Data Center Networking Market
Data Center Networking Market Forecasts to 2030 - Global Analysis By Component (Hardware, Software and Services), Network Type (Ethernet Networks, InfiniBand and Fiber Channel), Architecture, End User and By Geography
According to Stratistics MRC, the Global Data Center Networking Market is accounted for $38.7 billion in 2024 and is expected to reach $81.9 billion by 2030 growing at a CAGR of 13.3% during the forecast period. The combination of software and hardware technologies that facilitate effective data transfer and communication both inside and between data centers is known as data center networking. In addition to protocols and architectures intended to maximize performance, scalability, and security, it comprises network components like switches, routers, and firewalls. Cloud computing, virtualization, and fast connections are all supported by data center networking, which guarantees the smooth delivery of services and applications that require a lot of data. It is essential for handling the expanding needs of contemporary businesses and projects involving digital transformation.
According to Statista, the US has 5,381 data centers, the most of any country worldwide, as of March 2024.
Market Dynamics:
Driver:
Growing demand for cloud services
The increasing reliance on cloud computing across industries is a key driver of the data center networking market. Cloud services require robust and scalable networking solutions to support high-speed data transfer, seamless connectivity, and efficient storage. The proliferation of cloud-based applications, coupled with advancements in broadband infrastructure and the adoption of 100 GB switch ports, has significantly boosted demand. Additionally, the expansion of mega data centers and colocation facilities to accommodate growing data volumes further propels market growth by enhancing operational efficiency and reducing latency.
Restraint:
High initial investment
Building state-of-the-art networking facilities requires substantial capital for hardware components like switches, routers, and servers, as well as for energy-efficient technologies to meet environmental regulations. These costs pose challenges, particularly for small and medium enterprises, limiting their ability to adopt advanced data center networking solutions. Moreover, ongoing maintenance expenses add to the financial burden, creating barriers for new entrants in the market.
Opportunity:
Expansion of IoT and connected devices
IoT generates massive amounts of data that require efficient storage, processing, and real-time analysis. This drives the need for advanced networking solutions capable of handling high-bandwidth traffic with low latency. Additionally, the integration of IoT with technologies like 5G and edge computing further enhances demand for scalable and secure data center networks, enabling businesses to optimize operations and unlock new revenue streams.
Threat:
Cybersecurity risks
The increasing complexity of data center networks exposes them to heightened cybersecurity threats. Organizations rely more on interconnected systems and cloud platforms. Vulnerabilities to cyberattacks such as data breaches, ransomware, and denial-of-service attacks grow. These threats can disrupt operations, compromise sensitive information, and lead to significant financial losses. The need for robust security measures adds complexity and cost to network management, posing a challenge to market growth.
Covid-19 Impact:
The COVID-19 pandemic significantly influenced the data center networking market by accelerating digital transformation across industries. With remote work and online education becoming widespread, there was a surge in demand for high-speed internet, cloud services, and storage solutions. Data centers became critical in supporting increased traffic from video conferencing platforms and streaming services. While initial lockdowns disrupted supply chains and construction activities temporarily, the overall market experienced growth due to heightened reliance on digital infrastructure during the pandemic.
The hardware segment is expected to be the largest during the forecast period
The hardware segment is expected to account for the largest market share during the forecast period. This is due to the critical role that physical networking components play in the infrastructure of data centers. As organizations continue to invest in data center expansion and modernization, the demand for advanced hardware solutions, including high-speed switches and routers, is expected to rise. These hardware components are essential for supporting the increasing data traffic and ensuring reliable network performance.
The spine-leaf (two-tier) segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the spine-leaf (two-tier) segment is predicted to witness the highest growth rate. This architecture offers scalability, low latency, and high bandwidth, making it ideal for modern data center requirements. Its design enhances network performance and simplifies management, which is particularly beneficial as data centers handle increasing volumes of data. The growing adoption of spine-leaf architecture reflects its effectiveness in meeting the evolving demands of data center networking.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share due to its advanced technological landscape and robust investments in cloud computing infrastructure. The widespread deployment of 5G networks, coupled with increasing adoption of AI-driven applications across industries, drives demand for efficient networking solutions. Additionally, major players like Amazon Web Services (AWS) and Microsoft Azure continue expanding their regional capacities to meet growing requirements for scalable data centers.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. Asia Pacific's rapid urbanization and digital transformation across sectors contribute to its fast-paced growth. The regions increasing adoption of smart technologies such as IoT-powered devices, Industry 4.0 initiatives, 5G connectivity, and cloud computing fuels demand for advanced networking solutions. Countries like China, India, and Japan are witnessing substantial investments from global tech giants aiming to capitalize on this burgeoning opportunity.
