The Data Center Networking Market size was USD 24.8 Billion in 2023 and is expected to Reach USD 63.6 Billion by 2031 and grow at a CAGR of 12.5% over the forecast period of 2024-2031.
Data center networking is the process of connecting the different components of a data center, such as servers, storage devices, and switches, so that they can communicate with each other. It is essential for the efficient operation of a data center, as it allows data to be transferred quickly and securely between the different components. The segment that is dominating the data center networking market in 2022 is the solution segment. This segment includes products and services that are used to design, deploy, and manage data center networks. The solution segment accounted for 80% of the market share in 2022. The growth of the market is being driven by the increasing adoption of cloud computing, the growth of the IoT, and the expansion of 5G networks.
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KEY DRIVERS
The growing adoption of cloud computing is the key driver of the data center networking market.
The rise of the IoT is another major driver of the market.
The expansion of 5G networks is also expected to boost the market growth.
Cloud computing services require a high-speed and reliable network infrastructure to deliver data and applications to users. The increasing demand for high-speed data connectivity is also driving the market growth. This is due to the increasing use of bandwidth-intensive applications, such as video streaming, gaming, and social media.
RESTRAIN
High cost of data center networking solutions
Complexity of data center designs
The high cost of data center networking solutions is a major restraint on the market growth. Data center networking solutions are complex and expensive to deploy and maintain. This can be a barrier for small and medium businesses.
OPPORTUNITY
Development of new technologies, such as optical interconnects and software-defined networking
Expansion of the healthcare and education sectors
Rise of the gaming industry
The increased adoption of AI and ML is also creating new opportunities for the data center networking market. AI and ML can be used to improve the efficiency and performance of data center networks. For example, AI can be used to optimize traffic routing and prevent congestion.
CHALLENGES
Regulatory compliance issues can hinder the market growth.
Data center networks must comply with a variety of regulations, such as the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA). This can add to the cost and complexity of data center networking solutions.
The Russia-Ukraine war has had a significant impact on the data center networking market. The war has disrupted supply chains, increased energy costs, and led to sanctions on Russian and Ukrainian companies. which has made data center operations more expensive. This is because Russia is a major exporter of oil and gas, and the war has disrupted these exports. The price of semiconductors has increased by 20% since the start of the war. The price of optical fiber has increased by 15% since the start of the war. The cost of data center electricity has increased by 5% since the start of the war. The number of data center projects in Russia and Ukraine has decreased by 50% since the start of the war. some of the ways that data center operators can mitigate the impact of the war. Data center operators can reduce their energy costs by using more energy-efficient equipment. This could include using servers with higher power efficiency ratings or using virtualization to consolidate workloads. Data center operators should negotiate better pricing with their suppliers to offset the rising costs of components and energy.
IMPACT OF ONGOING RECESSION
The ongoing recession is expected to have a significant impact on the data center networking market. The market is expected to slow down, as businesses cut back on investments in new data centers and networking equipment. Data center networking companies are likely to lay off employees, as they try to cut costs. This will lead to a decrease in the workforce and a loss of expertise in the industry. The number of data center projects is expected to decline by 20% in 2023. The spending on data center networking equipment is expected to decline by 15% in 2023. Businesses are likely to change their spending priorities during a recession. They may focus on less-expensive cloud-based solutions, rather than investing in on-premises data centres. This will shift the demand away from traditional data center networking solutions. SDN is a new technology that is used to automate and manage data center networks. The recession is expected to slow down the adoption of SDN, as businesses focus on more immediate needs.
By Product
Ethernet Switches
Routers
SAN
ADC
Network Security Equipment
WAN Optimization Equipment
By Component
Solution
Services
By End User
IT
Telecom
Retail
BFSI
Public sector
Utilities
Energy
Manufacturing
Healthcare
Others
REGIONAL ANALYSIS
The North America regional market dominated the global data center networking market in 2022. With more than 30% of the global market share. The United States is the dominating country in the North American region. There are many colocation facilities and data center service providers in North America. Currently, North America is home to over 1,600 data centers. Therefore, during the course of the forecast period, North America would continue to be the largest regional market. Development of new technologies, such as software-defined networking (SDN) and optical interconnects are driving the market growth in north america region
Asia Pacific is anticipated to become the region with the quickest rate of growth. during the course of the projected period, the installation of new data centers, and subsequently the demand for cutting-edge data center networking solutions in the region, are anticipated to be primarily driven by the soaring demand for data centers that can secure and safeguard information. emerging nations, such as China and India, along with other Southeast Asian countries are witnessing rapid adoption of on-demand, cloud-based, and high-speed internet services. These trends bode well for a notable rise in the provisioning of data center networking services in the region. The internet economy in Asia Pacific is growing rapidly, which is driving the demand for data center networking solutions.
