Data center networking solutions provide advanced connectivity options that allow enterprises to reliably transfer large amounts of data between cloud and on-premise IT infrastructure. Requirements for high bandwidth switching, virtualization capabilities, load balancing, and network segmentation continue growing consistently across several industries relying on digital technologies.
The global Data Center Networking Market is estimated to be valued at US$ 23.5 Bn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising demand for scalable and flexible networking infrastructure from hyperscale data center operators is one of the major trends fueling market growth. Data centers hosting mission-critical applications and services for large user bases require networking solutions adaptable to fluctuations in traffic volumes and workloads. Leading providers are focused on developing automated, software-defined solutions allowing administrators to dynamically optimize bandwidth, configure virtual local area networks, and ensure high availability even during capacity additions or component failures. This is enabling hyperscale data center operators to support expanding customer needs in a cost-effective and reliable manner.
Segment Analysis
The global data center networking market size is dominated by the software defined networking (SDN) segment. SDN dominates as it provides flexibility, programmability, and centralized automation for the entire network infrastructure. It allows network administrators to manage traffic from a centralized control plane without having to touch individual switches. This centralized management yields better optimization and utilization of network resources as well as reduces costs significantly.
Key Takeaways
The global data center networking market is expected to witness high growth over the forecast period of 2023 to 2030. Factors such as rapid digitalization across industries, growing cloud adoption, and rising need for high-speed low-latency networks are expected to drive robust growth.
Regional analysis
North America is currently the largest and fastest growing regional market for data center networking. Significant investments by hyperscalers such as Google, Microsoft, and Amazon in building new data center facilities are driving demand. In addition, the presence of many small and medium enterprises rapidly adopting cloud-based infrastructure is also propelling the region's market growth.
Key players
Key players operating in the data center networking market are Google, Inc., Huawei Technologies Co. Ltd., Cisco Systems, Inc., Brocade Networking Solutions, Hewlett Packard Enterprise, Extreme Networks, Inc., Arista Networks, Avaya, Inc., Juniper Networks, Dell Inc., and Microsoft Corporation.
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