Key players in the market
Some of the key players in Data Center Networking Market include Cisco Systems, NVIDIA, Dell Technologies, Huawei Technologies, Arista Networks, Hewlett Packard Enterprise (HPE), Juniper Networks, VMware, Broadcom, Intel, Nokia, Extreme Networks, F5 Networks, Alcatel-Lucent Enterprise, IBM Corporation, Microsoft Corporation, A10 Networks and Lenovo.
Key Developments:
In December 2024, Arista Networks, a leading provider of cloud and AI networking solutions, today announced innovations enabling customers to build scalable and resilient campus networks. Arista is introducing the Switch Aggregation Group (SWAG™) capability in Arista EOS® that uses industry-standard Ethernet to group and manage individual switches via a single IP address. In addition, Arista CloudVision® Leaf Spine Stack (LSS™) Management allows operators to collectively manage a logical stack of switches within a single networking closet or across the entire campus. Arista EOS SWAG and CloudVision LSS free customers from proprietary stacking protocols and design limitations while delivering extensive flexibility for network topologies and operations.
In November 2024, Dell Technologies Released new AI networking design services to optimize network performance for AI workloads. Up to 33% of elapsed time in AI/ML tasks is often wasted waiting for network availability, resulting in costly GPU resources remaining idle. This addition to our Dell AI Factory services helps you design your AI networking to ensure optimal network performance.
Components Covered:
• Hardware
• Software
• Services
Network Types Covered:
• Ethernet Networks
• InfiniBand
• Fiber Channel
Architectures Covered:
• Traditional Three-Tier
• Spine-Leaf (Two-Tier)
• Other Architectures
End Users Covered:
• Cloud Service Providers
• Enterprises
• Colocation Providers
• Government & Defense
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 End User Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Data Center Networking Market, By Component
5.1 Introduction
5.2 Hardware
5.2.1 Network Switches
5.2.2 Routers
5.2.3 Network Interface Cards (NICs)
5.2.4 Load Balancers & Application Delivery Controllers (ADCs)
5.2.5 Network Security Devices
5.2.6 Network Management Appliances
5.3 Software
5.3.1 Network Operating Systems (NOS)
5.3.2 Network Management Systems (NMS)
5.3.3 Network Virtualization Software
5.3.4 Network Analytics & Monitoring Tools
5.3.5 Network Security Software
5.3.6 Network Automation & Orchestration
5.3.7 SDN Controllers
5.4 Services
5.4.1 Installation & Integration
5.4.2 Training & Consulting
5.4.3 Support & Maintenance
6 Global Data Center Networking Market, By Network Type
6.1 Introduction
6.2 Ethernet Networks
6.2.1 10/25 GbE
6.2.2 40/50 GbE
6.2.3 100 GbE
6.2.4 400 GbE and Higher Speeds
6.3 InfiniBand
6.4 Fiber Channel
7 Global Data Center Networking Market, By Architecture
7.1 Introduction
7.2 Traditional Three-Tier
7.3 Spine-Leaf (Two-Tier)
7.4 Other Architectures
8 Global Data Center Networking Market, By End User
8.1 Introduction
8.2 Cloud Service Providers
8.3 Enterprises
8.3.1 BFSI
8.3.2 IT & Telecom
8.3.3 Healthcare
8.3.4 Retail & E-commerce
8.3.5 Manufacturing
8.3.6 Energy & Utilities
8.3.7 Media & Entertainment
8.4 Colocation Providers
8.5 Government & Defense
9 Global Data Center Networking Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa
10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies
11 Company Profiling
11.1 Cisco Systems
11.2 NVIDIA
11.3 Dell Technologies
11.4 Huawei Technologies
11.5 Arista Networks
11.6 Hewlett Packard Enterprise (HPE)
11.7 Juniper Networks
11.8 VMware
11.9 Broadcom
11.10 Intel
11.11 Nokia
11.12 Extreme Networks
11.13 F5 Networks
11.14 Alcatel-Lucent Enterprise
11.15 IBM Corporation
11.16 Microsoft Corporation
11.17 A10 Networks
11.18 Lenovo
List of Tables
1 Global Data Center Networking Market Outlook, By Region (2022-2030) ($MN)
2 Global Data Center Networking Market Outlook, By Component (2022-2030) ($MN)
