The Global Data Center Networking Market Growth Accelerated By Rise Of Edge Computing &5G Network Rollouts
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| Data Center Networking Market |
Data center networking involves
communication networks that link various servers, storage systems, and servers
to end users in data centers. Data centers are highly energy-intensive
facilities used by organizations to house their critical applications and data.
Data center networking provide interconnection between servers, storage
systems, network systems and provides a platform for virtualization.
The global data center networking
market is estimated to be valued at US$
27.08 Mn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 to 2031, as
highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing demand for
cloud-based applications is one of the major drivers estimated to boost the
global data center networking market growth over the forecast period. Cloud
computing is gaining traction as it enables enterprises to host data and
applications over the internet rather than on-premises servers or personal
devices. According to Coherent Market Insights analysis, cloud computing
adoption has increased over 60% in the past five years. As cloud computing
requires extensive data center networks to function and expand, the demand for
data center networking solutions is also expected to increase substantially to
support growing cloud infrastructure and traffic. However, data breaches and
security threats related to cloud infrastructure can hamper the market growth.
Data center networking solution providers are focusing on advanced encryption
and authentication techniques to address security issues.
SWOT Analysis
Strength: Data center networking
offers efficient and flexible connectivity solutions to businesses. It enables
seamless sharing of resources and real-time collaboration. The technology
allows rapid scalability to support business growth.
Weakness: High initial investment
requirements for setting up networking infrastructure pose financial challenges
to small businesses. The technology is complex requiring specialized skills for
management and support.
Opportunity: Growing cloud
computing adoption is increasing the need for robust data center networking.
Rising demand for low latency connectivity solutions from industries like
financial services and healthcare present market opportunities.
Threats: Virtualization and
software defined technologies enable connectivity without dedicated hardware.
This poses a threat to traditional network vendors. Cybersecurity threats can
disrupt network operations and compromise sensitive data.
Key Takeaways
The Global
Data Center Networking Market Size is expected to witness high growth
over the forecast period of 2024 to 2031. Rapid digital transformation across
industries is driving investments in network infrastructural upgrades. The
global data center networking market is estimated to be valued at US$ 27.08 Mn in 2024 and is expected
to exhibit a CAGR of 5.5% over the
forecast period 2024 to 2031.
Regional analysis: North America currently dominates the market
owing to heavy investments by leading cloud providers in the region. Asia
Pacific is projected to be the fastest growing market, led by China, India and
other developing countries. Increasing reliance on digital services is
propelling investments in localized data center capacity and networking in
Asia.
Key players: Key players operating in the data center networking
market are BASF, DOW Chemicals, Huntsman Corporation, Ineos oxide, Saudi basic
industries corporation, Exxon Mobil Corporation, and Lyondellbasell industries.
Data center operators are collaborating with these network solution providers
to build scalable networks tailored for their infrastructure and workload
requirements. Standards-based open architectures are gaining prominence to
promote multi-vendor interoperability.
Get More Insights Here
https://www.newsstatix.com/data-center-networking-market-size-share-growth-outlook-2023/
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