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

The United States Data Center Networking Market is projected to experience growth over the forecast period, driven by factors such as the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments by 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 United States Data Center Networking Industry

United States Data Center Networking Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 7.85 Billion
Market Size (2029) USD 9.65 Billion
CAGR (2024 - 2029) 4.20 %
Market Concentration Medium

Major Players

United States Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

United States Data Center Networking Market Analysis

The United States Data Center Networking Market size is estimated at USD 7.85 billion in 2024, and is expected to reach USD 9.65 billion by 2029, growing at a CAGR of 4.20% 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 States data center rack market is expected to reach 24,000 MW by 2029. Data centers in the United States use more than 90 billion kilowatt-hours of electricity each year. Most of this power is provided via the grid, but all data centers also have long-term backup generators.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 80 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 4,035,000 units by 2029. Northern Virginia is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are more than 80 submarine cable systems connecting the United States, and many are under construction.

United States 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 States 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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United States Data Center Networking Market Size Summary

The United States Data Center Networking Market is poised for growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from domestic players. As the largest technology market globally, the US plays a crucial role in the information and communication technology sector, which significantly contributes to its economic development. The market is characterized by the extensive use of Ethernet switches, which serve as the backbone of networks, facilitating communication and connectivity for various devices. These switches are integral to industrial infrastructure applications, including smart grid management and security systems, highlighting their importance in the evolving technological landscape.

The competitive landscape of the US Data Center Networking Market is marked by the presence of major players such as Cisco Systems Inc., Schneider Electric, Huawei Technologies Co. Ltd., VMware, Inc., and Dell Inc. These companies leverage strategies like partnerships and acquisitions to enhance their product offerings and maintain a competitive edge. Recent advancements include Arista Networks' introduction of the Arista WAN Routing System and NVIDIA's SpectrumXtreme platform, both designed to improve networking performance and efficiency. The market's growth is further supported by ongoing research and development initiatives, such as the FCC's Spectrum Horizons License and investments in 6G technology, which are expected to drive increased data traffic and colocation demand in the coming years.

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United States 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

United States Data Center Networking Market Size FAQs

The United States Data Center Networking Market size is expected to reach USD 7.85 billion in 2024 and grow at a CAGR of 4.20% to reach USD 9.65 billion by 2029.

In 2024, the United States Data Center Networking Market size is expected to reach USD 7.85 billion.

United States Data Center Networking Market Report Snapshots

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