Data Center Networking - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the global data center networking market size is expected to grow from USD 30.78 billion in 2025 to USD 36.1 billion in 2026 and is forecast to reach USD 80.21 billion by 2031 at 17.32% CAGR over 2026-2031.

This report is Segmented by Component (Product and Services), End User( IT and Telecommunications, Banking, Financial Services and Insurance (BFSI), Government and Defense and More), Data Center Type (Colocation, Hyperscalers/Cloud Service Providers, Edge/Micro Data Centers), by Bandwidth (<=10 GbE, 25-40 GbE and More) and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

Global Data Center Networking Market Trends and Insights

Growing Cloud-First Enterprise IT Strategies

Enterprises replacing hub-and-spoke designs with micro-services generate unpredictable traffic bursts that demand software-defined overlays and realtime telemetry. Programmable switches, cloud-native firewalls, and zero-trust segmentation become mandatory as financial institutions expand cloud budgets. This driver sustains refresh cycles for 400 GbE leaf-spine fabrics and analytics engines that discover and remediate latency hotspots.

AI/ML East-West Traffic Surge

GPU clusters move gradients and parameters at volumes up to 100 times higher than legacy workloads, overwhelming conventional north-south architectures. RoCE-v2 with Priority Flow Control and Explicit Congestion Notification prevents packet loss during collective operations, while demand for 800 G and 1.6 T interfaces accelerates merchant-silicon innovation. Tier-2 clouds adopt Ethernet rather than proprietary transports to balance cost and interoperability.

Multi-Vendor Interoperability Issues

Proprietary protocol extensions impede seamless integration across switches, optics, and telemetry agents, forcing enterprises to invest in costly validation labs. Delays in open-standard controller support extend migration timelines and create operational silos, particularly where AI clusters require deterministic latency guarantees across dissimilar fabrics.

Other drivers and restraints analyzed in the detailed report include:

1. Telecom-Led Edge Data-Center Build-Outs
2. 400 GbE Port Price Erosion
3. Rising Network Complexity and Skill Gaps

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Products retained 74.72% of data center networking market revenue in 2025, led by Ethernet switches that transitioned from 100 G to 400 G to satisfy AI workloads. Optical interconnects, storage fabrics, and application delivery controllers reinforced Product dominance but now face slowing unit growth as enterprises focus on architectural simplification. Vendors reported upticks in 51.2 Tbps chassis sales as GPU clusters expanded.

The Services segment is projected to grow at 17.7% CAGR as customers offload design, integration, and lifecycle management of lossless fabrics. Installation services for Priority Flow Control tuning, consulting on congestion metrics, and ongoing managed-fabric subscriptions fuel recurring revenue. Enterprises cite reduced mean-time-to-deploy by 38% after adopting turnkey managed operations, positioning Services as a critical enabler of AI business outcomes.

IT & Telecommunications captured 35.75% of the data center networking market in 2025 by virtue of hyperscale cloud, CDN, and telco investments that underpin digital-service delivery. Banking, media streaming, and e-commerce workloads dominate regional consumption across metro campuses.

Manufacturing & Industrial will advance at an 18.05% CAGR through 2031 as predictive-maintenance algorithms migrate from centralized clouds to factory-floor micro-data centers. Low-latency Ethernet fabrics link robotics, machine-vision cameras, and MES applications, cutting downtime and energy waste. Edge-native networking contracts have grown 2.4 times since 2023, underpinning sustained demand for compact, fanless 400 GbE leaf switches.

Complete Report Scope:

• By Component
  • Products
    • Ethernet Switches
    • Routers
    • Storage Area Network (SAN)
    • Application Delivery Controllers (ADC)
    • Network Security Appliances
    • Software-Defined Networking (SDN) Controllers
    • Optical Interconnects
  • Services
    • Installation and Integration
    • Training and Consulting
    • Support and Maintenance
    • Managed Network Services
• By End-User
  • IT and Telecommunications
  • Banking, Financial Services and Insurance (BFSI)
  • Government and Defense
  • Media and Entertainment
  • Healthcare and Life Sciences
  • Manufacturing and Industrial
  • Other End-Users
• By Data-Center Type
  • Colocation
  • Hyperscalers/Cloud Service Providers
  • Edge/Micro Data Centers
• By Bandwidth
  • Less than 10 GbE
  • 25-40 GbE
  • 50-100 GbE
  • Greater than 100 GbE
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Netherlands
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia and New Zealand
    • Rest of Asia-Pacific
  • Middle East and Africa
    • Middle East
      • United Arab Emirates
      • Saudi Arabia
      • Turkey
      • Rest of Middle East
    • Africa
      • South Africa
      • Nigeria
      • Rest of Africa

Geography Analysis

North America controlled 26.05% of 2025 revenue as the data center networking market scaled to support multi-billion-dollar hyperscale expansions. The United States dominates regional capex, while Canadian edge-cloud operators and Mexican near-shore campuses contribute incremental demand. Local equipment manufacturers benefit from favorable tax incentives and ultra-low carbon-intensity power grids.Asia-Pacific is the fastest-growing territory with a 17.55% CAGR through 2031, reflecting sovereign AI strategies that favor domestic processing. China's Eastern-Data-Western-Compute backbone aligns eight desert-region hyperscale hubs with coastal interconnects, driving bulk transceiver procurement. India exceeded 950 MW installed IT load in 2025, triggering step-function demand for 400 GbE fabrics across both colocation and telco edge sites. Markets such as Indonesia and Vietnam reinforce the growth wave with supportive regulatory frameworks and regional subsea-cable investments.

1. Cisco Systems Inc.
2. Arista Networks Inc.
3. Juniper Networks Inc.
4. Huawei Technologies Co. Ltd.
5. Dell Technologies (Dell EMC)
6. Extreme Networks Inc.
7. Hewlett Packard Enterprise (HPE)
8. Lenovo Group Ltd.
9. NEC Corporation
10. NVIDIA Corp. (Cumulus and Mellanox)
11. Broadcom Inc.
12. Intel Corp.
13. Fortinet Inc.
14. F5 Inc.
15. Radware Ltd.
16. A10 Networks Inc.
17. Check Point Software Technologies
18. Palo Alto Networks Inc.
19. Array Networks Inc.
20. Moxa Inc.
21. Supermicro (Super Micro Computer Inc.)
22. Edgecore Networks Corp.
23. H3C Holding Ltd.
24. NetApp Inc.
25. Keysight Technologies Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support