Germany Data Center Networking Market Market Size (2024 - 2029)

The Germany Data Center Networking Market is experiencing growth driven by factors such as the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments by domestic players. This growth is reflected in the market's expansion, with significant developments in IT load capacity, construction of raised floor areas, and the installation of racks, particularly concentrated in Frankfurt. The connectivity infrastructure is also enhancing, with multiple submarine cable systems connecting Germany and more under construction, contributing to the overall market size and share.

Market Size of Germany Data Center Networking Industry

Germany Data Center Networking Market  Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 5.33 %
Market Concentration Medium

Major Players

Germany Data Center Networking Market  Major Players

*Disclaimer: Major Players sorted in no particular order

Germany Data Center Networking Market Analysis

The Germany Data Center Networking Market is expected to register a CAGR of 5.33% during the forecast period.

The Germany data center networking market reached a value of USD 1.05 billion in the previous year, and it is further projected to register a CAGR of 5.33% during the forecast period.

  • 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 of the German market is expected to reach 2356 MW by 2029. The country's construction of raised floor area is expected to increase more than 11.6k million sq. ft by 2029.
  • The country's total number of racks to be installed is expected to reach 356,000 units by 2029. Frankfurt will likely house the maximum number of racks by 2029. There are close to 7 submarine cable systems connecting Germany, and many are under construction.

Germany 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 application 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 Germany data center networking market is segmented 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]), by end-user (IT & telecommunication, BFSI, government, media & entertainment, other end-users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

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Germany Data Center Networking Market Size Summary

The Germany 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 the expansion of IT infrastructure components, including the construction of raised floor areas and the installation of racks, with Frankfurt anticipated to host the majority of these installations. The proliferation of submarine cable systems further enhances Germany's connectivity, supporting the rising need for robust data center networking solutions. The market's growth is also fueled by the surge in telecom subscribers and smartphone users, which generate vast amounts of data, necessitating advanced network solutions to manage and store this information efficiently.

The adoption of high-speed internet and the development of internet infrastructure are key contributors to the market's expansion. The introduction of 5G technology and the demand for faster internet speeds have spurred the need for high-bandwidth switches and Ethernet technology, which are crucial for meeting the growing connectivity requirements of data centers. Companies like Edgecore Networks are continuously innovating their product offerings, such as the EPS120 series, to cater to these demands. The market is also witnessing increased digitalization and investment in the IT sector, with Ethernet switches being utilized in various industrial applications, including smart grids and surveillance systems. The competitive landscape is marked by the presence of major players like Cisco Systems Inc., Juniper Networks Inc., and VMware Inc., who are actively expanding their product portfolios and enhancing their technologies to maintain a competitive edge.

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Germany Data Center Networking Market 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 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

Germany Data Center Networking Market Market Size FAQs

The Germany Data Center Networking Market is projected to register a CAGR of 5.33% during the forecast period (2024-2030)

Cisco Systems Inc., Juniper Networks Inc., VMware Inc., Huawei Technologies Co. Ltd. and Extreme Networks Inc. are the major companies operating in the Germany Data Center Networking Market.

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