Data Center Networking Market: An Increase in Demand for Cloud Native Applications to Fuel the Market Growth

Global Data Center Networking Market size was valued at USD 21.80 Bn in 2022 and is expected to reach USD 49.41 Bn by 2029, at a CAGR of 12.4% from forecast 2023 to 2029

Overview

Data Center Networking helps organizations provide access to networks, computing resources and storage devices that enable the execution of various business-critical applications. The core components of data center networking are including servers, switches, routers, and computing resources, firewalls and network infrastructure. It plays a major role in the storage and processing of data through the assistance of various networking resources. The data center networking solutions facilitate fast data transfer to high performance and have the ability to deliver information with high bandwidth.To know about the Research Methodology :- Request Free Sample Report
Data Center Networking Market Scope and Research Methodology
The report covers market trends, major segments, significant investment pockets, value chains, regional landscape and competitive environment in depth. The study is a useful source of information for major market players, new entrants, investors, and stakeholders in developing future plans and actions taken to consolidate their market position. The report majorly focuses on the key drivers and challenges, which guide investors about future market trends. The report provides an in-depth analysis of the data center networking companies including detailed profiles and financial performance in the industry. The analysis of the market dynamics provided in the report is based on local, regional and global levels. SWOT analysis was conducted to present strengths, weaknesses, opportunities and threats of Data Center Networking competitors in the industry. A bottom-up approach was used to estimate the market Data Center Networking Market size.
Data Center Networking Market Dynamics
The major driving factor of the market is the increasing demand for high-speed data connection and the growing need for cloud storage. A huge increment of investments in data center networking technologies is expected to make a lucrative opportunity for market growth globally. Companies use data center networking solutions to manage information flow between data centers and infrastructure assets. Software systems manage the flow of data as well as the workloads of the computers that process it. Uncertainty regarding data protection and an increase in the complexity of data center designs are expected to restrain the market growth during the forecast period.

An Increase in demand for cloud-native applications to boost the market

The increasing demand for high-speed internet and mega data centers is expected to drive the growth of the Data Centre Networking Industry. The factors responsible for the market growth include the adoption of 100 GB switch ports and the development of broadband internet infrastructure. The construction of new data centers and replacement of existing technologies and reduced cost of the semiconductor components are expected to create a huge demand for data center networking. Most organizations including BFSI, IT& telecom, and cloud data centers generate huge data. They adopt data networking solutions to manage data and governmental organizations and large enterprises prefer to build their own data architecture to maintain their data privacy and security.

Advancement in Hybrid and Multi-Cloud technology to drive the data center networking market growth

Network teams are investing in technologies such as SD-WAN and SASE, expanding automation initiatives, and focusing on skills development as more workloads and applications span cloud environments. The most important core trend in data center networking is the hybrid cloud model which combines current transaction processing and database activities with a cloud-hosted front-end element for the user interface. The model is expected to influence market growth during the forecast period. Hybrid initiatives provide advances to the data center networking industry with new guidelines on workloads to move to a public cloud and which need to move back on-premise, says Thomas Scheibe, vice president, of product management, with Cisco's cloud networking group.

Major factors influencing the Data Center Networking Market

The key factors impacting the growth of the data center networking market such as increasing demand for high-speed internet connection. The utilization of cloud storage by different end-users and growth in the penetration of technologies are expected to influence market growth. However, the high demand for robust data center networking solutions has been creating lucrative opportunities for Data Centre Networking Industry growth. The following factors are expected to boost the Market during the forecast

period:

1.Huge Data center investment
2.Adoption of Bigg data and IoT solutions
3.Technological advancement and development
4.Increase in adoption of high-capacity switches
Benefits of Data Center Networking:
5.Data center networking solutions assist in monitoring the performance, health, and availability of an industry’s data center networks.
6. Help in the visualization of data center networks in several graphical representations for better management
7. Traditional data storage techniques are less secure than data centers
8. A data center offers dependable storage without the drawbacks of mobile technologies

Challenges in the data center networking Market include:

ata Centre networking is the legal process of computing services such as switches, routers, load balancing, and analytics software to enable the collection and distribution of data. Modern data center networking challenges across the connected variety of data resources, including virtual machines, containers, and bare-metal applications. This shows a negative effect on unified monitoring and granular

security controls and is given below:

1. Data Security
2. Power Management
3. Capacity Planning
4. The Internet of Things (IoT)
5. Mobile Enterprise
6.Real-Time Reporting
7.Balancing Cost Controls with Efficiency
Data Center Networking Market Segmentation
The Data Center Networking Market is segmented into the Data Centre Networking component, end user, and region. On the basis of components, the market is divided into services and solutions. By end-user segment, the market is classified into IT and telecom, BFSI, Retail, Healthcare, Public sector and utilities, Manufacturing, Energy, and Others. The global market is segmented into five major regions including North America, Europe, Asia-Pacific, South America and Middle East Africa and its corresponding countries.

By Component

Based on components, the market is segmented by services and solutions. The service category is sub-segmented into professional and managed and the solutions category are sub-segmented into Ethernet Switches, Routers, Servers, Application Delivery Controllers, and Others. The solution segment dominated the global market share in 2022 and is expected to maintain its dominance during the forecast period. The segment growth is driven by increasing the adoption of data center networking solutions which provides various advantages. The Storage Area Network (SAN) segment is expected to hold the largest market share. The factors can be attributed to its benefits such as provisioning centralized control, offering flexibility & scalability, and enhancing capacity.
In the market, the services segment is expected to grow at a significant CAGR during the forecast period. The extensive adoption of deployment and integration services among end users has been responsible factors for segment growth in the market.

