The global data center networking market is predicted to expand from $21.49 billion in 2022 to $31.85 billion in 2028, garnering an annual growth rate of about 12% from 2023 to 2028.
The data center networking is considered as the procedure of establishing and interconnecting components like storage, network-based devices, in the data center facilities. The market is segmented into hardware solutions and services, including equipment such as WAN optimizers, Ethernet switches, patch cables, controllers, servers and routers that assist in the movement of network communications. The demand for data center network solutions is expected to increase due to the tilt of the cloud and the growing importance of multi-tenant and tenant facilities.
There is an increasing need for backup and storage as the amount of data generated increases. Several storage units have deployed cloud solutions, which can replicated at ease and failover if needed.
The growing use of cloud storage is driving the worldwide data center networking market growth. According to Oracle, 80% of all business workloads will be transferred to the cloud. Despite the fact that the absolute number of files stored in the cloud has grown rapidly, the percentage of files containing confidential data has also increased, reaching 21% with an increase of 17% in the past two years.
Recent DEVELOPMENTS:
Market growth and trends:
Adoption of data center virtualization and cloud computing: Virtualization is the process of training multiple logical devices from a single physical device. The surge in need from companies for real-time interaction, on-demand service delivery, efficient usage of storage devices and control of data center networks, has encouraged the adoption of cloud services. The rise in the adoption of cloud computing and virtualization is opening doors for various data center network products, such as virtual switches and switching operating systems, driving this market growth.
Improved service delivery and risk management: Organizations are changing their service delivery models to succeed in today's changing business landscape, which is being reshaped and aligned to meet the needs of the Internal and External Business Environment. Today's data centers offer a more dynamic and flexible infrastructure that offers a better opportunity to discover and recognize new business opportunities. Organizations are improving their geographical presence with the help of latest technologies, increasing the call for improved security and resilience.
Market Drivers and Restraints:
Both types of data centers can be used in various industries, such as IT, telecommunications, retail, BFSI, etc. Virtualization of cloud computing is the main driver of the global market. There are many opportunities in the market, since all companies use data centers as data storage systems.
REPORT METRIC |
DETAILS |
Market Size Available |
2022 – 2028 |
Base Year |
2022 |
Forecast Period |
2023 - 2028 |
CAGR |
12% |
Segments Covered |
By Industry Vertical, Business Type, Product Type, and Region |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Brocade, Cisco, EMC, Dell, IBM, Extreme Networks, Jupiter Networks, Intel, NEC, Microsoft, Fujitsu, Alcatel-Lucent, Vmware and Hitachi Data Systems and Others. |
Data Center Networking Market segmentation:
The global market for data center networking is segmented based on several types.
Based on industry verticals, the global market is segmented in IT and telecommunications, financial services and bank insurance, healthcare, government and defense, media and entertainment, retail, education, and high-tech industries.
Depending on the type of business, the global market for data center networks is segmented into cloud service providers and service providers.
The global data center networking market is categorized on the basis of product type into Application Distribution Controller (ADC), Storage Area Network (SAN), Ethernet switches, WAN optimization devices, routers, and system security equipment.
Regional Analysis:
Depending on the geography, the global data center networking market is primarily studied in Asia-Pacific, North America, the Middle East and Africa, Europe and Central and South America. North America would experience the highest growth in the world market due to Internet-based data solutions for data optimization and Internet penetration. Countries like India and China in the Asia-Pacific region are expected to emerge and be the exceptional source of the global data center networking market.
The emergence of a new business environment in the wake of Covid-19 should stimulate cloud services and digitization as companies revise their digital infrastructure to cope with new ways of working. The pandemic, blockade and WFH of Covid-19 have increased digital and online transactions, reflecting an increased demand for collaboration tools like Zoom or the use of commercial tools like SAP or online banking.
Key players in the market:
The global market for data center networks is too aggressive. Global players tend to dominate the race, leaving local contenders behind. The main players are Brocade, Cisco, EMC, Dell, IBM, Extreme Networks, Jupiter Networks, Intel, NEC, Microsoft, Fujitsu, Alcatel-Lucent, Vmware and Hitachi Data Systems.
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