Data Center Networking Market: Asia Pacific to Exhibit Most Lucrative Opportunities in Forthcoming Years

Global Data Center Networking Market: Snapshot

The adoption of data center virtualization and cloud computing has been identified as one of the key driving factors for the global data center networking market. In 2016, the global data center networking market was valued at US$ 63.05 Bn and is expected to reach US$ 228.40 Bn by 2025, expanding at a CAGR of 15.5% during the forecast period.

Organizations are becoming more dependent on services provided by data centers with each passing day. As an advanced delivery system of advertising, communications, products, news and services via internet, data centers are gaining in popularity. With the help of hyperscale data centers, which give data center infrastructure on lease, businesses are able to reduce the total cost of ownership (TCO) if not eliminate them completely for organizations. This helps in reducing expenditure on building and maintaining data center infrastructures. The task is instead achieved by data centers, equipped with various data center networking products. These centers are engaged in improving service delivery and risk management for organizations.

According to Transparency Market Research (TMR), the global data center networking market is likely to exhibit a CAGR of 15.5% between 2017 and 2025. At this pace, the market’s valuation is forecast to reach US$228.40 bn by the end of 2025, from US$63.05 bn in 2016.

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Benefiting from Rising Uptake of Cloud Computing, Market to Exhibit Strong Growth

The positive run witnessed by the data center networking market is largely ascribable to the increasing uptake cloud computing and data center virtualization. With organizations worldwide starting to realize the benefits of real-time interaction, the demand for cloud computing and data center virtualization is forecast to surge. Considering this, TMR forecasts strong growth for the overall data center networking market. Besides this, the market is expected to gain from the increasing awareness regarding the efficient use of storage devices and the rising demand for controlling data center networks.

“Improvements in service delivery and risk management will yield gains for the market in the coming years,” said a lead TMR analyst. To pace up with the present dynamic business landscape, companies are not shying from altering their service delivery models. Their primary focus is on aligning services to meet needs of both internal and external business environment. As data centers help businesses achieve a more dynamic and flexible infrastructure, their demand is forecast to surge in the coming years.

Besides this, the cost reduction in cloud data storage will aid in the market’s expansion as well. Spurred by the aforementioned factors, the global data center networking market will exhibit positive trajectory during the forecast period.

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Asia Pacific to Exhibit Most Lucrative Opportunities in Forthcoming Years

Regionally, North America, Asia Pacific, Europe, South America, and the Middle East and Africa constitute the key market segments. Among these regions North America emerged dominant in the global data center networking market in 2016. However, during the course of the forecast period Asia Pacific is expected to showcase the highest CAGR of 17.3% between 2017 and 2025. The Asia Pacific data center networking market is chiefly gaining from easy availability to connecting devices such as tablets and smartphones. Besides this economic growth witnessed across emerging nations such as India and China is expected to aid the market’s expansion in the region. Furthermore, the region exhibits a developing IT infrastructure, which help supporting outsourced activities of foreign companies efficiently. Spurred by these factors the demand for data center networking is expected to increase considerably in Asia Pacific in the forthcoming years.

The global data center networking is very competitive owing to the high demand of networking components. The key market players profiled in this report are Cisco Systems, Inc., Hewlett Packard Enterprise, Arista Networks, Juniper Networks, Microsoft Corporation, Huawei Technologies Co. Ltd., Dell Inc., Avaya Inc., Extreme Networks Inc. and Brocade networking solutions.

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