By End-Users

Based on End- Users, the market is segmented by IT and telecom, BFSI, Retail, Healthcare, Public sector and utilities, Manufacturing, Energy, and Others. The IT & Telecom segment held the largest market share in 2022 and is expected to grow at a significant CAGR over the forecast period. The segment growth is influenced by such factors surge in the number of telecom subscribers and increasing smartphone penetration to generate more information and subsequently increase the demand for Data Center Networking solutions.


Data Center Networking Market Regional Insight
North America held the largest global market share in 2022 and is expected to maintain its dominance over the forecast period. The rising demand for on-demand services and efficient use of storage devices is accelerating market growth. The adoption of cloud computing technology, acceptance of virtualization and storage system services are expected to influence the market demand in the region. The growth of cyber-attacks, growing penetration of software-defined networking and 5G technology has been driving the demand for the SDN-based and 5 G-oriented data center networking market. The U.S. is a major growth sector in North America due to the presence of key players in the country. In North America, developing data center infrastructure to boost market growth.

Europe follows North America in terms of market share. The growth of data centers in the countries such as the U.K., France, and Germany due to the increasing usage of mobile devices in the massive generation of data has been driving the need for an efficient data management system. Progressive adoption of cloud computing technology among European countries to influence the demand for the cloud Data Center Networking Market.

Asia Pacific, the market is expected to grow at a significant CAGR during the forecast period. An increase in the importance of smart technologies, IoT-powered devices, Big Data, Industry 4.0, 5G, servers and networking infrastructure in this region. The rapid digitalization and increasing acceptance of cloud computing resources are expected to drive market growth.

Competitive Landscape

Key companies are investing substantially in comprehensive R&D activities to increase their market share and maintain their market position. The expansion of product portfolio and M&A are key strategies that have been adopted by vendors. These vendors have been profiled in the report based on parameters such as company overview, product portfolio, business strategies, financial status and recent development. Major data center networking market players are Broadcom Inc., Arista Networks, Alcatel-Lucent, Delta Electronics Inc., Avaya Inc., Cisco Systems Inc., Dell Inc., Fujitsu Ltd., Extreme Networks, Huawei Technologies Co. Ltd., Microsoft Corporation, Hewlett Packard Enterprise, IBM Corporation, Intel Corporation, Juniper Networks, and NEC Corporation

In March 2023 - Arista Networks introduced the Arista WAN Routing System, which combines three new networking offerings: enterprise-class routing platforms, carrier/cloud-neutral internet transit capabilities, and the CloudVision. Pathfinder Service to improve customer-wide area networks. Based on Arista’s EOS routing capabilities, and CloudVision management, the Arista WAN Routing System delivers the architecture, features, and platforms to modernize federated and software-defined wide-area networks.

In December 2022 – Edgecore Network Corporation, a Taiwan-based provider of open networking products and solutions launched the EPS200 series, an open network solution specifically designed and manufactured for enterprises in data center networking architecture. It enables the connections of servers, storage devices and network switches all packed in the rack.
Data Center Networking Market Scope: Inquiry Before Buying



Data Center Networking Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
USD 21.80 Bn


Forecast Period 2023 to 2029 CAGR:
12.4 %
Market Size in 2029:
USD 49.41 Bn


 Segments Covered:
by Component Type
1. Services
1.Professional
2.Managed
2.Solutions
1. Ethernet Switches
2. Routers
3. Servers
4. Application Delivery Controllers
5. Others


by End-Users
1. IT and telecom
2. BFSI
3. Retail
4. Healthcare
5.Public sector and utilities
6. Manufacturing
7.Energy
8. Others



Data Center Networking Market by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Data Center Networking Key Players are:
1. Broadcom Corp
2. Cisco Systems Inc.
3. Dell Technologies Inc.
4. HPE, Lenovo Group
5. IBM, Intel Corporation
6. Juniper Networks Inc.
7. Microsoft Corporation
8. Oracle Corporation
9. HUAWEI TECHNOLOGIES CO. LTD
10. Fujitsu Ltd.
11. ALCATEL-LUCENT ENTERPRISE
12. Pluribus Networks
13. VMware Inc.
14. Console Connect
15. Edge Micro

Frequently Asked Questions:

1] What is the growth rate of the Global Data Center Networking Market?
Ans. The Global Data Center Networking Market is growing at a significant rate of 12.4 % during the forecast period.

2] Which region is expected to dominate the Global Data Center Networking Market?
Ans. The North America region is expected to dominate the Data Center Networking Market during the forecast period.

3] What is the expected Global Data Center Networking Market size by 2029?
Ans. The Data Center Networking Market size is expected to reach USD 49.41 Bn by 2029.

4] Which are the top players in the Global Data Center Networking Market?
Ans. The major top players in the Global Data Center Networking Market are Broadcom Inc., Arista Networks and others

5] What are the factors driving the Global Data Center Networking Market growth?
Ans. A huge increment of investments in data center networking technologies is expected to drive the market growth.