Data center networking market to reach $40 billion by 2028

The data center networking market size is anticipated to record a valuation of $40 billion by 2028, according to the most recent study by Global Market Insights. The market growth is attributed to the increasing data center establishment projects globally.

data center networking 2028

High demand for advanced data center networking components, such as routers, servers, switches, and application delivery controllers, will foster the market expansion. Market participants are focusing on offering advanced data center networking components to ensure a strong position in the industry.

The expanding IT & telecom sector globally will offer strong growth opportunities to the data center networking market. The increasing penetration of 5G is supporting the demand for robust data traffic management solutions. Telecom operators are focusing on improving the user experience by adopting sophisticated IT components in their data center facilities.

Telecom companies are stressing on adopting reliable and robust networks that ensure continual operations. Providing uninterrupted services to customers is a crucial factor for IT & telecom service providers.

The rapidly advancing industrial sector in Europe is a major driver of the data center networking market progression. The robust manufacturing sector adopting advanced technologies, such as AI, machine learning, and cloud computing, will propel the demand for advanced networking solutions.

Manufacturers are introducing autonomous vehicles as a differentiator to remain competitive in the market. Growth in data generation by autonomous vehicles is driving the need for data center networking solutions in Europe.

As instantaneous and real-time communications are extremely crucial for the efficient implementation of autonomous systems, data center providers are focusing on incorporating high-end networking equipment to ensure fast interconnectivity of systems.

Major findings on the data center networking market

With the rise in the adoption of compute-intensive technologies, such as IoT and AI, there is a high demand for efficient network management solutions. Robust networking forms the core element of these technologies, stressing the need for high-performance networking solutions.

Organizations are now focusing on virtualization technologies that reduce complexity and increase efficiency. The trend of virtualization is making more data centers migrate to software-defined networking and network function virtualization technologies. Software Defined Networking (SDN) technologies support a wide range of network management tasks and applications while harnessing network-level control, reducing network complexity and boosting optimization.

The demand for online services, such as social networking, internet banking, video-on-demand, and online gaming sites, is increasing at a fast pace.

The rise in the number of connected factories will encourage the acceptance of data center networking solutions by the manufacturing industry. Data centers incorporate technologies, such as machine learning and AI, to automate the entire automation process through real-time analytics.

The growing penetration of cloud data centers in Asia Pacific will fuel the demand for advanced networking equipment that ensure optimum IT operations. The growing penetration of digitalization will support the market value.

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