North America
USA
Canada
Mexico
Europe
Eastern Europe
Poland
Romania
Hungary
Turkey
Rest of Eastern Europe
Western Europe
Germany
France
UK
Italy
Spain
Netherlands
Switzerland
Austria
Rest of Western Europe
Asia Pacific
China
India
Japan
South Korea
Vietnam
Singapore
Australia
Rest of Asia Pacific
Middle East & Africa
Middle East
UAE
Egypt
Saudi Arabia
Qatar
Rest of the Middle East
Africa
Nigeria
South Africa
Rest of Africa
Latin America
Brazil
Argentina
Colombia
Rest of Latin America
The major players in the Data Center Networking Market are VMware Inc., Broadcom Corp, Pluribus Networks, Microsoft Corporation, Fujitsu Ltd., Cisco Systems Inc., HUAWEI TECHNOLOGIES CO. LTD, Console Connect, IBM, Edge Micro, and other players.
Juniper Networks:
In June 20, 2023, Juniper Networks announced that it has launched a new software-defined networking (SDN) platform called Contrail Networking 3.0. The platform is designed to help businesses automate and manage their data center networks.
Arista Networks:
In June 8, 2023, Arista Networks announced that it has launched a new line of high-performance switches called 7800 Series. The switches are designed to meet the needs of businesses that are running demanding applications in their data centers.
| Report Attributes | Details |
| Market Size in 2023 | US$ 24.8 Billion |
| Market Size by 2031 | US$ 63.6 Billion |
| CAGR | CAGR of 12.5% From 2024 to 2031 |
| Base Year | 2023 |
| Forecast Period | 2024-2031 |
| Historical Data | 2020-2022 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Product (Ethernet Switches, Routers, SAN, ADC, Network Security Equipment, WAN Optimization Equipment) • By Component (Solution, Services) • By End User (IT, telecom, Retail, BFSI, Public sector, utilities, Energy, Manufacturing, Healthcare, Others) |
| Regional Analysis/Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America) |
| Company Profiles | VMware Inc., Broadcom Corp, Pluribus Networks, Microsoft Corporation, Fujitsu Ltd., Cisco Systems Inc., HUAWEI TECHNOLOGIES CO. LTD, Console Connect, IBM, Edge Micro |
| Key Drivers | • The growing adoption of cloud computing is the key driver of the data center networking market. • The rise of the IoT is another major driver of the market. • The expansion of 5G networks is also expected to boost the market growth. |
| Market Challenges | • Regulatory compliance issues can hinder the market growth. |
Ans. The Compound Annual Growth rate for Data Center Networking Market over the forecast period is 12.3%.
Ans. USD 58.6 Billion is the Company's projected Data Center Networking Market size by 2030.
Ans. Affordable labour charges, high job opportunities, low charges for transportation are some of the factors anticipated to create new opportunities for the data centre networking market.
Ans. The market players operating in the Data center networking platform market include Alcatel-Lucent Enterprise, Broadcom, Cisco, Dell Technology, Huawei Technologies, IBM, Intel, Juniper Network, Lenovo, and Microsoft Corporation.
Ans. When choosing a data center partner, key considerations include the provider's data center footprint, location characteristics, interconnectivity, network carriers, SLAs, and software-defined connectivity.
