Data Center Networking Market size worth over $45bn by 2027
Published Date: May 5, 2021 Authors: Preeti Wadhwani, Saloni Gankar
Data Center Networking Market size is set to surpass USD 45 billion by 2027, according to a new research report by Global Market Insights, Inc.
The sharp rise in the number of consumers streaming content online has boosted the demand for robust data center networking solutions. Netflix Inc. earned revenues of USD 10.8 and USD 9.5 billion in 2020 and 2019, respectively in the U.S. As of April 2020, around 76% of U.S. homes subscribed to OTT. The high usage of on-demand platforms has contributed to the upsurge in the amounts of data accumulated. OTT platforms have also gained popularity in developing economies due to the increasing internet penetration over the recent years. Consumers are adopting digital technologies such as video conferencing, video on-demand, and e-learning. This has resulted in the growing demand for data center networking solutions that ensure uninterrupted data processing.
The ongoing coronavirus (COVID-19) pandemic negatively impacted the data center networking market in 2020 led by the temporary closure of industrial facilities, resulting in the declining market conditions globally. The lockdowns imposed in several countries affected the global supply chains, resulting in delays in manufacturing and deliveries. The market conditions showed slight recovery in the second half of 2020 following the relaxations in lockdowns and are projected to improve further by the end of 2021. The increasing data traffic owing to remote working techniques adopted by corporate organizations and e-learning technology implemented by educational institutions will foster the demand for robust data center networking solutions.
Increasing demand for services that ensure smooth functioning of networks to propel the data center networking market growth
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Enterprises are hiring managed and professional service providers to optimize the data center networking infrastructure and manage IT systems to achieve the desired business objectives. Professional service providers with the required technical expertise in data center operations and IT management enable to streamline business processes by ensuring seamless networking of components. As businesses grow, their IT requirements increase, resulting in the demand for complex and large IT infrastructures. This fuels the need for both professional and managed services to ensure the optimum functioning of the networks.
Browse key industry insights spread across 300 pages with 243 market data tables and 28 figures & charts from the report, “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), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The expanding IT & telecom sector globally will drive the data center networking market expansion
The expanding IT & telecom industry globally is witnessing a revolution with the advent of technologies such as 5G and NFC. The increasing adoption of 5G technology in North America and Europe will result in the rise in the number of subscribers using the technology for fast data streaming online. Large amounts of digital data collected will surge the demand for high performance data center networking solutions, in turn, enhancing the market value. Players are focusing on offering software-defined networking solutions to strengthen their market presence.
The modernizing BFSI sector in the APAC region will spur the demand for data center networking solutions
Consumers are accepting technologies such as digital banking, mobile wallets, and contactless cards in Asia Pacific. As of August 2020, there are around 31 million POS terminals installed in China, with the majority devices compatible with contactless transactions. In November 2020, South Korea’s central bank, unveiled a report asserting that contactless payments increased 17% year-over-year since the start of the pandemic. As real-time transactions without buffers is crucial for the seamless implementation of these technologies, efficient data center networking solutions play a crucial role. Increase in the data traffic from the BFSI sector in the region, impelling the demand for uninterrupted data networking, will support the market revenue.
Strategic collaborations with technology providers to augment product offerings form a key strategy amongst market participants
Key companies operating in the data center networking market include Alcatel-Lucent, Arista Networks, Cisco Systems Inc., Dell Inc., Avaya, Broadcom Inc., Delta Electronics Inc., Extreme Networks, Huawei Technologies Co. Ltd., IBM Corporation, Microsoft Corporation, Fujitsu Ltd., Hewlett Packard Enterprise, Intel Corporation, Juniper Networks, and NEC Corporation. Industry leaders are partnering with other technology leaders to innovate their offerings.