News
Future of Data Center Networking Market to Surge to $68 Billion by 2032
September 2024 by Gminsights
The data center networking market will witness over 12% CAGR between 2023 and 2032. The exponential increase in data volume due to digital transformation, cloud computing, and the Internet of Things (IoT) necessitates scalable and high-performance networking solutions. The shift to remote work, accelerated by the COVID-19 pandemic, emphasizes the need for robust data center networks to ensure seamless connectivity and security.
Additionally, the rapid integration of emerging technologies like 5G and edge computing will drive the data center networking market. For instance, in September 2023, Supermicro introduced a new range of Supermicro H13 generation WIO servers powered by AMD (Advanced Micro Devices) processors. This expansion of their AMD EPYC-based server lineup is strategically optimized to deliver exceptional total cost of ownership (TCO) and energy efficiency, catering specifically to the needs of data center networking and edge computing applications.
The overall Data Center Networking Market is classified based on component, end-use, and region.
By component, the managed services segment will show a high growth rate from 2023 to 2032. Businesses are increasingly turning to managed service providers to optimize their data center networking infrastructure. These services offer expertise in network design, monitoring, security, and maintenance, allowing organizations to focus on their core operations. With the ever-evolving complexity of data centers, the contribution of managed services to the data center networking market revenue is on the rise.
The energy segment could dominate the end-use landscape of the data center networking industry by 2032. As the energy sector embraces digital transformation, data centers play a pivotal role in managing and analyzing vast amounts of data for smart grid operations, renewable energy monitoring, and resource optimization. Robust data center networking solutions are in high demand to ensure real-time data access, reliability, and security, driving growth in this sector.
Europe data center networking market will showcase over 13% CAGR from 2023 to 2032. As industries across the continent undergo digitalization and cloud adoption, robust data center networking solutions are crucial for efficient data management and accessibility. The European Union’s focus on data security and regulatory compliance further drives the need for advanced networking infrastructure.
One such prominent regulation in place from the EU is the General Data Protection Regulation (GDPR), which stands as the most stringent global privacy and security legislation. It grants individuals authority over their data and mandates that businesses implement safeguards to prevent unauthorized access, usage, disclosure, alteration, or loss of such data. As European businesses prioritize digital transformation, the data center networking market size in the region is witnessing significant growth.
Source https://www.gminsights.com/industry-analysis/data-center-networking-market
