Global Data Center Networking Market Size worth $45bn by 2026
Published Date: November 15, 2019 Authors: Ankita Bhutani, Saloni Gankar
Data Center Networking Market size is anticipated to exceed USD 45 billion by 2026; according to a new research report by Global Market Insights, Inc.
The rise in the construction & modernization of data centers for the healthcare sector is propelling data center networking market growth. Developments, such as big data analytics, have revolutionized the healthcare sector. The historical data about a patient’s illness enables doctors to provide better management and prevention of diseases. Healthcare organizations are replacing traditional paper documents with digital records called EMR systems. To optimize user experience, improve efficiency, and deliver enhanced security healthcare, organizations are outsourcing their data center operations as colocation services to offer healthcare sector services such as backup & storage, data migration, and disaster recovery. These factors are driving the demand for data center modernization, construction and advanced data center networking solutions, thereby positively impacting the industry growth.
Penetration of advanced data center networking solutions in the IT & telecom sector is providing several opportunities to the market demand
The IT & telecommunication market growth and the increasing penetration of IT companies globally are propelling the internet usage to higher levels. The internet is the backbone of the IT market due to its high dependence on solutions & services for advanced technologies. Various government initiatives adopted by several countries to enhance the broadband and internet infrastructure are fueling the internet consumption rate. For instance, in November 2016, Nova Scotia’s (a Canadian Province) government adopted a high-speed internet initiative for working and competing in the digital world. This initiative focused on providing efficient services through the healthcare & education sector and economic development of the country. Such factors are driving the market demand for data center networking solutions.
Browse key industry insights spread across 290 pages with 283 market data tables and 26 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), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2026,” in detail along with the table of contents:
Growing demand for reliable and fast connectivity data center networking solutions will drive the BFSI market growth
By application, the market is segmented into colocation, BFSI, energy, government, healthcare, manufacturing, IT & telecom sectors. In the data center networking market, the BFSI sector is anticipated to witness growth of 15% CAGR over the forecast timespan. The sector includes all variants of banking, financial, and insurance services, which implement data center networking solutions. The banking & financial services market is witnessing immense growth owing to advanced internet and broadband facilities incorporated by them. In modern services, these sectors save client data, information, and documents in complex data infrastructures rather than the conventional physical documentation procedures. These applications require highly efficient network capabilities to maintain massive data and cater to high customer demands. The networks provide several benefits to the banking and financial institutions such as policy implementation, improved scale processing capacity, and risk management. Such factors are driving the market revenue.
Increasing IT capacity requirements and demand for developing virtualization is driving the South America industry growth
The South America data center networking market share is expanding steadily owing to the increasing IT capacity requirements and the demand for developing virtualization using cloud technologies in countries including Brazil and Argentina. Developments and investments in the IT sector of the region are compelling the demand for data center networking solutions. The global connectivity is ubiquitous in today’s business environment as organizations are increasingly focusing on building a robust IT infrastructure by investing in data centers. Data centers offer direct connectivity and network access to various countries across the globe. Furthermore, the increasing deployment of data centers can be attributed to benefits offered, such as flexibility in space, power, and connectivity, enabling the growing businesses to effectively operate in dynamic situations and providing an impetus to the market growth.
Key market players providing data center networking solutions include Cisco Systems, Inc., Intel Corporation, IBM Corporation, Dell Inc., Microsoft Corporation, Juniper Networks, Huawei Technologies Co., Ltd., Arista Networks, and Hewlett-Packard Enterprise. These companies are offering innovative data center networking solutions in the market to capture a wide customer base through several channel partners. For instance, network virtualization is the most trending technology in the market, driving the competitive environment in the data center colocation space and adopting several initiatives, such as acquisitions, for expanding business operations in the data center networking industry. For instance, in 2017, Equinix announced the acquisition of Verizon’s data center portfolio for USD 3.6 billion. This acquisition expanded the company’s portfolio by adding 29 network facilities in the North and South American regions.