Data Center Networking Equipment Market is Forecasted to Reach US$74.0 Billion in 2032, Says Stratview Research

Detroit, July 22, 2025 (GLOBE NEWSWIRE) -- The global data center networking equipment market size was valued at US$24.3 billion in 2024 and is projected to reach US$74.0 billion by 2032, witnessing a market growth CAGR of 14.9% from 2024 to 2032, according to an analysis by Stratview Research.

Stratview Research, a global market research firm, has launched a report on the global data center networking equipment market, which provides a comprehensive outlook of the global and regional industry forecast, current & emerging market trends, segment analysis, competitive landscape, & more.

Click here to get a free sample of the report:

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Market Statistics

Segment Insights & Market Share Analysis of the Data Center Networking Equipment Market:

The global data center networking equipment market is segmented based on equipment type, data center type, and region.

Based on equipment type –

• The global data center networking equipment market is segmented into switches, servers, routers & gateways, security appliances, load balancers, cables, and others.
• Security appliances are set to be the fastest-growing category of the data center networking equipment market, driven by rising cyber threats and increasing demand for robust data protection.
• Security Appliances are projected to be the most rapidly expanding category of the data center networking equipment market owing to growing cyberattacks, mounting data breaches, and more stringent regulatory demands. As data centers process more sensitive data, companies are focusing on secure infrastructure, such as firewalls, intrusion prevention systems (IPS), and unified threat management (UTM). The increasing use of cloud computing and remote workplaces further fuels the need for more sophisticated, scalable, and AI-based security products, making this segment a high-priority area of investment.

Based on data center type –

• The data center networking equipment market is segmented into enterprise, colocation, hyperscale, and edge. 
• Hyperscale data centers are set to dominate the data center networking equipment market because of their fast growth and increasing capacity requirements. In early 2024, hyperscale data centers totaled more than 1,000, with an estimated 120 to 130 new centers being added each year in the coming decade. This expansion is mainly prompted by growing AI technology adoption, which requires more capable networking infrastructures. Therefore, hyperscale data centers will be responsible for a large share of the market's demand for high-end networking gear.

To know the most attractive segments, click here for a free sample of the report:

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Which region shows the most promising growth forecast and opportunity?

The analysis suggests that Asia-Pacific is poised to be the fastest-growing region in the data center networking equipment market. This growth outlook is mainly attributed to the following:

• Quick digitalization in nations such as China, India, and Japan has hugely spurred the demand for secure data infrastructure. The ubiquitous usage of cloud computing, the Internet of Things (IoT), and artificial intelligence (AI) technologies further accentuates this requirement.
• Moreover, the rollout of 5G networks improves connectivity, which necessitates sophisticated networking solutions. Regional governments are strongly backing this growth with supportive policies and investments in digital infrastructure.
• In addition, the emergence of data localization legislation in nations like Malaysia, Indonesia, and Vietnam requires data to be stored locally, necessitating the setup of additional data centers. These combined factors place Asia-Pacific as the fastest-growing data center networking equipment market.

Data Center Networking Equipment Market Drivers:

Some of the key drivers listed in the report are given below.

• Increasing adoption of cloud computing, AI, and machine learning; growing data traffic; fast digitalization; and the need for scalable, low-energy networking infrastructure.
• Also, the growth in hyperscale data centers and the introduction of cutting-edge technologies such as 5G and edge computing are propelling the demand for robust and high-performance networking solutions.

Competitive Landscape: Top Companies in the Data Center Networking Equipment Market:

The market is consolidated, with around 50 players. Most of the major players compete in some of the governing factors, including price, product offerings, regional presence, etc. Stratview Research has identified the following companies as the top market players:

• CISCO Systems
• Arista Networks Inc.
• Huawei Technologies Co., Ltd.
• H3C Technologies Co., Ltd.
• Juniper Networks Inc.
• Dell Technologies
• Mellanox Technologies (NVIDIA)
• Lenovo
• HP Enterprise
• ODM Direct

What Deliverables Will You Get in This Report?

For Customization or Any Other Queries, Get in Touch with Our Industry Experts at - sales@stratviewresearch.com

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About us –

Stratview Research is a global market research and consulting firm that highly specializes in IT & Telecom, aerospace & defense, chemicals, and a few other industries.

It launches a limited number of reports annually on the above-mentioned specializations. Thorough analysis and accurate forecasts in this report enable the readers to take convincing business decisions.

Stratview Research has been helping companies meet their global and regional growth objectives by offering customized research services. These include market assessment, due diligence, opportunity screening, voice of customer analysis, market entry strategies, and more.

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