United States Data Center Networking Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 7.85 Billion |
| Market Size (2029) | USD 9.65 Billion |
| CAGR (2024 - 2029) | 4.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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United States Data Center Networking Market Analysis
The United States Data Center Networking Market size is estimated at USD 7.85 billion in 2024, and is expected to reach USD 9.65 billion by 2029, growing at a CAGR of 4.20% 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 United States data center rack market is expected to reach 24,000 MW by 2029. Data centers in the United States use more than 90 billion kilowatt-hours of electricity each year. Most of this power is provided via the grid, but all data centers also have long-term backup generators.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 80 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 4,035,000 units by 2029. Northern Virginia is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are more than 80 submarine cable systems connecting the United States, and many are under construction.
United States Data Center Networking Market Trends
Ethernet Switches is Anticipated to be the Largest Segment
- An Ethernet switch represents fundamental networking hardware that serves as the backbone of networks and the Internet. These switches connect wired devices like computers, Wi-Fi access points, PoE lighting, IoT devices, and servers onto an Ethernet LAN, facilitating communication between these devices and access to the Internet.
- Ethernet switches find extensive applications in industrial infrastructure, including smart grid management, security and surveillance systems, intelligent rail and transportation networks, and other utilities that drive the industrial Ethernet switch market. In smart grids, Ethernet switches play a pivotal role in substation automation, significantly reducing the effort and complexity of cabling among various power transmission and distribution substation devices by integrating them into Ethernet-based networks.
- In November 2022, Siemens renewed and enhanced its Scalance XC/XR-300 series of industrial Ethernet switches, introducing additional features tailored for next-generation industrial networks. These managed layer 2 switches from the Scalance X Industrial Ethernet Switch product family are available in compact and 19-inch versions suitable for control cabinets.
- The range of industrial Ethernet switch products available showcases the vendor's ongoing product expansion, moving beyond traditional 8-port DIN rail switches to offer application-specific services. Vertical integration and infrastructure applications prioritize maximum throughput and bandwidth, while in factory automation, the focus may be on limiting network traffic.
- Utilizing Power-over-Ethernet (PoE) technology, smart Ethernet switches play a critical role in security and monitoring. PoE networks deliver power through local network cables to connected devices, proving particularly useful for Internet protocol-based monitoring systems, facilitating accessible browser-based communication and user interfaces.
IT & Telecommunication is Anticipated to be the Fastest Growing Segment
- The United States holds the position as the world's largest technology market. Information and communication technology (ICT) is omnipresent and plays a pivotal role in the country's economic development. It's estimated that the US's ICT market accounted for approximately 35% of the world's market in 2022. Since the Industrial Revolution following World War II, innovation has remained a defining characteristic of America's competitiveness, propelling its global dominance.
- Over the past decade, the number of cloud vendors and hyperscalers has significantly increased, positioning them as leading energy consumers. Global data centers collectively consume an amount of energy equivalent to 20% of the total commercial electricity consumption in the United States, which stood at 987 TWh. While energy consumption through traditional data centers has seen a decline for three consecutive years, hyperscale energy consumption has surged due to their rapid expansion and substantial sizes.
- The US computer, information technology, and communications industry have a reputation for developing reliable, efficient products and swiftly introducing them to the market. The strict enforcement of intellectual property regulations in the US market has attracted the attention of numerous international companies. Notably, the software and technology services sector accounts for over half of the country's technology market spending. US companies maintain dominant positions in the global market for both packaged and individual software and remain competitive across all other market segments.
- Regarding research and development, in 2022, the Federal Communications Commission (FCC) granted the first Spectrum Horizons License, a special 10-year authorization category for experimenting with frequencies ranging between 95 GHz and 3 THz. Additionally, it has established an expert group to advise the board on conducting spectrum work for 6G. Under the Biden administration, the signing of memorandums of understanding (MOUs) with countries like Japan is part of a plan to invest USD 4.5 billion in 6G development. Such initiatives are anticipated to lead to substantial data traffic in the forthcoming years, thereby driving colocation demand.
