Market Trends of Canada Data Center Networking Industry
Ethernet Switches is Anticipated to be the Largest Segment
- An Ethernet switch is a type of networking hardware that forms the foundation of networks and the Internet. Ethernet switches connect wired devices such as computers, Wi-Fi access points, PoE lighting, IoT devices, and servers onto an Ethernet LAN, enabling communication among themselves and with the Internet.
- Ethernet switches find broad applications in industrial infrastructure, including smart grids, security and surveillance, intelligent rail and transportation, and other utilities driving the industrial Ethernet switch market. In smart grids, Ethernet switches play a crucial role in substation automation by reducing the effort and complexity of cabling between numerous power transmission and distribution substation devices through integration into Ethernet-based networks.
- In November 2022, Siemens renewed and upgraded its Scalance XC/XR-300 series of industrial Ethernet switches, enhancing them with additional features for next-generation industrial networks. The so-called managed layer 2 switches of the Scalance X Industrial Ethernet Switch product family are available in both a compact model and a 19-inch version designed for control cabinets.
- The range of industrial Ethernet switch products available reflects the vendor's continuous product expansion, extending beyond traditional 8-port DIN rail switches to include application-specific services. Vertical integration and infrastructure applications aim for maximum throughput and bandwidth, whereas factory automation applications may seek to limit network traffic.
- Smart Ethernet switches incorporating Power-over-Ethernet (PoE) technology are utilized for security and monitoring purposes. PoE networks deliver power through local network cables to connected devices, proving useful for Internet protocol-based monitoring systems and aiding in accessible browser-based communication and user interface.
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IT & Telecommunication is Anticipated to be the Fastest Growing Segment
- Canada boasts a robust domestic technology sector, particularly within its information and communications technology (ICT) industry, which encompasses over 43,200 companies. Predominantly, these entities operate in the software and computer services sector. The majority of this sector comprises small and medium-sized enterprises, with approximately 35,500 having fewer than 10 employees. Additionally, there are around 100 large companies with 500 or more employees, including subsidiaries of multinational corporations based abroad.
- The nation's future blueprint involves the development of smart cities, an endeavor set to integrate cutting-edge technologies like IoT, blockchain, and AI. This initiative foresees a surge in data generation. The Government of Canada's Smart Cities Challenge, initiated in 2017, received applications from over 225 municipalities eager to explore the advantages of the plan, indicating a keen interest in fostering smarter regions. The impending emergence of 5G services and faster network technologies in smartphones will further drive the proliferation of smart devices controlled by smartphone apps. This trend is poised to heighten the demand for data center facilities equipped with suitable PDU units.
- Notably, significant investments by the Canadian government are poised to incentivize major operators to expand their fiber coverage nationwide, thereby fortifying data transmission infrastructure. In August 2022, Rogers and Bell Canada secured grants totaling USD 500 million for fiber builds in underserved areas of Ontario. These investments align with a provincial long-term strategy, amounting to USD 4 billion, aimed at providing broadband services to every location in Ontario by the close of 2025.
- The telecommunications landscape has embraced a hybrid cloud structure, combining both public and private cloud frameworks. This hybrid model aids telecom companies in managing sudden traffic surges, enabling swift deployment of cloud services and minimizing downtime. With bandwidth speeds on the rise, mobile data consumption has surged from 1.5 GB in 2016 to 4.8 GB in 2022, projected to reach approximately 8.6 GB by 2029. As a result of these advancements, the forecast anticipates a growth trajectory for data center facilities
