Data Center Networking Market Competition, Value chain Analysis and Forecast 2025

On account of the rising number of drilling and exploration activities worldwide, the global data center networking market witness the prevalence of high competition. Cisco Systems Inc., Hewlett Packard Enterprise, Arista Networks, Juniper Networks, and Brocade Communication Systems Inc., currently exhibit a strong foothold in the global data center networking market, finds Transparency Market Research (TMR) in a new study. Besides providing comprehensive solutions, the leading market players are eyeing discovery of more lucrative pockets across emerging nations.

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To strengthen their position, these players offer myriad solutions to their customers. Besides this, innovating novel technologies is a popular trend among the market players. In addition, mergers and acquisitions have become a common practice among companies looking to expand their geographic footprint and product portfolio.

According to TMR, the global data center networking market, which stood at US$63.05 bn in 2016, is expected to reach US$228.40 bn by the end of 2025. If the figures hold true, the global market will expand at an impressive 15.5% CAGR between 2017 and 2025. By component, the global data center networking market was led by the hardware segment with an estimated revenue share of 52% in 2016. However, during the forecast period, the software segment is expected to show growth at a higher pace.

Regionally, North America dominated the global data center networking market in 2016. However, exhibiting a CAGR of 17.3% between 2017 and 2025, Asia Pacific is expected to emerge as a more lucrative region than other segments in the global data center networking market.

Benefiting from Rising Uptake of Cloud Computing, Market to Exhibit Strong Growth

The positive run witnessed by the data center networking market is largely ascribable to the increasing uptake cloud computing and data center virtualization. With organizations worldwide starting to realize the benefits of real-time interaction, the demand for cloud computing and data center virtualization is forecast to surge. Considering this, TMR forecasts strong growth for the overall data center networking market. Besides this, the market is expected to gain from the increasing awareness regarding the efficient use of storage devices and the rising demand for controlling data center networks.

“Improvements in service delivery and risk management will yield gains for the market in the coming years,” said a lead TMR analyst. To pace up with the present dynamic business landscape, companies are not shying from altering their service delivery models. Their primary focus is on aligning services to meet needs of both internal and external business environment. As data centers help businesses achieve a more dynamic and flexible infrastructure, their demand is forecast to surge in the coming years.

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Besides this, the cost reduction in cloud data storage will aid in the market’s expansion as well. Spurred by the aforementioned factors, the global data center networking market will exhibit positive trajectory during the forecast period.

Uncertainty of Data Protection Laws to Inhibit Growth

On the downside, the market is reeling under the uncertainty of data protection laws. It is important for cloud service providers to consider rules of locations they operate in as well as jurisdiction of the location where they provide services. This creates a major restraint for the market, nevertheless, the rising demand from oil and gas and telecom industries is likely to aid its growth in the coming years. The market will also gain impetus from the increasing deployment of IoT tools and technologies across industries such as water utilities, oil & gas, and power stations.

About Us

Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.


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