Global Data Centre Network Market- WishTree Insight

Global Data Centre Network Market by Product (Routers, Storage Area Network, Ethernet Switches, Application Delivery Controllers, and Others), End-User (IT & Telecom, Healthcare, BFSI, Government, Retail, and Others), and Regions, (APAC, Europe, North America, and LAMEA) - Global Industry Analysis, Share, Growth, Trends, Size, and Forecast 2022 – 2032

The Data Centre Network market size was valued at USD 20.11 billion in 2022 and is expected to surpass USD 29.3 billion by 2032, expanding at a CAGR of 11.5 % during the forecast period, 2022–2032. The market's growth is attributed to the growing adoption of cloud computing, and data center virtualization in various industries.

INTRODUCTION

A data center network is a critical infrastructure used for connecting servers, storage devices, and networking equipment within a data center facility. It is a specialized network that provides high-speed connectivity and ensures the efficient transfer of data between devices within the data center.

The architecture of a data center network typically involves multiple layers of switches and routers, with redundant links and hardware to ensure high availability and reliability. The network is designed to support various types of traffic, including storage, computing, and networking traffic, which may have different performance requirements and priorities.

Modern data center networks often utilize software-defined networking (SDN) and network virtualization technologies to improve agility, scalability, and automation. These technologies enable network administrators to manage the network infrastructure using software rather than physical hardware, allowing for more flexible network configuration and management.

The security of a data center network is of utmost importance, as data centers often store sensitive and critical data. Therefore, data center networks incorporate various security measures, such as firewalls, intrusion detection and prevention systems, and access controls.

In summary, data center networks are a crucial component of any modern data center, providing high-speed connectivity and efficient data transfer between devices. They are designed to be highly available, reliable, and secure, and utilize advanced technologies such as SDN and network virtualization to improve agility and automation.

Market Trends, Drivers, Restraints, and Opportunities

• The growing trend of data center virtualization with the adoption of data center operating models is expected to drive the market.
• Increasing adoption of cloud computing is a key driver propelling the market growth.
• Rise in organizational data traffic is expected to boost market growth.
• Growth of hyper-scale data centers and the trend of colocation in some countries is expected to propel the market growth.
• Development of broadband and internet infrastructure is creating lucrative growth in the market.
• Increase in the establishment of new data centers is anticipated to augment the market growth.
• Transition from hard disk drives (HDDs) to solid state drives (SSDs) in the data center is expected to propel the market growth.
• Lack of highly skilled workforce in underdeveloped and developing economies is expected to be a major restraining factor in the growth of the global data center network market.
• Irregularities in the data protection regulatory landscape are hindering market growth.

Scope of the Report

Market Segment Insights

The storage area network segment is projected to register a considerable CAGR

Based on product, the data center network market is divided into routers, storage area networks, ethernet switches, application delivery controllers, and others. The storage area network (SAN) segment is expected to expand rapidly during the forecast period. The growth of the segment is attributed to the utilization of SAN by various organizations as it helps to effectively manage their data center infrastructure without incurring expenses.

IT & Telecom segment accounts for a 25% share

Based on end-user, the data center network market is divided into IT & telecom, healthcare, BFSI, government, retail, and others. The IT & telecom segment accounts for a 25% share owing to 4G services and the continued rollout of the infrastructure for the provisioning of 5G services allowed the segment to dominate the market. The BFSI segment is expected to grow in the coming years owing to the growing need for robust data center infrastructure to efficiently handle and safeguard critical user information and secure transactions.

North America dominates the market with a 30% share

In terms of regions, the data center network market is classified as APAC, Europe, North America, and LAMEA. The market of North America dominates the market with 30% and is expected to constitute a key share of the market during the projected period owing to several colocation facilities and data center services. However, the market of the Asia Pacific is anticipated to expand at a rapid pace during the forecast period due to surging demand for data centers that secure and safeguard information.

Competitive Landscape

Key players competing in the Data Centre Network market are IBM Corporation; Cisco Systems Inc.; HP Development Company; Equinix Inc.; Vmware, Inc.

FAQs

How much is the market worth?

The Data Centre Network market size was valued at USD 20.11 billion in 2022 and is expected to surpass USD 29.3 billion by 2032.

During the forecast period, what is the CAGR of the market?

During the forecast period, the CAGR of the market is expected to be 11.5%.

What are the key drivers of the market?

The market's growth is attributed to the growing adoption of cloud computing, and data center virtualization in various industries.

What segments are covered in the Data Centre Network report?

The segments covered in the report are product (routers, storage area network, ethernet switches, application delivery controllers, and others), end-user IT & telecom, healthcare, BFSI, government, retail, and others).

Mention which region is expected to hold the highest share of the Data Centre Network market

The North American region is expected to hold the highest share of the Data Centre Network market.

Which segment holds the largest market share in the Data Centre Network by 2032?

The IT & Telecom segment holds the largest market share in the Data Centre Network by 2032.

Mention the key players in the market.

IBM Corporation; Cisco Systems Inc.; HP Development Company; Equinix Inc.; Vmware, Inc.