers.
  • Advanced Features: Supports ACLs (Access Control Lists), QoS (Quality of Service), and dynamic routing protocols.

Pros and Cons of Layer 3 Switches

Pros:

  • Reduces reliance on routers for internal traffic.
  • Improves scalability for growing networks.
  • Enhances security with ACLs.

Cons:

  • Higher cost than Layer 2 switches.
  • More complex configuration.

Layer 2 vs Layer 3 Switch: Key Differences

The differences between Layer 2 and Layer 3 switches go beyond their functionality. Understanding these distinctions can help you make an informed decision about which switch to choose for your network.

Performance

  • Layer 2 switches are faster when it comes to simple, local communication within the same network, as they don’t need to perform routing.
  • Layer 3 switches offer advanced routing features, making them slower for basic switching tasks but better suited for handling complex routing between different subnets.

Cost

  • Layer 2 switches tend to be more affordable since they only need to manage MAC addresses and don’t include routing capabilities.
  • Layer 3 switches are generally more expensive due to the added routing functionality, but they offer better scalability and control over larger networks.

Use Case

  • For simple LANs with no need for inter-VLAN communication, a Layer 2 switch is sufficient and cost-effective.
  • For larger networks with multiple VLANs or a need to route traffic between subnets, a Layer 3 switch is the better choice, providing greater flexibility and performance.

Comparison Table

Layer 2 SwitchLayer 3 Switch
OSI LayerLayer 2Layers 2 & 3
FunctionSwitchingSwitching+Routing
Traffic HandlingMAC addressesMAC + IP addresses
Inter-VLAN RoutingRequires a routerBuilt-in routing
CostLowerHigher
Use CaseSmall LANsLarge networks, enterprises

How to Choose Between Layer 2 and Layer 3 Switches

Choosing the right switch depends largely on the size and complexity of your network. Here are a few factors to consider when making your decision:

  • Network Size: For small to medium-sized networks with minimal traffic complexity, a Layer 2 switch is often enough. However, for larger, more complex networks, a Layer 3 switch will be necessary to handle multiple subnets and VLANs.
  • Traffic Type: If your network requires inter-VLAN routing or needs to manage traffic between different network segments, a Layer 3 switch will provide the necessary functionality.
  • Routing Needs: If you need to route between subnets or between different network layers, Layer 3 switches are designed to meet those needs efficiently.

When to Use Layer 2 Switch

  • Simple networks with a single VLAN
  • Cost-sensitive projects
  • LANs where routing isn’t necessary

>> Explore Layer 2 Switches from VSOL

When to Use Layer 3 Switch

  • Large networks with multiple subnets or VLANs
  • Networks requiring advanced traffic management
  • Scalable network designs with inter-network routing

>> Explore Layer 3 Switches from VSOL

Applications of Layer 2 and Layer 3 Switch

VSOL’s Layer 2 and Layer 3 switches cater to various applications, providing flexible solutions for various network setups. Whether you’re building a simple local network or a complex infrastructure requiring robust data management, VSOL’s switches are designed to meet your needs efficiently. Below are two examples of how these switches can be deployed in real-world scenarios.

Layer 2 Ethernet PoE Switch

VSOL Layer 2 switch can be classified into two types: Ethernet switch with or without PoE function.

As shown in the below application diagram, the Layer 2 PoE switch can supply power for the IP camera, wireless AP, Internet voice call, iPhones, etc, in the public zone via the cable connecting to the RJ45 ports.

L2 PoE Switch

If there are many scenarios, multiple switches can be stacked to use. The Layer 2 switches mainly access the data and then the Layer 3 Ethernet switch at the core layer will converge and manage the data.

Layer 3 Managed Ethernet Switch: Highway Tunnel Solutions

The image below demonstrates the application of the VSOL Layer 3 Ethernet switches.

Layer 3 Switches

The OLT is responsible for accessing and converging data. After it delivers the data to the Ethernet switch, the switch will send the data to the router the channel through which data of LAN and WAN flows in and out.

Thus, the managed switch downlink connects to OLT and the uplink connects to management equipment like video storage server, large screen surveillance, emergency telephone, etc.

Final Thoughts

Choosing between a Layer 2 and Layer 3 switch depends on your network’s requirements. For small to medium-sized networks where basic data forwarding is sufficient, a Layer 2 switch offers a cost-effective solution. However, for larger, more complex networks that require routing capabilities between subnets, a Layer 3 switch provides the scalability and flexibility needed. Ultimately, understanding your network’s needs will help you make the best choice.

>> Explore VSOL’s L2&L3 switch products.

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