Data Center Networking Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Description

The Global Data Center Networking Market was valued at USD 23.8 billion and is projected to grow at over 13% CAGR during 2024-2032, as cloud-based services demand significant bandwidth to ensure a seamless user experience. Data center networking offers the high-speed connectivity essential for these bandwidth-heavy applications, adeptly managing the rising traffic volumes from cloud services. For example, in 2023, projections indicated over 30 billion IoT devices would be globally networked. Furthermore, escalating data security concerns within the IT sector present lucrative growth avenues for the data center networking domain.

A notable trend is the surging adoption of optical networking technologies. Events like the Optical Fiber Communications Conference and Exhibition (OFC 2024) underscore advancements in optical communications. Industry leaders, including Cisco, Ciena, and Juniper Networks, are prominently showcasing these technologies, emphasizing their potential to boost efficiency and performance. Another significant trend is the melding of Software-Defined Networking (SDN) with Network Function Virtualization (NFV). These innovations promise a more flexible, scalable, and automated approach to network management, adeptly navigating the complexities of modern data center environments.

The Global Data Center Networking Industry is classified based on component, application, network, organization and region.

The market segments applications into colocation, BFSI, energy, government, healthcare, manufacturing, and IT & telecom. In 2023, the IT & telecom sector commanded over 26% of the market share and is set for notable growth through 2032. Within IT and telecom, data center networking is pivotal for streamlining data flow across vast networks. It not only ensures rapid data transmission and supports cloud services but also optimizes data storage and retrieval. This technology is foundational for vital services like virtualization and disaster recovery, empowering businesses to scale, boost reliability, and elevate service delivery.

Segmented by components, the data center networking market divides into hardware and services. In 2023, the hardware segment dominated with a 77% market share. Core components of data center networking encompass high-capacity switches, sophisticated routers, and network fabrics, all engineered to manage vast data loads with minimal latency. These elements are crucial for ensuring data center connectivity, scalability, and security. Technologies like SDN and NFV further enhance flexibility and automate network oversight.

North America Data Center Networking Industry commanded a dominant 39% share, with projections indicating significant expansion through 2032. This growth can be attributed to the region's advanced IT infrastructure, hefty investments in data center expansions, and a pronounced adoption of cloud technologies. Bolstered by a robust IT ecosystem and a concentration of tech giants, the region is at the forefront of driving innovation and demand. Furthermore, North America's established ecosystem boasts extensive fiber networks and high-capacity data centers, largely fueled by major cloud service providers.

Product Code: 2578

Chapter 1 Methodology and Scope

1.1 Research design
- 1.1.1 Research approach
- 1.1.2 Data collection methods
1.2 Base estimates and calculations
- 1.2.1 Base year calculation
- 1.2.2 Key trends for market estimates
1.3 Forecast model
1.4 Primary research and validation
- 1.4.1 Primary sources
- 1.4.2 Data mining sources
1.5 Market scope and definitions

Chapter 2 Executive Summary

2.1 Industry 360º synopsis, 2021 - 2032

Chapter 3 Industry Insights

3.1 Industry ecosystem analysis
3.2 Supplier landscape
- 3.2.1 Networking hardware manufacturers
- 3.2.2 Software providers
- 3.2.3 Cloud service providers
- 3.2.4 Internet exchange providers
- 3.2.5 End users
3.3 Profit margin analysis
3.4 Technology and innovation landscape
3.5 Patent analysis
3.6 Key news and initiatives
- 3.6.1 Partnership/Collaboration
- 3.6.2 Merger/Acquisition
- 3.6.3 Investment
- 3.6.4 Application launch and innovation
3.7 Regulatory landscape
3.8 Impact forces
- 3.8.1 Growth drivers
  - 3.8.1.1 Increasing adoption of cloud computing and IoT
  - 3.8.1.2 Development of broadband and internet infrastructure
  - 3.8.1.3 Increase in the establishment of new data centers
  - 3.8.1.4 Rapid urbanization and proliferation of smart technologies
- 3.8.2 Industry pitfalls and challenges
  - 3.8.2.1 High maintenance and start-up costs
  - 3.8.2.2 Stringent government regulations and policies
3.9 Growth potential analysis
3.10 Porter's analysis
3.11 PESTEL analysis

Chapter 4 Competitive Landscape, 2023

4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix

Chapter 5 Market Estimates and Forecast, By Component, 2021-2032 ($Mn)

5.1 Key trends
5.2 Hardware
- 5.2.1 Ethernet switches
- 5.2.2 Routers
- 5.2.3 Servers
- 5.2.4 Application delivery controller (ADC)
- 5.2.5 Others
5.3 Service
- 5.3.1 Managed services
- 5.3.2 Professional services

Chapter 6 Market Estimates and Forecast, By Application, 2021-2032 ($Mn)

6.1 Key trends
6.2 BFSI
6.3 Colocation
6.4 Energy
6.5 Government
6.6 Healthcare
6.7 Manufacturing
6.8 IT and Telecom
6.9 Others

Chapter 7 Market Estimates and Forecast, By Network, 2021-2032 ($Mn)

7.1 Key trends
7.2 Ethernet
7.3 Fibre channel
7.4 InfiniBand

Chapter 8 Market Estimates and Forecast, By Organization Size, 2021-2032 ($Mn)

8.1 Key trends
8.2 Small and medium-sized enterprises (SME)
8.3 Large enterprises

Chapter 9 Market Estimates and Forecast, By Region, 2021-2032 ($Mn)

9.1 Key trends
9.2 North America
- 9.2.1 U.S.
- 9.2.2 Canada
- 9.2.3 Mexico
9.3 Europe
- 9.3.1 UK
- 9.3.2 Germany
- 9.3.3 France
- 9.3.4 Spain
- 9.3.5 Poland
- 9.3.6 Benelux
- 9.3.7 Rest of Europe
9.4 Asia Pacific
- 9.4.1 China
- 9.4.2 India
- 9.4.3 Japan
- 9.4.4 Singapore
- 9.4.5 Australia
- 9.4.6 Rest of Asia Pacific
9.5 South America
- 9.5.1 Brazil
- 9.5.2 Colombia
- 9.5.3 Chile
- 9.5.4 Argentina
- 9.5.5 Rest of South America
9.6 MEA
- 9.6.1 UAE
- 9.6.2 Saudi Arabia
- 9.6.3 South Africa
- 9.6.4 Rest of MEA

Chapter 10 Company Profiles

10.1 Active Power
10.2 Alcatel-Lucent Enterprise
10.3 Arista Networks, Inc.
10.4 Broadcom Inc.
10.5 Cisco System inc.
10.6 Dell Inc.
10.7 Delta Electronics
10.8 Extreme Networks Inc.
10.9 Fujitsu Ltd.
10.10 Hewlett Packard Enterprise (HPE)
10.11 Huawei Technologies Co., Ltd.
10.12 IBM Corporation
10.13 Intel Corporation
10.14 Juniper Networks, Inc
10.15 Microsoft Corporation
10.16 Schneider Electric
10.17 Siemens AG