Data Center Networking Market
Report ID: SQMIG45B2169
Report ID: SQMIG45B2169
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Report ID:
SQMIG45B2169 |
Region:
Global |
Published Date: November, 2025
Pages:
196
|Tables:
0
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Data Center Networking Market size was valued at USD 31.47 Billion in 2024 and is poised to grow from USD 35.25 Billion in 2025 to USD 87.27 Billion by 2033, growing at a CAGR of 12% during the forecast period (2026–2033).
The data center networking market is growing due to virtualization and widely deployed advanced operating models in data centers. Improving "on-demand" service offerings in various industries and real-time participation of customers also enhances growth in this data center networking market. Furthermore, the adoption of cloud computing services in various sectors requires increasing data center networks. Business, consumer, and government demands for innovative technological solutions to high-speed internet needs are the most prominent drivers of expansion in data center networks. Data centers represent a necessary part of digital infrastructure. Data centers are often located at a few strategic locations known as Internet exchange points (IxPs). Major internet service providers, content delivery networks, and other enterprises connect here. User expectations have gone up with the increasing adoption of technologies such as linked devices and smartphone-driven applications for faster data retrieval, streaming alternatives, and real-time applications. More traffic is thus envisaged. Therefore, more robust and efficient data center networks are warranted to manage increased traffic. As dependence among organizations, services, supply chains, operations, and government agencies on fast internet increases, so does the demand for data center services. There is also an increased demand for data center network services due to the growing reliance on the management of data analytics, collecting, and data-driven strategic choices.
Market snapshot - 2026-2033
Global Market Size
USD 28.1 Billion
Largest Segment
Hardware
Fastest Growth
Services
Growth Rate
12% CAGR
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Global Data Center Networking Market is segmented by Component, Deployment, End Use and Region. Based on Component, the market is segmented into Hardware, Services. Based on Deployment, the market is segmented into Cloud, On Premises. Based on End Use, the market is segmented into BFSI, IT and Telecom, Healthcare, Retail, Education, Government, Manufacturing. Based on Network Architecture, the market is segmented into Three-Tier Architecture, Leaf-Spine Architecture, Clos Architecture. Based on Network Management, the market is segmented into Network Monitoring, Network Automation, Network Orchestration. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
The hardware segment shares about 53.3% revenue share of the global data center networking market and has led in 2023. Major hardware components that the data center networking industry majorly constitute include Ethernet switches, routers, Storage Area Networks (SANs), network security equipment, Application Delivery Controllers (ADCs), and many others. Hardware refers to more scalability, productivity, and big storage capacity than software, so this makes their hardware component essential in data centers. Under tracking, troubleshooting, monitoring, and diagnosing, hardware also manages physical servers, storage devices, and network devices.
However, the services segment is anticipated to be the leader in terms of the highest growth during the projection period. Growth factors for this segment include rising adoption of cloud computing technology and increasing demand for and application of such modern technologies as machine learning and AI. Growing market penetration of Internet of Things technology, at the same time, is being driven by a significant growth in the adoption of machine learning and AI technologies. Operational costs of data storage and protection include consumption of power, cooling systems, routine maintenance and many more. Thus, companies would rather outsource the data center networking services rather than invest in storage development and continue allocating more of the budget towards administration and security. The expected increase in this will be the demand for the service industry in the following years.
The IT & Telecom segment was leading the data center networking market in 2023. Growth in the business comes about due to the exponential rise of data and the need for reliable and fast connectivity. Virtualization and cloud services are becoming more important to businesses and, therefore, so are modern networking solutions capable of efficiently managing and optimizing data over large networks. Moreover, the continued pace toward 5G and IoT is further augmenting the growth in the demand for robust data center networking as these networks will cater to gigantic volumes of data and low-latency applications.
On the contrary, the manufacturing segment is expected to achieve 17.7% growth between 2024 and 2031. Predictive maintenance requires review of the data immediately, which is something the data centers can easily provide. IoT-enabled sensors collect a vast amount of information about manufacturing equipment. Based on that, it is possible to detect early signs of problems. It is believed that the use of IoT, ML, and AI by manufacturing industries will bring efficiency, improve standards for products, and encourage innovations constantly. It needs vast processing capability in addition to fast and latency-free networks. Manufacturing industries deal with private and sensitive information, which is encouraged by adopting data centers with advanced security measures to prevent illegal access, security breach, and ensure data security and contributes to the growth of the industry.
