Data Center Networking Market
Data Center Networking Market 2022 - By Component, End-Users & Global Region - Market Size, Trends, Opportunity, Forecast 2027Request Sample Request Discount
Pandemic disrupted the entire world and affected many industries.
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A data center network is an arrangement of network devices such as switches, routers, and interfaces that inter-connects the various storage and computing units in a resource pool of the data center to ensure a high-level of performance. The data center networking is the process in which the all the network-based devices and equipment are connected within the data center facility. It makes a digital connection between data center equipment and infrastructure so that they can easily transfer data among them.
The data center networking within an enterprise connects servers to other servers and users. Connections are made through routers, switches, and various types of cables. It is capable of handling high bandwidth data delivery to and from storage endpoints, servers, and switches enables to move massive data efficiently.
Covid Impact Analysis
In 2022, the COVID-19 epidemic has significantly hampered growth of the Data Center Networking market due to stringent lockdowns imposed in several countries. Halts in data center construction projects due to stringent lockdowns imposition has led to the decline in growth rate of the market during the year 2022. However, the market will witness growth in 2022 due to the proliferation of digital commerce, making digital infrastructure more important than ever before. There is rising demand for the digital infrastructure to be able to offer reliable support across a range of networks and cope with substantial changes in demand. This factor has primarily boosted growth of the data center networking market during the pandemic. In addition, a number of enterprises around the globe are altering their business models and adopting remote working solutions leading to the escalated demand for cloud services fuelling growth of the data center networking market.
Various countries around the globe have imposed a complete lockdown for more than two months as a result of the COVID-19 epidemic, which has had an impact on most of the industry verticals. However, the impact on the technology sector has been comparatively low. For instance, the manufacturing plants all across the world have been shut down, and automobile sales have plummeted. On the contrary, despite the downturn, the sectors associated with the cloud services, internet service providers (ISPs), information technology (IT) infrastructure, and data centers have experienced huge demand increase as a result of the shift towards home and remote working.
On the other hand, several companies are launching new data centers networking solutions during the pandemic, further boosting growth of the market. For instance, in June 2021, NTT Ltd., a global technology services provider launched Global Data Center Interconnect (GDCI), an integrated global network fabric service that provides secure and private connections between NTT’s global data centers and cloud service providers with a single physical port that supports multiple virtual network services.
Top Impacting Factors
Adoption of digitalization across several industries has significantly accelerated the demand for cloud services to optimize business operations, leading to the growth of the data center networking market. For instance, as per the Oracle’s Cloud Prediction 2019, 80% of all enterprise (and mission-critical) workloads are projected to be moved to the cloud. In addition, the factors such as significant growth in demand for high-speed internet and increased productivity of enterprises owing to dependability on the data centers expected to propel growth of the market.
Moreover, the data center virtualization trend along with the adoption of advanced data center operating models has boosted demand for the data center networking solutions.
However, irregularities in the data protection regulatory scenario as well as increasing complexity of data center designs may hamper growth of the market during forecast period.
On the other hand, surge in implementation of technologies, such as machine learning, artificial intelligence (AI), and 5G have boosted the cloud computing market. This in turn supports the demand for high performance data center networking solutions. This factor has creates lucrative growth opportunities for the market growth during the forecast period.
On the basis region, the Global Data Center Networking Market is segmented into North America, Asia Pacific, Europe, Latin America and Middle East and Africa. North America accounted for the largest share in the Global Data Center Networking Market. This is mainly attributed to the upsurge in data generation as well as the increasing transition to cloud-based solutions in the U.S. and Canada has propelled demand for data centers in the region. Moreover, the growing competition among market players, such as Equinix Inc. and Digital Realty in the colocation industry in the U.S., will boost the demand for data center networking solutions.
However, the Asia-Pacific is expected to grow at the highest growth rate during the forecast period. Growth of this region is mainly driven by the growing popularity and adoption of cloud computing technology, mainly across China and India. In addition, upsurge in the demand for data centers that can safeguard and secure and information drives growth of the Asia-Pacific data center networking market. Moreover, the robust cloud computing and electronics market in China is projected to support the R&D related to the manufacture of high-performance servers that cater to the modern data center networking requirements, creating growth opportunities for the market growth in the Asia-Pacific.
There is surge in adoption of hybrid cloud environment by organisations, significantly boosting demand for data center networking solutions. Hybrid cloud is a combination of private and public cloud which store mission-critical data and applications in colocated servers that are accessible through a private cloud network. The private network is connected to a public cloud service, enabling the data to transition seamlessly among the two environments.
Hybrid cloud environment provides companies with the visibility and control they need over their data along with the access to expansive computing and functionality of public cloud platforms.
Global data center networking market segmentation is based on the component, end user, and region. Based on the component, the market is segmented into solution and services. Based on the application, it is segregated into colocation, BFSI, energy, manufacturing, government, healthcare, IT & telecom, and others. Based on the region, it is segregated into North America, Asia Pacific, Europe, Latin America and Middle East and Africa.
The global Data Center Networking market is consolidated with the presence of major players in the market such as IBM Corporation, Dell Inc., Alcatel-Lucent S.A., Hitachi Data Systems Corporation, Equinix Inc., Cisco Systems Inc., HP Development Company, L.P., Vmware, Inc., Fujitsu Limited, Intel Corporation, and other players.
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