Data Center Networking Equipment Market is Forecasted to Reach US$ 74 Billion in 2032, Says Stratview Research

The global data center networking equipment market is projected to witness a growth rate of 14.9% annually from 2024 to 2032, with an anticipated size of US$ 74 billion by 2032, according to an analysis by Stratview Research.

Stratview Research, a global market research firm has launched a report on the global data center networking equipment market which provides a comprehensive outlook of the global and regional industry forecast, current & emerging trends, segment analysis, competitive landscape, & more.

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Report Highlights

Segment Insights on the Data Center Networking Equipment Market:

The global data center networking equipment market is segmented based on equipment type, data center type, and region.

Based on the equipment type - The market is segmented into Switches {Traditional 3 Tier Architecture and Spine-Leaf 2 Tier Architecture}, Servers {Blade Servers, Rack-Mounted Servers, and Tower Servers}, Routers & Gateways, Security Appliances, Load Balancers, Cables, and Others. Security Appliances are projected to be the most rapidly expanding category of the data center networking equipment market owing to growing cyberattacks, mounting data breaches, and more stringent regulatory demands. As data centers process more sensitive data, companies are focusing on secure infrastructure, such as firewalls, intrusion prevention systems (IPS), and unified threat management (UTM). The increasing use of cloud computing and remote workplaces further fuels the need for more sophisticated, scalable, and AI-based security products, making this segment a high-priority area of investment.

Based on the data center type - The data center networking equipment market is segmented by Enterprise, Colocation, Hyperscale, and Edge. Hyperscale data centers are set to dominate the data center networking equipment market because of their fast growth and increasing capacity requirements. In early 2024, hyperscale data centers totaled more than 1,000, with an estimated 120 to 130 new centers being added each year in the coming decade. This expansion is mainly prompted by growing AI technology adoption, which requires more capable networking infrastructures. Therefore, hyperscale data centers will be responsible for a large share of the market's demand for high-end networking gear.

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Which Region Shows the Most Promising Growth Forecast and Opportunity?

The analysis suggests that Asia-Pacific is poised to be the fastest-growing region in the data center networking equipment market. This growth outlook is majorly attributed to the following–

• Quick digitalization in nations such as China, India, and Japan has hugely spurred the demand for secure data infrastructure.
• The ubiquitous usage of cloud computing, Internet of Things (IoT), and artificial intelligence (AI) technologies further accentuates this requirement. Moreover, the rollout of 5G networks improves connectivity, which necessitates sophisticated networking solutions.
• Regional governments are strongly backing this growth with supportive policies and investments in digital infrastructure. In addition, the emergence of data localization legislations in nations like Malaysia, Indonesia, and Vietnam requires data to be stored locally, necessitating the setup of additional data centers.

Data Center Networking Equipment Market Drivers:

Some of the key drivers listed in the report are given below.

• Rapid growth due to the explosion of data from cloud computing, IoT devices, and AI-driven workloads.
• The increasing demand for real-time data access and seamless connectivity is pushing enterprises to upgrade their networks.
• The rise in remote work and digital services has led organizations to invest in advanced networking solutions to ensure consistent performance, reliability, and secure data transmission across their operations.
• Expansion of hyperscale data centers and the growing use of virtualization and software-defined networking (SDN) technologies.

Top Companies in the Data Center Networking Equipment Market:

The market is consolidated, with around 50 players. Most of the major players compete in some of the governing factors, including price, product offerings, regional presence, etc. Stratview Research has identified the following companies as the top market players.

-          CISCO Systems

-          Arista Networks Inc.

-          Huawei Technologies Co., Ltd  

-          H3C Technologies Co., Ltd

-          Juniper Networks Inc.

-          Dell Technologies

-          Mellanox Technologies (NVIDIA)

-          Lenovo

-          HP Enterprise

-          ODM Direct

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