The Global Data Center Networking Market was valued at USD 26.1 billion in 2024 and is estimated to grow at a CAGR of 13.6% to reach USD 89.2 billion by 2034.
As the need to decarbonize IT operations intensifies, operators are adopting energy-efficient switching equipment, software-defined networking (SDN) platforms, and optical interconnects to reduce power consumption and extend equipment lifespan. Virtualization technologies and digital twin models are enabling real-time traffic monitoring, predictive network planning, and proactive congestion management. These advancements are further supported by smart data center initiatives globally that report substantial energy savings and throughput gains. Rising demand for low-latency infrastructure, fueled by emerging technologies such as AI, 5G, and IoT, is significantly shaping the future of data center networking.
The COVID-19 pandemic brought increased focus on automation, remote network management, and cloud-based coordination, which accelerated the adoption of zero-trust architectures and AI-powered control systems. Enterprises increased investments in SD-WAN and SASE models to ensure business continuity and secure data traffic. As high-performance computing, edge connectivity, and AI training clusters become more prominent, demand has surged for high-bandwidth, low-latency network solutions such as 400G/800G Ethernet, InfiniBand, and advanced optical technologies. Enhanced automation in network operations is anticipated to reduce downtime costs and improve cloud interoperability, supporting resilient infrastructure deployments.
The hardware segment accounted for a 76% share in 2024 and is estimated to grow at a 13% CAGR through 2034. The segment dominates due to the critical role of physical infrastructure in ensuring seamless connectivity and reliability. Growth in cloud computing, big data, and IoT applications continues to drive demand for high-performance switches, routers, servers, and fiber-optic systems capable of handling heavy workloads and maintaining low latency. Scalable and secure hardware infrastructure is vital for consistent data flow, efficient load balancing, and service continuity in modern enterprise networks.
The IT & telecom sector held the largest share at 28% in 2024 and is expected to grow at a 14% CAGR through 2034. This segment leads the market due to the volume of data generated and the need for robust networking systems. Companies in IT and telecom are accelerating the deployment of 5G, edge computing, and next-gen connectivity, which require advanced networking frameworks. Cloud-native models, AI applications, and data analytics are expanding rapidly, driving the need for scalable and flexible data center networks across these industries.
U.S. Data Center Networking Market held an 85% share, generating USD 7.98 billion in 2024. Strong demand in the region stems from large-scale cloud deployments, digital transformation efforts across industries, and growing government investments in AI and cybersecurity. Widespread use of AI-powered and software-defined networks allows enterprises and public agencies to maintain scalable, secure, and energy-efficient operations at hyperscale levels.
Key players in the Data Center Networking Market include Hewlett Packard Enterprise (HPE), Bosch, ZF Friedrichshafen, Dell, Cisco, Juniper Networks, Huawei Technologies, Continental, Arista Networks, and Extreme Networks. Leading companies in the data center networking space are investing heavily in software-defined architectures, cloud-native solutions, and intelligent automation to strengthen their market presence. Many are focused on enhancing interoperability across multi-cloud environments and offering integrated platforms that combine networking, storage, and compute capabilities. Expansion of high-capacity Ethernet (400G/800G), smart network fabrics, and AI-driven analytics are among the core strategies to meet modern enterprise demands. Partnerships with hyperscale data centers and edge computing providers are also common, enabling tailored solutions for latency-sensitive workloads. Companies are actively acquiring startups with expertise in network virtualization and security to enhance innovation pipelines.
This product will be delivered within 2-4 business days.
As the need to decarbonize IT operations intensifies, operators are adopting energy-efficient switching equipment, software-defined networking (SDN) platforms, and optical interconnects to reduce power consumption and extend equipment lifespan. Virtualization technologies and digital twin models are enabling real-time traffic monitoring, predictive network planning, and proactive congestion management. These advancements are further supported by smart data center initiatives globally that report substantial energy savings and throughput gains. Rising demand for low-latency infrastructure, fueled by emerging technologies such as AI, 5G, and IoT, is significantly shaping the future of data center networking.
The COVID-19 pandemic brought increased focus on automation, remote network management, and cloud-based coordination, which accelerated the adoption of zero-trust architectures and AI-powered control systems. Enterprises increased investments in SD-WAN and SASE models to ensure business continuity and secure data traffic. As high-performance computing, edge connectivity, and AI training clusters become more prominent, demand has surged for high-bandwidth, low-latency network solutions such as 400G/800G Ethernet, InfiniBand, and advanced optical technologies. Enhanced automation in network operations is anticipated to reduce downtime costs and improve cloud interoperability, supporting resilient infrastructure deployments.
