North America Data Center Networking Market Size (2024 - 2029)

The North America data center networking market is experiencing significant growth, driven by the rapid digital transformation of the IT infrastructure sector. Key factors contributing to the expansion of the market size include the strategic establishment of co-location and disaster recovery data centers in Canada and the United States, aimed at serving global enterprises. The demand for Edge data centers is escalating due to the rise of generative AI and connected devices, prompting hyperscalers and cloud companies to construct smaller data centers near population hubs. Additionally, the region is witnessing an increase in IT load capacity, raised floor area, and the number of racks, further indicating a robust growth trajectory for the market.

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Market Size of North America Data Center Networking Industry

North America Data Center Networking Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2029) 7.10 %
Market Concentration Low

Major Players

North America Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

North America Data Center Networking Market Analysis

The North America Data Center Networking Market size is estimated at 10.32 Thousand megawatt in 2024, and is expected to reach 15.58 Thousand megawatt by 2029, growing at a CAGR of 7.10% during the forecast period (2024-2029).

  • The IT infrastructure market is undergoing a rapid digital transformation. Canada and parts of the United States have become ideal locations for primary co-location and disaster recovery data centers hosting global enterprises.
  • To reduce latency, hyperscalers, and cloud companies are building small data centers close to population centers outside of core markets. Generative AI and the growth of connected devices will continue to drive demand for Edge data center requirements, leading to major market demand.
  • The upcoming IT load capacity of the North American data center server market is expected to reach 25,757 MW by 2029. The country's construction of raised floor area is expected to increase to 88.9 million sq. ft by 2029.
  • The region's total number of racks to be installed is expected to reach 4.4 million units by 2029. The United States is expected to house the maximum number of racks by 2029.
  • There are close to 100 submarine cable systems connecting North America, and many are under construction. One such submarine cable that is estimated to start service in 2023 is GigNet-1), which stretches over 1,104 km with landing points from Boca Raton, United States.

North America 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 North American data center networking market is segmented by component type (product (ethernet switches, router, 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 (USA, Canada, and Mexico).

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
By End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
Country
United States
Canada
Mexico
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North America Data Center Networking Market Size Summary

The North American data center networking market is experiencing significant growth, driven by rapid digital transformation and the increasing demand for advanced IT infrastructure. Canada and the United States are emerging as prime locations for co-location and disaster recovery data centers, catering to global enterprises. The rise of generative AI and the proliferation of connected devices are fueling the demand for edge data centers, which are essential for reducing latency and enhancing the performance of AI systems. The region is also witnessing a shift towards ultra-high capacity, low-latency network architectures, supported by deep-fiber-based components. The adoption of 5G networks, particularly in the United States and Canada, is further boosting the importance of edge data centers, as they enable faster data processing and improved connectivity.

The market is characterized by increased competition among key players such as Juniper Networks Inc., Arista Networks Inc., and VMware, Inc., who are actively expanding their presence through strategic collaborations and innovative solutions. The demand for cloud computing and storage solutions is on the rise, driven by the need for cost-effective, scalable, and secure data management options. This trend is accompanied by a growing need for Ethernet controllers to support high-speed internet connections in cloud infrastructure networks. Additionally, the integration of AI across various sectors in the United States is expected to further propel market growth. Companies are also focusing on the small- and medium-sized enterprise sector, offering cloud-enabled solutions to meet the evolving needs of businesses in the region.

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North America 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 By 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 United States

      2. 2.3.2 Canada

      3. 2.3.3 Mexico

North America Data Center Networking Market Size FAQs

The North America Data Center Networking Market size is expected to reach 10.32 thousand megawatt in 2024 and grow at a CAGR of 7.10% to reach 15.58 thousand megawatt by 2029.

In 2024, the North America Data Center Networking Market size is expected to reach 10.32 thousand megawatt.

North America Data Center Networking Market Report Snapshots

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