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Australia Data Center Networking Market Market Size (2024 - 2029)

The Australia Data Center Networking Market is experiencing growth driven by the increasing adoption of software-defined networking (SDN) as part of digital transformation efforts by enterprises. This shift is largely a response to changes in work and customer behavior post-COVID-19, enhancing agility and competitiveness. The market's expansion is further supported by the rising demand for networking infrastructure, with significant developments in IT load capacity and construction of raised floor areas anticipated. Additionally, the proliferation of submarine cable systems, including the upcoming Asia Connect Cable-1, is expected to bolster connectivity and support the market's growth trajectory.

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Market Size of Australia Data Center Networking Industry

Australia Data Center Networking Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.77 Billion
Market Size (2029) USD 0.98 Billion
CAGR (2024 - 2029) 5.09 %
Market Concentration High

Major Players

Australia Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Australia Data Center Networking Market Analysis

The Australia Data Center Networking Market size is estimated at USD 0.77 billion in 2024, and is expected to reach USD 0.98 billion by 2029, growing at a CAGR of 5.09% during the forecast period (2024-2029).

  • Australia is one of the prominent markets for server virtualization. Australian enterprises have stepped up their adoption of software-defined networking (SDN) in response to changes in work and customer behavior caused by the COVID-19 pandemic.
  • Enterprises are deploying SDN technologies as part of broader digital transformations to increase their agility, flexibility, and competitiveness. Likewise, as the long-term trend from in-person to online shopping continues, SDN can help companies respond quickly and seamlessly to customer inquiries. This factor relates to the rising networking infrastructure in the data center.
  • The upcoming IT load capacity of the Australian data center market is expected to reach 3.2K MW by 2029. The country's construction of raised floor area is expected to increase to 11.4 million sq. ft by 2029.
  • The country's total number of racks to be installed is expected to reach 570.8K units by 2029. Greater Melbourne is expected to house the maximum number of racks by 2029.
  • There are close to 23 submarine cable systems connecting Australia, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Asia Connect Cable-1 (ACC-1), which stretches over 18000 Kilometers with landing points from Darwin, Australia.

Australia 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 Australia data center networking market is segmented by product (ethernet switches, routers, storage area network (SAN), application delivery controller (ADC), and other networking equipment), services (installation & integration, training & consulting, and support & maintenance), and end-user (IT & telecommunication, BFSI, government, and media & entertainment, and other end-users).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component
By Product
Ethernet Switches
Routers
Storage Area Network (SAN)
Application Delivery Controller (ADC)
Other Networking Equipment
By Services
Installation & Integration
Training & Consulting
Support & Maintenance
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Australia Data Center Networking Market Size Summary

The Australia data center networking market is experiencing significant growth, driven by the increasing adoption of software-defined networking (SDN) and the ongoing digital transformation across various industries. Australian enterprises are leveraging SDN technologies to enhance agility and responsiveness, particularly in the context of the shift from in-person to online interactions. This trend is further supported by the expansion of networking infrastructure within data centers, as evidenced by the anticipated growth in IT load capacity and raised floor area. The market is also witnessing a surge in digital banking, with banks relocating servers to data centers to support mission-critical IT systems. The rise of digital wallets and mobile banking transactions underscores the growing importance of robust networking infrastructure to handle increased digital interactions.

Ethernet switches are becoming pivotal in the Australian data center networking landscape, facilitating efficient data transfer and supporting high-speed connectivity. Despite a decline in other networking segments, the demand for Ethernet switches is on the rise, driven by mobile network upgrades and the adoption of advanced wireless LAN standards. Key players like Cisco and Arista Networks are at the forefront, introducing innovative solutions to meet the evolving demands of the market. The competitive landscape is characterized by strategic collaborations and technological advancements, such as Broadcom's introduction of the Trident 4-X7 Ethernet switch ASIC, which addresses the need for higher bandwidth connectivity. These developments highlight the dynamic nature of the market and the ongoing efforts to enhance data center networking capabilities in Australia.

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Australia Data Center Networking Market Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing

      2. 1.2.2 Increasing Demand to Reduce Operational Costs

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Installation and Maintenance

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Component

      1. 2.1.1 By Product

        1. 2.1.1.1 Ethernet Switches

        2. 2.1.1.2 Routers

        3. 2.1.1.3 Storage Area Network (SAN)

        4. 2.1.1.4 Application Delivery Controller (ADC)

        5. 2.1.1.5 Other Networking Equipment

      2. 2.1.2 By Services

        1. 2.1.2.1 Installation & Integration

        2. 2.1.2.2 Training & Consulting

        3. 2.1.2.3 Support & Maintenance

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Australia Data Center Networking Market Market Size FAQs

The Australia Data Center Networking Market size is expected to reach USD 0.77 billion in 2024 and grow at a CAGR of 5.09% to reach USD 0.98 billion by 2029.

In 2024, the Australia Data Center Networking Market size is expected to reach USD 0.77 billion.

Australia Data Center Networking Market Report Snapshots

Australia Data Center Networking Market Size & Share Analysis - Growth Trends & Forecasts (2024-2029)