Data Center Networking Market Size By Component (Solution [Ethernet Switches, Routers, Servers, (ADC) Application Delivery Controller], Service [Professional, Managed]), By Application (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT &

Data Center Networking Market Size By Component (Solution [Ethernet Switches, Routers, Servers, (ADC) Application Delivery Controller], Service [Professional, Managed]), By Application (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2028

The data center networking market is projected to showcase exponential growth by 2028 owing to proliferating hyperscale data centers across key regions.

As more businesses have started to rely on cloud connectivity to meet application access demands, data center networking solutions are helping broaden the scope, which has fueled market growth over the past few years. Growing requirements for network flexibility and cost-effective data management have augmented industry uptake.

Notably, industry players have been implementing strategic initiatives to strengthen their foothold in the evolving marketplace, which has positively impacted overall business outlook. For instance, in November 2020, Extreme Networks, Inc., a leading network equipment provider, inked a partnership agreement with Deutsche Telekom AG, a Germany-based telecommunications company, to launch a novel cloud-based LAN Service to boost network flexibility and capability.

The data center networking market has been segmented on the basis of application, component, and region. In terms of component, the market has further been divided into service and solution. Under solution, the market has been categorized into application delivery controllers, ethernet switches, servers, routers, and others. The routers segment is set to witness significant progress over the projected timeline owing to escalating demand for routers that can help to create a more responsive, intelligent, and integrated network.

Under service, the data center networking market has been classified into professional and managed. The managed segment is slated to expand at a notable CAGR between 2022 and 2028. This growth is attributed to surging demand for managed services that aid in the regular upgrading and managing of the networking equipment.

From the application point of view, the market has been bifurcated into colocation, IT & telecom, BFSI, manufacturing, energy, healthcare, government, and others. The government segment is anticipated to garner considerable gains by 2028, growing at a sturdy pace through the forecast timeline. Prevalent adoption of digital tools by government organizations globally is estimated to boost the demand for networking components and services in the government sector over the next few years. The manufacturing segment is foreseen to reach a notable valuation by the end of 2028 on account of the mounting penetration of technologies such as IoT and AI across the manufacturing sector.

From the regional spectrum, the South America data center networking market is poised to observe substantial growth momentum over the study period to register a sizable market share by 2028. Favorable government initiatives supporting the growth of the IT & telecom sector are likely to drive regional market expansion over the forthcoming years.