Data Center Networks Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 26.12 Billion |
| Market Size (2029) | USD 59.37 Billion |
| CAGR (2024 - 2029) | 17.85 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Data Center Networks Market Analysis
The Data Center Networks Market size is estimated at USD 26.12 billion in 2024, and is expected to reach USD 59.37 billion by 2029, growing at a CAGR of 17.85% during the forecast period (2024-2029).
Edge computing, which brings computing resources, data, and processing closer to the edge, is becoming an essential component of data centers and cloud services. It's a decentralized extension of campus networks, cellular networks, cloud and data center networks.
- The data center's network efficiently manages various infrastructures by using multiple networking resources at one time or another. It has a crucial role to play in data collection and handling, which different network resources can assist. Using switches, servers, and storage points, data center networks can operate data transmission with high bandwidth.
- Increasing demand for faster internet speeds and a significant increase in Mega Data Centres and colocation will influence the development of the data center networking industry. This market growth is also anticipated to be driven by the widespread use of 100 GB switch ports and rapidly developing broadband and internet infrastructure.
- The demand for advanced network infrastructure solutions is driven by increasing data security and lower latency needs in banking, financing services, insuranceBFSI government, etc. Therefore, interest in these network technologies has increased demand from different sectors, including Banking, Financing Services, Insurance, BFSI Government, etc.
- However, it is expected that significant barriers to the growth of data center networking in this period will be a need for a more highly skilled labor force in emerging and underdeveloped economies as well as regulatory issues related to data protection.
- Furthermore, with COVID-19, Data flows are being elevated by the Pandemic. A growing demand for storage space has been caused by the rapid development of emerging technologies such as Big Data and Artificial Intelligence, Internet of Things. Nevertheless, investment in data centres' networks is increasing all over the world.
Data Center Networks Market Trends
The Growth in Retail and E-Commerce is Anticipated to Drive the Market Demand
- The essential element of modern technology is the networking of data centres, making it possible to exchange information across equipment and infrastructure over external networks in a smooth manner. It shall be designed to ensure the stability, reliability and security of an Internet system which supports new technologies such as virtualisation and cloud computing.
- In order for retailers to remain competitive in today's market, it is essential to tailor the shopping experience to the customer. Retailers are recording customers' past transactions for the purpose of providing personalised recommendations. The need to provide effective data centers is becoming mandatory in view of an increasing number of consumers.
- The requirement for retailers to store transaction and customer data in a central location is eliminated with the implementation of Data Center Networking, making information more secure. In particular, this aspect of the data centre network is important as it gives a secure environment for customer's confidential information.
- It is likely that retail sales will increase significantly in the Asia Pacific region and lead to further market expansion as a result of this strong surge in e commerce. According to India Brand Equity FoundationIBEF, eCommerce Industry in India is growing exponentially; the market of electronic commerce in India has been around USD 84 billion by 2021, and estimates have shown that this will be close to USD 350 billion by 2030.
The Asia-Pacific Region is Expected to Drive the Growth of the Market Studied
- Asia Pacific, due to the increased importance of smart technologies, internet of things enabled equipment, Big Data, Industry 4.0, 5G and cloud computing in this region, is expected to rise at a high rate over the forecast period.
- In the region, data centers have also been deployed at an increasing rate. For instance, a contract of USD 35.9 million was awarded in January 2023 by the Tamil State owned beverages company TasMAC to RailTel as an IT infrastructure provider. In the course of the next 5 years, this contract will ensure that RailTel provides end to end computerisation and connectivity for TASMAC. This would also involve RailTel supplying the project's infrastructure, including developing a data center and data recovery center that can offer two-way disaster recovery in conjunction with the Tamil Nadu state data center (TNSDC).
- The various new opportunities that will lead to the growth of the data centre networking market during this period, which is expected to be a year from now, are driven by increasing adoption of Data Centre Infrastructure and quick need for backup and storage as well as increased use of Cloud Storage.
- In addition, huge demand for network infrastructure is expected to be created in the data center networking market as a result of an increase in building new data centers and replacing current technologies with lower costs associated with semicondcutor components across China.
Data Center Networks Industry Overview
The Data Center Networsk market is Semi-consolidated, with existing vendors and new entrants facing intense competition. The growth of cloud computing has attracted new investors keen on capitalizing on the sector's success. Key players in the market include Cisco Systems Inc, Juniper Networks Inc, Arista Networks Inc, H3C Holding Limited, and VMware Inc.
- April 2023 - Arista Networks Inc. has anoounced its new launch cloud-delivered, AI-driven network identity service for enterprise security and IT operations. CV AGNI, offers to secure IT operations with simplified deployment and cloud scale for all enterprise network users, their associated endpoints, and Internet of Things (IoT) devices and Based on Arista's flagship cloud vision platform, Arista Guardian for Network Identity expands Arista's Zero trust networking approach to enterprise security
- February 2023- Juniper Networks, a prominent company in secure, AI-driven networks, today announced that Greenergy Data Centers (GDC), a data center company in the Baltics, deployed Juniper's cloud-ready data center and AI-driven enterprise solutions to support its business and data center operations. GDC is the world's largest data centre, making it easy for businesses, government agencies and service providers to store their missioncritical information while reducing its environmental footprint in a safe manner. A 14,500 square meter, 31.5 megawatt data center is located at the GDC.
