Data Center Networking Equipment Market is Forecasted to Reach US$ 74.0 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$ 74.0 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 market, industry forecast, current & emerging trends, segment analysis, competitive landscape, & more.

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Report Highlights:
Market Size in 2032: US$ 74.0 billion
Growth (CAGR): 14.9% during 2024-2032
Forecast Period: 2024-2032
Trend Period: 2018-2022
Base Year: 2023
Number of Segments Covered: 3
Number of Tables & Graphs: 100+

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 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 data center type - The market is segmented into 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 Asia-Pacific market is set to dominate the data center networking equipment market growth on account of some of the important drivers. 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. These combined factors place Asia-Pacific as the fastest-growing data center networking equipment market.

Data Center Networking Equipment Market Drivers:

Some of the key drivers listed in the report are given below.
• The explosion of data from cloud computing, IoT devices, and AI-driven workloads. These technologies require robust, scalable, and high-speed networking infrastructure to handle the vast amount of data being transmitted and processed.
• 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.
• The expansion of hyperscale data centers and the growing use of virtualization and software-defined networking (SDN) technologies. These innovations help improve network agility and reduce operational costs, making them attractive to enterprises.
• The rollout of 5G and the rise of edge computing require ultra-low latency and faster data routing, boosting the need for next-generation networking equipment. As companies prioritize digital transformation and stronger cybersecurity frameworks, the demand for more intelligent, adaptive, and secure data center networks continues to rise significantly.

Top Companies in the Data Center Networking Equipment Market:
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
Note: The above list does not necessarily include all the top players in the market.

What Unique Insights Does This Report Offer?

This report provides comprehensive insights into the Data Center Networking Equipment Market, answering critical questions like:

• How big is the sales opportunity?
• Which regions offer the best sales opportunities?
• Which are the most attractive market segments?
• Which are the top players and their market positioning?
• How complex is the business environment?
• What are the factors affecting the market?

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Stratview Research is a global market research firm that highly specializes in aerospace & defense, chemicals, and a few other industries.

It launches a limited number of reports annually on the above-mentioned specializations. Thorough analysis and accurate forecasts in this report enable the readers to take convincing business decisions.

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This release was published on openPR.