Data Center Networking

Global Data Center Networking Market to Reach US$37.1 Billion by 2030

The global market for Data Center Networking estimated at US$30.0 Billion in the year 2024, is expected to reach US$37.1 Billion by 2030, growing at a CAGR of 3.6% over the analysis period 2024-2030. Solution, one of the segments analyzed in the report, is expected to record a 0.4% CAGR and reach US$21.9 Billion by the end of the analysis period. Growth in the Service segment is estimated at 9.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$7.6 Billion While China is Forecast to Grow at 9.3% CAGR

The Data Center Networking market in the U.S. is estimated at US$7.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$10.1 Billion by the year 2030 trailing a CAGR of 9.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of -2.2% and 3.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.2% CAGR.

Global Data Center Networking Market - Key Trends and Drivers Summarized

Data centers are critical components of modern networking infrastructure, reflecting significant technological advancements and evolving business requirements. With the increasing integration of cloud services, the architecture and operational demands of data centers have transformed, necessitating sophisticated data center networking solutions. These solutions are vital for technicians in Network Operations Centers (NOCs) and data centers, enabling them to monitor various components effectively and address issues promptly. Data center networking involves a complex system of networking resources such as switches, cables, routers, load balancers, and firewalls, which work together to support communication, storage, processing, and security. The primary goal is to establish a secure, reliable, and compliant network that meets user needs and accommodates modern technologies like cloud computing and virtualization.

The shift from traditional hardware-dependent data center architectures to modern flexible and scalable solutions marks a significant transformation. Traditional networks often faced challenges such as storage limitations and latency issues, compounded by the increasing volume of data. These networks relied heavily on large physical switches and routers, making expansion costly and constrained by physical capacities. Modern data center networking solutions embrace virtualization, allowing applications to function seamlessly across various environments, including public, private, hybrid, and multi-cloud setups. This approach supports a wide range of data services and ensures continuous connectivity for virtual machines, containers, and microservices. Modern networks maintain physical infrastructure components but increasingly integrate software solutions for management and automation, enhancing data and service delivery to end-users.

Several factors drive the growth of data center networking solutions. The increasing use of data-intensive applications such as big data analytics, AI, and IoT necessitates robust and scalable networking infrastructure for rapid data transmission. The adoption of multi-cloud environments requires sophisticated networking solutions to manage and route traffic efficiently across different platforms. The growth of edge computing, which processes data near the source of data generation, impacts data center networking by necessitating more distributed and dynamically managed network resources. Regulatory and compliance requirements drive the adoption of secure and compliant networking solutions to ensure data integrity and confidentiality. The demand for higher energy efficiency pushes data centers to adopt greener technologies that optimize power usage without compromising performance. Advancements in network virtualization and Software-Defined Networking (SDN) offer more flexibility and control over data flows, driving their adoption in modern data centers. Increasing cybersecurity threats necessitate advanced network security solutions, while consumer demand for uninterrupted services influences the adoption of redundant and fault-tolerant network designs. These factors illustrate the complex interaction between technological innovation, regulatory changes, and consumer expectations, shaping the future of data center networking solutions.

SCOPE OF STUDY:

The report analyzes the Data Center Networking market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product (Storage Area Network (SAN), Application Delivery Controllers (ADC), Network Security Equipment, WAN Optimization Equipment, Ethernet Switches, Routers, Other Products); End-Use (IT & Telecom, Government, BFSI, Healthcare, Retail, Manufacturing, Education, Media & Entertainment, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 74 Featured) -

• Amazon Web Services, Inc.
• Arista Networks, Inc.
• AT&T, Inc.
• Avaya, Inc.
• Berkshire Hathaway
• Broadcom Ltd.
• Cisco Systems, Inc.
• Dell Technologies, Inc.
• Delta Electronics, Inc.
• Equinix, Inc.
• Extreme Networks, Inc.
• Facebook, Inc.
• Fujitsu Ltd.
• Google Cloud Platform
• Hewlett Packard Enterprise Development LP (HPE)
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Intel Corporation
• JPMorgan Chase and Co.
• Juniper Networks Inc.
• Microsoft Corporation
• Microsoft Corporation
• NEC Corporation
• Nokia Corporation
• NTT Communications Corporation
• Oracle Corporation
• Schneider Electric SA
• Siemens AG
• Telefonica SA
• Unisys Corporation
• Vmware, Inc.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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