Australia Data Center Networking Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.77 Billion |
| Market Size (2029) | USD 0.98 Billion |
| CAGR (2024 - 2029) | 5.09 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Australia Data Center Networking Market Analysis
The Australia Data Center Networking Market size is estimated at USD 0.77 billion in 2024, and is expected to reach USD 0.98 billion by 2029, growing at a CAGR of 5.09% during the forecast period (2024-2029).
- Australia is one of the prominent markets for server virtualization. Australian enterprises have stepped up their adoption of software-defined networking (SDN) in response to changes in work and customer behavior caused by the COVID-19 pandemic.
- Enterprises are deploying SDN technologies as part of broader digital transformations to increase their agility, flexibility, and competitiveness. Likewise, as the long-term trend from in-person to online shopping continues, SDN can help companies respond quickly and seamlessly to customer inquiries. This factor relates to the rising networking infrastructure in the data center.
- The upcoming IT load capacity of the Australian data center market is expected to reach 3.2K MW by 2029. The country's construction of raised floor area is expected to increase to 11.4 million sq. ft by 2029.
- The country's total number of racks to be installed is expected to reach 570.8K units by 2029. Greater Melbourne is expected to house the maximum number of racks by 2029.
- There are close to 23 submarine cable systems connecting Australia, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Asia Connect Cable-1 (ACC-1), which stretches over 18000 Kilometers with landing points from Darwin, Australia.
Australia Data Center Networking Market Trends
BFSI to Hold significant market Growth
- Banks are relocating their servers from their back offices to shared spaces like data centers. Information technology (IT) systems in modern banking are mission-critical, and data centers serve as the fundamental building blocks of a robust, resilient IT environment.
- Since 2019, Australia has witnessed a surge in digital banks following favorable legislative changes in 2018. Presently, Australia is home to five independent licensed neo-banks and a multitude of digital banking platforms. Australian banks have reported that digital banking is now the primary channel for customers aged between 16 and 69, with digital interactions increasing by 10% since 2019. The escalating prominence of digital banking poses risks such as downtime, outages, and recurring issues in major networking infrastructure.
- Several Australian banks rely on IP/MPLS networks to connect their branches to data centers and cloud service providers. Major branches function as concentration points, aggregating traffic from smaller branches before forwarding it to the backbone network, which leads to data centers and cloud services.
- According to the Australian Banking Association, the value of mobile wallet transactions has surged by 12,400% from 2018 to 2022. The number of Australians using digital wallets continues to rise. The proportion of smartphone owners utilizing a digital wallet (including Apple Pay, CommBank Tap & Pay, Google Pay, Samsung Pay, NAB Pay, WeChat Pay, and Alipay) increased to 37% in the 18 months from September 2021, up from 18% in March 2020. With the increasing adoption of digital banking, the BFSI (Banking, Financial Services, and Insurance) segment is expected to experience significant growth throughout the forecast period
Ethernet Switches Hold Major Market Share
- Data center Ethernet switches are integral network devices specifically designed for operation within a data center environment. They serve a crucial role in facilitating efficient and rapid data transfer by establishing interconnections among servers, storage devices, and other network equipment. These switches are optimized for high-speed data transmission, supporting various Ethernet speeds such as gigabit multigigabit (including 10GbE, 25GbE, 40GbE, 100GbE, and beyond).
- Australia, like many other countries, has undergone significant digital transformation across industries. Businesses are increasingly investing in data centers to enhance the efficiency of their processes, services, and overall operations. Ethernet switches are pivotal in ensuring the efficiency, reliability, and security of data center operations.
- Despite a decline in router and wireless LAN markets, ethernet switches are swiftly gaining traction in the Australian networking infrastructure market. Mobile network upgrades are propelling the growth to 5G and the adoption of 802.11ax standard Wireless LAN access points, which positively impact the ethernet market.
- According to industry experts, Cisco maintains dominance in the WLAN market, holding approximately 49.2% market share, followed by Netgear (11.2%), HPE (10.7%), Riverbed (4.9%), and D-Link (3.9%) as of 2022. In Australia, Cisco attributes its growth to increased shipments of high-speed ports, especially in the 25 Gigabits per second (Gbps), 50Gbps, and 100Gbps ranges.
- Key market players are actively focusing on updating network devices to meet evolving market demands. For instance, in July 2023, Broadcom introduced a new software-programmable Trident 4-X7 Ethernet switch ASIC, catering to the escalating need for 400G connectivity within enterprise data centers in response to the ever-increasing bandwidth requirements.
