Market Trends of China Data Center Networking Industry
IT and Telecom to have significant market share
- The country's growing demand for streaming services, such as Douyin, Kuaishou, Iqiyi, Youku, and Tencent Video, has significantly increased data consumption due to their high-quality video streaming services. Moreover, short video platforms like Douyin and Kuaishou are preferred over OTT services. In 2021, approximately 931 million users streamed short videos, whereas only 464 million utilized these platforms for streaming.
- As the volume of generated data continues to surge, the requirement for backup and storage solutions is escalating. This necessity accommodates the growing number of network solutions in data centers.
- With most industries adopting Industry 4.0 standards and integrating automation in their factories, end-user data consumption is anticipated to rise. The surge in AI, IoT, and big data workloads is fueling the demand for innovative data center network infrastructure solutions within these facilities. This enables providers to consistently innovate their network portfolios, adapting to the environment and ensuring greater efficiency, scalability, and reliability.
- The escalating demand for 4G services and ongoing infrastructure expansion to facilitate the adoption of 5G services further bolsters the use of data centers. The increasing data volume necessitates a corresponding rise in backup and storage solutions, meeting the expanding need for network solutions in these centers.
- The robust growth of mega data centers, high penetration of 100GB switch ports, expanded broadband development, increased demand for high-speed internet, and the ongoing development of internet infrastructure are all positive contributors to market growth.
- This growth is propelled by an increase in telecom subscribers and a rising number of smartphone users, leading to more data generation and heightened demand for data center network solutions in the country.
Understand The Key Trends Shaping This Market
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Ethernet Switches Holds Largest Market Share
- Data Center Ethernet switches are essential network devices designed for operation within a data center environment. They play a pivotal role in facilitating efficient and rapid data transfer by establishing interconnections between servers, storage devices, and other network equipment. These switches are specifically engineered for high-speed data transmission, supporting gigabit and multigigabit Ethernet, including 10GbE, 25GbE, 40GbE, 100GbE, and beyond.
- The country, like many others, has undergone significant digital transformation across its industries. Businesses are increasingly investing in data centers to streamline processes, services, and operations. Ethernet switches are vital for ensuring the efficiency, reliability, and security of data center operations.
- China's Data Centers extensively utilize networks of Ethernet switches. As Chinese businesses expand and require more processing capacity, Scalable Ethernet switches enable the necessary expansion of data center infrastructure. This scalability is crucial to meet the burgeoning demands of digital services.
- The transformation of businesses, necessitating storage, processing, and analysis of vast amounts of digital data, drives the growing need for robust data center infrastructure in China. This encompasses services like cloud computing, big data analysis, and emerging technologies such as artificial intelligence and the Internet of Things (IoT).
- Ethernet switches find application in diverse industrial infrastructure, including smart grids, surveillance and security systems, smart rail and transportation, and other utilities. They play a critical role in substation automation within smart grids by simplifying the cabling complexity and reducing tension between power transmission and distribution devices.
