Taiwan Data Center Networking Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 409.61 Million |
| Market Size (2029) | USD 523.53 Million |
| CAGR (2024 - 2029) | 5.03 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Taiwan Data Center Networking Market Analysis
The Taiwan Data Center Networking Market size is estimated at USD 409.61 million in 2024, and is expected to reach USD 523.53 million by 2029, growing at a CAGR of 5.03% during the forecast period (2024-2029).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Taiwan data center market is expected to reach 300 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 1.5 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 76K units by 2029. Taipei City is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 10 submarine cable systems connecting Taiwan, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Apricot, which stretches over 11,972 Kilometers with landing points from Toucheng, Taiwan.
- An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Additionally, energy represents around 40% of the operational costs of a data center; it is also becoming increasingly important for data centers to focus on energy efficiency. To improve energy efficiency as a cost-saving measure, key players focus on developing a green standard for data centers in Taiwan, which results in increasing the demand for Infrastructure management. Hence, such factors are expected to drive market growth during the forecast period.
Taiwan Data Center Networking Market Trends
IT & Telecommunication Segment Holds the Major Share.
- Cloud and telecom are anticipated to contribute the largest market shares among end-user industries. Due to the increasing data generation, which drives the demand for quicker processing and effective servers, the cloud segment generates significant revenue. Numerous cloud service providers, including Cadence, Google, Siemens, Azure, AWS, and Synopsys, joined forces with TSMC to form a cloud alliance. Other big corporations also intend to enter the Taiwanese cloud industry in the future.
- As Taiwan develops into a regional hub for many enterprises, they are investing in cloud computing, thus increasing the demand for local data centers. The government is encouraging Taiwanese businesses to go digital. It is also dedicated to creating a cloud-based smart digital blueprint for local partners and connecting top-tier creative technologies for a variety of industries.
- For instance, Microsoft launched its "Reimagine Taiwan" program in 2020, outlining intentions to build its first cloud data center area in Taiwan and make large investments in local talent and development with the aim of supplying over 200,000 Taiwanese with digital skills by 2024.
- With an increase in smartphone users in Taiwan, the demand for telecom services is expected to grow. The Taiwanese electronics market has expanded due to the growing semiconductor sector. Taiwan currently produces close to 21% of the world's semiconductors. Over the past few decades, Taiwan has dramatically improved its semiconductor output, becoming a prominent participant in the sector.
- The adoption of these 5G services is projected to be accelerated by the rising need for high-speed data access for cloud and IoT applications, such as smart home energy management. However, as 5G networks offer faster speeds, higher capacity, and lower latency than 4G LTE networks, the number of 5G subscribers is growing at a quicker rate. In Taiwan, the total number of 5G customers has surpassed 1 million in the five months after the introduction of the technology. By the end of 2023, Taiwan's mobile network operator, MNO Chunghwa Telecom, aims to increase its 5G penetration by around 10% points to around 35%.
- The use of digital consumer products such as smartphones and the data generated via them may allow telecom companies to securely manage and store large volumes of data and scale up the storage capacity as per their requirements. Such instances in the market create more demand for data centers, leading to rising requirements for network devices and services in the country.
Ethernet Switches Holds Largest Market Share
- Data Center Ethernet switches are network devices that operate in a data center environment. In order to facilitate the efficiency and rapid transfer of data, they play an essential role in establishing interconnection between servers, storage devices, or other network equipment at a data center. Switches are designed for high-speed data transmission with support for gigabit and multigigabit Ethernet, including 10 GbE, 25 GbE, 40 GbE, 100 GbE, and beyond.
- The increasing adoption of cloud service makes Ethernet switches indispensable for data centers hosting the cloud infrastructure. It allows the communication of servers and storage components to deliver cloud services as smoothly as possible.
- The use of Ethernet switches facilitates interconnections between different data centers. In particular, it is essential to promote business activity and collaboration in Taiwan, which has often served as a hub of connectivity for the region and worldwide.
- The increasing focus on digitalization, Internet penetration (the number of Internet users has reached 21.68 million users with 0.8% YoY in Taiwan as of January 2023.), and e-commerce sales across the country creates more need for storage facilities, resulting in huge demand for data centers and consequently the need for more ethernet switches within data centers.
