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Isarel Data Center Networking Market Size (2024 - 2029)

The Israel Data Center Networking Market is projected to experience significant growth over the forecast period, driven by increasing demand for cloud computing among small and medium-sized enterprises, adherence to government regulations for local data security, and rising investments from domestic players. This growth is reflected in the expansion of IT load capacity, raised floor space, and the number of racks planned for installation. Additionally, the development of submarine cable systems is set to enhance connectivity, further contributing to the market's expansion.

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Market Size of Isarel Data Center Networking Industry

Isarel Data Center Networking Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.1 Billion
Market Size (2029) USD 0.14 Billion
CAGR (2024 - 2029) 7.50 %
Market Concentration Medium

Major Players

Isarel Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Isarel Data Center Networking Market Analysis

The Isarel Data Center Networking Market size is estimated at USD 0.10 billion in 2024, and is expected to reach USD 0.14 billion by 2029, growing at a CAGR of 7.5% during the forecast period (2024-2029).

  • 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.
  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Israel data center rack market is expected to reach 270 MW by 2029. In 2021, Israel's per capita electricity consumption reached 0.565 tons of oil equivalent (to). It was slightly less compared to the previous year. Consumption fluctuated during the observation period and peaked at 0.577 tons in 2019.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 0.9 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 49,000 units by 2029. Tel Aviv is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 4 submarine cable systems connecting Israel, and many are under construction.

Isarel 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 Israel data center networking market is segmented by product (ethernet switches, routers, storage area network (SAN), application delivery controllers (ADC), and other networking equipment), by services (installation & integration, training & consulting, and support & maintenance), and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end users).

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

By Component
By Product
Ethernet Switches
Routers
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
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Isarel Data Center Networking Market Size Summary

The Israel data center networking market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is characterized by a robust expansion in IT load capacity, raised floor space, and the number of racks, with Tel Aviv expected to be a central hub. The development of submarine cable systems further enhances the connectivity infrastructure, supporting the burgeoning data center ecosystem. Ethernet switches play a crucial role in this landscape, facilitating communication between various devices and integrating them into Ethernet-based networks. These switches are integral to industrial infrastructure applications, including smart grids and security systems, reflecting the ongoing technological advancements and product expansions by key players like Siemens.

The ICT sector in Israel is experiencing a transformative phase, fueled by increased IT investments and the adoption of cloud services across multiple sectors such as healthcare, finance, and manufacturing. Major companies like Microsoft and IBM are expanding their presence and capabilities in the region, driven by the growing demand for digital transformation and government initiatives to bolster the IT sector. The competitive landscape is marked by the presence of leading firms such as VMware, Cisco, and NVIDIA, which are continuously innovating and expanding their product offerings to maintain a competitive edge. These developments, coupled with government-funded programs to enhance human capital, are expected to create new growth opportunities and further propel the market forward.

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Isarel 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 Trend of High-Performance Computing across Europe

      2. 1.2.2 Growing Investments in IT& Telecom Sector

    3. 1.3 Market Restraints

      1. 1.3.1 Regulatory constraints

    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 Routers

        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

Isarel Data Center Networking Market Size FAQs

The Isarel Data Center Networking Market size is expected to reach USD 0.1 billion in 2024 and grow at a CAGR of 7.5% to reach USD 0.14 billion by 2029.

In 2024, the Isarel Data Center Networking Market size is expected to reach USD 0.1 billion.

Isarel Data Center Networking Market Report Snapshots

Isarel Data Center Networking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)