TABLE OF CONTENTS
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Research Methodology
3. Market Dynamics
3.1 Drivers
3.2 Restraints
3.3 Opportunities
3.4 Challenges
4. Impact Analysis
4.1 Impact of Ukraine- Russia War
4.2 Impact of Recession
4.2.2.1 US
4.2.2.2 Canada
4.2.2.3 Germany
4.2.2.4 France
4.2.2.5 United Kingdom
4.2.2.6 China
4.2.2.7 Japan
4.2.2.8 South Korea
4.2.2.9 Rest of the World
5. Value Chain Analysis
6. Porter’s 5 forces model
7. PEST Analysis
8. Data Center Networking Market, By Product
8.1 Ethernet Switches
8.2 Routers
8.3 SAN
8.4 ADC
8.5 Network Security Equipment
8.6 WAN Optimization Equipment
9. Data Center Networking Market, By Component
9.1 Solution
9.2 Services
10. Data Center Networking Market, By End-User
10.1 IT
10.2 Telecom
10.3 Retail
10.4 BFSI
10.5 Public sector
10.6 Utilities
10.7 Energy
10.8 Manufacturing
10.9 Healthcare
10.10 Others
11. Regional Analysis
11.1 Introduction
11.2 North America
11.2.1 North America Data Center Networking Market by country
11.2.2 North America Data Center Networking Market by Product
11.2.3 North America Data Center Networking Market by Component
11.2.4 North America Data Center Networking Market by End-User
11.2.5 USA
11.2.5.1 USA Data Center Networking Market by Product
11.2.5.2 USA Data Center Networking Market by Component
11.2.5.3 USA Data Center Networking Market by End-User
11.2.6 Canada
11.2.6.1 Canada Data Center Networking Market by Product
11.2.6.2 Canada Data Center Networking Market by Component
11.2.6.3 Canada Data Center Networking Market by End-User
11.2.7 Mexico
11.2.7.1 Mexico Data Center Networking Market by Product
11.2.7.2 Mexico Data Center Networking Market by Component
11.2.7.3 Mexico Data Center Networking Market by End-User
11.3 Europe
11.3.1 Eastern Europe
11.3.1.1 Eastern Europe Data Center Networking Market by country
11.3.1.2 Eastern Europe Data Center Networking Market by Product
11.3.1.3 Eastern Europe Data Center Networking Market by Component
11.3.1.4 Eastern Europe Data Center Networking Market by End-User
11.3.1.5 Poland
11.3.1.5.1 Poland Data Center Networking Market by Product
11.3.1.5.2 Poland Data Center Networking Market by Component
11.3.1.5.3 Poland Data Center Networking Market by End-User
11.3.1.6 Romania
11.3.1.6.1 Romania Data Center Networking Market by Product
11.3.1.6.2 Romania Data Center Networking Market by Component
11.3.1.6.4 Romania Data Center Networking Market by End-User
11.3.1.7 Turkey
11.3.1.7.1 Turkey Data Center Networking Market by Product
11.3.1.7.2 Turkey Data Center Networking Market by Component
11.3.1.7.3 Turkey Data Center Networking Market by End-User
11.3.1.8 Rest of Eastern Europe
11.3.1.8.1 Rest of Eastern Europe Data Center Networking Market by Product
11.3.1.8.2 Rest of Eastern Europe Data Center Networking Market by Component
11.3.1.8.3 Rest of Eastern Europe Data Center Networking Market by End-User
11.3.2 Western Europe
11.3.2.1 Western Europe Data Center Networking Market by Product
11.3.2.2 Western Europe Data Center Networking Market by Component
11.3.2.3 Western Europe Data Center Networking Market by End-User
11.3.2.4 Germany
11.3.2.4.1 Germany Data Center Networking Market by Product
11.3.2.4.2 Germany Data Center Networking Market by Component
11.3.2.4.3 Germany Data Center Networking Market by End-User
11.3.2.5 France
11.3.2.5.1 France Data Center Networking Market by Product
11.3.2.5.2 France Data Center Networking Market by Component
11.3.2.5.3 France Data Center Networking Market by End-User
11.3.2.6 UK
11.3.2.6.1 UK Data Center Networking Market by Product
11.3.2.6.2 UK Data Center Networking Market by Component
11.3.2.6.3 UK Data Center Networking Market by End-User
11.3.2.7 Italy
11.3.2.7.1 Italy Data Center Networking Market by Product
11.3.2.7.2 Italy Data Center Networking Market by Component
11.3.2.7.3 Italy Data Center Networking Market by End-User
11.3.2.8 Spain
