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The data center networking market size was valued at USD 35.39 billion in 2024 and is projected to reach USD 93.43 billion by 2032, growing at a CAGR of 13.1%. Data center networking involves connecting different computing and storage resources inside a data center. It allows for smooth interaction among servers, storage systems, and various data center resources to support the storage, processing, and movement of data. An effectively structured data center network enhances performance, guarantees high availability, and enables scalability, which is essential for cloud services, enterprise applications, and digital infrastructure.
List of Key Companies:
· Cisco Systems, Inc. (U.S.)
· Dell Inc. (U.S.)
· Intel Corporation (U.S.)
· Fujitsu (Japan)
· Equinix, Inc. (U.S.)
· VMware, Inc. (U.S.)
· ALE International (France)
· Juniper Networks, Inc. (U.S.)
· Hewlett Packard Enterprise Development LP (U.S.)
· Hitachi Vantara LLC (China)
· NVIDIA Corporation (U.S.)
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Trend Analysis:
Major Market Driver:
Proliferation of Cloud Computing in Businesses Drive the Market Progress
Market Restraints:
High Initial Cost and Complex Network Architecture May Hinder Market Growth
Market Opportunities:
Rising Adoption of AI and Automation in Network Management to Create Lucrative Opportunities for Market Growth
Key Industry Development:
October 2024: Equinix collaborates with Singapore's GIC and Canada’s CPPIB to enhance data center facilities throughout the U.S., showcasing the strong need for sophisticated data centers.
October 2024: Celestica launches advanced switches tailored for AI and machine learning, focusing on the requirements of hyperscale and high-performance computing settings.
By Component:
· Hardware
o Application Delivery Controllers (ADC)
o Servers
o Routers
o Switches
§ Ethernet
§ Fiber Channel
§ InfiniBand
o Others (firewalls, etc.)
· Software
o Network Management & Monitoring Software
o Network Function Virtualization
o Software Defined Networking
o Others (Switching OS)
· Services
By Industry:
· IT & Telecom
· Healthcare
· Retail
· Manufacturing
· BFSI
· Government & Defense
· Media & Entertainment
· Others (Energy, Education)
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Regional Analysis:
North America holds the largest data center networking market.
The adoption of cloud technology is a major factor influencing data center networking in the area. Businesses in various sectors are transitioning to cloud infrastructure to decrease expenses, boost scalability, and increase flexibility. The expansion of public, private, and hybrid cloud infrastructures has resulted in a need for rapid, low-latency data center networks capable of ensuring smooth connectivity between local systems and cloud service providers.
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