Australia Data Center Networking Industry Overview
The Australia data center networking market shows a concentration of players employing strategies like mergers, acquisitions, collaborations, and partnerships. This has intensified competition, with key players, including Cisco Systems Inc. and Arista Networks Inc., among others, driving innovations.
In March 2023, Arista Networks unveiled the Arista WAN Routing System, a comprehensive integration of three innovative networking solutions. This system combines enterprise-class routing platforms, carrier/cloud-neutral internet transit capabilities, and the CloudVision Pathfinder Service. The aim is to streamline and enhance customer-wide area networks, simplifying their management and improving overall performance.
Australia Data Center Networking Market Leaders
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Cisco Systems Inc.
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Arista Networks Inc.
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Juniper Networks Inc.
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Extreme Networks Inc.
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VMware Inc.
*Disclaimer: Major Players sorted in no particular order
Australia Data Center Networking Market News
- July 2023: Broadcom Corporation announced a major advancement in enterprise data centers with the Broadcom Trident 4-X7 Ethernet switch ASIC. This fully programmable switch, boasting 4.0 Terabits/second capacity, is tailored explicitly for Top of Rack (ToR) boxes, meeting their unique requirements.
- June 2023: Cisco Inc. announced its vision for Cisco Networking Cloud, an integrated management platform experience for both on-prem and cloud operating models. The new innovations include SSO, API key exchange/repository, sustainable data center networking solutions and expanded network assurance with Cisco ThousandEyes.
Australia Data Center Networking Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumption & Market Definition
- 1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
- 4.2.2 Increasing Demand to Reduce Operational Costs
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4.3 Market Restraints
- 4.3.1 High Cost of Installation and Maintenance
- 4.4 Value Chain / Supply Chain Analysis
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4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
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5.1 By Component
- 5.1.1 By Product
- 5.1.1.1 Ethernet Switches
- 5.1.1.2 Routers
- 5.1.1.3 Storage Area Network (SAN)
- 5.1.1.4 Application Delivery Controller (ADC)
- 5.1.1.5 Other Networking Equipment
- 5.1.2 By Services
- 5.1.2.1 Installation & Integration
- 5.1.2.2 Training & Consulting
- 5.1.2.3 Support & Maintenance
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5.2 End-User
- 5.2.1 IT & Telecommunication
- 5.2.2 BFSI
- 5.2.3 Government
- 5.2.4 Media & Entertainment
- 5.2.5 Other End-Users
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Cisco Systems Inc.
- 6.1.2 Juniper Networks Inc.
- 6.1.3 Arista Networks Inc.
- 6.1.4 VMware Inc.
- 6.1.5 Extreme Networks Inc.
- 6.1.6 NVIDIA (Cumulus Networks Inc.)
- 6.1.7 Dell EMC
- 6.1.8 HP Development Company, L.P.
- 6.1.9 Broadcom Corporation
- 6.1.10 F5 Networks Australia
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityAustralia 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 Australia data center networking market is segmented by product (ethernet switches, routers, storage area network (SAN), application delivery controller (ADC), and other networking equipment), services (installation & integration, training & consulting, and support & maintenance), and end-user (IT & telecommunication, BFSI, government, and media & entertainment, and other end-users).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | By Product | Ethernet Switches |
| Routers | ||
| Storage Area Network (SAN) | ||
| Application Delivery Controller (ADC) | ||
| Other Networking Equipment | ||
| By Component | By Services | Installation & Integration |
| Training & Consulting | ||
| Support & Maintenance | ||
| End-User | IT & Telecommunication | |
| BFSI | ||
| Government | ||
| Media & Entertainment | ||
| Other End-Users |
Australia Data Center Networking Market Research FAQs
How big is the Australia Data Center Networking Market?
The Australia Data Center Networking Market size is expected to reach USD 0.77 billion in 2024 and grow at a CAGR of 5.09% to reach USD 0.98 billion by 2029.
What is the current Australia Data Center Networking Market size?
In 2024, the Australia Data Center Networking Market size is expected to reach USD 0.77 billion.
Who are the key players in Australia Data Center Networking Market?
Cisco Systems Inc., Arista Networks Inc., Juniper Networks Inc., Extreme Networks Inc. and VMware Inc. are the major companies operating in the Australia Data Center Networking Market.
What years does this Australia Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the Australia Data Center Networking Market size was estimated at USD 0.73 billion. The report covers the Australia Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Australia Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Australia Data Center Networking Industry Report
Statistics for the 2024 Australia Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia Data Center Networking analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
