[225 Pages Report] The total Data Center Networking Market is expected to grow from $12.49 billion in 2013 to $21.85 billion by 2018, at an estimated Compound Annual Growth Rate (CAGR) of 11.8% from 2013 to 2018. Data centers today are facing increasing challenges due to virtualization and explosive growth in end-user devices. Geographic expansions are adding another level of complexity to the data center networking management. In addition to virtualization, cloud computing, and consolidation, security is also another biggest concern for data center operators, as legacy data center network consists of a patchwork of specialized security appliances that are complex and even difficult to manage and scale. The old device-centric security model makes it difficult to adapt to evolving threats and embrace new technologies such as Software-as-a-Service (SaaS) and virtualization. To address these demands, leading vendors such as Cisco, Juniper Networks, Brocade, and others are offering data center solutions that consolidate and simplify the security measurements, making data centers more secure and agile.

The new trends such as cloud computing, virtualization, and consolidation all have major implications on data center networking. The increasing density drives the need for higher speed interfaces. The use of virtualization drives the first level of aggregation into virtual switch, which drives higher utilization on faster links (10GbE or 40GbE), eliminating the need for physical aggregation switches. Moreover, applications are now more distributed, not physically tied to specific server hardware, or within a single rack and are more elastic in their deployments as they utilize compute and storage resources in data centers.

The market report segments the global market among data center networking products which includes Ethernet switches, routers, Storage Area Network (SAN) components, network security equipments, Application Delivery Controllers (ADCs), and Wide Area Network (WAN) optimization appliances. The market products and solutions are widely adopted across different verticals such as high tech, Banking, Financial Services and Insurance (BFSI), government, healthcare, education, retail, and media and entertainment verticals.

This MarketsandMarkets report provides key insights on the market dynamics, industry trends, adoption trends, competitive landscape, and end-user analysis in this market. The report provides business potential for data center networking products and solutions across various industry verticals such as high tech, BFSI, education, government, healthcare, retail, and media and entertainment.

In the present scenario, there is a huge potential in the market due to continued adoption of cloud services and Software-Defined Networking (SDN) in the data centers. The leading vendors such as Cisco, Alcatel-Lucent, Brocade, Juniper Networks, Extreme Networks, IBM, and others are looking for immense growth in adoption of next-generation data center networking solutions. MarketsandMarkets expects the Asia Pacific (APAC) region to hold the largest market share in the market in the coming years.

Enterprises are highly dependent on their data center�s efficiency and application�s performance to improve employee productivity, reduce operational costs, and increase revenue. To achieve these objectives, virtualization, simplification, and consolidation are the three most crucial initiatives for enterprises. These objectives demands for high-performance server and networking technologies as well as integration between the two to achieve optimal performance. Hence, proper integration of server and simplified networking infrastructure is pivotal.

The data center networking vendors are focusing on delivering best-in-class dynamic network infrastructure that can help to consolidate applications and servers and virtualizes its system resources along with improving overall performance, availability, and energy efficiency, thereby providing a more flexible and dynamic Information Technology (IT) infrastructure. Today�s data center networking infrastructure solution is based on open standards. It optimizes performance and enables consolidation which in turn increases network scalability and resiliency, simplifies operations and streamlines management along with lowering the Total Cost of Ownership (TCO). This solution also automates the network infrastructure management, making existing infrastructure easily adaptable and flexible, especially for cloud service providers, for third party application deployments.

This report gives detailed insights into the global market split across networking products, network security equipment, end-user environment, verticals, and regions. The networking product segment includes switches, routers, Storage Area Network (SAN) components, network security equipment, Application Delivery Controller (ADC), and Wide Area Network (WAN) optimization appliances. The network security equipment comprises of firewalls, Intrusion Prevention Systems (IPS), remote VPN access device, and other security devices. The end-user environment is segmented among cloud service providers, telecommunications providers, and enterprises. The verticals segment includes verticals such as high tech, Banking, Financial services and Insurance (BFSI), healthcare, government, education, retail, media and entertainment, and others. The region-wise segmentation covers North America (NA), Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America (LA). The report also emphasizes on key adoption trends, future opportunities, and business cases in this innovative market. MarketsandMarkets expects an increasing adoption of data center networking solutions, as major vendors are aggressively investing and rigorously working toward building cost-effective and virtualized data center network architecture, in an effort to meet the rising bandwidth demands and business agility. The total market is expected to grow from $12.49 billion in 2013 to $21.85 billion by 2018, at an estimated Compound Annual Growth Rate (CAGR) of 11.8% from 2013 to 2018.

Data Center Networking: Market Size, 2013�2018 ($Billions)

Source: MarketsandMarkets Analysis