Global Data Center Networks Market - Segmented by Product (Ethernet Switches, Storage Area Network, Routers), End-user Vertical (BFSI, Healthcare, Retail, Government) and Region - Growth, Trends and Forecast (2018 - 2023)
The Global Data Center Networks Market is projected to register a CAGR of 5.23%, during the forecast period of 2018-2023. The scope of the report is limited to product, including Ethernet switches, storage area network, routers, and others, and end-user vertical including BFSI, healthcare, retail, government, and others. The regions considered in the scope of the report include North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The study also emphasizes the benefits of evidence management in accordance with diverse industries, and future prospect of the same.
The growth in data center networks is attributed to diverse factors, including rising demand for automation and increasing generation of big data. The companies requiring data management systems are outsourcing the services to data center providers. Furthermore, it mitigates the cost of ownership, and reduces operational cost, thereby ascending profit. Moreover, the rise in the need for data centers with the high influx of data is expected to increase the usage of data center networks, thereby propelling the market growth during the forecast period. The incorporation of these networks enhances the scalability of the cloud-based data center, which is likely to boost the market. Increasing views of media-rich content, and coupled rising video content is expected to consume 75% of the global mobile data traffic, by 2020. Thus, to smoothen the content delivery and better data management, the demand for the data center is increasing, thereby fueling the data center networks market growth.
Increasing Utilization of Cloud Storage
The end-user verticals, such as BFSI, and retail are moving towards cloud storage, as it is more convenient and persists high security, than the conventional method. The increasing adoption of cloud services, across the globe, is expected to have a positive impact on the market growth. The companies from various industries, including energy & power are rigorously investing in the cloud-based infrastructure for the better management, and sharing of data. In 2017, the usage of Microsoft Azure increased from 26% to 43%, owing to rising adoption of AWS from 56% to 59%, which is likely to boost the utilization of cloud-based data centers, thereby propelling the market growth.
BFSI to Have the Highest Share
The banking and financial service industry demands high bandwidth to handle crucial systems and various high-performance actions, including trading and digital transactions. In addition, low latency servers are in high demand in order to provide quality and highest uptime services to the customers. As a result, the utilization of data centers is increasing, thereby propelling the usage of data center networks. Furthermore, the rise in big data will always be at its peak, owing to rising volume of transaction. The companies in BFSI sector analyze and strategically plan their business ideas through the generated big data, wherein security is a topmost concern. Data centers and networking offers smooth handling of security according to the administrator, which is expected to propel the market growth during the forecast period.
Asia Pacific to Exhibit the Highest Growth
The rapid rise in economic growth, coupled with an exponential increase in internet users in the Asia Pacific region, is likely to drive the market. The infrastructure associated with data centers are increasing and certain countries, such as India, and China are revamping the old ones, which are expected to boost the use of data centers. Furthermore, the availability of cheap smart phones in the region is propelling the number of smart phones, and internet users, which is projected to boost the data centers, thereby propelling market growth during the next six years.