
Data Center Networking Market
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The global data center networking market was estimated at USD 26.1 billion in 2024. The market is expected to grow from USD 28.4 billion in 2025 to USD 89.2 billion in 2034, at a CAGR of 13.6%, according to latest report published by Global Market Insights Inc.

| Key Takeaway | Details |
|---|---|
| Market Size & Growth | |
| Base Year | 2024 |
| Market Size in 2024 | USD 26.1 Billion |
| Market Size in 2025 | USD 28.4 Billion |
| Forecast Period 2025 - 2034 CAGR | 13.6% |
| Market Size in 2034 | USD 89.2 Billion |
| Key Market Trends | |
| Drivers | Impact |
| Rise in adoption of cloud computing and IoT | The widespread adoption of cloud computing and IoT is driving demand for advanced networking solutions that can handle massive data volumes. Enterprises require high-performance, low-latency connectivity to support real-time data exchange, remote applications, and scalable cloud services efficiently. |
| Development of broadband and internet infrastructure | Expanding broadband penetration and upgraded internet infrastructure are fuelling the demand for data center networking. Enhanced connectivity allows businesses and consumers to rely more on cloud-based applications, video streaming, and digital services, pushing operators to upgrade networks for speed and reliability. |
| Increase in the establishment of new data centers | The rise in hyperscale and enterprise data centers globally creates strong networking demand. New facilities require high-capacity switches, routers, and interconnects to support virtualization, cloud services, and AI workloads, significantly boosting growth in data center networking infrastructure investments. |
| Rapid urbanization and proliferation of smart technologies | Smart cities, digital services, and connected infrastructure from rapid urbanization are driving massive data generation. Supporting these requires robust, scalable data center networking solutions to handle IoT devices, autonomous systems, and AI-powered platforms that are becoming central to urban ecosystems. |
| Pitfalls & Challenges | Impact |
| High maintenance & start-up costs | Building and maintaining data center networking infrastructure involves significant capital expenditure on hardware, software, cooling, and skilled labour. Ongoing operational costs, including upgrades and energy consumption, add further burden, making it difficult for smaller enterprises to compete with hyperscale |
| Stringent government regulations and policies | Data centers must comply with strict regulations on data privacy, cross-border data transfer, and environmental sustainability. Meeting these requirements often requires costly compliance frameworks and infrastructure redesigns, posing challenges for companies seeking to expand globally while maintaining regulatory alignment. |
| Opportunities: | Impact |
| Increase in adoption of 800GbE and beyond | The introduction of 800GbE and higher bandwidth standards presents major opportunities for vendors. These ultra-fast connections support AI, cloud, and HPC workloads with reduced latency and improved throughput, enabling data centers to handle exponential traffic growth and future-proof their networking infrastructure. |
| Surge in demand for SDN and automation | Software-defined networking (SDN) and automation are transforming data center operations. Growing enterprise demand for simplified management, dynamic resource allocation, and AI-driven orchestration creates opportunities for vendors offering intent-based and programmable networking solutions that reduce complexity, improve agility, and cut operational costs. |
| Rise in focus on sustainability and energy efficiency | With rising energy costs and environmental regulations, data centers are prioritizing sustainable networking solutions. Vendors developing energy-efficient switches, liquid cooling systems, and green hardware gain a competitive advantage, as operators increasingly seek to minimize carbon footprints and align with global ESG goals. |
| Expansion of open compute and disaggregated hardware models | The growing adoption of open compute and disaggregated hardware models offers opportunities for flexible, cost-efficient deployments. By decoupling hardware and software, enterprises gain greater customization, interoperability, and vendor independence, enabling innovation and reducing costs, especially in hyperscale and cloud-focused data center environments. |
| Market Leaders (2024) | |
| Market Leaders |
18% market share |
| Top Players |
Collective Market Share in 2024 is 38% |
| Competitive Edge |
|
| Regional Insights | |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Emerging Country | India, Philippines, Indonesia, Brazil, Saudi Arabia, UAE |
| Future Outlook |
|

Based on component, the market is divided into hardware and services. The hardware segment dominated the data center networking industry, accounting for around 76% in 2024 and is expected to grow at a CAGR of over 13% through 2034.

Based on application, the data center networking market is segmented into Colocation, BFSI, energy, government, healthcare, manufacturing, IT & telecom and others. The IT & telecom segment dominates the market accounting for around 28% share in 2024, and the segment is expected to grow at a CAGR of over 14% between 2025 and 2034.
Based on network, the market is segmented into Ethernet, Fibre Channel, and InfiniBand. Ethernet segment is expected to dominate the market with around 65% share due to its high scalability, cost-efficiency, and widespread adoption across enterprises.
Based on organization size, the data center networking market is divided into SMEs, and Large Enterprises. The large enterprises dominated the market accounting for 70% share in 2024.

US dominated the data center networking market in North America with around 85% share and generated USD 7.98 billion in revenue in 2024.
The data center networking market in Germany is expected to experience robust growth between 2025 and 2034.
The data center networking market in China is expected to experience strong growth between 2025 and 2034.
The data center networking market in Brazil is expected to experience significant and promising growth from 2025 to 2034.
The data center networking market in UAE is expected to experience significant and promising growth from 2025 to 2034.
Major players operating in the data center networking industry are:
The data center networking market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2034, for the following segments:
Market, By Component
The above information is provided for the following regions and countries:
Services are expected to grow at over 15% CAGR through 2034, as enterprises increasingly demand network design, integration, and managed services for complex cloud and AI-driven environments.
Major players include Cisco, Dell, Hewlett Packard Enterprise (HPE), Huawei Technologies, Arista Networks, Juniper Networks, and Extreme Networks.
Key trends include adoption of 400G/800G Ethernet, AI-driven automation, software-defined networking, network digital twins, and growing emphasis on energy-efficient and sustainable infrastructure.
The U.S. dominated the North American market with USD 7.98 billion in revenue in 2024. Growth is driven by hyperscale cloud expansion, AI-ready infrastructure, and federal initiatives supporting secure, low-latency networks.
The IT & telecom segment held the largest share at 28% in 2024, supported by 5G rollouts, big data, and hyperscale deployments.
The hardware segment accounted for 76% share in 2024, due to demand for high-performance switches, routers, and servers powering hyperscale and enterprise data centers.
The market is projected to reach USD 28.4 billion in 2025.
The industry is expected to reach USD 89.2 billion by 2034, driven by hyperscale data centers, AI-powered workloads, and advanced networking technologies such as 800GbE and SDN.
The market size for data center networking was valued at USD 26.1 billion in 2024, with a CAGR of 13.6% expected through 2034 driven by rising adoption of cloud computing and IoT.
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