Data Center Networks Market Leaders
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Cisco Systems Inc.
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Juniper Networks Inc.
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Arista Networks Inc.
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H3C Holding Limited
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VMware Inc
*Disclaimer: Major Players sorted in no particular order
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Data Center Networks Market News
- March 2023 - Arista Networks introduced the Arista WAN Routing System, which integrates three new networking offerings: enterprise-class routing platforms, carrier/cloud-neutral internet transit capabilities, and the CloudVision Pathfinder Service to simplify and enhance customer-wide area networks. Based on Arista's EOS routing capabilities, and CloudVision management, the Arista WAN Routing System bears the architecture, features, and platforms to modernize federated and software-defined wide area networks.
- March 2023 - Cisco Systems Inc. has announced its expanding its data centre footprint in India (Chennai) by Leveraging industry-leading network performance, the new and upgraded facilities will bring agile, highly resilient, high-capacity access closer to users, including large and small Indian enterprises from across industries
Data Center Networks Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness - Porters Five Force Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Impact of Macro Economic Trends on the Market
- 4.4 Industry Value Chain Analysis
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Utilization of Cloud Storage is Driving the Market Growth
- 5.1.2 Rising Need for Backup and Storage is Expanding the Market Demand
- 5.1.3 The Growth in Retail and E-Commerce is Anticipated to Drive the Market Demand
-
5.2 Market Restraints
- 5.2.1 Lack of Skilled Professionals is Hindering the Market Demand
6. MARKET SEGMENTATION
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6.1 Product
- 6.1.1 Ethernet Switches
- 6.1.2 Storage Area Network
- 6.1.3 Router
- 6.1.4 Other Products
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6.2 End-user Vertical
- 6.2.1 BFSI
- 6.2.2 Healthcare
- 6.2.3 Retail
- 6.2.4 Government
- 6.2.5 Other End-user Verticals
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6.3 Geography
- 6.3.1 North America
- 6.3.1.1 United States
- 6.3.1.2 Canada
- 6.3.2 Europe
- 6.3.2.1 Germany
- 6.3.2.2 United Kingdom
- 6.3.2.3 Rest of Europe
- 6.3.3 Asia-Pacific
- 6.3.3.1 China
- 6.3.3.2 India
- 6.3.3.3 Rest of Asia-Pacific
- 6.3.4 Latin America
- 6.3.5 Middle East & Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Cisco Systems Inc.
- 7.1.2 Juniper Networks Inc.
- 7.1.3 Arista Networks Inc.
- 7.1.4 H3C Holding Limited
- 7.1.5 VMware Inc
- 7.1.6 Huawei Technologies Co. Ltd.
- 7.1.7 Extreme Networks Inc.
- 7.1.8 Equinix Inc.
- 7.1.9 Cumulus Networks Inc.
- 7.1.10 Dell EMC
- 7.1.11 NEC Corporation
- 7.1.12 Big Switch Networks Inc.
- 7.1.13 Lenovo Group Ltd.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Data Center Networks Industry Segmentation
A data center network (DCN) essentially connects and establishes the entire physical and network-based devices and equipment within a data center facility. 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 Data Center Networks Market can be segmented by Product (Ethernet Switches, Storage Area Network, Routers, and Other Products), End-user Vertical (BFSI, Healthcare, Retail, Government, and Other End-user Verticals), and Geography (North America (United States,Canada), Europe(Germany, United Kingdom, Rest of Europe), Asia Pacific (China, India, Rest of Asia Pacific) Latin America, and Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Product | Ethernet Switches | |
| Storage Area Network | ||
| Router | ||
| Other Products | ||
| End-user Vertical | BFSI | |
| Healthcare | ||
| Retail | ||
| Government | ||
| Other End-user Verticals | ||
| Geography | North America | United States |
| Canada | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| Rest of Asia-Pacific | ||
| Geography | Latin America | |
| Middle East & Africa |
Data Center Networks Market Research FAQs
How big is the Data Center Networks Market?
The Data Center Networks Market size is expected to reach USD 26.12 billion in 2024 and grow at a CAGR of 17.85% to reach USD 59.37 billion by 2029.
What is the current Data Center Networks Market size?
In 2024, the Data Center Networks Market size is expected to reach USD 26.12 billion.
Who are the key players in Data Center Networks Market?
Cisco Systems Inc., Juniper Networks Inc., Arista Networks Inc., H3C Holding Limited and VMware Inc are the major companies operating in the Data Center Networks Market.
Which is the fastest growing region in Data Center Networks Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Data Center Networks Market?
In 2024, the North America accounts for the largest market share in Data Center Networks Market.
What years does this Data Center Networks Market cover, and what was the market size in 2023?
In 2023, the Data Center Networks Market size was estimated at USD 21.46 billion. The report covers the Data Center Networks Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Data Center Networks Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Data Center Networks Industry Report
Statistics for the 2024 Data Center Networks market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Data Center Networks analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
