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Mexico Data Center Networking Market Size (2024 - 2029)

The Mexico Data Center Networking Market is projected to experience significant growth over the forecast period, driven by the increasing demand for cloud computing among small and medium-sized enterprises, 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 Mexico Data Center Networking Industry

Mexico Data Center Networking Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.79 Billion
Market Size (2029) USD 1.12 Billion
CAGR (2024 - 2029) 7.13 %
Market Concentration Medium

Major Players

Mexico Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Mexico Data Center Networking Market Analysis

The Mexico Data Center Networking Market size is estimated at USD 0.79 billion in 2024, and is expected to reach USD 1.12 billion by 2029, growing at a CAGR of 7.13% 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 Bload capacity of the Mexico data center rack market is expected to reach 480 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 2.2 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 120,000 units by 2029. Querétaro is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are around 11 submarine cable systems connecting Mexico, and many are under construction.

Mexico 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 Mexico 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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Mexico Data Center Networking Market Size Summary

The Mexico data center networking market is poised for significant growth, driven by the increasing demand for cloud computing services among small and medium enterprises, stringent government regulations on data security, and substantial investments from local players. The market is characterized by a robust expansion in infrastructure, including the construction of new data center facilities and the installation of advanced networking hardware such as Ethernet switches. These switches are integral to the development of industrial infrastructure, supporting applications in smart grids, security, and transportation. The market's growth is further bolstered by the strategic initiatives of major technology companies, which are expanding their service offerings and enhancing their product portfolios to meet the evolving needs of the digital economy.

The adoption of cloud-based services is a key driver of the data center networking market in Mexico, with a significant portion of businesses leveraging private or hybrid cloud models. Government initiatives aimed at digitalization and e-government services are expected to increase internet usage, thereby fueling market expansion. The presence of major cloud service providers like Microsoft, Amazon Web Services, and Google underscores the competitive landscape, as these companies invest in local infrastructure to support their services. The market is also witnessing advancements in networking technology, with innovations such as Broadcom's Trident 4-X7 Ethernet Switch ASIC and NVIDIA's SpectrumXtreme platform enhancing performance and efficiency. These developments, coupled with strategic partnerships and acquisitions by key players, are shaping the future of the data center networking market in Mexico.

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Mexico 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

Mexico Data Center Networking Market Size FAQs

The Mexico Data Center Networking Market size is expected to reach USD 0.79 billion in 2024 and grow at a CAGR of 7.13% to reach USD 1.12 billion by 2029.

In 2024, the Mexico Data Center Networking Market size is expected to reach USD 0.79 billion.

Mexico Data Center Networking Market Report Snapshots

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