Data Center Networking Market Growth, New Trends, Future Scope, Latest Technologies, Outlook, Competitive Landscape & Forecast - 2029

Data Center Networking Market by Hardware (Network Switches [Fixed, Modular], Routers), Fixed Switches (Managed, Unmanaged), Speed, Routers, Software (Network Management & Monitoring, NFV, Software-defined Networking) - Global Forecast to 2029
The data center networking market [https://www.marketsandmarkets.com/Market-Reports/data-center-networking-market-1044.html?utm_campaign=datacenternetworkingmarket&utm_source=abnewswire.com&utm_medium=paidpr] is expected to increase from USD 37.6 billion in 2024 to USD 64.2 billion in 2029, at a compound annual growth rate of 11.3%. Therefore, it suggests that the need for data center networking solutions would increase in the future.

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By end users, enterprises hold the largest market share during the forecast period.

Enterprises are much more focused on innovative technologies in networking to address increasing data volume and seek much more availability and reliability for IT operations. These technologies are also helpful for data analysis, cloud computing solutions, and IT systems management that, in turn, ensure a competitive advantage and innovation. Furthermore, the recent developments in data center networking technologies, such as artificial intelligence (AI) and machine learning (ML), have made it easier for companies to be more efficient in session and network planning, as well as threat detection, root cause analysis, and resource forecasting.

As a result, businesses continue to invest in software-defined networking and network function virtualization to bring more network flexibility and reduce operational expenditure. Therefore, huge investment and strategic attention toward technological innovation by the enterprise segment drive the growth of the data center networking market. Enterprises began rapid adoption of various innovations in SDN, network virtualization, and automation to drive efficiencies in the management of network infrastructure and to bring more agility in support of dynamic business environments.

By offering, the software will grow at the highest CAGR during the forecast period.

Data center networking software comprises several solutions to manage and develop intricate hosting environments in data centers. These solutions ensure efficient management, supervision, and optimization of networks, which are critical for ensuring high productivity and dependability in data centers. The growing demand for network virtualization will accelerate the development of this software because virtualization technology gives enough resources for network changes of diverse nature by reducing reliance on physical hardware and simplifying costs and complexity. Furthermore, the escalation in demand for next-generation network supply because of the ubiquitous IoT devices, cloud computing, and extensive data analysis falls on powerful software to manage network resources quickly. Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) technologies into data center networking software enhances the market's growth by enabling early prediction of network issues, automation of repetitive tasks, and overall network optimization, thus improving organizational competency and ensuring secure, continuous network functionality.

By Region, Europe will hold the second-largest market share in 2024.

Europe is experiencing fast-growing networking technologies like high-speed, low-latency networks and new data center architectures. These are essential for creating newer innovations such as artificial intelligence (AI), machine learning, and big data, for which there is always a high demand for computational power and data storage. The governments in Europe are proactively introducing favorable measures and actions to strengthen the digital environment and technological advancement. The European market is also characterized by the increasing importance of data sovereignty and privacy regulations, which puts pressure on using local data centers that meet the high requirements of the legislation. Thus, enterprises and service providers are becoming more intelligent and implementing sophisticated regional data center facilities to meet compliance and performance standards.

In 2024, there will be improved progress in European submarine cable projects. The EU is willing to fund "cable projects of European interest" to improve the Internet networks and the security of these networks. The submarine cable projects in Europe set for 2024 will be very useful in making data center networking more connected, secure, and resilient.

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Unique Features in the Data Center Networking Market

Data center networking solutions are uniquely built to support ultra-low latency and high-speed data transfer, catering to modern workloads such as AI, big data analytics, and real-time applications. Technologies like 400G Ethernet, NVMe over Fabrics, and RDMA (Remote Direct Memory Access) enhance performance and efficiency within data center environments.

A key differentiator in the market is the adoption of Software-Defined Networking, which decouples the control plane from the data plane, allowing centralized management and automated network configuration. SDN enhances agility, scalability, and control, enabling data centers to adapt rapidly to changing workload demands.

IBN is emerging as a unique feature where network administrators define business intent, and the network automatically translates it into configurations and policies. This innovation allows for proactive management, predictive analytics, and autonomous network optimization, significantly reducing downtime and manual errors.

Modern data center networking supports hybrid and multi-cloud integrations, facilitating seamless data movement between core data centers, edge locations, and public cloud platforms. This ensures application continuity, workload portability, and efficient resource utilization across distributed infrastructures.

Major Highlights of the Data Center Networking Market

The data center networking market is witnessing significant growth due to the rising adoption of cloud computing, artificial intelligence, and big data analytics. Enterprises are scaling their data infrastructure to handle massive volumes of data and demanding workloads, boosting demand for high-performance networking solutions.

A major trend in the market is the shift from traditional hardware-based networks to software-defined and virtualized networking architectures. These solutions offer improved flexibility, centralized control, and seamless scalability, making them ideal for dynamic and complex data center environments.

The proliferation of hyperscale data centers operated by tech giants such as Amazon, Microsoft, and Google is significantly impacting the market. These large-scale facilities require ultra-fast, reliable, and scalable networking infrastructures to support millions of connected devices and services globally.

Data centers are rapidly adopting advanced Ethernet standards such as 100G, 200G, and 400G to meet escalating bandwidth demands. These technologies improve throughput, reduce latency, and support high-density server architectures, positioning them as critical enablers of future-ready networks.