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North America accounted for 39.2% of global revenue share in the data center networking market. The growing utilization of cloud computing technology, the emergence of AI applications in various fields, the need for high-performance networking infrastructure, growing adoption of edge computing, and fast-paced development of networks driven by 5G technology are the primary growth drivers for this market. Almost 300 million Americans will live in areas where all the tier-1 service providers will offer 5G low-band services. By the end of the next decade, over 5.6 billion subscriptions for 5G is predicted to appear globally.
In 2023, Europe also became a profitable international data center networking region. From there on, huge growth will take place throughout the UK, Germany, and France. Increasing number of people using the internet, to have the need for sophisticated data storage, data protection and data center networking services, entry of multiple businesses from other parts of Europe, dependability of the Internet, and these technologies such as smartphones, AI, connected devices, and the likes keep advancing on.
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Rising Data Volumes
Adoption of Cloud Services
High Implementation Costs
Integration Complexity
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Major market participants' principal focus areas are constructing a robust client base and expanding their revenue share. Most of these players focus on the expansion of the existing product line to offer better deals by introducing new solutions and participation in mergers and acquisitions to upgrade their offers.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, due to technological advancement and the increasing demand for more efficiency and bandwidth, the market for data center networking is changing. Organizations are reaching increased flexibility and automation through the transition into SDN, hence reacting quite promptly to shifting business requirements. Adoption of 400G Ethernet technology manages to handle the increasing data traffic as well as support new applications such as big data analytics and artificial intelligence. Businesses can take advantage of growing operational capabilities, reducing costs, and remain competitive in an increasingly rapidly changing world by the adoption of AI and ML technologies. Data center networking, it seems, is poised for a bright, interesting future.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 31.47 Billion |
| Market size value in 2033 | USD 87.27 Billion |
| Growth Rate | 12% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Data Center Networking Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Networking Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Networking Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Data Center Networking Market size was valued at USD 31.47 Billion in 2024 and is poised to grow from USD 35.25 Billion in 2025 to USD 87.27 Billion by 2033, growing at a CAGR of 12% during the forecast period 12%.
Major market participants' principal focus areas are constructing a robust client base and expanding their revenue share. Most of these players focus on the expansion of the existing product line to offer better deals by introducing new solutions and participation in mergers and acquisitions to upgrade their offers. 'ALE International (France) ', 'Cisco Systems, Inc. (United States) ', 'Dell Inc. (United States) ', 'Equinix, Inc. (United States) ', 'Fujitsu (Japan) ', 'Hewlett Packard Enterprise Development LP (United States) ', 'Hitachi Vantara LLC (United States) ', 'Intel Corporation (United States) ', 'Juniper Networks, Inc. (United States) ', 'Broadcom (United States) ', 'Microsoft Corporation (United States) ', 'IBM Corporation (United States) ', 'Google Cloud (United States) ', 'Oracle Corporation (United States) ', 'NVIDIA Corporation (United States) '
The organizations' rapidly rising data created due to cloud computing, IoT, and digital transformation are going to be one of the critical driving factors for the data center networking market. With such massive volumes of data, these enterprises will seek and demand much more sophisticated networking solutions to withstand larger bandwidth and faster data transfer rates. This makes the companies expend money on high-class infrastructure so as to ensure efficient data handling and communication.
Increased Adoption of Software-Defined Networking (SDN): More demand towards software-defined networking, or SDN, is pushing the data center networking market toward a significant shift. This approach allows for central management of network resources for automated management and dynamic provisioning. Businesses that look forward to embracing cloud services and hybrid IT systems will find this trend extremely attractive as it enhances scalability, optimizes the flow of traffic, and reduces operation costs.
North America accounted for 39.2% of global revenue share in the data center networking market. The growing utilization of cloud computing technology, the emergence of AI applications in various fields, the need for high-performance networking infrastructure, growing adoption of edge computing, and fast-paced development of networks driven by 5G technology are the primary growth drivers for this market. Almost 300 million Americans will live in areas where all the tier-1 service providers will offer 5G low-band services. By the end of the next decade, over 5.6 billion subscriptions for 5G is predicted to appear globally.
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