Global Data Center Networking market was valued at US$ 23.5 Bn in 2023. Data center networking is crucial for organizations to provide access to networks, computing resources, and storage devices, enabling the smooth operation of essential business applications. Moreover, these networking solutions offer a graphical interface that allows organizations to visualize and manage their data center networks efficiently. The primary goal of data center networking solutions is to ensure fast data transfer, guaranteeing high performance and efficient information delivery. Various networking devices such as switches, routers, interfaces, and network security equipment are used to achieve this. These devices play a vital role in retrieving necessary information from computing and storage resources while maintaining a secure environment to prevent unauthorized access. Monitoring data center networks is essential to ensure their continuous and optimal operation across various parameters, including network health, computing and storage resources, and security. By connecting multiple devices, such as switches, routers, and access points, data center network infrastructure facilitates seamless interaction and information sharing over a computer network. This connectivity allows servers to communicate and exchange information and applications with end-users, including employees, clients, partners, and other stakeholders.
Global Data Center Networking Market: Drivers
Adoption of High-Speed Switching Technologies
The increasing use of high-speed switch ports, such as 100 GB and beyond, results in quicker data transmission and decreased latency. As a consequence, there is a growing need for data center networking solutions that can effectively handle these high-speed connections.
Global Data Center Networking Market: Opportunities
Construction of New Data Centers and Technology Upgrades
The ongoing establishment of new data centers and the modernization of outdated technologies in existing facilities generate a market demand for upgraded and streamlined networking solutions. This encompasses essential infrastructure components like network switches, routers, and other related equipment.
Global Data Center Networking Market: Restraints
High Cost and Complexity
Smaller organizations with constrained resources may find it expensive and complex to adopt and sustain data center networking solutions. The costs related to procuring and establishing the required networking equipment and infrastructure can put a strain on their budget. Additionally, managing and resolving issues with the intricate networking systems demand specialized expertise and personnel, which may not be easily accessible, compounding the challenges for these organizations.
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Key Takeaways:
Global Data Center Networking market was valued at US$ 23.5 Bn in 2023 and is estimated to reach a value of US$ 50.7 Bn by 2030 at a CAGR of 11.6 % between 2023 and 2030.
Global Data Center Networking Market, Software under by component segment dominated the global market in 2023, accounting for 39% share in terms of value, followed by trace detection.
Global Data Center Networking Market: Trends
Edge Computing and IoT Growth
The surge in Internet of Things (IoT) devices and the demand for rapid computing capabilities are fueling the expansion of edge computing. This development creates a chance for data center networking providers to deliver solutions that facilitate efficient data transfer and processing at the edge, in close proximity to the point of data generation.
Global Data Center Networking Market: Competitive Landscape
Key market player includes Google, Inc., Huawei Technologies Co. Ltd., Cisco Systems, Inc., Brocade Networking Solutions, Hewlett Packard Enterprise, Extreme Networks, Inc., Arista Networks, Avaya, Inc., Juniper Networks, Dell Inc., and Microsoft Corporation.
Global Data Center Networking Market: Recent Developments
In January 2022, Microsoft Corporation, an American multinational technology corporation has revealed its intention to build cutting-edge data centers in Sweden, precisely in Gävle and Sandviken. These facilities are set to be among the most environmentally-friendly data centers worldwide, aligning with Microsoft's commitment to sustainability. The primary purpose of constructing these data centers is to meet the growing requirements of cloud services in the future.
In July 18 2023, Fortinet, a cybersecurity company with headquarters in Sunnyvale, California unveils data center firewalls with AI support, Fortinet has released two new high-speed, next generation firewalls designed to protect data center assets. The 387Gbps 3200F series and 164Gbps 900G series feature support for the vendor’s AI-Powered Security Services, which blend AI and machine-learning technologies to make customers aware of cyber threats and act on protecting resources much more quickly, according to Nirav Shah, vice president of products and solutions at Fortinet.
