The global data center networking market size is projected to reach USD 89.84 billion by 2030, registering a CAGR of 15.2% from 2024 to 2030, according to a new report by Grand View Research, Inc. The growing volumes of unstructured data across various industry verticals are expected to drive the demand for data center networking solutions. The proliferation of cloud computing and the emergence of advanced data center operating models are also expected to drive the market growth over the forecast period.Data center networking helps organizations in organizing and consolidating information at a single platform before it is exposed to cross-channel systems and processes. It also enables organizations to connect effectively with their customers operating in diverse industry verticals. Optimum performance, improved integration of servers, and reduction in operational cost are some of the major benefits that are driving the popularity of data center networking solutions.
Organizations are emphasizing on having a state-of-the-art infrastructure for resolving the concerns and fulfilling the expectations of their customers efficiently. The integrated information is stored, analyzed, and managed on shared platforms using different networking solutions, thereby enabling service providers to modernize their business models and augment their revenues. As such, the growing need for channelizing information to optimize the day-to-day networking operations is expected to drive the demand for data center networking solutions over the forecast period.
The market is also expected to grow in line with the growing preference for cloud-based storage platforms, the increasing need for protecting cyberattacks, and the rising demand for real-time analytics. Data center networking guarantees on-demand access to information and allows businesses to focus on augmenting the sales of their products. Data center networking can also be considered as an efficient mode of disaster recovery as it offers access to clone databases and operational restore & recovery functions.
Data Center Networking Market Report Highlights
• Continued digitalization and growing adoption of cloud computing, particularly in Asia Pacific and Europe, are expected to drive the market growth over the forecast period
• The storage area network (SAN) segment accounted for the largest market share in 2023 and is expected to witness significant growth over the forecast period owing to the rising adoption of different combinations of computation mechanisms
• The BFSI segment is expected to register the highest CAGR over the forecast period as industry verticals, such as BFSI and IT & Telecom, are particularly focusing on adopting incremental networking technologies to maintain their critical infrastructure assets
• Asia Pacific data center networking market is anticipated to witness the fastest CAGR from 2024 to 2030. Aggressive adoption of data center infrastructure in South Asia is expected to drive the growth of the regional market
• Market players are pursuing various strategies, such as mergers & acquisitions and product portfolio expansion, for gaining a competitive advantage over their rivals.
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