Pulse of Connectivity Growth: Inside the Data Center Networking Market

According to the report by Next Move Strategy Consulting, the Data Center Networking Market is expected to reach USD 73.20 billion by 2030, driven by a compound annual growth rate (CAGR) of 13.3%. At the core of this surge is a blistering growth in data generation globally.

Digital transformation across industries, constant streaming, and the rise of online services and e-commerce are swelling data volumes. This growth has become a major catalyst for demand in high-performance and scalable networking infrastructure inside data centers.

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Another powerful force fueling demand is the rise of artificial intelligence and machine learning. AI and ML workloads require high throughput and low-latency connectivity. This has pushed market participants to adopt advanced networking technologies such as 800G, 1.2 T, or even 1.6 T optical links and cutting-edge Ethernet switches.

Simultaneously, the expansion of cloud services, including hybrid cloud and multi-cloud architectures, is adding pressure on the underlying data center network. As enterprises move workloads to cloud platforms or mix on-premises and cloud deployments, the requirement for reliable, high-capacity networking infrastructure becomes critical.

But with a big opportunity comes big challenges. Growing energy requirements for data centers, especially for AI workloads, raise concerns around sustainability, cooling, power grid reliability, and operational costs. For instance, global electricity demand from data centers is projected to nearly double between 2025 and 2030.

At the same time, emerging architectural trends such as edge computing, hybrid cloud, and distributed infrastructure are creating new chances for innovation. Edge data centers processing data closer to devices raise demand for low-latency localized networking solutions, while hybrid cloud demands secure and fast interconnections between on-premise and multiple cloud platforms.

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Market segmentation breaks down by component, deployment type, end use, and geography. Components include hardware, software, and services. Hardware is further broken into Ethernet switches, routers, storage area network (SAN) equipment, network security gear, application delivery controllers, and others. Software covers aspects such as switching operating systems, virtual switches, management software, controllers, etc. Services include installation & integration, training & consulting, support & maintenance.

Deployment types are on-premise versus cloud-based. End-use industries range across telecom & IT, government, defense, retail & e-commerce, media & entertainment, BFSI, healthcare, manufacturing, education and more. Regions covered include North America, Europe, Asia-Pacific, and the Rest of the World.

Geographically, North America holds a strong share, spurred by AI-driven infrastructure expansion and limited supply in core urban markets. At the same time, Europe is growing in markets like Germany and Spain due to favorable conditions for data center build-outs. Asia-Pacific shows dynamic opportunity with India emerging as a rapidly growing region, driven by digital economy expansion, 5G rollout, and rising demand for data heavy services.

Leading players in this space include major networking and infrastructure companies such as Cisco, Arista Networks, Nvidia (via its networking acquisitions), Juniper, and Broadcom, among others. These companies are adapting strategies to capture growing demand for AI-ready, high-capacity networking gear.

This report offers quantitative forecasts for the period 2025-2030, deep dive trend analysis, assessment of drivers, restraints, and opportunities, competitive landscape (including SWOT and Porters Five Forces), market share data, value chain analysis, and regional & segment breakdowns.

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