The Global Market for Data Center Networking Equipment is Projected to Reach US$23.2 Billion by 2020

Increasing Volume of Data Drives Demand for Data Center Networking Equipment, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Data Center Networking market. The global market for Data Center Networking Equipment is projected to reach US$23.2 billion by 2020, driven by the increasing volume of data center traffic and the ensuing rise in the need for storage, and data management.

The global market for data center networking equipment is poised to witness steady demand, supported by the growing number of mega corporate datacenters. As centralized computer centers designed to store, archive, manage, and disseminate data & information, datacenters in the modern digital information driven world are growing in importance. The criticality of datacenters to business operations can be put into perspective by the fact that these centers house all critical operational, business and customer related data and information. Datacenters therefore require hardware equipment such as servers, cables, storage devices, power supplies, cooling equipment and networking equipment. The growing volume of data and increasing need for storage, backup and other data management tools are driving demand patterns in the market. Datacenters use a wide range of networking equipment including switches, routers, application delivery controllers, WAN optimization controllers, storage area networks, and network security hardware.

Future growth in the market is forecast to come from the anticipated spurt in datacenter upgrades and restructuring, which will be driven by increasing data volumes, move towards virtualization, and growing popularity of cloud computing. With management of massive amounts of complex data being the primary challenge, enterprises are forced to adopt new datacenter architecture so as to ensure automation, security and visibility of data. These changing needs are leading to the emergence of advanced datacenter networking equipment capable of connecting processes, servers and computers present in the datacenter architecture. Datacenters traditionally rendered services to clients and therefore a major proportion of traffic has been client-server data communication. The scenario, however, is changing with the advent of virtualization and cloud computing, wherein server-to-server traffic is gaining significance. Server-to-server traffic between two datacenters drives the need for modifications in the networking infrastructure topology.

Switches represents the largest as well the fastest growing market segment. In terms of switching speeds the standard speeds of 100 Mbps and 1 Gbps are losing ground to 10Gbps networks, which are witnessing significant adoption. Rapid advances in Ethernet technologies over the years have led to emergence of 100G network, which is expected gain wide acceptance in the long-run. A major trend is the growing significance of cloud solutions in datacenters. Superior cost effectiveness and security benefits are expected to spur the popularity of datacenters based on cloud technologies. Virtualization is also fast gaining prominence, with virtual storage area network (VSAN) offering unrivalled levels of flexibility and effectiveness in data storage. Advances in Solid State Drives (SSDs) are expected to result in the replacement of hard disk drives by SSDs in datacenters.

As stated by the new market research report on Data Center Networking, the United States represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 14.4% over the analysis period. The growth in the region is led by the growing trend of datacenter outsourcing to countries such as China, India, and Malaysia.   

Major players covered in the report include Alcatel-Lucent S.A., Arista Networks Inc., Avago Technologies Limited, Avaya Inc., Brocade Communication System Inc., Cisco Systems Inc., Dell Inc., EMC Corporation, Emulex Corp, Equinix Inc., Extreme Networks Inc., F5 Networks, Inc., Fujitsu Limited, Hewlett-Packard Company, Hitachi Data Systems Corporation, International Business Machines Corporation, Intel Corporation, Juniper Networks Inc., NEC Corporation and VMware, Inc. among others.

The research report titled “Data Center Networking: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in US$ for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India, South Korea and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America) and Rest of World. Global market for Data Center Networking Equipment is further analyzed by the following product segments: Switches, Network Security Equipment and Others.

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