Data Center Networking Market

Data Center Networking Market Overview:

The global data center networking market size was valued at USD 37.08 Billion in 2024. The market is projected to reach USD 209.92 Billion by 2033, exhibiting a growth rate (CAGR) of 18.93% during 2025-2033. The market is driven by the rapid proliferation of artificial intelligence and machine learning applications requiring high-bandwidth, low-latency networking infrastructure. Integration of cloud computing services is enhancing enterprise digital transformation strategies across multiple industry verticals. Expanding deployment of edge computing architectures and 5G network infrastructure is reinforcing the demand for scalable networking solutions, further augmenting data center networking market share.

Data Center Networking Market Trends:

Integration of Artificial Intelligence and Machine Learning Technologies

The data center networking landscape is experiencing unprecedented transformation driven by artificial intelligence and machine learning workload requirements that demand ultra-high bandwidth and minimal latency configurations. Organizations are rapidly deploying AI-optimized networking architectures that support distributed computing frameworks, GPU clusters, and high-performance computing environments essential for training and inference operations. Advanced networking solutions including InfiniBand, Ethernet fabrics, and software-defined networking protocols are being integrated to handle the massive data transfers required by generative AI applications and large language models. Research institutions and hyperscale cloud providers are investing heavily in network infrastructure capable of supporting multi-petaflop computational clusters that process vast datasets efficiently. The convergence of AI acceleration hardware with next-generation networking technologies is creating new performance benchmarks for data center operations. In September 2025, Nokia and Supermicro announced a strategic partnership to deliver AI-optimized, integrated data center networking solutions aimed at cloud providers, enterprises, hyperscalers, and CSPs. The collaboration combines Supermicro’s 800G Ethernet switching platforms with Nokia’s Service Router Linux (SR Linux) and Event-Driven Automation (EDA) to automate data center network operations, reduce deployment times, and improve efficiency. Furthermore, machine learning-driven network optimization tools are enabling autonomous network management, predictive maintenance, and intelligent traffic routing that maximizes resource utilization while minimizing operational overhead costs across enterprise data center environments.

Expansion of Edge Computing and 5G Infrastructure

Data center networking is rapidly evolving to accommodate distributed edge computing architectures that bring computational resources closer to end users and IoT devices, necessitating sophisticated network orchestration across geographically dispersed facilities. Telecommunications companies and cloud service providers are deploying edge data centers that require seamless integration with core networking infrastructure, creating demand for unified management platforms and standardized connectivity protocols. In June 2025, Schneider Electric introduced new data center solutions to address the growing demands of high-density AI and accelerated compute applications. The company launched the Prefabricated Modular EcoStruxure Pod Data Center and EcoStruxure Rack Solutions, designed to support power densities reaching up to 1MW and beyond. These solutions feature advanced cooling technologies and are optimized for AI clusters, offering scalable, efficient infrastructure that integrates with NVIDIA's MGX architecture to meet the increasing needs of AI-driven data centers. The rise of 5G networks and edge computing presents vast opportunities, as these technologies demand high-speed data processing and real-time connectivity capabilities. Network equipment manufacturers are developing specialized switching and routing solutions optimized for edge deployment scenarios, including compact form factors, enhanced security features, and remote management capabilities suitable for unmanned facility operations. Grid operators are investing in new transmission infrastructure to support expanding data center demand, passing billions in costs to customers. Industrial IoT applications, autonomous vehicle networks, and smart city implementations are driving requirements for ultra-reliable low-latency communication that edge computing architectures uniquely provide through distributed processing capabilities. Software-defined wide area networking (SD-WAN) technologies are becoming essential for connecting edge locations to central data centers while maintaining consistent security policies and performance standards. The integration of network function virtualization with edge computing platforms is enabling flexible deployment of networking services that can be dynamically provisioned based on application requirements and traffic patterns across distributed infrastructure environments.

Data Center Networking Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global data center networking market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on component and end use.

Component Insights:

• Hardware
  • Ethernet Switch
  • Router
  • Storage Area Network (SAN)
  • Network Security Equipment
  • Application Delivery Controller (ADC)
  • Others
• Software
  • Switching Operating System (OS)
  • Virtual Switch
  • Management Software
  • Controller
• Services
  • Installation and Integration
  • Training and Consulting
  • Support and Maintenance

The report has provided a detailed breakup and analysis of the market based on the component. This includes hardware (ethernet switch, router, storage area network (SAN), network security equipment, application delivery controller (ADC), and others), software (switching operating system (OS), virtual switch, management software, and controller), and services (installation and integration, training and consulting, and support and maintenance).

End Use Insights:

• BFSI
• IT and Telecom
• Healthcare
• Retail
• Education
• Government
• Media and Entertainment
• Manufacturing
• Others

The report has provided a detailed breakup and analysis of the market based on the end use. This includes BFSI, IT and telecom, healthcare, retail, education, government, media and entertainment, manufacturing, and others.

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East
• Africa

The report has also provided a comprehensive analysis of all major regional markets. This includes North America (United States and Canada), Europe (Germany, France, United Kingdom, Italy, Spain, and others), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Latin America (Brazil, Mexico, and others), Middle East, and Africa.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided, including:

• ALE International LLC
• Arista Networks, Inc.
• Broadcom Inc.
• Cisco Systems, Inc.
• Dell Technologies Inc.
• Extreme Networks, Inc.
• Hewlett Packard Enterprise Development LP
• Intel Corporation
• NVIDIA Corporation
• Super Micro Computer, Inc.

Latest News and Development:

• August 2025: NVIDIA unveiled its Spectrum-XGS Ethernet, a breakthrough technology designed to interconnect distributed data centers and create massive, giga-scale AI super-factories. This innovation eliminates the limitations of traditional Ethernet networking, offering enhanced performance with reduced latency and congestion, optimizing multi-GPU and multi-node communication across geographically spread AI clusters. CoreWeave, a major adopter, will utilize this solution to unify its data centers into a single, scalable AI supercomputer.
• June 2024: Cisco unveiled new AI data center solution with Nvidia, introducing Cisco Nexus HyperFabric AI clusters that simplify the deployment of generative AI workloads. This strategic partnership combines Cisco's networking expertise with NVIDIA's AI acceleration technologies to deliver optimized infrastructure solutions for enterprise AI deployments, addressing the growing demand for AI-ready data center networking architectures.

Data Center Networking Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the data center networking market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global data center networking market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the data center networking industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.