Global Data Center Networking Market Overview
The key driver impacting the Data center networking market is the growing adoption of cloud computing across various industry verticals. In 2018, over half of the enterprises had adopted cloud computing globally as per the BSA Global Cloud Computing Scorecard report. During the duration 2012 and 2015, the demand for cloud computing had reached 70% and is expected to stand for 60% of growth during 2020. Approximately 96% of companies have used at least one cloud software in the previous two years. For example, In U.K. overall cloud adoption rate reached 88 percent, with 67 percent of users estimated to increase their adoption of cloud services over the coming year as per the UK Cloud Industry Forum (CIF) 2017 report. Moreover, the development of internet and broadband and infrastructure in developing nations contributes to Data center networking market demand later.
According to Value Market Research, the global Data Center Networking market size was valued at about USD 21 billion in 2020 and is expected to grow at a CAGR of around 15.5% during the forecast period 2021 to 2027.
The growing trend of data center virtualization and adoption of advanced data center operating models will likely augment the need for Data center networking in the forecast period. However, the lack of a highly skilled workforce in underdeveloped and developing economies may hinder the market in the long run. In addition, indiscretion in the data protection regulatory system is negatively impacting the market growth. Even so, the industry trends such as the reduction in costs of semiconductor components and the rising construction of data centers across the globe might provide tremendous market opportunities to the market's key players.
The Data center networking market is widespread, with many local and international players. The market leaders follow diverse strategies to strengthen their market, such as amalgamation, innovation, extending product portfolio, contracts, expansion to remain in a strong position in the market. The key players taken in the report are Avaya, Alcatel-Lucent, Arista Networks, Broadcom Inc., Cisco Systems Inc., Dell Inc., Microsoft Corporation, Extreme Networks, Hewlett Packard Enterprise, Delta Electronics Inc., Huawei Technologies Co. Ltd, Fujitsu Ltd., IBM Corporation, Intel Corporation, Juniper Networks, and NEC Corporation.
In this research report, the Data Center Networking market is segmented by product, end-user, and region.
Analysis by Product:
By Product, the report is segmented into Ethernet Switches, Routers, Storage Area Networks (SAN), Application Delivery Controllers (ADC), Network Security Equipment, WAN Optimization Equipment, and Others. The solution segment dominates the product segments with the highest share in 2020. It is due to the growing utilization of storage area network (SAN) solutions by organizations to effectively manage their data center infrastructure without spending any additional expenses on its expansion. Moreover, the growing popularity of SAN solutions due to diverse benefits they can present, such as provisioning centralized control, enhancing capacity, and offering scalability and flexibility, contributing to the managed services segment's growth in the forecast period.
Analysis by End-User:
By End-user, the report is divided into IT & telecom, BFSI, I, healthcare, retail, education, government, media & entertainment, manufacturing, and others. The telecom & IT segment dominates the end-user segment with the highest market share in 2020. It is due to the growing demand for 4G services and the continued rollout of the infrastructure for provisioning of 5G services. Moreover, 4G and 5G networks happen to be data-intensive networks, rising smartphone penetration and the escalating number of telecom subscribers contribute to the IT and telecom segment growth.
Analysis by Region:
In the regional outlook of the global Data Center Networking market, the North America region dominates with the largest market share in 2020. It is due to the rise in the number of SMEs in the country that has supported the data center colocation market demand over the coming years. Moreover, increasing competition amongst market players, such as Digital Realty and Equinix Inc., in the colocation industry in the U.S. contributes to the tremendous market demand across North America.
Market Segmentation covered in the Report:
By Product
- Ethernet Switches
- Routers
- Storage Area Network (SAN)
- Application Delivery Controllers (ADC)
- Network Security Equipment
- WAN Optimization Equipment
- Others
By End User
- BFSI
- IT & Telecom
- Healthcare
- Retail
- Education
- Government
- Media & Entertainment
- Manufacturing
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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