Organizations are leveraging automation, AI, and ML to streamline network operations, reduce human error, and ensure predictive maintenance. These intelligent systems are enhancing network visibility, optimizing performance, and improving incident response times across data center infrastructures.

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Top Companies in the Data Center Networking Market

Some of the key players operating in the Data Center Networking are - NVIDIA (US), Arista Networks (US), Dell (US), Cisco (US), Huawei (China), Broadcom (US), HPE (US), Nokia (Finland), Intel (US), ZTE (China), Extreme Networks (US), Edgecore Networks (Taiwan), Lenovo (China), Juniper Networks (US), F5 (US), A10 (US), Alcatel-Lucent Enterprise (France), NETGEAR (US), 6WIND (France), H3C (China), Kaloom Networks (Canada), Pica8 (US), Arrcus (US), Larch Networks (Israel), ZPE Systems (US), Nuage Networks (US), and Netris (US).

NVIDIA

NVIDIA is a well-known brand supplying graphics processing units across the gaming, professional visualization, data centers, and automotive markets. The GeForce GP product line, established by NVIDIA as the gaming industry benchmark with advanced functions and a high level of performance, is one of the leading product lines within the company. In terms of professional and high-performance computing needs, NVIDIA released the Quadro and TITAN series, respectively. Of late, NVIDIA has been contributing a lot to artificial intelligence and deep learning sectors, and its GPUs are being used for preferential development of AI training and inferencing tasks. NVIDIA is engaged in diversified areas such as gaming, professional visualization, AI and machine learning, and high-performance computing.

NVIDIA offers comprehensive solutions that maximize the data center's performance, scalability, and efficiency, answering the modern complex requirements of enterprises and service providers. These comprise the Spectrum and ConnectX series that help deliver high bandwidths and low latency, coupled with other traits most needed in running large data centers and cloud services, artificial intelligence, and high-performance computing. With their BlueField data processing units, NVDA is tapping up extra CPU performance, which would otherwise be lost during network, storage, and security operations. NVIDIA's networking solutions will fit with its GPUs and AI tech to meet the mushrooming needs for data processing and analysis in data centers, improving efficiency.

Arista Networks

Arista Networks is an innovative cloud networking company that has developed large data center equipment, providing high returns to high-frequency traders. The product line includes high-performance network switches and an extensible operating system, EOS, rich in programmability and modularity. Other important aspects of their solutions relate to high availability, super scalability, and ultra-low latency, targeting the largest clients in the technology, financial services, and service provider spectrum. Arista Networks focuses on further developing products and services, innovation, investment, customer relationships, etc. Therefore, it has been able to maintain the lead in networking. Geographically, it operates in the Americas, EMEA, and APJC regions. Arista Networks is one of the fastest-growing data center networking solutions vendors. It offers leading products designed for high-speed and large-scale data centers. Its products include the Arista advanced network switches, with their Extensible Operating System, which is highly programmable and modular. Arista has a series of products, including 7000 switches with high throughput, low latency, and further automation for data centers and cloud computing usage. In this regard, Arista meets the need for higher bandwidth and minuscule latency based on SDN/NFV architectures and advanced Ethernet technologies such as 25G, 50G, and 100G. Leading technology firms and financial and service providers adopt its solutions, further establishing it as an innovation and reliability leader in data center networking.

Dell

Founded by Michael Dell in 1984, Dell Technologies is an American multinational technology company headquartered in Round Rock, Texas. The company develops, sells, repairs, and supports personal computers (PCs), servers, data storage devices, network switches, software, and computer peripherals. Initially recognized for its direct-to-consumer PC sales, Dell has expanded into IT services and enterprise solutions. In 2016, Dell acquired EMC Corporation, enhancing its capabilities in data storage and information security. As of 2024, Dell is the world's third-largest PC vendor by unit sales, following Lenovo and HP. The company operates in over 180 countries, with approximately half of its revenue derived from IT infrastructure. Dell has also positioned itself as a significant player in the AI sector, building and selling powerful servers to companies globally.

Cisco

Established in 1984 by Leonard Bosack and Sandy Lerner, Cisco Systems is an American multinational technology conglomerate headquartered in San Jose, California. The company specializes in networking hardware, software, and telecommunications equipment. Cisco is renowned for pioneering Internet Protocol (IP)-based networking technologies, contributing significantly to the development of the internet. Its product portfolio includes routers, switches, cybersecurity solutions, and collaboration tools like Webex. Cisco operates in various tech markets, including the Internet of Things (IoT), domain security, and energy management. As of 2024, the company employs approximately 90,400 people worldwide.

Huawei

Founded in 1987 by Ren Zhengfei, Huawei is a Chinese multinational technology corporation headquartered in Shenzhen, Guangdong. The company designs, develops, manufactures, and sells telecommunications equipment, consumer electronics, and smart devices. Initially focusing on manufacturing phone switches, Huawei has expanded to building telecommunications network infrastructures and providing equipment and consulting services. By 2012, it became the largest telecommunications equipment manufacturer globally. In 2024, Huawei's annual revenue exceeded $118 billion, marking a 22% year-on-year growth, the fastest in four years. This growth was driven by the consumer business segment, particularly the launch of new smartphones with locally-made chipsets. Huawei's market share in the Chinese smartphone market reached 16%, surpassing Apple's.

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