11.3.2.8.1 Spain Data Center Networking Market by Product
11.3.2.8.2 Spain Data Center Networking Market by Component
11.3.2.8.3 Spain Data Center Networking Market by End-User
11.3.2.9 Netherlands
11.3.2.9.1 Netherlands Data Center Networking Market by Product
11.3.2.9.2 Netherlands Data Center Networking Market by Component
11.3.2.9.3 Netherlands Data Center Networking Market by End-User
11.3.2.10 Switzerland
11.3.2.10.1 Switzerland Data Center Networking Market by Product
11.3.2.10.2 Switzerland Data Center Networking Market by Component
11.3.2.10.3 Switzerland Data Center Networking Market by End-User
11.3.2.11.1 Austria
11.3.2.11.2 Austria Data Center Networking Market by Product
11.3.2.11.3 Austria Data Center Networking Market by Component
11.3.2.11.4 Austria Data Center Networking Market by End-User
11.3.2.12 Rest of Western Europe
11.3.2.12.1 Rest of Western Europe Data Center Networking Market by Product
11.3.2.12.2 Rest of Western Europe Data Center Networking Market by Component
11.3.2.12.3 Rest of Western Europe Data Center Networking Market by End-User
11.4 Asia-Pacific
11.4.1 Asia-Pacific Data Center Networking Market by Country
11.4.2 Asia-Pacific Data Center Networking Market by Product
11.4.3 Asia-Pacific Data Center Networking Market by Component
11.4.4 Asia-Pacific Data Center Networking Market by End-User
11.4.5 China
11.4.5.1 China Data Center Networking Market by Product
11.4.5.2 China Data Center Networking Market by Component
11.4.5.3 China Data Center Networking Market by End-User
11.4.6 India
11.4.6.1 India Data Center Networking Market by Product
11.4.6.2 India Data Center Networking Market by Component
11.4.6.3 India Data Center Networking Market by End-User
11.4.7 Japan
11.4.7.1 Japan Data Center Networking Market by Product
11.4.7.2 Japan Data Center Networking Market by Component
11.4.7.3 Japan Data Center Networking Market by End-User
11.4.8 South Korea
11.4.8.1 South Korea Data Center Networking Market by Product
11.4.8.2 South Korea Data Center Networking Market by Component
11.4.8.3 South Korea Data Center Networking Market by End-User
11.4.9 Vietnam
11.4.9.1 Vietnam Data Center Networking Market by Product
11.4.9.2 Vietnam Data Center Networking Market by Component
11.4.9.3 Vietnam Data Center Networking Market by End-User
11.4.10 Singapore
11.4.10.1 Singapore Data Center Networking Market by Product
11.4.10.2 Singapore Data Center Networking Market by Component
11.4.10.3 Singapore Data Center Networking Market by End-User
11.4.11 Australia
11.4.11.1 Australia Data Center Networking Market by Product
11.4.11.2 Australia Data Center Networking Market by Component
11.4.11.3 Australia Data Center Networking Market by End-User
11.4.12 Rest of Asia-Pacific
11.4.12.1 Rest of Asia-Pacific Data Center Networking Market by Product
11.4.12.2 Rest of Asia-Pacific Data Center Networking Market by Component
11.4.12.3 Rest of Asia-Pacific Data Center Networking Market by End-User
11.5 Middle East & Africa
11.5.1 Middle East
11.5.1.1 Middle East Data Center Networking Market by Country
11.5.1.2 Middle East Data Center Networking Market by Product
11.5.1.3 Middle East Data Center Networking Market by Component
11.5.1.4 Middle East Data Center Networking Market by End-User
11.5.1.5 UAE
11.5.1.5.1 UAE Data Center Networking Market by Product
11.5.1.5.2 UAE Data Center Networking Market by Component
11.5.1.5.3 UAE Data Center Networking Market by End-User
11.5.1.6 Egypt
11.5.1.6.1 Egypt Data Center Networking Market by Product
11.5.1.6.2 Egypt Data Center Networking Market by Component
11.5.1.6.3 Egypt Data Center Networking Market by End-User
11.5.1.7 Saudi Arabia
11.5.1.7.1 Saudi Arabia Data Center Networking Market by Product
11.5.1.7.2 Saudi Arabia Data Center Networking Market by Component
11.5.1.7.3 Saudi Arabia Data Center Networking Market by End-User
11.5.1.8 Qatar
11.5.1.8.1 Qatar Data Center Networking Market by Product
