Data Center Networks - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Data Center Networks - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Data Center Networks Market size is estimated at USD 26.12 billion in 2024, and is expected to reach USD 59.37 billion by 2029, growing at a CAGR of 17.85% during the forecast period (2024-2029).

Edge computing, which brings computing resources, data, and processing closer to the edge, is becoming an essential component of data centers and cloud services. It's a decentralized extension of campus networks, cellular networks, cloud and data center networks.

Key Highlights

• The data center's network efficiently manages various infrastructures by using multiple networking resources at one time or another. It has a crucial role to play in data collection and handling, which different network resources can assist. Using switches, servers, and storage points, data center networks can operate data transmission with high bandwidth.
• Increasing demand for faster internet speeds and a significant increase in Mega Data Centres and colocation will influence the development of the data center networking industry. This market growth is also anticipated to be driven by the widespread use of 100 GB switch ports and rapidly developing broadband and internet infrastructure.
• The demand for advanced network infrastructure solutions is driven by increasing data security and lower latency needs in banking, financing services, insuranceBFSI government, etc. Therefore, interest in these network technologies has increased demand from different sectors, including Banking, Financing Services, Insurance, BFSI Government, etc.
• However, it is expected that significant barriers to the growth of data center networking in this period will be a need for a more highly skilled labor force in emerging and underdeveloped economies as well as regulatory issues related to data protection.
• Furthermore, with COVID-19, Data flows are being elevated by the Pandemic. A growing demand for storage space has been caused by the rapid development of emerging technologies such as Big Data and Artificial Intelligence, Internet of Things. Nevertheless, investment in data centres' networks is increasing all over the world.

Data Center Networks Market Trends

The Growth in Retail and E-Commerce is Anticipated to Drive the Market Demand

• The essential element of modern technology is the networking of data centres, making it possible to exchange information across equipment and infrastructure over external networks in a smooth manner. It shall be designed to ensure the stability, reliability and security of an Internet system which supports new technologies such as virtualisation and cloud computing.
• In order for retailers to remain competitive in today's market, it is essential to tailor the shopping experience to the customer. Retailers are recording customers' past transactions for the purpose of providing personalised recommendations. The need to provide effective data centers is becoming mandatory in view of an increasing number of consumers.
• The requirement for retailers to store transaction and customer data in a central location is eliminated with the implementation of Data Center Networking, making information more secure. In particular, this aspect of the data centre network is important as it gives a secure environment for customer's confidential information.
• It is likely that retail sales will increase significantly in the Asia Pacific region and lead to further market expansion as a result of this strong surge in e commerce. According to India Brand Equity FoundationIBEF, eCommerce Industry in India is growing exponentially; the market of electronic commerce in India has been around USD 84 billion by 2021, and estimates have shown that this will be close to USD 350 billion by 2030.

The Asia-Pacific Region is Expected to Drive the Growth of the Market Studied

• Asia Pacific, due to the increased importance of smart technologies, internet of things enabled equipment, Big Data, Industry 4.0, 5G and cloud computing in this region, is expected to rise at a high rate over the forecast period.
• In the region, data centers have also been deployed at an increasing rate. For instance, a contract of USD 35.9 million was awarded in January 2023 by the Tamil State owned beverages company TasMAC to RailTel as an IT infrastructure provider. In the course of the next 5 years, this contract will ensure that RailTel provides end to end computerisation and connectivity for TASMAC. This would also involve RailTel supplying the project's infrastructure, including developing a data center and data recovery center that can offer two-way disaster recovery in conjunction with the Tamil Nadu state data center (TNSDC).
• The various new opportunities that will lead to the growth of the data centre networking market during this period, which is expected to be a year from now, are driven by increasing adoption of Data Centre Infrastructure and quick need for backup and storage as well as increased use of Cloud Storage.
• In addition, huge demand for network infrastructure is expected to be created in the data center networking market as a result of an increase in building new data centers and replacing current technologies with lower costs associated with semicondcutor components across China.

Data Center Networks Industry Overview

The Data Center Networsk market is Semi-consolidated, with existing vendors and new entrants facing intense competition. The growth of cloud computing has attracted new investors keen on capitalizing on the sector's success. Key players in the market include Cisco Systems Inc, Juniper Networks Inc, Arista Networks Inc, H3C Holding Limited, and VMware Inc.

• April 2023 - Arista Networks Inc. has anoounced its new launch cloud-delivered, AI-driven network identity service for enterprise security and IT operations. CV AGNI, offers to secure IT operations with simplified deployment and cloud scale for all enterprise network users, their associated endpoints, and Internet of Things (IoT) devices and Based on Arista's flagship cloud vision platform, Arista Guardian for Network Identity expands Arista's Zero trust networking approach to enterprise security
• February 2023- Juniper Networks, a prominent company in secure, AI-driven networks, today announced that Greenergy Data Centers (GDC), a data center company in the Baltics, deployed Juniper's cloud-ready data center and AI-driven enterprise solutions to support its business and data center operations. GDC is the world's largest data centre, making it easy for businesses, government agencies and service providers to store their missioncritical information while reducing its environmental footprint in a safe manner. A 14,500 square meter, 31.5 megawatt data center is located at the GDC.

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