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United Kingdom Data Center Networking Market Size (2024 - 2029)

The United Kingdom Data Center Networking Market is projected to experience significant growth, driven by factors such as the rising demand for cloud computing among small and medium enterprises, 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, with London anticipated to accommodate the majority. Additionally, the focus on energy efficiency and the establishment of green standards are becoming crucial as energy costs constitute a substantial portion of operational expenses, thereby enhancing the demand for infrastructure management. These elements collectively contribute to the anticipated growth in market size over the forecast period.

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Market Size of United Kingdom Data Center Networking Industry

United Kingdom Data Center Networking Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.25 Billion
Market Size (2029) USD 1.82 Billion
CAGR (2024 - 2029) 7.83 %
Market Concentration Medium

Major Players

United Kingdom Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

United Kingdom Data Center Networking Market Analysis

The United Kingdom Data Center Networking Market size is estimated at USD 1.25 billion in 2024, and is expected to reach USD 1.82 billion by 2029, growing at a CAGR of 7.83% 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 United Kingdom data center market is expected to reach more than 3000 MW by 2029.

Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 17 million sq. ft by 2029.

Planned Racks: The country's total number of racks to be installed is expected to reach above 8,89,000 units by 2029. London is expected to house the maximum number of racks by 2029.

Planned Submarine Cables: There are close to 58 submarine cable systems connecting the United Kingdom, and many are under construction.

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 the United Kingdom, which results in increasing the demand for Infrastructure management. Hence, such factors are expected to drive market growth during the forecast period.

United Kingdom 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 United Kingdom Data Center Networking Market is segmented by component type (product [ethernet switches, router, storage area network (SAN), application delivery controller (ADC)], services [installation and integration, training and consulting, support and maintenance]), by end user (IT & telecommunication, BFSI, government, and media and entertainment). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component
Product
Ethernet Switches
Router
Storage Area Network (SAN)
Application Delivery Controller (ADC)
Other Networking Equipment
By Services
Installation & Integration
Training & Consulting
Support & Maintenance
By End User
IT and Telecommunication
BFSI
Government
Media and Entertainment
Other End User
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United Kingdom Data Center Networking Market Size Summary

The United Kingdom 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 domestic players. The market is characterized by a robust expansion in IT load capacity, raised floor space, and the number of racks, with London emerging as a key hub. The proliferation of submarine cable systems further enhances the connectivity infrastructure. As energy costs constitute a substantial portion of operational expenses, there is a strong emphasis on energy efficiency, prompting the adoption of green standards and infrastructure management solutions. The convergence of emerging technologies such as artificial intelligence, IoT, and machine learning is expected to bolster cloud computing, thereby fueling the development of data centers and network devices in the region.

The demand for Ethernet switches is critical, given their role in ensuring efficient and secure data center operations, particularly in the financial services sector in London. The growing adoption of cloud services and the surge in e-commerce are driving the need for robust data center infrastructure, necessitating more Ethernet switches. Key market players, including Cisco Systems Inc., Arista Networks Inc., and VMware Inc., are actively updating network devices to meet evolving demands. Recent innovations, such as Siemens' new generation of Industrial Ethernet Switches and Broadcom's Trident 4-X7 Ethernet switch ASIC, highlight the industry's focus on enhancing connectivity and bandwidth capabilities. The market's moderate consolidation is marked by strategic expansions and technological advancements, positioning it for continued growth in the coming years.

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United Kingdom 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 Demand of High-Performance Computing Capabilities Drives the Market Growth

      2. 1.2.2 Adoption of Green Practices in Data Centers Drives the Market Growth

    3. 1.3 Market Restraints

      1. 1.3.1 Skilled Workforce Availability and Security Concerns

    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 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 By End User

      1. 2.2.1 IT and Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media and Entertainment

      5. 2.2.5 Other End User

United Kingdom Data Center Networking Market Size FAQs

The United Kingdom Data Center Networking Market size is expected to reach USD 1.25 billion in 2024 and grow at a CAGR of 7.83% to reach USD 1.82 billion by 2029.

In 2024, the United Kingdom Data Center Networking Market size is expected to reach USD 1.25 billion.

United Kingdom Data Center Networking Market Report Snapshots

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