Top 3 Trends Boosting the Adoption of Data Center Networking by 2027
Escalating requirements for reliable networking solutions in industries that are adopting the latest digital technologies could generate new growth strides in the data center networking market. Large number of SMEs across developed economies like Europe are adopting digital technologies like artificial intelligence and machine learning. Whereas the colocation sector in these regions is becoming popular as medium and small sized businesses go through budgetary constraints with respect to construction of new data centers. Generally, colocation providers use data center networking solutions to ensure scalability and security.
Unarguably, social media and OTT has increased the amount of generated data. Growing data volumes is pushing the need for sophisticated data center networking infrastructures. In 2021, Dell Technologies introduced new solutions to help customers propel investments in 5G and analytics, modern networking, and connected technology.
Firms in the data center networking market are working on product innovations which meet the changing demands of end-users. Machine learning, IoT, automation and AI are some of the solutions that are gaining acceptance across a myriad of industries. In 2020, Nokia announced the launch of its new and advanced Network Operating System and an intent-based operations and automation toolkit which will enable cloud and data center builders to adapt and scale their operations.
According to a new research report by Global Market Insights, Inc., the data center networking market may register around USD 45 billion by 2027. Some of the trends that may propel data center networking market outlook include:
- Rising adoption of digital payment platforms
The digital payments sector has added to the demand for high performance data center networking infrastructure for the purpose of data traffic management. The BFSI sector is witnessing an increasing penetration of digitalization, along with the usage of technologies like smart cards and mobile wallets. Rising amounts of digital data could further drive the need for high performance data center networking solutions.
- Implementation of AI solutions in the manufacturing sector
Several manufacturing industries are using AI-driven and automated solutions that generate large amounts of data. Generation of huge amounts of data has led to data storage demand that has triggered the construction of hyperscale data centers that need efficient monitoring of complex components and infrastructure, as well as network management.
The hype of IoT is gripping in the manufacturing industry, specifically in the automotive manufacturing sector. Given the rising usage of connected devices by manufacturers, there is an expected demand for high performance IT and network infrastructure solutions.
- Industrial sector progress in South America
South America holds a developing industrial sector which is likely to fuel overall data center networking market expansion. Industries in Brazil are adopting advanced technologies like artificial intelligence and machine learning to boost productivity. Surging internet penetration in the region is anticipated to be a probable market growth factor. An increase in the number of people using 5G services could boost the demand for data center infrastructures and data center networking solutions.
About the Author
With an MBA in marketing, Samikshya Borse is on a journey to explore all facets of content marketing and writes articles of interest across distinct industry verticals. Meticulous and driven, she has a keen interest in the English language and literature, with a notable curiosity for technology, fashion and luxury markets.
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