Data Center Networking Market 2023 Adoption of data center virtualization and cloud computing

  • The data center networking market is expected to register a CAGR of 15.4% between 2019 and 2027. The market is projected to be driven by increase in Adoption of data center virtualization and cloud computing.
  • The global data center networking market is expected to reach US$ 299.9 Bn by 2027 from US$ 95.05 Bn in 2019. Improvement in adoption of service delivery and risk management is expected to boost the growth of the market.
  • The data center networking market in Asia Pacific and South America is anticipated to expand at a rapid pace during the forecast period, followed by Middle East & Africa.
  • North America remains the dominant leader in the global data center networking market in year 2019 primarily due to tremendous growing demand of organizations in the area of real time user interaction, provision of on demand services, and efficient use of storage devices.
  • North America is projected to see significant growth in the global data center networking market during the forecast period. Strong network infrastructure and increasing adoption of digital and virtual devices is expected to drive the consistent growth of the North America data center networking market.

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Data Center Networking Market Definition

  • The data center networking market report provides analysis of the global data center networking market for the period 2017 – 2027, wherein 2018 is the base year and 2019 to 2027 is the forecast period. Data for 2017 has been included as historical information.
  • The report studies the data center networking market from the perspective of different component and industry vertical.

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Global Data Center Networking Market– Snapshot

North America is seen as a new growth hub for data centers. Asia Pacific is expected to see highest opportunity addition in the data center networking market globally, with North America being the next closest region.

Key Growth Drivers of the Data Center Networking Market

  • Adoption of data center virtualization and cloud computing – Virtualization is the process of formation of various logical devices from single physical device. The growing demand of organizations in the area of real time user interaction, provision of on demand services, efficient use of storage devices, and control over data center networks are some of the key driving factors for the data center virtualization and cloud computing market. The rising adoption of cloud computing and virtualization is paving way for the demand of several data center networking products such as virtual switches and several switching operating system, thereby reinforcing the market’s growth.
  • Improvement in service delivery and risk management – Organizations are changing their service delivery models to succeed in today’s fast-paced business landscape, which is reformed and aligned to meet the needs of both the internal and external business environment. Today’s data centers provide a more dynamic and flexible infrastructure which provides a better chance to discover and acknowledge new business opportunities. Organizations of all sizes are seeking global expansion with the help of emerging technologies and large consumer bases, thereby increasing the need for improved security and resiliency measures. Data centers are equipped with a high number of data center networking products and services in order to improve the service delivery and risk management.

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Key Challenges Faced by Data Center Networking Market Players

Cloud services users need to consider the rules of both the locations i.e., the jurisdictions they operate in as well as the locations where the cloud service provider provides their services (e.g., their data centers). According to the U.S. Department of Justice, warrants require the company to provide the documents it controls, regardless of location According to the report of United Nations Conference on Trade and Development (UNCTAD) on Cyberlaw Tracker, until April 2016, only 108 countries had data protection laws, 35 had draft laws, and around 60 developing countries had no data protection laws at all Consequently, businesses are more concerned with compliance burdens and regulations that may hamper innovation and trade and governments are concerned about national security and safety. Therefore rather than having multiple initiatives or laws, global and regional organizations can concentrate on one unifying initiative or law which provides international compatibility in terms of data protection

Data Center Networking Market – Company Profile Snapshot

The research study includes profiles of leading companies operating in the global data center networking market. Key players profiled in the report include

  • Cisco Systems, Inc.
  • Hewlett Packard Enterprise
  • Arista Networks
  • Juniper Networks
  • Microsoft Corporation
  • Huawei Technologies Co. Ltd.
  • Dell Inc.
  • Avaya Inc.
  • Extreme Networks Inc.
  • Brocade networking solutions.

Companies are shifting toward advanced technology to gain competitive advantage in the data center networking market apart from maintaining their position in the market.

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