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Data Center Networking Market Trends

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

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Data Center Networking Market Trends

The data center networking industry is witnessing several key trends reshaping the industry landscape. One significant trend is the increasing adoption of optical networking technologies. Events such as the Optical Fiber Communications Conference and Exhibition (OFC 2024) highlight advances in optical communications. Additionally, companies such as Cisco, Ciena, and Juniper Networks are at the forefront, showcasing these technologies to improve efficiency and performance. Another major trend is the integration of Software-Defined Networking (SDN) and Network Function Virtualization (NFV). These technologies enable more flexible, scalable, and automated network management, addressing the growing complexity of data center environments.

Moreover, security landscape has been evolving with a focus on network fabric technology to manage increasing east-west traffic within data centers. This approach provides enhanced visibility and security by leveraging a mesh of connections between access points, switches, and routers. Additionally, the rise of hybrid and multi-cloud environments is driving the need for advanced network automation to streamline operations and improve interoperability among different cloud services.

The integration of AI is revolutionizing operations by enabling intelligent network automation, enhancing predictive maintenance, and optimizing resource allocation. AI-driven tools, such as AI/ML-enabled digital twins, are increasingly being adopted to improve efficiency and reliability. These technologies help identify potential issues before they cause disruptions, ensuring seamless performance. For instance, in June 2024, Cisco announced a breakthrough AI cluster solution with NVIDIA that transforms how customers build, manage, and optimize infrastructure and software. The Cisco Nexus HyperFabric AI cluster solution combines Cisco AI-native networking with NVIDIA accelerated computing and AI software, and a robust VAST data store. It is designed to enable customers to focus on AI-driven innovation and new revenue opportunities rather than IT management.

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.