- The key players in the market focus on updating the network devices to meet the market demand. In January 2023, in response to the growing demands of today's data center environment, Dell Inc. introduced Power switch S520ON 25 GbE fixed switches consisting of all Technologies' latest disaggregated hardware switching and networking solutions that provide state-of-the-art high-density 25 GbE ports and a wide range of functionality. These switches provide optimum flexibility and cost-effectiveness for web 2.0, cloud service providers, and enterprises with demanding compute and storage network traffic environments.
Taiwan Data Center Networking Industry Overview
The upcoming DC construction projects in the country would increase the demand for Taiwan data center networking market in the coming years. The Taiwan data center networking market is moderately consolidated with some players in the market, including Cisco Systems Inc., Arista Networks Inc., VMware Inc., Huawei Technologies Co. Ltd., and Extreme Networks Inc. These major players, with a prominent market share, focus on expanding their regional customer base.
In March 2023, Arista Networks announced the release of the Arista WAN Routing System, which combines three new networking offerings, including carrier/cloud-neutral Internet transit capabilities, enterprise-class routing platforms, and the CloudVision Pathfinder Service to simplify and improve customer-wide area networks. This System delivers the architecture, features, and media to modernize federated and software-defined wide-area networks.
Taiwan Data Center Networking Market Leaders
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Cisco Systems Inc.
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Arista Networks Inc.
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VMware Inc
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Huawei Technologies Co. Ltd.
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Extreme Networks Inc.
*Disclaimer: Major Players sorted in no particular order
Taiwan Data Center Networking Market News
- July 2023: Broadcom introduced a new software-programmable Trident 4-X7 Ethernet switch ASIC to support the growing need for 400G connectivity inside enterprise data centers as demand for increasing bandwidth levels increases.
- April 2023: To expand their capabilities in a broader range of data centers, IBM introduced new single frame and rack mounting configurations of IBM z16 and IBM LinuxONE 4. Based on IBM's Telum processor, New options enable clients to adapt to the digital economy and are designed sustainably for highly efficient data centers.
Taiwan 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 Increasing Adoption of Cloud Computing Services Drives the Market Growth
- 4.2.2 Growing Demand for Green Data Center Facilities Drives the Market Growth
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4.3 Market Restraints
- 4.3.1 High Initial Investments
- 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 Router
- 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-User
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Cisco Systems Inc.
- 6.1.2 Arista Networks Inc.
- 6.1.3 VMware Inc
- 6.1.4 Huawei Technologies Co. Ltd.
- 6.1.5 Extreme Networks Inc.
- 6.1.6 NVIDIA Corporation (Cumulus Networks Inc.)
- 6.1.7 Dell Inc.
- 6.1.8 NEC Corporation
- 6.1.9 IBM Corporation
- 6.1.10 HP Development Company, L.P.
- 6.1.11 Intel Corporation
- 6.1.12 Broadcom Corp
- 6.1.13 Schneider Electric
- 6.1.14 Siemens
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityTaiwan 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 Taiwan 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), services (installation & integration, training & consulting, and support & maintenance)), and by end-user (IT & telecommunication, BFSI, government, and media & entertainment, and another end-user). 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 Component | By Services | Installation & Integration |
| Training & Consulting | ||
| Support & Maintenance | ||
| End-User | IT & Telecommunication | |
| BFSI | ||
| Government | ||
| Media & Entertainment | ||
| Other End-User |
Taiwan Data Center Networking Market Research FAQs
How big is the Taiwan Data Center Networking Market?
The Taiwan Data Center Networking Market size is expected to reach USD 409.61 million in 2024 and grow at a CAGR of 5.03% to reach USD 523.53 million by 2029.
What is the current Taiwan Data Center Networking Market size?
In 2024, the Taiwan Data Center Networking Market size is expected to reach USD 409.61 million.
Who are the key players in Taiwan Data Center Networking Market?
Cisco Systems Inc., Arista Networks Inc., VMware Inc, Huawei Technologies Co. Ltd. and Extreme Networks Inc. are the major companies operating in the Taiwan Data Center Networking Market.
What years does this Taiwan Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the Taiwan Data Center Networking Market size was estimated at USD 389.01 million. The report covers the Taiwan Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Taiwan Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Taiwan Data Center Networking Industry Report
Statistics for the 2024 Taiwan Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Taiwan Data Center Networking analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
