Data Center Networking Market Size, Share, Growth Analysis, By Component (Hardware, Services), By Deployment (Cloud, On Premise), By End Use (BFSI, Healthcare), By Network Architecture, By Network Management, By Region - Industry Forecast 2025-2032

Data Center Networking Market size was valued at USD 28.1 Billion in 2023 and is poised to grow from USD 31.47 Billion in 2024 to USD 69.57 Billion by 2032, growing at a CAGR of 12% during the forecast period (2025-2032).

The data center networking market is growing due to virtualization and widely deployed advanced operating models in data centers. Improving "on-demand" service offerings in various industries and real-time participation of customers also enhances growth in this data center networking market. Furthermore, the adoption of cloud computing services in various sectors requires increasing data center networks. Business, consumer, and government demands for innovative technological solutions to high-speed internet needs are the most prominent drivers of expansion in data center networks. Data centers represent a necessary part of digital infrastructure. Data centers are often located at a few strategic locations known as Internet exchange points (IxPs). Major internet service providers, content delivery networks, and other enterprises connect here. User expectations have gone up with the increasing adoption of technologies such as linked devices and smartphone-driven applications for faster data retrieval, streaming alternatives, and real-time applications. More traffic is thus envisaged. Therefore, more robust and efficient data center networks are warranted to manage increased traffic. As dependence among organizations, services, supply chains, operations, and government agencies on fast internet increases, so does the demand for data center services. There is also an increased demand for data center network services due to the growing reliance on the management of data analytics, collecting, and data-driven strategic choices.