Market Trends of Isarel Data Center Networking Industry
Ethernet Switches is Anticipated to be the Largest Segment
- An Ethernet switch is a type of networking hardware that is the foundation of networks and the Internet. Ethernet switches join wired devices such as computers, Wi-Fi access points, PoE lighting and IoT devices, and servers onto an Ethernet LAN so that they can communicate with each other and the Internet.
- Ethernet switches have wide applications in industrial infrastructure such as smart grid, security and surveillance, intelligent rail and transportation, and other utilities driving the industrial Ethernet switch market. In smart grids, Ethernet switches play a key role in substation automation. This is because Ethernet switches reduce the effort and complexity of cabling between many power transmission and distribution substation devices by integrating them into Ethernet-based networks.
- In November 2022, Siemens renewed and upgraded its Scalance XC/XR-300 series of industrial Ethernet switches with additional features for next-generation industrial networks. The so-called managed layer 2 switches of the Scalance X Industrial Ethernet Switch product family are available in both a compact model and a 19-inch version for control cabinets.
- The range of industrial Ethernet switch products available reflects the vendor's continued product expansion beyond traditional 8-port DIN rail switches and application-specific services. Vertical integration and infrastructure applications aim for maximum throughput and bandwidth, while factory automation applications may seek to limit network traffic.
- Smart Ethernet switches with power-over-ethernet (PoE) technology are used for security and monitoring. PoE networks transfer power to local network cables and then to connected devices. This is useful for Internet protocol-based monitoring systems. Helps with accessible browser-based communication and user interface.
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IT & Telecommunication is Anticipated to be Largest Segment
- According to the International Monetary Fund (IMF), Israel's GDP is expected to grow to USD 678.59 billion by 2027. The country's GDP is growing significantly due to increased IT investment, which will create new growth opportunities for Israel's ICT market.
- ICT market providers have widely adopted Cloud service, resource management, data storage, backup, orchestration services, and more. Cloud computing technology is used in various sectors such as IT, telecom, healthcare, BFSI, manufacturing, retail, media, and entertainment. Microsoft, for example, will launch its first cloud in Israel and offer cloud services at local data centers across the country.
- Additionally, increasing investments by governments to foster the development of numerous technologies such as 5G, AI, IoT, machine learning, and big data are expected to drive the growth of the ICT market. For example, IBM acquired Israeli data observation software provider Databand.ai. The acquisition will help the company expand its leadership in observability across IT across infrastructure, applications, data, and machine learning, and is part of the company's efforts to expand its hybrid cloud and AI capabilities and strengthen its capabilities.
- Given the growing demand for digital transformation, the Israeli government is striving to strengthen the country's IT sector. For example, the Israel Innovation Authority will fund training and placement programs with a total budget of $10.59 million (public and private funds) under the Human Capital Fund program. Such government initiatives will bring new growth opportunities to Israel's ICT market.
