logo

Taiwan Data Center Networking Market Size (2024 - 2029)

The Taiwan Data Center Networking Market is projected to experience growth driven by the rising demand for cloud computing among small and medium-sized enterprises, adherence to government regulations for local data security, and increased investments by domestic players. The market's expansion is further supported by the development of IT load capacity, raised floor space, and the installation of racks, particularly in Taipei City. Additionally, the construction of submarine cable systems is set to enhance connectivity, contributing to the market's growth. As energy costs constitute a significant portion of operational expenses, there is a strong emphasis on improving energy efficiency, which is expected to boost the demand for infrastructure management solutions, thereby influencing the market size positively during the forecast period.

Home Market Analysis Technology, Media and Telecom Research Information Technology Research Taiwan Data Center Networking Market Market Size

Market Size of Taiwan Data Center Networking Industry

Taiwan Data Center Networking Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 409.61 Million
Market Size (2029) USD 523.53 Million
CAGR (2024 - 2029) 5.03 %
Market Concentration Medium

Major Players

Taiwan Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Taiwan Data Center Networking Market Analysis

The Taiwan Data Center Networking Market size is estimated at USD 409.61 million in 2024, and is expected to reach USD 523.53 million by 2029, growing at a CAGR of 5.03% 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 Taiwan data center market is expected to reach 300 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 1.5 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 76K units by 2029. Taipei City is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 10 submarine cable systems connecting Taiwan, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Apricot, which stretches over 11,972 Kilometers with landing points from Toucheng, Taiwan.
  • An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Additionally, energy represents around 40% of the operational costs of a data center; it is also becoming increasingly important for data centers to focus on energy efficiency. To improve energy efficiency as a cost-saving measure, key players focus on developing a green standard for data centers in Taiwan, which results in increasing the demand for Infrastructure management. Hence, such factors are expected to drive market growth during the forecast period.

Taiwan 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 Taiwan Data center networking market is segmented by component type (product (Ethernet switches, routers, storage area network (SAN), application delivery controller (ADC), and other networking equipment), services (installation & integration, training & consulting, and support & maintenance)), and by end-user (IT & telecommunication, BFSI, government, and media & entertainment, and another end-user). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

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
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User
Need A Different Region Or Segment?
Customize Now

Taiwan Data Center Networking Market Size Summary

The Taiwan data center networking market is poised for significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments from domestic players. As Taiwan positions itself as a regional hub for enterprises, the push towards digitalization and cloud-based solutions is intensifying. This trend is further supported by initiatives like Microsoft's "Reimagine Taiwan" program, which aims to bolster local digital skills and infrastructure. The rise in smartphone usage and the expansion of the semiconductor sector are also contributing to the burgeoning demand for telecom services, thereby necessitating more data centers. The market is witnessing a surge in the construction of data centers, with a focus on energy efficiency and green standards, which are expected to drive further growth in the coming years.

The market landscape is moderately consolidated, with key players such as Cisco Systems Inc., Arista Networks Inc., VMware Inc., Huawei Technologies Co. Ltd., and Extreme Networks Inc. leading the charge. These companies are actively updating their network devices to meet the evolving demands of data centers, particularly with the increasing adoption of cloud services. Ethernet switches are becoming indispensable for facilitating high-speed data transmission and interconnections between servers and storage devices. The introduction of advanced networking solutions, such as Broadcom's Trident 4-X7 Ethernet switch ASIC and IBM's new configurations for data centers, underscores the industry's commitment to enhancing connectivity and bandwidth capabilities. As the market continues to expand, these developments are expected to play a crucial role in supporting Taiwan's digital infrastructure and economic growth.

Explore More

Taiwan 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 Adoption of Cloud Computing Services Drives the Market Growth

      2. 1.2.2 Growing Demand for Green Data Center Facilities Drives the Market Growth

    3. 1.3 Market Restraints

      1. 1.3.1 High Initial Investments

    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-User

Taiwan Data Center Networking Market Size FAQs

The Taiwan Data Center Networking Market size is expected to reach USD 409.61 million in 2024 and grow at a CAGR of 5.03% to reach USD 523.53 million by 2029.

In 2024, the Taiwan Data Center Networking Market size is expected to reach USD 409.61 million.

Taiwan Data Center Networking Market Report Snapshots

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