Market Trends of Belgium Data Center Networking Industry
IT & Telecommunication Segment to Hold Major Share in the Market
- The strong growth of mega data centers, high penetration of 100GB switch ports, increased broadband development, increasing demand for high-speed internet, and development of internet infrastructure are positively contributing to the market growth.
- The growth is being driven by increased adoption of cloud computing technologies, digitization, virtualization, and many storage system services. As the amount of data generated continues to increase, the need for storage and backup solutions increases. More storage arrays have equivalent storage arrays in the cloud that can be easily replicated and failed over if needed. Examples include Hewlett Packard Enterprise Cloud Volumes (Nimble) and IBM Spectrum Virtualize.
- The growth is driven by an increase in telecom subscribers and an increasing number of smartphone users to generate more information and increase demand for data center network solutions in the country.
- The increasing demand for 4G services and the continuous expansion of infrastructure to provide 5G services facilitate the use of data centers. As the amount of data generated continues to increase, the need for backup and storage solutions increases. This accommodates the increasing number of network solutions in data centers.
- The rise in artificial intelligence (AI), Internet of Things (IoT), and big data workloads is driving demand for ingenious data center network infrastructure solutions among data facilities. This allows providers to constantly innovate their network portfolio to adapt to the environment and deliver greater efficiency, scalability, and reliability.
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Ethernet Switches to Hold Significant Share in the Market
- Ethernet is a midrange technology that also provides a practical solution to meet growing data center connectivity requirements. Therefore, data center expansion has increased the demand for high-bandwidth switches.
- The introduction of higher bandwidth, high performance, scalability, and virtualization in data centers contributes to the growth of the data center networking market.
- The segment is growing due to operational flexibility from 10 Mbit/s to 400 Gbit/s. For example, most residential high-speed Internet services currently reach up to around 60 Mbps for copper-based services, while fiber-optic services offer near-gigabit ethernet speeds. This tends to rapidly increase the demand for ethernet technology, further promoting the use of Ethernet switches.
- Ethernet switches are used in diverse applications in industrial infrastructure, including smart grids, surveillance and security, smart rail and transportation, and other utilities. These switches play a crucial role in the substation automation in smart grids. This is because integrating the switch into an ethernet-based network reduces the complexity and tension of cabling between power transmission and distribution devices within a substation.
- The use of ethernet switches is expected to increase due to the increased use of power over ethernet (PoE) in various applications, increased internet connectivity, development of cloud networks, and integration of home and business networks.
