Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

Market Insight- Global Data Center Networking Market

Market Overview

Data center networking is the method of establishing and interconnecting all physical- and network-based equipment and devices within a data center facility. It allows a digital connection between data center infrastructure nodes and equipment to ensure that they can connect and transfer data between one another and on the Internet. Deployment of hyperscale data centers has increased in the recent past wherein data center infrastructure is provided on lease by companies. This is mainly due to recent advancements in digital technology. Typically, a data center network forms a network infrastructure that complies with industry regulations, offers security, stability, and reliability, supports networking requirements for modern technologies, and can fulfill the requirements of network communications in peak usage.

The global Data Center Networking market was valued US$ 95.05 Bn in 2019 and expected to reach US$ 308.05 Bn by 2027.

Market Dynamics- Drivers

  1. Growing adoption of cloud data storage to reduce operational cost is expected to drive growth of the global data center networking market during the forecast period

In the recent past, organizations have started depending more and more on data centers as a delivery system for products, news, adverts, information, and communication due to increased demand for services and access via internet. Furthermore, there is a rise in power density of cabinets and a decline in the demand for physical servers and additional cabinets, owing to high growth of cloud market. This, in turn, saves additional space and cost required. Hyperscale data centers provide cloud services in the form of storage, network security, and servers for business applications on lease thereby removing the total cost of ownership (TCO) of IT data center infrastructure. For instance, VMware, a cloud infrastructure and business mobility company, was able to save $1.5 Bn for one of their clients in healthcare by avoiding data center upgrades and increasing CPU utilization to 80% from the existing 5% with the help of VMware virtual infrastructure software.

  1. Increasing implementation of data center virtualization and cloud computing is expected to propel the global data center networking market growth over the forecast period

Virtualization refers to a method of formation of various logical devices from a single physical device. Increasing demand from organizations for real-time user interaction, efficient use of storage devices, provision of on-demand services, and control over data center networks are supporting growth of the data center virtualization and cloud computing market. Furthermore, rising adoption of cloud computing and virtualization is boosting the demand for various data center networking products namely virtual switches and various switching operating systems, which in turn, is expected to propel the global data center networking market growth during the forecast period.

North America region dominated the global data center networking market in 2019, accounting for 33.4% share in terms of value, followed by APAC, Europe, South America and Middle East respectively.

Data Center Networking  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. Uncertainty regarding data protection laws is expected to restrain growth of the global data center networking market during the forecast period

Cloud service users need to comply with rules of the jurisdiction they operate and location where cloud service provider provides their services such as their data centers. According to the U.S. Department of Justice, warrants require the company to provide the documents it controls, regardless of location. Furthermore, according to the report of the 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. Business owners are more concerned about compliance burdens and regulations, which in turn, may hinder innovation and trade, while governments are concerned about national security and safety. Thus, these factors are expected to restrain the market growth in the near future.

  1. Increasing complexity of data center designs is expected to hamper the global data center and networking market growth over the forecast period

Over the years, the design of data centers has evolved significantly, become more and more complex. Recently formed data centers are more complex than their predecessors, which makes it difficult to operate and maintain. Moreover, lack of skilled professionals to operate and maintain these data centers is expected to hinder the market growth over the forecast period.

Market Opportunities

  1. Growing demand from oil & gas and telecom industries is expected to present lucrative growth opportunities

Edge computing has emerged as a powerful option for data storage, in which sensors transmit data to close-by edge computing devices that analyzes the data, thereby eliminating the need to send it back to a remote data center. Industries such as water utilities, power stations, and oil & gas have adopted Internet of Things (IoT) devices and sensors to better monitor and manage their infrastructure through rapid automation. Moreover, in the near future, telecom industry is expected to adopt data center networking due to significant amount of data generated over the internet.

  1. Rising impact of Internet of Everything (IoE) to provide major business opportunities

Massive amount of data is created by users as well as airplanes, automobiles, and buildings, which is pushing cloud services. The demand for analytics is driven by the growth of machine-to-machine (M2M) connections and applications. Moreover, application analytics can occur at edge of the device with edge computing or at central data centers.

