High adoption Of hyper-converged & converged infrastructure will fuel the demand for data center networks.
In the data center, fabric architecture is often used for networking. The data center network market is dominated by industry sectors such as cloud service providers that have the highest customer demand across the global market.
According to a recent report, Data Center Networking Market - Global Outlook & Forecast 2022-2027, by Arizton, the ongoing trend of digitalization across businesses will continue to grow data center investments from colocation, cloud, internet, and telecommunication providers. The adoption of high-performance infrastructure supporting a particular workload will rise from 2022 to 2027. The data center network market is also witnessing growth in the adoption of software-defined networking solutions and application-centric infrastructure by data center operators across all industry sectors.
High Adoption Of Hyperconverged & Converged Infrastructure
The shift towards converged and hyper-converged data centres is being fueled by industry developments such as software-defined data centres, virtualization, and cloud computing. The advantages of hyper-converged infrastructures, such as decreased CAPEX and OPEX and disaster recovery capability, are major growth drivers in the data center network market. Most market manufacturers offer converged and hyper-converged infrastructure (rack-scale system) packages that include the hardware and software needed to process workloads with increased simplicity, flexibility, scalability, and affordability.
The use of software-based networking is increasing due to the implementation of converged infrastructure in the US. As hyperscale data centers house a large amount of IT equipment, hyperscale data center operators are increasingly adopting converged infrastructure. The US data center market will also witness high adoption of VDI solutions, thereby fueling the demand for converged/hyper-converged platforms during 2022-2027.
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Growing Acceptance of Latest Technologies
Software-defined networking solutions will become more popular as artificial intelligence and machine learning are widely adopted. In addition, the use of AI in data centers has prompted data center operators to implement technologies such as network virtualization to improve the network architecture's speed and efficiency. The usage of AI will also help the operators to monitor server performance, network congestions, and disk utilization, which will be beneficial to predict and forecast the data and power outages.
In Latin America, Brazil's government committed to launching eight AI laboratories across strategic areas including cybersecurity and defense. Around 25% of the large enterprises in Brazil are using Artificial Intelligence (AI), and Machine Learning (ML) technologies.
Data Center Network Market: Product Innovations & opportunities
Vendors have introduced various new products in the data center network market, including 200GbE and 400GbE switches, software-defined networking solutions, and OCP scale infrastructure offerings. Two major factors that will intensify the competition among vendors in the market are the decline in prices of switch ports and the disintegration of hardware and software in network infrastructure offerings.
The United States data center network market is already a mature market followed by APAC, Western Europe and Nordics witnessing a significant increase in demand for network infrastructure. Regions such as Central & Eastern Europe, the Middle East and Africa are currently in the growing stage and are expected to witness an increase in demand for network infrastructure in the upcoming years. The high competition among the major vendors has also led to opportunities for new vendors to offer products in the market.
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