Press release
Data Center Networking Equipment Market to Reach USD 74.0 Billion by 2032, Says Stratview Research
Stratview Research
Stratview Research, a global market research firm, has launched a report on the global market, which provides a comprehensive outlook of the global and regional industry forecast, current & emerging market trends, segment analysis, competitive landscape, & more.
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Market Statistics
• Market size: USD 24.3 billion in 2024
• Forecast value: USD 74.0 billion by 2032
• CAGR: 14.9%
• Forecast period: 2025-2032
• Base year: 2024
• Total number of segments: 3
• Tables & figures: 100
• Country-Level Market Assessment: 15
Market Segmentation
By Equipment Type
• Switches (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
• Servers (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
• Routers & Gateways (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
• Security Appliances (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
• Load balancers (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
• Cables (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
• Others (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
By Data Center Type
• Enterprise (Regional Analysis: North America, Europe, Asia-Pacific, and the Rest of the World)
• Colocation (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
• Hyperscale (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
• Edge (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
By Region
• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Africa, and Others)
Segment Analysis
By equipment type, switches, particularly Ethernet switches, are identified as the leading segment due to their critical role in enabling high-speed data transfer across data center environments. As data traffic increases and enterprises expand digital infrastructure, switches remain central to network performance, traffic management, and connectivity between servers and systems. Security Appliances are expected to be the fastest-growing category, driven by rising cyberattacks, growing data breaches, stricter regulatory requirements, and the need for secure infrastructure such as firewalls, intrusion prevention systems, and unified threat management. This makes security-focused networking equipment a key investment area for suppliers targeting cloud, enterprise, and remote-work-driven data center demand.
By data center type, hyperscale data centers are expected to hold the largest share of the data center networking equipment market in the coming years. Their dominance is linked to soaring data demand, AI adoption, cloud-driven expansion, and the growing requirement for high-capacity networking infrastructure. The source notes that hyperscale data centers totaled more than 1,000 in early 2024, with an estimated 120 to 130 new centers being added each year in the coming decade. This concentration of high-capacity infrastructure demand makes hyperscale operators a priority customer base for companies offering advanced networking hardware and secure, scalable connectivity solutions.
Regional Insights
Asia-Pacific is expected to experience the fastest growth over the forecast period. Rapid digitalization in China, India, and Japan is increasing demand for secure data infrastructure, while the growing use of cloud computing, IoT, and AI technologies is further strengthening the need for advanced networking equipment. The rollout of 5G networks is improving connectivity and creating demand for sophisticated, low-latency networking solutions. Supportive government policies, digital infrastructure investments, and data localization regulations in countries such as Malaysia, Indonesia, and Vietnam are also encouraging the development of additional data centers, making Asia-Pacific a high-priority region for companies planning capacity expansion and market entry.
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Market Drivers
• Explosion of data from cloud computing, IoT devices, and AI-driven workloads is increasing the need for robust, scalable, and high-speed networking infrastructure.
• Rising demand for real-time data access and seamless connectivity is pushing enterprises to upgrade their data center networks.
• Growth in remote work and digital services is increasing investment in advanced networking solutions that support reliable, secure, and consistent performance.
• Expansion of hyperscale data centers is increasing demand for high-end networking equipment capable of supporting large-scale computing environments.
• Rollout of 5G and the rise of edge computing are creating demand for ultra-low latency, faster data routing, and next-generation networking equipment.
Top Companies in the Market
• 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
FAQs
How big is the data center networking equipment market in 2024?
The data center networking equipment market was valued at USD 24.3 billion in 2024.
What is the data center networking equipment market expected to reach by 2032?
The market is expected to reach USD 74.0 billion by 2032.
What CAGR is expected for the data center networking equipment market during 2025-2032?
The market is projected to grow at a CAGR of 14.9% during the forecast period of 2025-2032.
Which data center type is creating the largest demand for networking equipment?
Hyperscale data centers are expected to hold the largest share of the market in the coming years, driven by AI adoption, cloud expansion, and rising capacity requirements.
Which region is growing fastest in the data center networking equipment market?
Asia-Pacific is expected to experience the fastest growth, supported by rapid digitalization, growing cloud and AI adoption, 5G rollout, and increasing investment in digital infrastructure.
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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.
Stratview Research has been helping companies meet their global and regional growth objectives by offering customized research services. These include market assessment, due diligence, opportunity screening, voice of customer analysis, market entry strategies, and more.
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