Data Center Networking Market is expected to Reach US$228.40 Billion by 2025, Demand for More Flexible and Dynamic Business Infrastructure to Drive Growth

On account of the rising number of drilling and exploration activities worldwide, the global data center networking market witness the prevalence of high competition. Cisco Systems Inc., Hewlett Packard Enterprise, Arista Networks, Juniper Networks, and Brocade Communication Systems Inc., currently exhibit a strong foothold in the global data center networking market, finds Transparency Market Research (TMR) in a new study. Besides providing comprehensive solutions, the leading market players are eyeing discovery of more lucrative pockets across emerging nations.

Benefiting from Rising Uptake of Cloud Computing, Market to Exhibit Strong Growth

The positive run witnessed by the data center networking market is largely ascribable to the increasing uptake cloud computing and data center virtualization. With organizations worldwide starting to realize the benefits of real-time interaction, the demand for cloud computing and data center virtualization is forecast to surge. Considering this, TMR forecasts strong growth for the overall data center networking market. Besides this, the market is expected to gain from the increasing awareness regarding the efficient use of storage devices and the rising demand for controlling data center networks.

“Improvements in service delivery and risk management will yield gains for the market in the coming years,” said a lead TMR analyst. To pace up with the present dynamic business landscape, companies are not shying from altering their service delivery models. Their primary focus is on aligning services to meet needs of both internal and external business environment. As data centers help businesses achieve a more dynamic and flexible infrastructure, their demand is forecast to surge in the coming years.

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Demand for Software Components to Rise at High Pace

Based on component, the global data center networking market has been segmented into hardware, software, and services. Of these, the hardware component emerged dominant in 2016 contributing nearly 52% of the overall market based on revenue. However, exhibiting a CAGR of more than other components, the software segment is forecast to emerge as the most lucrative one in the forecast period. This is primarily attributed to the rising digitization and growing adoption of cloud computing technologies in data centers. In addition, the services segment which held approximately 28% of market share in 2016 is expected to hold a noteworthy market revenue share in 2025.

Based on industry vertical, the global data center networking market can be segmented into BFSI, education, healthcare, media and entertainment, government, telecommunications, retail, and others. Of these, holding over 21% of the market, the BFSI segment emerged as the lead in 2016. TMR forecasts this segment to continue leading the market through the course of the forecast period. Besides this, the demand for data center networking is forecast to rise considerably in the healthcare sector.

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Asia Pacific to Exhibit Most Lucrative Opportunities in Forthcoming Years

Regionally, North America, Asia Pacific, Europe, South America, and the Middle East and Africa constitute the key market segments. Among these regions North America emerged dominant in the global data center networking market in 2016. However, during the course of the forecast period Asia Pacific is expected to showcase the highest CAGR of 17.3% between 2017 and 2025. The Asia Pacific data center networking market is chiefly gaining from easy availability to connecting devices such as tablets and smartphones. Besides this economic growth witnessed across emerging nations such as India and China is expected to aid the market’s expansion in the region. Furthermore, the region exhibits a developing IT infrastructure, which help supporting outsourced activities of foreign companies efficiently. Spurred by these factors the demand for data center networking is expected to increase considerably in Asia Pacific in the forthcoming years.

The global data center networking is very competitive owing to the high demand of networking components. The key market players profiled in this report are Cisco Systems, Inc., Hewlett Packard Enterprise, Arista Networks, Juniper Networks, Microsoft Corporation, Huawei Technologies Co. Ltd., Dell Inc., Avaya Inc., Extreme Networks Inc. and Brocade networking solutions.


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