Market Size of APAC Data Center Networking Industry
Study Period | 2019 - 2030 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 8.81 Billion |
Market Size (2029) | USD 13.99 Billion |
CAGR (2024 - 2030) | 9.70 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
APAC Data Center Networking Market Analysis
The APAC Data Center Networking Market size is estimated at USD 8.81 billion in 2024, and is expected to reach USD 13.99 billion by 2029, growing at a CAGR of 9.70% during the forecast period (2024-2029).
Asia Pacific is experiencing strong adoption of visualization tools, specifically standalone visualization. Increasing data traffic along with increasing data center constructions and servers is laying the demand for networking solutions.
- The upcoming IT load capacity of the Asia-Pacific data center construction market is expected to reach 23K MW by 2029. The region's construction of raised floor area is expected to increase 74.5 million sq. ft by 2029.
- The region's total number of racks to be installed is expected to reach 4.2 million units by 2029. India is expected to house the maximum number of racks by 2029.
- There are close to 160 submarine cable systems connecting the Asia-Pacific, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 km with a landing point in China, Taiwan, Japan, South Korea, Thailand, and Vietnam.
APAC Data Center Networking Industry Segmentation
Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of applications and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.
The Asia-Pacific data center networking market is segmented by component type (product (ethernet switches, routers, storage area network (SAN), application delivery controller (ADC), and other networking equipment) and services (installation & integration, training & consulting, and support & maintenance)), end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users), and country (India, China, Japan, Indonesia, Thailand, Australia, Singapore, Hong Kong, Taiwan, South Korea, Philippines, Vietnam, Malaysia and the Rest of Asia-Pacific).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Component | |||||||
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End-User | |
IT & Telecommunication | |
BFSI | |
Government | |
Media & Entertainment | |
Other End-Users |
Country | |
Indonesia | |
India | |
China | |
Australia | |
South Korea | |
Philippines | |
Thailand | |
Singapore | |
New Zealand | |
Japan | |
Malaysia | |
Vietnam | |
Hong Kong | |
Taiwan |
APAC Data Center Networking Market Size Summary
The Asia-Pacific data center networking market is experiencing robust growth, driven by the increasing demand for advanced networking solutions due to the surge in data traffic and the proliferation of data center constructions across the region. The market is characterized by a hyper-connected environment, with significant contributions from telecommunications companies that are pivotal in supporting connectivity and collaboration needs. The region is witnessing a shift towards high-capacity switches and flash storage devices, propelled by data localization laws in countries like Malaysia, Indonesia, and Vietnam. These regulations have spurred the construction of data centers, leading to the adoption of sophisticated networking solutions. The advent of 5G technology has further accelerated the deployment of small cells, enhancing high-speed network connectivity. Notable developments, such as the expansion of submarine cable systems and the introduction of advanced Ethernet technologies, underscore the region's commitment to enhancing its networking infrastructure.
The competitive landscape of the Asia-Pacific data center networking market is marked by a high degree of fragmentation, with key players like Shenzhen Tenda Technology Co., Ltd., H3C Holding Limited, and NEC Corporation intensifying their competitive strategies. These companies are focused on expanding their market share through strategic collaborations and innovative product offerings. Recent advancements include VMware's SD-WAN solution and Moxa Inc.'s Ethernet switches, which cater to diverse networking needs. The market is also witnessing significant investments in infrastructure and technology, with governments and private entities revising policies and launching initiatives to support data center growth. India's rapid economic expansion and increased internet penetration are expected to drive substantial market growth, supported by collaborations with global tech giants and government incentives. Overall, the Asia-Pacific data center networking market is poised for continued expansion, driven by technological advancements and strategic investments.
APAC Data Center Networking Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Need of Cloud Storage and Rsing Demand for Reliable Application Performance
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1.2.2 Increasing Cyberattacks Among Enterprises
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1.3 Market Restraints
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1.3.1 Increasing Network Complexity
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 By Component
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2.1.1 By Product
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2.1.1.1 Ethernet Switches
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2.1.1.2 Router
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2.1.1.3 Storage Area Network (SAN)
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2.1.1.4 Application Delivery Controller (ADC)
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2.1.1.5 Other Networking Equipment
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2.1.2 By Services
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2.1.2.1 Installation & Integration
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2.1.2.2 Training & Consulting
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2.1.2.3 Support & Maintenance
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2.2 End-User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End-Users
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2.3 Country
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2.3.1 Indonesia
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2.3.2 India
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2.3.3 China
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2.3.4 Australia
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2.3.5 South Korea
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2.3.6 Philippines
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2.3.7 Thailand
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2.3.8 Singapore
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2.3.9 New Zealand
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2.3.10 Japan
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2.3.11 Malaysia
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2.3.12 Vietnam
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2.3.13 Hong Kong
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2.3.14 Taiwan
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APAC Data Center Networking Market Size FAQs
How big is the APAC Data Center Networking Market?
The APAC Data Center Networking Market size is expected to reach USD 8.81 billion in 2024 and grow at a CAGR of 9.70% to reach USD 13.99 billion by 2029.
What is the current APAC Data Center Networking Market size?
In 2024, the APAC Data Center Networking Market size is expected to reach USD 8.81 billion.