Data Center Networking  | Coherent Market Insights

Source: Coherent Market Insights

Market Trends

  1. Growing volume of data center IP traffic

Data centers are the essence of providing storage, communication, delivering IT services and networking to number of network users, businesses, and devices. The nature of data center traffic is undergoing a fundamental change due to rise of cloud-based applications, services, and infrastructure. Moreover, increasing virtualization of data centers, which provides services that are flexible, efficient, and fast-to-deploy, is an essential traffic enabler in the rapid extension of cloud computing and data centers. Advent of Internet of Everything (IoE) phenomenon, growth of mobility, increasing digitization, and widespread adoption of multiple devices and connections are expected to drive growth of data center IP traffic.

  1. Increasing data center and cloud storage capacity and utilization

Growing internet penetration combined with ownership of multiple devices has supported growth of cloud services such as consumer cloud storage. Users can store and share videos, music, and photos through an easy-to-use interface at a relatively low cost. According to the Cisco Global Cloud Index Report 2016, the storage capacity of data centers will grow to 1,842 EB in 2020 from 382 EB in 2015, out of which 88% of capacity will be accounted for by the cloud. On the other hand, data stored in data centers will grow from 171 EB in 2015 to 915 EB in 2020, growing at a CAGR of 40%.

Segment information:

In global Data Center Networking market, by software component, the Switching operating system (OS), sub-segment dominated the global market in 2019, accounting for 32.7% share in terms of value, followed by Management software, Virtual switches, and controller respectively.

Data Center Networking  | Coherent Market Insights

Source: Coherent Market Insights

Competitive Section

Key players operating in the global data center and networking market are Google, Inc., Huawei Technologies Co. Ltd., Cisco Systems, Inc., Brocade Networking Solutions, Hewlett Packard Enterprise, Extreme Networks, Inc., Arista Networks, Avaya, Inc., Juniper Networks, Dell Inc., and Microsoft Corporation.

Key Developments

  1. Key players in the market are focused on mergers and acquisitions, in order to gain competitive edge in the market. For instance, in March 2017, Extreme Networks, a U.S.-based networking company, acquired Brocade Networking Solutions’ data center networking business for US$ 55 million.
  2. Major companies in the market are focused on partnerships and collaborations, in order to enhance the market presence. For instance, in January 2020, Hewlett Packard Enterprise partnered with Cumulus Networking, an open networking software vendor, to address the increasing demand for network infrastructure.

Data center networking is the method of establishing and communicating all physical- and network-based equipment and devices within a data center facility. Data center networking is extremely crucial in data center as it communicates all the data center resources together. Data center infrastructure nodes and equipment to ensure that they can connect and transfer data between one another and on the Internet. With recent advancements in digital technology, the deployment of hyperscale data centers, where data center infrastructure is provided on lease by companies has increased to a great extent. Furthermore, data center network forms a network infrastructure that complies with industry regulations, offers security, stability, and reliability, supports networking requirements for modern technologies, and can fulfill the requirements of network communications in peak usage. Furthermore, growing adoption of cloud computing technologies and virtualization has reduced costs incurred on data storage. Penetration of connected devices such as tablets and smartphones has increased the adoption of data center networking.

Market Dynamics

There are various factors which are expected to drive the global data center networking market in the forecast period. Usage of cloud data storage combined with cloud computing technologies is increasing in all the industries, use of cloud technology provides flexibility to store the data manage and monitor data anywhere. Industries such as oil and gas are becoming highly dependent upon data for their daily operations. Oil and gas industry collects huge amount of data even before drilling, this data help further decision making and provides relatable data which can reduce cost. Furthermore, factors such as Software-defined networking (SDN) and network function virtualization (NFV) are expected to provide significant market opportunities to key players in the forecast period. SDN and NFV are helping engineers and companies to managing networks by providing them complete software access.

However, increasing complex nature of data centers and uncertainty of laws regarding data protection are expected to hinder the global data center networking market in the forecast period.