United States Data Center Networking Industry Overview
The United States Data Center Networking Market maintains moderate competitiveness and has notably sharpened its competitive edge in recent years. Major players like Cisco Systems Inc., Schneider Electric, Huawei Technologies Co. Ltd., VMware, Inc., and Dell Inc. dominate market share, employing strategies such as partnerships and acquisitions to augment their product offerings and secure enduring competitive advantages.
In March 2023, Arista Networks unveiled the Arista WAN Routing System, a comprehensive solution integrating three innovative networking products: an enterprise-class routing platform, carrier/cloud-agnostic Internet relay capabilities, and CloudVision Pathfinder Service, designed to streamline and elevate customers' wide area networks. Leveraging Arista's EOS routing capabilities and CloudVision management, the Arista WAN Routing System offers the architecture, capabilities, and platform necessary to modernize federated and software-defined wide-area networks.
United States Data Center Networking Market Leaders
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Cisco Systems Inc.
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Schneider Electric
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Huawei Technologies Co. Ltd.
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VMware, Inc.
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Dell Inc.
*Disclaimer: Major Players sorted in no particular order
United States Data Center Networking Market News
- October 2023: Arista Networks has introduced a portfolio of 25G Ethernet switches to support primarily financial applications that demand high performance and low latency. The new 7130 25G Series boxes are a significant power and features upgrade over the vendor’s current 7130 10G Ethernet line of devices and promise to reduce link latency 2.5-fold for data transmission by reducing queuing, serialization delays and eliminating the need for latency-inducing Forward Error Correction (FEC) typically required by 25G Ethernet.
- May 2023: NVIDIA has announced SpectrumXtreme, an accelerated networking platform manufactured to enhance the performance and efficiency of the cloud-based on Ethernet AI. NVIDIA Spectrum-X is developed on networking developments powered by the firm coupling of the NVIDIA Spectrum-4 Ethernet switch with the NVIDIA BlueField-3 DPU, attaining 1.7x better overall AI performance and power efficiency, along with consistent, predictable performance in multi-tenant environments.
United States 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 Trend of High-Performance Computing across Europe
- 4.2.2 Growing Investments in IT& Telecom Sector
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4.3 Market Restraints
- 4.3.1 Regulatory constraints
- 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 Arista Networks Inc.
- 6.1.3 VMware Inc
- 6.1.4 Huawei Technologies Co. Ltd.
- 6.1.5 NVIDIA (Cumulus Networks Inc.)
- 6.1.6 Dell Inc.
- 6.1.7 IBM Corporation
- 6.1.8 HP Development Company, L.P.
- 6.1.9 Intel Corporation
- 6.1.10 Schneider Electric
- 6.1.11 Eaton Corporation
- 6.1.12 Emerson Electric Co.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityUnited States 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 United States data center networking market is segmented by product (ethernet switches, routers, storage area network (SAN), application delivery controllers (ADC), and other networking equipment), by services (installation & integration, training & consulting, and support & maintenance), and by end-user (IT & telecommunication, BFSI, government, 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 |
United States Data Center Networking Market Research FAQs
How big is the United States Data Center Networking Market?
The United States Data Center Networking Market size is expected to reach USD 7.85 billion in 2024 and grow at a CAGR of 4.20% to reach USD 9.65 billion by 2029.
What is the current United States Data Center Networking Market size?
In 2024, the United States Data Center Networking Market size is expected to reach USD 7.85 billion.
Who are the key players in United States Data Center Networking Market?
Cisco Systems Inc., Schneider Electric, Huawei Technologies Co. Ltd., VMware, Inc. and Dell Inc. are the major companies operating in the United States Data Center Networking Market.
What years does this United States Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the United States Data Center Networking Market size was estimated at USD 7.52 billion. The report covers the United States Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Data Center Networking Industry Report
Statistics for the 2024 United States Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States 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.
