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Data Center Networking Market - By Component (Solution, Service), By End-Use (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Forecast 2023 – 2032

  • Report ID: GMI2578
  • Published Date: Jul 2023
  • Report Format: PDF

Data Center Networking Market Size

Data Center Networking Market size was valued at USD 22.4 billion in 2022 and expected to grow at over 12% CAGR during forecasted period. Global Industry registered a notable valuation in 2022. Driven by the growing adoption of cloud computing globally, the industry will grow at a decent CAGR between 2023 and 2032.

Data Center Networking Market

Cloud-based services require substantial bandwidth to deliver a smooth and uninterrupted user experience. Data center networking provides high-speed connectivity to support these bandwidth-intensive applications and handles the increasing traffic volumes generated by cloud services. Moreover, rising data security concerns in the IT sector are creating lucrative growth opportunities for the industry.


The rapid expansion of broadband and internet infrastructure is creating a notable impetus for industry growth. This surge in internet usage generates a substantial amount of data that needs to be processed, stored, and transmitted efficiently. Data center networking plays a key role in facilitating the smooth data flow between end-users and data centers, ensuring a seamless internet experience. On the contrary, lack of a skilled workforce for operating data center networking systems in developing and underdeveloped economies may pose major barriers to industry growth.


COVID-19 Impact

The COVID-19 pandemic had a profound impact on the data center networking market, owing to supply chain disruptions caused by lockdowns. However, in the second half of 2020, the industry witnessed a major bounce back to normalcy due to the rapid adoption of cloud-based services. The sudden shift to a remote work culture increased reliance on data center networking infrastructure to enable secure access to corporate resources, virtual meetings, and collaboration platforms. Moreover, surging digitalization will further create growth opportunities for the industry in the post-COVID-19 era.


Data Center Networking Market Trends

Rapid growth of hyperscale data centers and colocation trend is creating ample growth opportunities for the industry. Data center networking manages the routing and optimization of data traffic within the hyperscale data center. It determines the most efficient paths for data packets to travel between servers, storage systems, and other network devices. Advanced routing algorithms and traffic optimization techniques are now being utilized to minimize latency, reduce congestion, and ensure optimal network performance.


Data Center Networking Market Analysis

Data Center Networking Market Size, By Application, 2021 – 2032, (USD Billion)

Based on application the data center networking market is segment into colocation, BFSI, energy, government, healthcare, manufacturing, IT & telecom. The IT & telecom industry held over 20% market share in 2022 and is projected to grow significantly over period of time. Growing demand for online banking services has increased the need for a reliable security solution, bolstering the demand for data center networking infrastructure in the BFSI sector. Data center networking plays a critical role in implementing robust security measures, such as firewalls, encryption, intrusion detection and prevention systems, and access controls, to protect sensitive customer data and ensure regulatory compliance. Moreover, the rapidly expanding BFSI sector is further generating lucrative opportunities for segment growth.


Global Data Center Networking Market Share, By Component, 2022

With respect to the component, the data center networking market is divided into solution and services segments. The solution segment held around 80% market share in 2022. Data center networking solutions play a critical role in ensuring network security and data protection. The rise of edge computing and cloud data centers propelling the market demand. Edge computing requires low-latency, high-bandwidth connectivity between edge devices and data centers. Data center networking solutions that can support edge computing deployments and enable seamless connectivity and data transfer in distributed environments are in high demand.


U.S. Data Center Networking Market Size, 2021 -2032, (USD Billion)

North America data center networking market held around 35% business share in 2022 and expected to expand significantly through 2032. The flourishing IT infrastructure is contributing to regional expansion. Moreover, governments across major regional economies are investing huge amounts into providing reliable internet service for the public, which will favor industry growth. In March 2023, the U.S. government announced an investment of USD 65 billion to bring affordable and reliable high-speed Internet to the general public.


Data Center Networking Market Share

Major companies operating in the data center networking market are:

  • Hewlett Packard Enterprise
  • Cisco Systems Inc.
  • Dell Inc.
  • Huawei Technologies Co. Ltd.
  • IBM Corporation
  • Intel Corporation
  • Microsoft Corporation
  • Juniper Networks

Data Center Networking Industry News

  • In June 2023, Cisco Systems Inc., a leading software company, announced the launch of a full-stack observability platform. This new offering brings data together from different domains, such as networking, application, and others.

The Data Center Networking market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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By Component

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

By Application

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

The above information is 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
    • Chile
    • Colombia
    • Argentina
  • MEA
    • GCC
    • South Africa


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Global Market size for data center networking was USD 22.4 billion in 2022 and will record over 12% CAGR from 2023 to 2032.

Data center networking share from the IT & telecom sector was over 20% in 2022 and is projected to grow significantly through 2032 due to the growing demand for online banking services that require robust security measures.

North America data center networking share was around 35% in 2022 and will expand significantly through 2032 owing to the flourishing IT infrastructure across the region and focus on providing reliable internet service for the public.

IBM Corporation, Hewlett Packard Enterprise, Huawei Technologies Co. Ltd., Dell Inc., Microsoft Corporation, Intel Corporation, Juniper Networks, and Cisco Systems Inc., among other.

Data Center Networking Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 234
  • Countries covered: 20
  • Pages: 300
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