Market Taxonomy

This report segments the global data center networking market on the basis of component type, industry vertical and region. On the basis of Component Type Hardware, Software and Services. On the basis of Industry Vertical Telecommunications, Government, Retail, Media & Entertainment, BFSI, Healthcare, Education and Others. On the basis of region, global data center networking market is segmented into North America, Latin America, Europe, Asia pacific, Middle East and Africa.

Key features of the study:

  • This report provides an in-depth analysis of the global data center networking market and provides market size (US$ million) and compound annual growth rate (CAGR %) for the forecast period (2019-2027), considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global data center networking market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the global data center networking market includes Google, Inc., Huawei Technologies Co. Ltd., Cisco Systems, Inc., Brocade Networking Solutions, Hewlett Packard Enterprise, Extreme Networks, Inc., Arista Networks, Avaya, Inc., Juniper Networks, Dell Inc., and Microsoft Corporation.
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology upgradation, market expansion, and marketing tactics
  • The global data center networking market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global data center networking market.

Detailed Segmentation:

  • Global Data Center Networking Market, By Component Type:
    • Hardware
    • Software
    • Services
  • Global Data Center Networking Market, By Industry Vertical:
    • Telecommunications
    • Government
    • Retail
    • Media & Entertainment
    • BFSI
    • Healthcare
    • Education
    • Others
  • Global Data Center Networking Market, By Region:
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East and Africa
  • Company Profiles
    • Google, Inc.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Huawei Technologies Co. Ltd.
    • Cisco Systems, Inc.
    • Brocade Networking Solutions
    • Hewlett Packard Enterprise
    • Extreme Networks, Inc.
    • Arista Networks
    • Avaya, Inc.
    • Juniper Networks
    • Dell Inc.
    •  Microsoft Corporation

*Browse all the market data tables and figures on “Global Data Center Networking Market- Forecast to 2027”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Component Type
      • Market Snippet, By Industry Vertical
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global Data Center Networking Market, By Component Type, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Hardware
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Software
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Services
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  5. Global Data Center Networking Market, By Industry Vertical, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Telecommunications
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Government
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Retail
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Media & Entertainment
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • BFSI
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Healthcare
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Education
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Others
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
  6. Global Data Center Networking Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Component Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Industry Vertical, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Component Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Industry Vertical, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Component Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Industry Vertical, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Component Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Industry Vertical, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Component Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Industry Vertical, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  7. Competitive Landscape
    • Company Profiles
      • Google, Inc.,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Huawei Technologies Co. Ltd.,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Cisco Systems, Inc.,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Brocade Networking Solutions,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hewlett Packard Enterprise,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Extreme Networks, Inc.,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Arista Networks,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Avaya, Inc.,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Juniper Networks,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Dell Inc.,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Microsoft Corporation.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  8. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse XX market data tables and XX figures on “Global Data Center Networking Market-forecast to 2027”.

Frequently Asked Questions

The global data center networking market is estimated to reach US$ 308.05 Bn by 2027.
Major players operating in the global data center networking market include Google, Inc., Huawei Technologies Co. Ltd., Cisco Systems, Inc., Brocade Networking Solutions, Hewlett Packard Enterprise, Extreme Networks, Inc., Arista Networks, Avaya, Inc., Juniper Networks, Dell Inc., and Microsoft Corporation.
Uncertainty regarding data protection laws is one of the major factors that is expected to hamper growth of the market over the forecast period.
Growing adoption of cloud data storage to reduce operational cost is one of the major factors that is expected to propel growth of the market over the forecast period.
The global data center networking market is estimated to exhibit a CAGR of 15.8% during the forecast period (2019-2027).
Among regions, North America is expected to hold a dominant position in the global data center networking market in 2019, accounting for 33.4% share in terms of value, followed by APAC, Europe, South America, and Middle East respectively.
Existing Clientele

Joining thousands of companies around the world committed to making the Excellent Business Solutions.

View All Our Clients

Our Trusted Patner