Global Data Center Networking Market Size To Grow At A CAGR Of 13% In The Forecast Period Of 2023-2030 - Exclusive Repor

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Global Data Center Networking Market Size Was Valued at USD 22.72 Billion In 2022 And Is Projected to Reach USD 60.41 Billion By 2030, Growing at A CAGR of 13% From 2023 To 2030.

Market Overview:

Data center networking refers to the use of various networking tools, such as load balancing, switching, routing, and analytics, to facilitate the storing and processing of data and applications. The ability of data center networking to handle high bandwidth data delivery to and from switches, storage endpoints, and servers enables the resourceful movement of enormous amounts of data. Over the forecast period of 2023 to 2030, the rapid expansion of mega data centers and colocation is anticipated to have an impact on the growth of the data center networking market. Additionally, it is predicted that the market for data center networking Market will expand due to the shift to cloud-based solutions, an increase in organizational data traffic, and big data analytics.

Top Key Players in Data Center Networking Market:

Cisco Systems Inc., Delta Electronics Inc., Dell Inc., Fujitsu Ltd., Extreme Networks, Huawei Technologies Co. Ltd., Hewlett Packard Enterprise, Microsoft Corporation, IBM Corporation, Juniper Networks, Intel Corporation, NEC Corporation, and Other Major Players

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Market Dynamics and Factors for Data Center Networking Market:

Drivers:

Increasing Demand For Secure And Agile Data Centers To Enhance The Adoption

Data breaches and cyberattacks are growing in frequency and sophistication. As data centers store sensitive and critical information, security becomes a top priority. Organizations are looking for networking solutions that can ensure the confidentiality, integrity, and availability of their data. This has led to the adoption of advanced security features, such as encryption, intrusion detection and prevention systems, and micro-segmentation, to protect data center environments. The modern business environment requires agility to quickly adapt to changing market conditions and customer demands. Traditional networking architectures can be cumbersome and slow to respond to changes. Data center networking Market solutions that offer flexibility and scalability allow businesses to efficiently allocate resources, deploy applications, and adjust their network infrastructure as needed.

Opportunities:

Trend Of Cloud Computing And Virtualization To Drive The Market Growth

Many organizations are adopting hybrid cloud or multi-cloud strategies to combine on-premises infrastructure with public and private cloud resources. This requires robust networking solutions to enable seamless communication and data transfer between different environments while maintaining security and performance. Data center networking solutions that provide reliable and high-speed connectivity to cloud service providers are in demand. Direct connections to cloud platforms, often known as cloud interconnects, ensure efficient data transfer and reduced latency. Virtualization technologies like VMware, Hyper-V, and KVM allow organizations to run multiple virtual servers on a single physical server. This leads to increased resource utilization and cost savings. Data center networking Market must support the dynamic movement of virtual machines (VMs) while maintaining network connectivity and security.

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Segmentation Analysis of the Data Center Networking Market:

By Component, the Software segment is Anticipated to Dominate the Market Over the Forecast period. Software-defined networking (SDN) allows data center administrators to dynamically manage and configure network resources through software interfaces. This agility and flexibility are crucial in today's fast-paced business landscape where the ability to quickly adapt to changing demands is paramount.

By End User, the Telecommunications segment is Anticipated to Dominate the Market Over the Forecast period. Telecommunications companies handle enormous amounts of data traffic due to the increasing use of smartphones, IoT devices, video streaming, and other data-intensive applications. To manage this traffic effectively, they require robust and scalable data center networking solutions.

By Component

  • Hardware
  • Software
  • Service

By End User

  • Telecommunications
  • Government
  • Defense
  • Retail
  • Others

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Regional Analysis of the Data Center Networking Market:

North America is Expected to Dominate the Market Over the Forecast Period. North America, particularly the United States, has historically been a major player in the data center networking market. This region is home to numerous tech giants, cloud service providers, and enterprises with extensive data center infrastructure. Silicon Valley, in particular, is a hub for data center technology development and innovation. The United States, especially Silicon Valley in California, is a global epicenter of technological innovation. It has a robust ecosystem of tech companies, startups, research institutions, and venture capital firms that drive advancements in data center networking technologies. North America was an early adopter of data center technologies, including networking solutions. This early adoption provided companies in the region with a head start in terms of expertise, infrastructure development, and market presence.

By Region     

  • North America (U.S., Canada, Mexico)
  • Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)
  • Western Europe (Germany, U.K., France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)
  • Asia-Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New Zealand, Rest of APAC)
  • Middle East Africa (Turkey, Saudi Arabia, Bahrain, Kuwait, Qatar, UAE, Israel, South Africa)
  • South America (Brazil, Argentina, Rest of SA)

Key Industry Development:

February 2022, As part of its ongoing development into unexplored data center regions, Meta Platforms Inc. (Facebook Inc.) recently announced intentions to build a USD 800 Million hyper-scale campus in Idaho, United States.

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