The global data center networking market is reported to have a fragmented business landscape, according to a recent report by Transparency Market Research (TMR). Stiff competition fosters the growth opportunities in the global data center networking market. Established vendors hold substantial market shares and are enjoying dominance in the global data center networking market.
Market leaders are equipped with webbing and high-performance servers. In order to produce the ultimate production, new players working in this sector should master both. It is a technology-fueled sector that operates data centers efficiently with high original investments and extremely qualified professionals.
In addition, market players tend to partner with other players to improve their technology. In June 2015, for example, HPE announced the launch of a strategic partnership in the growth of high-end switches with Arista Networks. This move has helped both businesses to establish a greater footprint in the sector and has made HPE a more attractive alternative to cloud services providers offering externalized room and services. Such instances are expected to be common strategies adopted vendors in the global data center networking market in the coming years.
According to TMR, the global data center networking market was worth US$ 63.05 Bn in 2016 and is expected to reach US$ 228.40 Bn by 2025. Over the forecast period 2017 to 2025, the market is forecasted to rise at a 15.5% CAGR.
The hardware component is expected to emerge as the leading segment in the market over the forecast tenure. This segment accounted for 52% of the total market in 2016, and the trend is expected to continue over forthcoming years.
Geography-wise, Asia Pacific is anticipated to grow at a 17.3% CAGR in the global data center networking market in the coming years. This could be ascribed to the burgeoning IT infrastructure in the region.
Soaring Cloud Adoption to Drive Data Center Networking Market
Industry opportunities are primarily provided by SDN (Software Defined Networking) where a nexus administrator can handle services of Web Architecture with a greater level of functionality abstraction. The growing popularity of cloud computing is anticipated to further boost the data center networking market for expanding cloud service providers providing private cloud room for customers.
High-speed web interface is required for increased Internet users. Businesses rely heavily on data centers to decrease operating costs and increase productivity for their effectiveness.
The global data center networking market is projected to be driven by increased acceptance of cloud and big data services by the customer and business in the last few years. The benefits of the flexibility provided are anticipated to boost development in the sector throughout the forecast period, decreased operating costs, enhanced efficiency, and enhanced safety.
Downsizing of Components Proves to Be Boon for Data Center Networking Market
The industry offers advanced technologies such as silicon photonics. Through photonic inclusion it offers cheap, mass-produced and optical parts. As a single chip that supports 100 Gb / s transmission, this technology makes space saving considerably smaller than the replacements of the optical subassemblies, reducing cost and power consumption and increasing the density, thus revolutionizing the market for network data center.
Colocation to Emerge as Key Market Trend
The management of virtualized devices needs experts because of the fact that businesses progressively outsource these operations to licensed third parties, which is a significant driver of the development of the data center networking industry. Colocation is becoming increasingly popular with organizations that want to decrease costs related to the maintenance and construction of data centers. The cooling, cooling, energy, and networking facilities provide safety to the server. Construction of new equipment also drains cash, time and labor from the company and drives further development.