3 Global Data Center Networking Market Outlook, By Hardware (2022-2030) ($MN)
4 Global Data Center Networking Market Outlook, By Network Switches (2022-2030) ($MN)
5 Global Data Center Networking Market Outlook, By Routers (2022-2030) ($MN)
6 Global Data Center Networking Market Outlook, By Network Interface Cards (NICs) (2022-2030) ($MN)
7 Global Data Center Networking Market Outlook, By Load Balancers & Application Delivery Controllers (ADCs) (2022-2030) ($MN)
8 Global Data Center Networking Market Outlook, By Network Security Devices (2022-2030) ($MN)
9 Global Data Center Networking Market Outlook, By Network Management Appliances (2022-2030) ($MN)
10 Global Data Center Networking Market Outlook, By Software (2022-2030) ($MN)
11 Global Data Center Networking Market Outlook, By Network Operating Systems (NOS) (2022-2030) ($MN)
12 Global Data Center Networking Market Outlook, By Network Management Systems (NMS) (2022-2030) ($MN)
13 Global Data Center Networking Market Outlook, By Network Virtualization Software (2022-2030) ($MN)
14 Global Data Center Networking Market Outlook, By Network Analytics & Monitoring Tools (2022-2030) ($MN)
15 Global Data Center Networking Market Outlook, By Network Security Software (2022-2030) ($MN)
16 Global Data Center Networking Market Outlook, By Network Automation & Orchestration (2022-2030) ($MN)
17 Global Data Center Networking Market Outlook, By SDN Controllers (2022-2030) ($MN)
18 Global Data Center Networking Market Outlook, By Services (2022-2030) ($MN)
19 Global Data Center Networking Market Outlook, By Installation & Integration (2022-2030) ($MN)
20 Global Data Center Networking Market Outlook, By Training & Consulting (2022-2030) ($MN)
21 Global Data Center Networking Market Outlook, By Support & Maintenance (2022-2030) ($MN)
22 Global Data Center Networking Market Outlook, By Network Type (2022-2030) ($MN)
23 Global Data Center Networking Market Outlook, By Ethernet Networks (2022-2030) ($MN)
24 Global Data Center Networking Market Outlook, By 10/25 GbE (2022-2030) ($MN)
25 Global Data Center Networking Market Outlook, By 40/50 GbE (2022-2030) ($MN)
26 Global Data Center Networking Market Outlook, By 100 GbE (2022-2030) ($MN)
27 Global Data Center Networking Market Outlook, By 400 GbE and Higher Speeds (2022-2030) ($MN)
28 Global Data Center Networking Market Outlook, By InfiniBand (2022-2030) ($MN)
29 Global Data Center Networking Market Outlook, By Fiber Channel (2022-2030) ($MN)
30 Global Data Center Networking Market Outlook, By Architecture (2022-2030) ($MN)
31 Global Data Center Networking Market Outlook, By Traditional Three-Tier (2022-2030) ($MN)
32 Global Data Center Networking Market Outlook, By Spine-Leaf (Two-Tier) (2022-2030) ($MN)
33 Global Data Center Networking Market Outlook, By Other Architectures (2022-2030) ($MN)
34 Global Data Center Networking Market Outlook, By End User (2022-2030) ($MN)
35 Global Data Center Networking Market Outlook, By Cloud Service Providers (2022-2030) ($MN)
36 Global Data Center Networking Market Outlook, By Enterprises (2022-2030) ($MN)
37 Global Data Center Networking Market Outlook, By BFSI (2022-2030) ($MN)
38 Global Data Center Networking Market Outlook, By IT & Telecom (2022-2030) ($MN)
39 Global Data Center Networking Market Outlook, By Healthcare (2022-2030) ($MN)
40 Global Data Center Networking Market Outlook, By Retail & E-commerce (2022-2030) ($MN)
41 Global Data Center Networking Market Outlook, By Manufacturing (2022-2030) ($MN)
42 Global Data Center Networking Market Outlook, By Energy & Utilities (2022-2030) ($MN)
43 Global Data Center Networking Market Outlook, By Media & Entertainment (2022-2030) ($MN)
44 Global Data Center Networking Market Outlook, By Colocation Providers (2022-2030) ($MN)
45 Global Data Center Networking Market Outlook, By Government & Defense (2022-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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