by The data center networking market comprises components such as network security equipment, WAN optimization appliances, and virtualization infrastructure. The growing demand for cloud computing is encouraging organizations to adopt virtual and physical infrastructure for centralized management of storage and computing resources. Advancements in technologies like software-defined networking (SDN) are enabling efficient configuration, management, and monitoring of network devices from a centralized platform.
The global data center networking market size is estimated to be valued at US$ 27.08 billion in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the data center networking market include BASF, DOW Chemicals, Huntsman Corporation, Ineos oxide, Saudi basic industries corporation, Exxon Mobil Corporation, Du Pont de Nemours & Company, and Lyondellbasell industries.
Growth in OTT platforms and hyperscale Data Center Networking Market Trends presents significant opportunities for data center networking solution providers. Expanding digital infrastructure driven by 5G rollout is also expected to drive demand.
Software-defined networking (SDN) reduces operating expenses for data centers by streamlining processes and simplifying network management. Emerging technologies like network function virtualization (NFV) are enabling more flexible and scalable virtualized infrastructure.
Market Drivers
The increasing adoption of cloud services is a key driver boosting the need for high-performance data center infrastructure. With more organizations relying on scalable cloud platforms, networking equipment demand rises to support heavier data workloads. Furthermore, the growing popularity of big data analytics and IoT applications generating massive volumes of unstructured data daily necessitates efficient networking solutions for fast and reliable data transmission within data centers.
Current Challenges in Data Center Networking Market
The Data Center Networking Market is undergoing tremendous change due to increasing demand for cloud computing and data storage needs of organizations. This has put pressure on network infrastructure and bandwidth needs. Network virtualization technologies are helping address some challenges but security of data during transfer across networks remains a key concern area. Network administrators are facing challenges to optimize resources efficiently to deal with exponential growth in network traffic volumes. Upgrading existing network hardware to handle greater loads requires significant investment and planning. Standardization of network protocols and ensuring reliability of networks during upgrades or failures are some other issues impacting stakeholders.
SWOT Analysis
Strength: Virtualized network infrastructure allows for better scalability and flexibility. Agile networks can adapt quickly to changing computing and storage needs.
Weakness: Transitioning to fully virtualized networks involves switchover costs. Legacy network systems need to be retired in phases.
Opportunity: Emergence of edge computing increases opportunities for new data center setups closer to user locations. Hybrid cloud models provide avenues for managed service providers.
Threats: Cybersecurity threats are continuously evolving for networks. Downtime during upgrades or failures can impact business continuity.
Geographical Regions
North America accounts for the largest share in the data center networking market currently both in terms of value and volume. This is attributed to extensive cloud computing adoption as well as presence of major hyperscale data center operators. The US and Canada house a large number of enterprise data centers to support their digital transformation initiatives.
Asia Pacific is projected to witness the fastest growth during the forecast period from 2024 to 2031. Rapid digitalization and internet penetration are driving requirements for networked data storage facilities across the region. Countries like China, India, Japan, and South Korea are witnessing a surge in local data processing needs of industries and consumers. Hyperscale data center infrastructure builds are underway to capture future workloads.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