The hardware segment accounted for a 76% share in 2024 and is estimated to grow at a 13% CAGR through 2034. The segment dominates due to the critical role of physical infrastructure in ensuring seamless connectivity and reliability. Growth in cloud computing, big data, and IoT applications continues to drive demand for high-performance switches, routers, servers, and fiber-optic systems capable of handling heavy workloads and maintaining low latency. Scalable and secure hardware infrastructure is vital for consistent data flow, efficient load balancing, and service continuity in modern enterprise networks.
The IT & telecom sector held the largest share at 28% in 2024 and is expected to grow at a 14% CAGR through 2034. This segment leads the market due to the volume of data generated and the need for robust networking systems. Companies in IT and telecom are accelerating the deployment of 5G, edge computing, and next-gen connectivity, which require advanced networking frameworks. Cloud-native models, AI applications, and data analytics are expanding rapidly, driving the need for scalable and flexible data center networks across these industries.
U.S. Data Center Networking Market held an 85% share, generating USD 7.98 billion in 2024. Strong demand in the region stems from large-scale cloud deployments, digital transformation efforts across industries, and growing government investments in AI and cybersecurity. Widespread use of AI-powered and software-defined networks allows enterprises and public agencies to maintain scalable, secure, and energy-efficient operations at hyperscale levels.
Key players in the Data Center Networking Market include Hewlett Packard Enterprise (HPE), Bosch, ZF Friedrichshafen, Dell, Cisco, Juniper Networks, Huawei Technologies, Continental, Arista Networks, and Extreme Networks. Leading companies in the data center networking space are investing heavily in software-defined architectures, cloud-native solutions, and intelligent automation to strengthen their market presence. Many are focused on enhancing interoperability across multi-cloud environments and offering integrated platforms that combine networking, storage, and compute capabilities. Expansion of high-capacity Ethernet (400G/800G), smart network fabrics, and AI-driven analytics are among the core strategies to meet modern enterprise demands. Partnerships with hyperscale data centers and edge computing providers are also common, enabling tailored solutions for latency-sensitive workloads. Companies are actively acquiring startups with expertise in network virtualization and security to enhance innovation pipelines.
Comprehensive Market Analysis and Forecast
- Industry trends, key growth drivers, challenges, future opportunities, and regulatory landscape
- Competitive landscape with Porter’s Five Forces and PESTEL analysis
- Market size, segmentation, and regional forecasts
- In-depth company profiles, business strategies, financial insights, and SWOT analysis
This product will be delivered within 2-4 business days.
Table of Contents
Chapter 1 Methodology
Chapter 2 Executive Summary
Chapter 3 Industry Insights
Chapter 4 Competitive Landscape, 2024
Chapter 5 Market Estimates & Forecast, by Component, 2021-2032 ($Mn)
Chapter 6 Market Estimates & Forecast, by Application, 2021-2034 ($Bn)
Chapter 7 Market Estimates & Forecast, by Network, 2021-2034 ($Bn)
Chapter 8 Market Estimates & Forecast, by Organization Size, 2021-2034 ($Bn)
Chapter 9 Market Estimates & Forecast, by Data Center, 2021-2032 ($Bn)
Chapter 10 Market Estimates & Forecast, by Region, 2021-2034 ($Bn)
Chapter 11 Company Profiles
Companies Mentioned
The companies profiled in this Data Center Networking market report include:- Arista Networks
- Bosch
- Broadcom
- Cisco
- Continental
- Dell
- Extreme Networks
- Fortinet
- Hewlett Packard Enterprise (HPE)
- Huawei Technologies
- IBM
- Intel
- Juniper Networks
- Marvell Technology
- NVIDIA
- Schneider Electric
- Siemens
- ZF Friedrichshafen
- H3 C Technologies
- Nokia
- Alcatel-Lucent Enterprise
- ZTE
- New H3 C
- Ruijie Networks
- Allied Telesis
- D-Link
- Edgecore Networks
- Pica8
- Pluribus Networks
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 208 |
| Published | September 2025 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value ( USD | $ 26.1 Billion |
| Forecasted Market Value ( USD | $ 89.2 Billion |
| Compound Annual Growth Rate | 13.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 30 |
