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China Data Center Networking Market Size (2024 - 2029)

The China Data Center Networking Market is projected to experience significant growth over the forecast period, driven by increasing demand for cloud computing, government regulations for local data security, and rising investments from domestic players. This growth is expected to be supported by the expansion of IT load capacity and the construction of additional data center infrastructure, including raised floor areas and racks. The development of submarine cable projects further underscores the market's expansion, enhancing connectivity and data handling capabilities in the region.

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Market Size of China Data Center Networking Industry

China Data Center Networking Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.27 Billion
Market Size (2029) USD 1.74 Billion
CAGR (2024 - 2029) 6.56 %
Market Concentration Medium

Major Players

China Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

China Data Center Networking Market Analysis

The China Data Center Networking Market size is estimated at USD 1.26 billion in 2024, and is expected to reach USD 1.74 billion by 2029, growing at a CAGR of 6.56% 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.
  • The upcoming IT load capacity in the country is projected to cross 3,300 MW by 2029, boosting the demand for data center racks. The construction of raised floor area for data centers in the country is expected to reach 11.9 million sq. ft by 2029 for under construction raised floor space.
  • The country's total number of racks to be installed is expected to touch 600,000 units by 2029. Currently, four submarine cable projects are under construction in the country. One such submarine cable, estimated to start service in 2023, is Asia Direct Cable (ADC), stretching over 19000 kilometers with landing points Chongming, Lantau Island, and Shantou for planned submarine cables.

China 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 China 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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China Data Center Networking Market Size Summary

The China Data Center Networking Market is experiencing 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 expansion in IT load capacity, data center racks, and raised floor area, all of which are expected to see substantial increases in the coming years. The surge in data consumption, fueled by the popularity of streaming services and the rise of short video platforms, is further propelling the demand for data center infrastructure. As industries adopt Industry 4.0 standards and integrate automation, the need for innovative data center network solutions is becoming more pronounced, supporting the growing workloads of AI, IoT, and big data. The expansion of 4G and 5G services, along with the development of internet infrastructure, is also contributing to the market's growth, as it necessitates enhanced backup and storage solutions to manage the increasing data volume.

The market landscape is fragmented, with numerous vendors employing strategies like mergers, acquisitions, and partnerships to capitalize on the burgeoning demand for data center networking solutions. Key players such as Schneider Electric, Cisco Systems, Arista Networks, Dell EMC, and IBM Corporation are actively involved in this dynamic market. Recent innovations, such as Arista Networks' WAN routing system and Moxa's Ethernet switches, highlight the ongoing advancements in data center networking technology. These developments are crucial for ensuring efficient, reliable, and scalable data center operations, supporting the digital transformation of businesses across China. The extensive use of Ethernet switches in various industrial infrastructures, including smart grids and surveillance systems, underscores their importance in facilitating high-speed data transmission and enhancing the overall efficiency of data center networks.

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China 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 Utilization of Cloud Storage is Driving the Market Growth

      2. 1.2.2 Rising Need for Backup and Storage is Expanding the Market Demand

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of Skilled Professionals is Hindering the Market Demand

    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

China Data Center Networking Market Size FAQs

The China Data Center Networking Market size is expected to reach USD 1.27 billion in 2024 and grow at a CAGR of 6.56% to reach USD 1.74 billion by 2029.

In 2024, the China Data Center Networking Market size is expected to reach USD 1.27 billion.

China Data Center Networking Market Report Snapshots

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