Data Center Networking Market Size

Data Center Networking Market Insights

Data Center Networking Market size was valued at USD 28.1 Billion in 2023 and is poised to grow from USD 31.47 Billion in 2024 to USD 69.57 Billion by 2032, growing at a CAGR of 12% during the forecast period (2025-2032).

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.

FAQs

Key vendors in Data Center Networking Market are: '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.