The global data center network infrastructure market is expected to post a CAGR of more than 12% during the period 2019-2023, according to the latest market research report by TechnavioHowever, the market's momentum will decelerate in the coming years because of the decrease in year-over-year growth.
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Technavio has published a new market research report on the global data center network infrastructure market from 2019-2023. (Graphic: Business Wire)
A key factor driving the growth of the global data center network infrastructure market size is the demand for high-bandwidth switches by hyperscalers and colocation service providers. Hyperscalers such as Google, Microsoft, and AWS are significantly increasing the number of data centers in locations where they already have a presence and boosting their investments in new regions. Moreover, hyperscalers and colocation service providers are focusing on implementing high-bandwidth solutions in their data centers owing to the changing demand of organizations. This is increasing the demand for high-bandwidth ethernet switches. Therefore, the growing demand for high bandwidths from hyperscalers and colocation service providers is expected to drive the data center network infrastructure market growth during the forecast period.
As per Technavio, the increase in AI/ML applications in data center networking will have a positive impact on the market and contribute to its growth significantly over the forecast period. This global data center network infrastructure market 2019-2023research report also analyzes other significant trends and market drivers that will affect market growth over 2019-2023.
Global Data center network infrastructure market: Increase in AI/ML applications in data center networking
Artificial Intelligence (Al) technologies are increasingly being deployed across various components within data centers as they help automate tasks and reduce errors due to human intervention. Al was used mainly for ransomware detection initially. However, it is now being used to provide more insightful and actionable recommendations. It can also be used to ensure proper bandwidth allocation within cloud data centers and fix network utilization issues. This will improve the overall data center network performance. Therefore, the increase in AI applications in data center networking will fuel market growth during the forecast period.
"Apart from the increase in AI/ML applications in data center networking, other factors such as the growing adoption of NVMe-oF, and the increase in white box manufacturers for networking equipment will have a significant impact on the growth of the data center network infrastructure market size during the forecast period," says a senior analyst at Technavio.
Global Data center network infrastructure market: Segmentation analysis
This market research report segments the global data center network infrastructure market by technology (Ethernet switches, data center interconnect, routers, and other networking infrastructure) and geographic regions (APAC, Europe, North America, South America, and MEA).
The North American region led the data center network infrastructure market in 2018, followed by Europe, APAC, MEA, and South America, respectively. The growth of the data center network infrastructure market revenue in North America can be attributed to the increasing demand for cloud services in the region. The demand for cloud services is increasing due to their benefits that include the ability to scale resources as per the needs of a customer.
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- Market characteristics
- Market segmentation analysis
- Market definition
- Market size and forecast
Five Forces Analysis
- Regional comparison
- Key leading countries
- Vendors covered
- Vendor classification
- Market positioning of vendors
- Competitive scenario
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