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Data Center Networking Market Size

Report ID: GMI2578
Published Date: Aug 2024
Report Format: PDF

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Data Center Networking Market Size

Data Center Networking Market was valued at USD 23.8 billion in 2023 and is expected to grow at over 13% CAGR during the forecasted period. Cloud-based services require substantial bandwidth to deliver a smooth and uninterrupted user experience.

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Data center networking provides high-speed connectivity to support these bandwidth-intensive applications and handles the increasing traffic volumes generated by cloud services. For instance, in 2023, it is estimated that there will be over 30 billion IoT devices connected to networks worldwide. Moreover, rising data security concerns in the IT sector are creating lucrative growth opportunities for the data center networking industry.

Moreover, prominent industry players such as Amazon Web Services, Google Cloud, and Microsoft Azure are expanding their data center capacities to meet the growing demand for cloud services and IoT connectivity. Additionally, edge computing investments are expected to increase significantly, with 73% of surveyed companies planning to boost their edge infrastructure budgets in 2024 to support IoT and cloud applications. This is essential as it reduces latency and enhances real-time data processing capabilities, a critical need for IoT operations.

Further, the synergistic growth of cloud computing and IoT is catalyzing the expansion of data center networking, underpinned by advancements in software-defined networking (SDN), edge computing, and significant investments by leading cloud service providers. These developments are set to transform data center capabilities, ensuring they can handle the increased data loads and connectivity requirements essential for modern digital ecosystems.

Data Center Networking Market Report Attributes
Report Attribute	Details
Base Year:	2023
Data Center Networking Market Size in 2023:	USD 23.8 Billion
Forecast Period:	2024 to 2032
Forecast Period 2024 to 2032 CAGR:	13%
2032 Value Projection:	USD 68.7 Billion
Historical Data for:	2021 – 2023
No. of Pages:	150
Tables, Charts & Figures:	334
Segments covered:	Component, Application, Network, Organization Size
Growth Drivers:	Increasing adoption of cloud computing and IoT Development of broadband and internet infrastructure Increase in the establishment of new data centers Rapid urbanization and proliferation of smart technologies
Pitfalls & Challenges:	High maintenance & start-up costs Stringent government regulations and policies

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High maintenance and start-up costs represent significant challenges in the Data Center Networking Market. Building and operating data centers typically involve substantial investments, often amounting to hundreds of millions of dollars. These costs are spread across IT, networking, and facilities, making financial management complex. Energy consumption, cooling infrastructure, and regular upgrades to handle increasing data loads further inflate operational expenses, thus hampering the market growth.

Authors: Preeti Wadhwani, Aishwarya Ambekar

Frequently Asked Questions (FAQ) :

Global market size for data center networking value was USD 23.8 billion in 2023 and will record over 13% CAGR from 2024 to 2032, due to rising data security concerns in the IT sector.

Data center networking market share from the IT & telecom sector was over 26% in 2023 and is projected to grow significantly through 2032 as data center networking is essential for managing and optimizing data flow across extensive networks.

North America market share was around 39% in 2023 and will expand significantly through 2032 owing to the flourishing IT infrastructure across the region and focus on providing reliable internet service for the public.

IBM Corporation, Hewlett Packard Enterprise, Huawei Technologies Co. Ltd., Dell Inc., Microsoft Corporation, Intel Corporation, Juniper Networks, and Cisco Systems Inc., among other.