Data Center Networking Market Size (2024 - 2029)

Data Center Networking Market Analysis

The global data center networking market reached a value of USD 24.5 billion in the previous year, and it is further projected to register a CAGR of 9.6% during the forecast period.

• Networking solutions have gained significant traction in the past few years, primarily owing to the rising need for load balancing, improving performance, as well as to handle much more advanced requirements. Bandwidth demand is growing much faster than the company budgets, and cyber attacks such as distributed denial-of-service (DDoS) are constantly on the rise. It has become a challenge for companies to securely and efficiently deliver their applications at the speed the users expect. This factor leads to major market demand.
• The rise in digitalization will likely increase the demand for data centers, proportionately driving the networking market. Significantly, industry-wide investment in edge computing will transform the profile of the data center ecosystem over the next four years, raising the edge component of total computing by 29%, from 21% of total computing to 27% in 2026. The extent of the industry's ongoing shift to the edge is among the significant findings from a new global survey of data center industry specialists from Vertiv.
• The upcoming IT load capacity of the global data center server market is expected to reach 71K MW by 2029. The region's construction of raised floor area is expected to increase 273.9 million sq. ft by 2029. The region's total number of racks to be installed is expected to reach 14.2 million units by 2029. North America is expected to house the maximum number of racks by 2029.
• There are close to 500 submarine cable systems connecting the regions globally, and many are under construction. One such submarine cable that is estimated to start service in 2025 is CAP-1, which stretches over 12,000 km with a landing point in Grover Beach, United States.

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 global 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), services (installation & integration, training & consulting, and support & maintenance)), end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users) and region (North America, South America, Europe, Asia-Pacific, and Middle East and Africa)

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.