From Wikipedia:

Packet switching is a method of grouping data that is transmitted over a digital network into packets. Packets are made of a header and a payload. Data in the header are used by networking hardware to direct the packet to its destination where the payload is extracted and used by application software. Packet switching is the primary basis for data communications in computer networks worldwide.

A simple definition of packet switching is:

The routing and transferring of data by means of addressed packets so that a channel is occupied during the transmission of the packet only, and upon completion of the transmission the channel is made available for the transfer of other traffic^[4][5]

Packet switching is used to optimize the use of the channel capacity available in digital telecommunication networks, such as computer networks, and minimize the transmission latency (the time it takes for data to pass across the network), and to increase robustness of communication.

Packet switching is used in the Internet and most local area networks.