Data Center Networking Market Report

Data Center Networking Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies, And Segment Forecasts, 2015 To 2022

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  • Report ID: GVR2831
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Globally the data center network market was estimated to be over USD 14 billion in 2013 and is expected to grow at an estimated CAGR of 12% from 2015 to 2022. High growth in end use devices and virtualization are causing a challenge for data centers. Extensive use of cloud services and mobile devices proliferation is putting a lot of load on the existing webbing solutions. Emerging operation models and geographical expansions of cloud computing users are creating a new requirement for data centers. 

Increased webbing solutions demand has created a need for vendors to transform data center networks into a pooled automated resource centers providing more flexibility to move workloads between any cloud to increase performance efficiency. 

Increasing density of internet users requires high speed web interface. Enterprises are very much dependent on the data centers for their efficiency to reduce operational cost and also increased productivity. 

Increasing adoption of cloud services and big data in the past few years from both the consumer and industry is expected to drive the global data center networking market. Benefits offered such as flexibility, reduced operational cost, increased performance, and improved safety & security are expected to fuel the industry growth over the forecast period. 

Virtualization is a key component in launching and delivering closely measured and fully automated private cloud systems to businesses. Well planned private clouds can reduce expenditure spent on IT involvement in routine tasks. This is expected to drive cloud computing market, which is in turn estimated to create demand for data centers. 

Business continuity and disaster recovery has made easy by data center webbing saving a lot of time and money for the firms. Monitory benefits associated with the technology is expected to surge cloud computing and data center networking demand. 

Enterprises are mainly dependent on the data center solution providers to operate in an effective & efficient manner, improve productivity, reduce costs and increase profitability. These objectives demands for high-performance server and networking technologies as well as integration between the two to achieve optimal performance. Hence, proper integration of server and simplified networking infrastructure is pivotal. 

Opportunities in the industry are mainly created by software defined networking (SDN) where nexus administrator is allowed to manage webbing architecture services through abstraction of higher level functionality. Increasing cloud service providers offering personal cloud space for consumers on account of increasing popularity of cloud computing is expected to further foster the data center networking market. 

Network virtualization is a complicated function which needs highly trained professionals to assist the process. Shortage of trained professionals and the cost of their remuneration is limiting the efficiency of data centers networks output. 

Data center networks are used in many verticals such as banking, financial, service & insurance (BFSI), government, retail, education, health care, media and entertainment and high technology industries. 

Data center networks can be segmented by products, end-use industries and by verticals it is used in. On the basis of product, market can be segmented as storage area network (SAN), application delivery controller (ADC), WAN optimization appliances, Ethernet switches, routers, and system security equipment. Different products are used together in the nexus to provide complete webbing solutions. 

Data center networking is used in various end-use industries including enterprises, cloud service providers, telecommunication service providers. On the basis of verticals, the market can be segmented as government, healthcare, retail, BFSI, media & entertainment and education. Different networking solutions are used in different verticals on the basis of requirements.  

End user of the data centers can be segmented by enterprises, cloud service providers, telecommunication service providers. Enterprises use the data network to store and access the huge amount of data which they have to handle. 

On the bases of region, the industry can be segmented as North America, Asia Pacific, Europe, Middle East & Africa and Central & South America. North America is estimated to possess largest share in the data center networking market on account of high penetration of internet and internet based data optimization solutions. Asia Pacific is expected to emerge as a key market for the industry participants as data center outsourcing to emerging Asian countries has been a key trend in recent past. 

Key players operating in the industry include Cisco, Brocade, Dell, EMC, Extreme Networks, IBM, Intel, Jupiter networks, Microsoft, NEC, Vmware, Hitachi Data Systems, Fujitsu and Alcatel-Lucent. The market is highly competitive as there are many players doing well in their respective captured markets. 

Cisco with largest installed capacity is the market leader and it is by far leader in network ports and revenues. Market leaders possess both high performance servers and webbing technologies. New participant venturing in this industry should master in both the areas to give the ultimate output. It is a technology driven industry with high initial investments and highly trained professionals to operate the data centers in an efficient manner.

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