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Data Center Networking Market Size By Component (Solution [Ethernet Switches, Routers, Servers, (ADC) Application Delivery Controller], Service [Professional, Managed]), By Application (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028

  • Report ID: GMI2578
  • Base Year: 2021
  • Report Format: PDF

Industry Trends

Data Center Networking Market size exceeded USD 20 billion in 2021 and is estimated to grow at over 10% CAGR from 2022 to 2028. The high use of digital services, such as online banking, mobile wallets, online retailing, and video on-demand, has resulted in high data consumption. Increasing data traffic resulting in the rise in the number of IT infrastructure development projects will fuel the market growth. Market players in the data center industry are expanding their regional presence in untapped geographies.
 

Data Center Networking Market Overview

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The outbreak of the COVID-19 pandemic impacted the market in the first half of 2020 due to the sudden imposition of lockdowns, resulting in disruptions in supply chains. Delays in procuring raw materials hampered the manufacturing capabilities of data center component providers.
 

However, the overall data center market regained traction since the second half of 2020, following the sudden rise in the demand for efficient data management solutions. Educational institutions adopted technologies, such as e-learning and virtual collaboration tools, while corporate organizations used remote working techniques to follow social distancing protocols. The high demand for e-commerce, contactless payments, and video on-demand services resulted in increasing data traffic.
 

High demand for robust data center networking solutions that ensure fast interconnectivity will offer strong growth opportunities to the market

The U.S. data center networking hardware market is poised to witness 7% growth rate through 2028 owing to the expanding hyperscale data center industry in the region. Established market participants are expanding their data center footprint in the region in response to the growing demand for data traffic management solutions from several industry verticals including BFSI, e-commerce, and government. For instance, in February 2022, Meta Platforms Inc. (Facebook Inc.) announced plans to establish a USD 800M hyperscale campus in Idaho, U.S. as it continues its expansion in untapped data center markets. Robust data center networking components such as switches, and routers form a crucial part of hyperscale infrastructures attributed to their complexity and interconnectivity of a large number of IT devices. The market will showcase growth, with hyperscale IT infrastructure providers adopting high performance solutions for fast data transfer.
 

Expanding BFSI sector in Germany adopting advanced digital technologies to support the data center networking market expansion

Data Center Networking Market Size

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In Germany, BFSI sector is projected to attain a CAGR of 12% till 2028 led by the increasing penetration of technologies such as mobile wallets, smart cards, and online banking. These technologies result in high data traffic, boosting the demand for robust IT infrastructures that host high-performance data center networking equipment. The number of contactless payment terminals in the Germany market reached around 922 thousand in the first half of 2021, a rise of around 6.7% as compared to 2020. The smart card industry has observed rapid growth, with biometric and contactless cards gaining increasing popularity. This factor will propel the demand for robust data center networking solutions that enable instantaneous data transfer. The market will gain traction with the increasing penetration of digital technologies across the BFSI sector.
 

Growing penetration of compute-intensive technologies will spur the demand for advanced data center networking equipment

APAC Data Center Networking Market

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Asia Pacific data center networking market accounted for 20% of revenue share in 2021 due to the flourishing industrial and manufacturing sectors in countries such as India, China, and Japan. The proliferation and adoption of technologies, such as cloud, IoT, and AI, in the region will support the overall data center market.
 

Technologies, such as machine learning and IoT, being incorporated in the systems by manufacturing firms will lead to a rise in the amount of data generated. This will lead to a mounting pressure of constructing sophisticated data centers. As real-time data transfer is an extremely crucial factor for the smooth implementation of AI and machine learning technologies, the data center providers will incorporate technologically advanced networking equipment.
 

Focus on launching differentiated solutions forms a key strategy amongst market players

Key companies operating in the market include Arista Networks, Broadcom Inc., Alcatel-Lucent, Avaya Inc., Cisco Systems Inc., Delta Electronics Inc., Dell Inc., Fujitsu Ltd., Extreme Networks, Huawei Technologies Co. Ltd., Hewlett Packard Enterprise, Microsoft Corporation, IBM Corporation, Juniper Networks, Intel Corporation, and NEC Corporation. The market leaders are focusing on launching technologically advanced products to cater to the expanding end-user requirements for efficient data traffic management.
 

The data center networking market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2028 for the following segments:

Market, By Component

  • Solution
    • Ethernet Switches
    • Routers
    • Servers
    • Application Delivery Controller (ADC)
    • Others
  • Service
    • Professional
    • Managed

Market, By Application

  • Colocation
  • BFSI
  • Energy
  • Government
  • Healthcare
  • Manufacturing
  • IT & Telecom
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Poland
    • Benelux
  • Asia Pacific
    • China
    • India
    • Japan
    • Singapore
    • Australia
  • South America
    • Brazil
    • Colombia
    • Chile
    • Argentina
  • MEA
    • GCC
    • South Africa

 

Authors: Preeti Wadhwani, Saloni Gankar

Frequently Asked Questions (FAQ) :

Market size of data center networking was valued at USD 20 billion in 2021 and may record 10% CAGR through 2028 driven by massive use of mobile wallets and online banking.

The U.S. data center networking hardware market may register 7% CAGR through 2028, driven by the growth of the hyperscale data center industry in the region and efforts by established industry players.

In Germany, BFSI sector may record 12% CAGR through 2028, owing to rising penetration of technologies such as smart cards and mobile wallets.

Asia Pacific held 20% of the market share in 2021 and may continue to depict appreciable growth due to the expanding manufacturing sector in nations such as India and Japan.

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Premium Report Details

  • Published Date: Feb 2022
  • Companies covered: 19
  • Tables & Figures: 276
  • Countries covered: 20
  • Pages: 350

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