Canada Data Center Networking Market Size (2024 - 2029)

The Canada Data Center Networking Market is projected to experience significant growth over the forecast period, driven by the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments from domestic players. This growth is reflected in the expansion of IT load capacity, raised floor space, and the number of racks, with Quebec anticipated to accommodate the majority of the racks. Additionally, the development of submarine cable systems is set to enhance connectivity, further contributing to the market's expansion.

Market Size of Canada Data Center Networking Industry

Canada Data Center Networking Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.66 Billion
Market Size (2029) USD 0.93 Billion
CAGR (2024 - 2029) 6.90 %
Market Concentration Medium

Major Players

Canada Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Canada Data Center Networking Market Analysis

The Canada Data Center Networking Market size is estimated at USD 0.66 billion in 2024, and is expected to reach USD 0.93 billion by 2029, growing at a CAGR of 6.90% during the forecast period (2024-2029).

  • The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Canada data center rack market is expected to reach 1,150 MW by 2029. Data centers consume approximately 1% of all electricity consumed in Canada each year. About half of the energy used in data centers is consumed by computing servers. Another 40% goes to cooling these servers.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5.1 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 289,000 units by 2029. Quebec is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 16 submarine cable systems connecting Canada, and many are under construction.

Canada 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 Canada data center networking market is segmented by product (ethernet switches, routers, storage area network (SAN), application delivery controllers (ADC), and other networking equipment), by services (installation & integration, training & consulting, and support & maintenance), and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments. 

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

By Component
By Product
Ethernet Switches
Router
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-User
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Canada Data Center Networking Market Size Summary

The Canada data center networking market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from domestic players. The market is characterized by a robust domestic technology sector, particularly within the information and communications technology (ICT) industry, which is predominantly composed of small and medium-sized enterprises. The development of smart cities and the impending rollout of 5G services are expected to further fuel the demand for data center facilities. The government's initiatives, such as the Smart Cities Challenge and investments in fiber infrastructure, are set to enhance data transmission capabilities across the country, supporting the burgeoning need for data centers.

The competitive landscape of the Canada data center networking market is dominated by major players like Cisco Systems Inc., Schneider Electric, Huawei Technologies Co. Ltd., VMware Inc., and Dell Inc. Recent innovations, such as Arista Networks' WAN Routing System and NVIDIA's SpectrumXtreme platform, highlight the industry's focus on enhancing network performance and efficiency. These advancements are crucial as the market adapts to the rising mobile data consumption and the shift towards hybrid cloud structures. The market's growth trajectory is further supported by the increasing integration of Ethernet switches in various industrial applications, underscoring the critical role of networking hardware in the evolving data center ecosystem.

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Canada Data Center Networking Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Trend of High-Performance Computing across Europe

      2. 1.2.2 Growing Investments in IT& Telecom Sector

    3. 1.3 Market Restraints

      1. 1.3.1 Regulatory constraints

    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 Router

        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-User

Canada Data Center Networking Market Size FAQs

The Canada Data Center Networking Market size is expected to reach USD 0.66 billion in 2024 and grow at a CAGR of 6.90% to reach USD 0.93 billion by 2029.

In 2024, the Canada Data Center Networking Market size is expected to reach USD 0.66 billion.

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