APAC Data Center Networking Market Size (2024 - 2029)

The Asia-Pacific data center networking market is experiencing significant growth, driven by the increasing demand for networking solutions due to rising data traffic and the construction of new data centers and servers. The region is witnessing a substantial expansion in IT load capacity and raised floor area, contributing to the overall market size. Additionally, the proliferation of submarine cable systems, such as the Southeast Asia-Japan Cable 2, is enhancing connectivity across the region, further supporting market growth.

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Market Size of APAC Data Center Networking Industry

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APAC Data Center Networking Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 8.81 Billion
Market Size (2029) USD 13.99 Billion
CAGR (2024 - 2030) 9.70 %
Market Concentration Low

Major Players

APAC Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

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APAC Data Center Networking Market Analysis

The APAC Data Center Networking Market size is estimated at USD 8.81 billion in 2024, and is expected to reach USD 13.99 billion by 2029, growing at a CAGR of 9.70% during the forecast period (2024-2029).

Asia Pacific is experiencing strong adoption of visualization tools, specifically standalone visualization. Increasing data traffic along with increasing data center constructions and servers is laying the demand for networking solutions.

  • The upcoming IT load capacity of the Asia-Pacific data center construction market is expected to reach 23K MW by 2029. The region's construction of raised floor area is expected to increase 74.5 million sq. ft by 2029.
  • The region's total number of racks to be installed is expected to reach 4.2 million units by 2029. India is expected to house the maximum number of racks by 2029.
  • There are close to 160 submarine cable systems connecting the Asia-Pacific, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 km with a landing point in China, Taiwan, Japan, South Korea, Thailand, and Vietnam.

APAC Data Center Networking Industry Segmentation

Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of applications and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.

The Asia-Pacific data center networking market is segmented by component type (product (ethernet switches, routers, storage area network (SAN), application delivery controller (ADC), and other networking equipment) and services (installation & integration, training & consulting, and support & maintenance)), end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users), and country (India, China, Japan, Indonesia, Thailand, Australia, Singapore, Hong Kong, Taiwan, South Korea, Philippines, Vietnam, Malaysia and the Rest of Asia-Pacific).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component
By Product
Ethernet Switches
Router
Storage Area Network (SAN)
Application Delivery Controller (ADC)
Other Networking Equipment
By Services
Installation & Integration
Training & Consulting
Support & Maintenance
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
Country
Indonesia
India
China
Australia
South Korea
Philippines
Thailand
Singapore
New Zealand
Japan
Malaysia
Vietnam
Hong Kong
Taiwan
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APAC Data Center Networking Market Size Summary

The Asia-Pacific data center networking market is experiencing robust growth, driven by the increasing demand for advanced networking solutions due to the surge in data traffic and the proliferation of data center constructions across the region. The market is characterized by a hyper-connected environment, with significant contributions from telecommunications companies that are pivotal in supporting connectivity and collaboration needs. The region is witnessing a shift towards high-capacity switches and flash storage devices, propelled by data localization laws in countries like Malaysia, Indonesia, and Vietnam. These regulations have spurred the construction of data centers, leading to the adoption of sophisticated networking solutions. The advent of 5G technology has further accelerated the deployment of small cells, enhancing high-speed network connectivity. Notable developments, such as the expansion of submarine cable systems and the introduction of advanced Ethernet technologies, underscore the region's commitment to enhancing its networking infrastructure.

The competitive landscape of the Asia-Pacific data center networking market is marked by a high degree of fragmentation, with key players like Shenzhen Tenda Technology Co., Ltd., H3C Holding Limited, and NEC Corporation intensifying their competitive strategies. These companies are focused on expanding their market share through strategic collaborations and innovative product offerings. Recent advancements include VMware's SD-WAN solution and Moxa Inc.'s Ethernet switches, which cater to diverse networking needs. The market is also witnessing significant investments in infrastructure and technology, with governments and private entities revising policies and launching initiatives to support data center growth. India's rapid economic expansion and increased internet penetration are expected to drive substantial market growth, supported by collaborations with global tech giants and government incentives. Overall, the Asia-Pacific data center networking market is poised for continued expansion, driven by technological advancements and strategic investments.

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APAC Data Center Networking Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Need of Cloud Storage and Rsing Demand for Reliable Application Performance

      2. 1.2.2 Increasing Cyberattacks Among Enterprises

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Network Complexity

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Component

      1. 2.1.1 By Product

        1. 2.1.1.1 Ethernet Switches

        2. 2.1.1.2 Router

        3. 2.1.1.3 Storage Area Network (SAN)

        4. 2.1.1.4 Application Delivery Controller (ADC)

        5. 2.1.1.5 Other Networking Equipment

      2. 2.1.2 By Services

        1. 2.1.2.1 Installation & Integration

        2. 2.1.2.2 Training & Consulting

        3. 2.1.2.3 Support & Maintenance

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

    3. 2.3 Country

      1. 2.3.1 Indonesia

      2. 2.3.2 India

      3. 2.3.3 China

      4. 2.3.4 Australia

      5. 2.3.5 South Korea

      6. 2.3.6 Philippines

      7. 2.3.7 Thailand

      8. 2.3.8 Singapore

      9. 2.3.9 New Zealand

      10. 2.3.10 Japan

      11. 2.3.11 Malaysia

      12. 2.3.12 Vietnam

      13. 2.3.13 Hong Kong

      14. 2.3.14 Taiwan

APAC Data Center Networking Market Size FAQs

The APAC Data Center Networking Market size is expected to reach USD 8.81 billion in 2024 and grow at a CAGR of 9.70% to reach USD 13.99 billion by 2029.

In 2024, the APAC Data Center Networking Market size is expected to reach USD 8.81 billion.

APAC Data Center Networking Market Report Snapshots

Asia-Pacific Data Center Networking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)