Market Trends of Denmark Data Center Networking Industry
Ethernet Switches is Anticipated to be the Largest Segment
- An Ethernet switch serves as fundamental networking hardware, forming the basis of networks and the Internet. These switches connect wired devices like computers, Wi-Fi access points, PoE lighting, IoT devices, and servers to an Ethernet LAN, facilitating communication among them 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 that drive the industrial Ethernet switch market. Particularly in smart grids, Ethernet switches play a pivotal role in substation automation by reducing cabling complexities between various 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. These managed layer 2 switches, part of the Scalance X Industrial Ethernet Switch product family, are available in both compact and 19-inch versions for control cabinets.
- The diverse range of available industrial Ethernet switch products signifies the vendor's expansion beyond traditional 8-port DIN rail switches, offering application-specific services and vertical integration. While infrastructure applications aim for maximum throughput and bandwidth, factory automation applications may prioritize limiting network traffic.
- Smart Ethernet switches employing Power-over-Ethernet (PoE) technology are utilized for security and monitoring purposes. PoE networks enable power transfer to local network cables and connected devices, proving beneficial for Internet protocol-based monitoring systems, facilitating accessible browser-based communication and user interface.
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IT & Telecommunication is Anticipated to be fastest Growing Segment
- Denmark holds the top position in security, boasting a remarkable score of 9.69/10 due to its low incidence of cyberattacks and robust online privacy measures. The supporting infrastructure, notably its availability, also garners an impressive rating of 9.4/10. The geographical advantage, whether in terms of land or water, significantly contributes to this infrastructure's primacy.
- The surge in data consumption originates from end-users utilizing racks and servers, encompassing cloud services, e-commerce, BFSI, telecom, and other industries. Notably, Denmark stands as a prominent e-commerce market in Europe, evident in its high internet penetration, user percentage, and substantial average spending of USD 3,000 on online purchases. This spike in data management and network traffic underscores the increased reliance on Ethernet switches to ensure continuous operations within data centers.
- The country's growing reliance on cloud solutions fuels the demand for cloud-based data protection and backup services. For instance, in June 2022, Keepit, a Copenhagen-based cloud backup service, secured USD 22.5 million in debt financing from Silicon Valley Bank (SVB) in collaboration with Vaekstfonden. This funding injection is aimed at enhancing their Software-as-a-Service (SaaS) data security platform, developing new products, and expanding their global footprint.
- Google's strategic choice of Fredericia in southeastern Jutland for its new data center aligns perfectly with its connection to HAVFRUE. Google emphasizes the center's commitment to being carbon neutral from inception, achieved by offsetting its electricity consumption through investments in five solar parks in Denmark with a total capacity of 160MW. As a result, the burgeoning growth of data centers in Denmark anticipates a concurrent rise in demand for networking equipment in the foreseeable future.