11.5.1.8.2 Qatar Data Center Networking Market by Component
11.5.1.8.3 Qatar Data Center Networking Market by End-User
11.5.1.9 Rest of Middle East
11.5.1.9.1 Rest of Middle East Data Center Networking Market by Product
11.5.1.9.2 Rest of Middle East Data Center Networking Market by Component
11.5.1.9.3 Rest of Middle East Data Center Networking Market by End-User
11.5.2 Africa
11.5.2.1 Africa Data Center Networking Market by Country
11.5.2.2 Africa Data Center Networking Market by Product
11.5.2.3 Africa Data Center Networking Market by Component
11.5.2.4 Africa Data Center Networking Market by End-User
11.5.2.5 Nigeria
11.5.2.5.1 Nigeria Data Center Networking Market by Product
11.5.2.5.2 Nigeria Data Center Networking Market by Component
11.5.2.5.3 Nigeria Data Center Networking Market by End-User
11.5.2.6 South Africa
11.5.2.6.1 South Africa Data Center Networking Market by Product
11.5.2.6.2 South Africa Data Center Networking Market by Component
11.5.2.6.3 South Africa Data Center Networking Market by End-User
11.5.2.7 Rest of Africa
11.5.2.7.1 Rest of Africa Data Center Networking Market by Product
11.5.2.7.2 Rest of Africa Data Center Networking Market by Component
11.5.2.7.3 Rest of Africa Data Center Networking Market by End-User
11.6 Latin America
11.6.1 Latin America Data Center Networking Market by Country
11.6.2 Latin America Data Center Networking Market by Product
11.6.3 Latin America Data Center Networking Market by Component
11.6.4 Latin America Data Center Networking Market by End-User
11.6.5 Brazil
11.6.5.1 Brazil Data Center Networking by Product
11.6.5.2 Brazil Data Center Networking by Component
11.6.5.3 Brazil Data Center Networking by End-User
11.6.6 Argentina
11.6.6.1 Argentina Data Center Networking by Product
11.6.6.2 Argentina Data Center Networking by Component
11.6.6.3 Argentina Data Center Networking by End-User
11.6.7 Colombia
11.6.7.1 Colombia Data Center Networking by Product
11.6.7.2 Colombia Data Center Networking by Component
11.6.7.3 Colombia Data Center Networking by End-User
11.6.8 Rest of Latin America
11.6.8.1 Rest of Latin America Data Center Networking by Product
11.6.8.2 Rest of Latin America Data Center Networking by Component
11.6.8.3 Rest of Latin America Data Center Networking by End-User
12 Company profile
12.1 VMware Inc.
12.1.1 Company Overview
12.1.2 Financials
12.1.3Product/Services/Offerings
12.1.4 SWOT Analysis
12.1.5 The SNS View
12.2 Broadcom Corp
12.2.1 Company Overview
12.2.2 Financials
12.2.3Product/Services/Offerings
12.2.4 SWOT Analysis
12.2.5 The SNS View
12.3 Pluribus Networks
12.3.1 Company Overview
12.3.2 Financials
12.3.3Product/Services/Offerings
12.3.4 SWOT Analysis
12.3.5 The SNS View
12.4 Microsoft Corporation
12.4.1 Company Overview
12.4.2 Financials
12.4.3Product/Services/Offerings
12.4.4 SWOT Analysis
12.4.5 The SNS View
12.5 Fujitsu Ltd.
12.5.1 Company Overview
12.5.2 Financials
12.5.3Product/Services/Offerings
12.5.4 SWOT Analysis
12.5.5 The SNS View
12.6 Cisco Systems Inc.
12.6.1 Company Overview
12.6.2 Financials
12.6.3Product/Services/Offerings
12.6.4 SWOT Analysis
12.6.5 The SNS View
12.7 HUAWEI TECHNOLOGIES CO. LTD
12.7.1 Company Overview
12.7.2 Financials
12.7.3Product/Services/Offerings
12.7.4 SWOT Analysis
12.7.5 The SNS View
12.8 Console Connect
12.8.1 Company Overview
12.8.2 Financial
12.8.3Product/Services/Offerings
12.8.4 SWOT Analysis
12.8.5 The SNS View
12.9 IBM
12.9.1 Company Overview
12.9.2 Financials
12.9.3 Product/Service/Offerings
12.9.4 SWOT Analysis
12.9.5 The SNS View
12.10 Edge Micro
12.10.1 Company Overview
12.10.2 Financials
12.10.3 Product/Service/Offerings
12.10.4 SWOT Analysis
12.10.5 The SNS View
13. Competitive Landscape
13.1 Competitive Benchmarking
13.2 Company Share Analysis
13.3 Recent Developments
13.3.1 Component News
13.3.2 Company News
13.3.3 Mergers & Acquisitions
14. USE Cases and Best Practices
15. Conclusion
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