Data Center Networking Market Sales, Revenue, Price and Gross Margin - 2033

Data Center Networking Market Summary

The global data center networking market size was estimated at USD 38.49 billion in 2024 and is projected to reach USD 154.83 billion by 2033, growing at a CAGR of 17.2% from 2025 to 2033. This strong growth is primarily driven by the exponential increase in global data traffic resulting from higher internet penetration, the rapid expansion of IoT devices, rising video streaming consumption, and widespread enterprise digital transformation initiatives. As organizations continue to modernize their IT operations, the need for advanced networking infrastructure within data centers has become increasingly critical.

Businesses are rapidly migrating workloads to cloud platforms such as AWS, Microsoft Azure, and Google Cloud, which requires highly reliable and secure connectivity between on-premises systems and cloud environments. To support these hybrid and multi-cloud architectures, organizations are investing in robust networking solutions that ensure low latency, high availability, and secure data transmission. As a result, demand for high-bandwidth, scalable, and intelligent networking technologies such as software-defined networking and network functions virtualization is rising significantly. These technologies provide greater network flexibility, centralized control, and efficient resource utilization.

The ongoing expansion of hyperscale data centers by major technology companies, including Amazon, Meta, and Google, is a major contributor to the growth of the data center networking industry. Hyperscale facilities require ultra-high-speed interconnects, advanced Ethernet switches, and dynamic traffic routing capabilities to manage massive volumes of data efficiently. In parallel, the rise of edge computing, driven by use cases such as autonomous vehicles, smart cities, and real-time analytics, is fueling investments in distributed micro data centers. These facilities demand fast, agile, and localized networking solutions to support real-time data processing and low-latency applications.

Key Market Trends & Insights

• North America data center networking dominated the global market with the largest revenue share of 39.0% in 2024, supported by advanced digital infrastructure, strong cloud adoption, and significant investments in data center expansion.
• The data center networking market in the U.S. is expected to grow significantly at a CAGR of 16.0% from 2025 to 2033, driven by increasing cloud workloads, enterprise digitalization, and rising demand for high-performance networking systems.
• By component, hardware led the market and held the largest revenue share of 53.0% in 2024, reflecting strong demand for switches, routers, and high-speed interconnect equipment.
• By end use, IT and telecom led the market and held the largest revenue share of 19.6% in 2024, as these sectors continue to invest heavily in scalable and resilient data center infrastructure.

Order a free sample PDF of the Data Center Networking Market Intelligence Study, published by Grand View Research.

Market Size & Forecast

• 2024 Market Size: USD 38.49 Billion
• 2033 Projected Market Size: USD 154.83 Billion
• CAGR (2025-2033): 17.2%
• North America: Largest market in 2024
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Key players operating in the data center networking industry are ALE International, Cisco Systems, Inc., Equinix, Inc., Fujitsu, Hewlett Packard Enterprise Development LP. The companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In June 2025, ALE International expanded its strategic partnership with Versa, a U.S.-based Universal Secure Access Service Edge (SASE) technology provider. The collaboration now offers ALE customers expanded access to Versa’s advanced solutions, including Secure SD-WAN and Zero Trust Network Access (ZTNA). By integrating these capabilities with ALE’s established LAN and WLAN access controls, the partnership aims to deliver comprehensive, Zero Trust security across diverse enterprise environments, spanning multi-site networks and cloud-based infrastructures.
• In February 2025, Cisco Systems, Inc. and NVIDIA Corporation strengthened their collaboration to accelerate AI adoption in enterprises. The partnership aims to deliver secure, low-latency infrastructure optimized for AI workloads by integrating Cisco's networking technologies with NVIDIA's Spectrum-X platform. It also includes developing reference architectures and embedding security across all layers of the AI stack.

Key Players

• ALE International
• Arista Networks, Inc.
• Broadcom
• Cisco Systems, Inc.
• Dell Inc.
• Equinix, Inc.
• Extreme Networks, Inc.
• Fortinet, Inc.
• Fujitsu
• Hewlett-Packard Enterprise Development LP
• Hitachi Vantara LLC
• Intel Corporation
• Juniper Networks, Inc.
• NVIDIA Corporation
• Super Micro Computer, Inc.

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

Conclusion

The data center networking market is set for rapid expansion as data volumes, cloud adoption, and digital services continue to grow worldwide. Increasing reliance on hyperscale and edge data centers is driving demand for high-speed, intelligent, and scalable networking solutions. Strong market leadership in North America and significant growth in the U.S. underscore the importance of advanced networking infrastructure. With hardware components and IT and telecom sectors leading adoption, data center networking will remain a critical foundation for supporting digital transformation, real-time applications, and future-ready cloud ecosystems.