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Data Center Networking Market size worth over $40bn by 2028

  • Published Date: March 1, 2022

Data Center Networking Market size is set to surpass USD 40 billion by 2028, according to a new research report by Global Market Insights Inc.

Growing penetration of digital technologies across the BFSI sector will support the data center networking market growth. A sharp rise in the number of people using digital banking, smart cards, and mobile wallets for payments has resulted in high data traffic. This has encouraged the banking & financial sector to adopt advanced data center networking solutions to manage the rising data traffic. An efficient IT connectivity system optimizes data center operations with effective networking of data. As real-time communications form a crucial aspect of the digitalized banking sector, IT infrastructure solution providers will adopt advanced data center networking systems, in turn, fueling the market demand.

The COVID-19 pandemic impacted the data center networking market in the first half of 2020 due to the sudden imposition of lockdowns, resulting in disruptions in supply chains. However, the industry gained traction in the second half of 2020 owing to the high demand for data management solutions credited to work from home policies adopted by the corporate sector. As more businesses are continuously shifting toward cloud computing, providers are focusing on increasing investments to construct data center facilities. The rising construction of data centers will result in an growing demand for effective data center networking solutions that help in maintaining continued facility operations. Increasing establishment of micro, modular, and hyperscale data centers will boost the industry growth.

Growing demand for professional services that help to optimize data center networking system performance to drive the market progression

U.S. Data Center Networking Market Share By Component

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Data center networking services market is anticipated to register 12% growth rate  through 2028 on account of the rising penetration of technologies such as cloud computing, virtualization, and AI. With the ongoing trend of cloud computing, modular and micro data centers, professional services that enable the migration from traditional infrastructure will observe a high demand. Professional data center networking services help to optimize IT infrastructure, operations, management, and storage, enabling lower costs of ownership. Networking architectures must evolve to support current requirements for lower latency, higher bandwidth, and overall agility. There is a high demand for professional services that offer high-performance deployment, cloud migration, consulting, and data center networking & risk assessment.

Browse key industry insights spread across 350 pages with 247 market data tables and 29 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), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028” in detail along with the table of contents:


The high demand for efficient networking solutions from the expanding data center colocation industry to propel the market value

High costs associated with owning and maintaining data center facilities have enhanced the demand for cost-effective colocation services. SMEs adopt data center colocation solutions to ensure efficient data management while enabling low cost of ownership. The increasing demand for colocation services has encouraged the market participants to adopt advanced networking systems to ensure uninterrupted operations.

Rising IoT industry in North America region will offer strong growth opportunities to the industry expansion

North America data center networking market is projected to grow at a CAGR of around 9% by 2028 owing to the high penetration of IoT technology, resulting in increased data traffic. In Canada, IoT spending is expected to reach USD 20 billion by 2025. The manufacturing sector in the U.S. and Canada is witnessing large data storage requirement due to the adoption of modern technologies including IIoT as factories are focusing on automating their industry processes. Advanced technologies, such as IoT and AI, in the manufacturing sector are contributing to the exponential rise in the amount of data. Efficient and fast transfer of data is crucial for the manufacturing industries to ensure smooth processes and increase the throughput.

Developing high-end data center networking solutions catering to the changing end-user demands forms a key strategy amongst the market players

Leading companies operating in the data center networking market are Broadcom Inc., Arista Networks, Alcatel-Lucent, Delta Electronics Inc., Avaya Inc., Cisco Systems Inc., Dell Inc., Fujitsu Ltd., Extreme Networks, Huawei Technologies Co. Ltd., Microsoft Corporation, Hewlett Packard Enterprise, IBM Corporation, Intel Corporation, Juniper Networks, and NEC Corporation. These leaders are focusing on R&D to develop innovative data center networking solutions that cater to the rapidly expanding end-user demands for data traffic management.

Authors: Preeti Wadhwani, Saloni Gankar