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Europe Data Center Networking Market Size (2024 - 2029)

The Europe data center networking market is experiencing growth driven by the proximity of clients and data centers, which facilitates low-latency connections. This, combined with extensive high-speed data transmission channels, enables businesses to access data swiftly. The market is witnessing increased demand due to efforts to reduce power consumption, consolidate WANs, and manage bandwidth requirements. Additionally, the region is expanding its IT load capacity and construction of raised floor areas, contributing to the market's expansion. The installation of racks is also on the rise, with the United Kingdom anticipated to lead in this aspect.

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Market Size of Europe Data Center Networking Industry

Europe Data Center Networking Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 7.33 Billion
Market Size (2029) USD 9.90 Billion
CAGR (2024 - 2030) 6.20 %
Market Concentration Low

Major Players

Europe Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Data Center Networking Market Analysis

The Europe Data Center Networking Market size is estimated at USD 7.33 billion in 2024, and is expected to reach USD 9.90 billion by 2029, growing at a CAGR of 6.20% during the forecast period (2024-2029).

Within Europe, clients and data centers are located close to each other, so 80% of European data centers provide latency of no more than 50 milliseconds. Together with dense coverage of high-speed data transmission channels, this allows businesses and their clients to get fast access to data 24/7.

  • Data centers in the region are concentrating on the reduction of high power consumption, WAN consolidation, and bandwidth requirements, creating growth opportunities for data center interconnect, leading to major market demand.
  • The upcoming IT load capacity of the Europe data center Server market is expected to reach 18K MW by 2029. The region's construction of raised floor area is expected to increase 87.6 million sq. ft by 2029.
  • The region's total number of racks to be installed is expected to reach 4.3 million units by 2029. The United Kingdom is expected to house the maximum number of racks by 2029.
  • There are close to 210 submarine cable systems connecting Europe, and many are under construction. One such submarine cable that is estimated to start service in 2025 is SeaMeWe-6, which stretches over 19,200 km with a landing point in Marseille, France.

Europe 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 European data center networking market is segmented by component type (product (ethernet switches, router, storage area network (SAN), application delivery controller (ADC), and other networking equipment) and services (installation & integration, training & consulting, and support & maintenance)), end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users), and country (France, UK, Austria, Belgium, Germany, Netherlands, Switzerland, Poland, Ireland, Norway, Spain, Denmark and the Rest of Europe)

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-Users
***Country
France
United Kingdom
Sweden
Austria
Belgium
Germany
Ireland
Italy
Norway
Poland
Spain
Switzerland
Netherlands
Denmark
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Europe Data Center Networking Market Size Summary

The Europe data center networking market is experiencing significant growth, driven by the increasing demand for high-speed data transmission and the need for efficient data center operations. The proximity of clients and data centers in Europe ensures low latency, enhancing the accessibility of data for businesses. This, coupled with the dense network of high-speed transmission channels, supports the continuous demand for data center interconnect solutions. The market is also witnessing a shift towards reducing power consumption and consolidating wide area networks, which presents new opportunities for growth. The region's infrastructure is expanding, with substantial increases anticipated in IT load capacity, raised floor area, and the number of racks, particularly in the United Kingdom. The development of submarine cable systems further bolsters the connectivity and data transfer capabilities across Europe.

In the telecommunications sector, European players are adapting to challenges such as regulatory pricing interventions and the need for technological advancements. The rollout of 4G and the impending 5G wave are prompting significant investments in data center networking. Countries like the Netherlands and France are leading in technological modernization and cloud adoption, respectively, with government initiatives supporting these trends. The United Kingdom is focusing on becoming a global leader in 5G network development, with substantial investments in digital infrastructure. The market is characterized by a high level of competition, with major players like Extreme Networks Inc., Dell EMC, and VMware Inc. actively expanding their presence through strategic collaborations and innovative solutions. These developments are driving the market forward, as networking equipment remains crucial for data centers and cloud storage solutions.

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Europe 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 Need of Cloud Storage and Rsing Demand for Reliable Application Performance

      2. 1.2.2 Surge in Adoption of 5G Deployment in Major Countries

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Network Complexity

    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-Users

    3. 2.3 ***Country

      1. 2.3.1 France

      2. 2.3.2 United Kingdom

      3. 2.3.3 Sweden

      4. 2.3.4 Austria

      5. 2.3.5 Belgium

      6. 2.3.6 Germany

      7. 2.3.7 Ireland

      8. 2.3.8 Italy

      9. 2.3.9 Norway

      10. 2.3.10 Poland

      11. 2.3.11 Spain

      12. 2.3.12 Switzerland

      13. 2.3.13 Netherlands

      14. 2.3.14 Denmark

Europe Data Center Networking Market Size FAQs

The Europe Data Center Networking Market size is expected to reach USD 7.33 billion in 2024 and grow at a CAGR of 6.20% to reach USD 9.90 billion by 2029.

In 2024, the Europe Data Center Networking Market size is expected to reach USD 7.33 billion.

Europe Data Center Networking Market Report Snapshots

Europe Data Center Networking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)