The Global Data Center Networking Market, Component Type (Hardware, Software and Services) By Industry Vertical (Telecommunications, Government, Retail, Media & Entertainment, BFSI, Healthcare, Education and Others and by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 308.05 billion by 2027, exhibiting a CAGR of 15.8% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Data center networking is a vast pool of resources interconnected using a communication network. Data center networking is extremely crucial in data center as it interconnects all the data center resources together. 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, 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.
The global Data Center Networking market was valued US$ 95.05 Bn in 2019 and expected to reach US$ 308.05 Bn by 2027.
Enhancements in service delivery and risk management are expected to boost growth of the global data center networking market during the forecast period
Various organizations are increasingly switching their service delivery models, in order to succeed in a rapidly changing business landscape. This is reformed and aligned to fulfill the demands of both the internal and external business environment. Currently, operational data centers provide a more flexible and dynamic infrastructure, which enhances offers a better chance to acknowledge and discover new business opportunities. Moreover, SMEs and large enterprises are focused on global expansion by utilizing emerging technologies and large consumer bases, thereby increasing the need for enhancing security and resilience provisions. Data centers are equipped with a vast number of data center networking products and services in order to improve service delivery and risk management. Thus, these factors are expected to drive the global data center networking market growth over the forecast period.
Evolution of SDN and NFV data center architecture to pose major business opportunities
Software-defined networking (SDN) is providing cloud developers and enterprises complete programmatic control of an abstracted and dynamic view of the network by separating the control and forwarding data center traffic. SDN aids content providers and end users cloud gaming by reducing latency within data centers and minimizing the delay experienced by end users. Furthermore, network function virtualization (NFV) replaces dedicated networking appliances such as routers and firewalls with IT virtualization technologies. With NFV, operators can scale their network architecture across multiple servers to quickly adapt to customers’ changing needs by making network and service provisioning more flexible.
Growing complexity of data center designs is expected to hinder 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, a lack of skilled professionals to operate and maintain these data centers is expected to hinder the market growth over the forecast period.
Increasing the use of green energy to reduce carbon emission
Growing shift to cloud computing has increased the demand for more data center capacity, which in turn, has increased the energy consumption in data centers. According to the report given by the Natural Resources Defense Council (NRDC) on data center efficiency assessment, in 2013, U.S. data centers utilized 91 billion kilowatt-hours of electricity and produced approximately 150 million metric tons of carbon pollution. Thus, many organizations are using green energy sources to curb carbon emission and reduce energy consumption. For instance, Apple Inc. has powered all its data centers with renewable energy by avoiding CO2e emission to the levels of 150,000 metric tons and 187,000 metric tons for the years 2014 and 2015, respectively.
New switch platforms for high-speed connections
A paradigm shift to software-defined data centers has created new networking requirements wherein low latency and high speed are major attributes for data center applications. Majority of data centers running across North America are on 10 Gigabit-per-second (Gbps) speed switches and are moving toward 40 Gbps or 100 Gbps switches due to growing demand in data centers for increased bandwidth. For instance, in June 2016, owing to the high bandwidth requirement in data centers, Cisco Systems, Inc. extended the “Nexus 7000 switch” portfolio by adding Nexus 7700 Series switches invariants of 40G and 100G density with improved power efficiency of 60%.
Increasing number of internet users and steady economic growth
Availability of cheap smartphones and tablets has increased the penetration of computer devices. There is also tremendous room for Internet penetration in countries such as Indonesia with a population of 238.3 million, Cambodia with 15.9 million, India with 1.26 billion, Vietnam with 95.26 million, and China with 1.37 billion. Moreover, steady economic growth coupled with increasing number of internet users is expected to increase the use of cloud services.
Proactive government initiatives
Governments of various countries are focused on encouraging data center infrastructures, in order to attract global tech companies to build their data centers. For instance, In India, the government launched its Digital India program, which aims to connect 1 billion people with the Internet to deliver services electronically via mobile to bring enormous opportunities for the data center networking market in the country. Furthermore, the Chinese government has extended its plan to develop the county’s cloud computing capabilities in its five-year plan from 2016 to 2021.
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.
Joining thousands of companies around the world committed to making the Excellent Business Solutions.