Canada Data Center Networking Market Size
| Study Period | 2018-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.66 Billion |
| Market Size (2029) | USD 0.93 Billion |
| CAGR (2024 - 2029) | 6.90 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Canada Data Center Networking Market Analysis
The Canada Data Center Networking Market size is estimated at USD 0.66 billion in 2024, and is expected to reach USD 0.93 billion by 2029, growing at a CAGR of 6.90% during the forecast period (2024-2029).
- The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Canada data center rack market is expected to reach 1,150 MW by 2029. Data centers consume approximately 1% of all electricity consumed in Canada each year. About half of the energy used in data centers is consumed by computing servers. Another 40% goes to cooling these servers.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5.1 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 289,000 units by 2029. Quebec is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 16 submarine cable systems connecting Canada, and many are under construction.
Canada Data Center Networking Market Trends
Ethernet Switches is Anticipated to be the Largest Segment
- An Ethernet switch is a type of networking hardware that forms the foundation of networks and the Internet. Ethernet switches connect wired devices such as computers, Wi-Fi access points, PoE lighting, IoT devices, and servers onto an Ethernet LAN, enabling communication among themselves and with the Internet.
- Ethernet switches find broad applications in industrial infrastructure, including smart grids, security and surveillance, intelligent rail and transportation, and other utilities driving the industrial Ethernet switch market. In smart grids, Ethernet switches play a crucial role in substation automation by reducing the effort and complexity of cabling between numerous power transmission and distribution substation devices through integration into Ethernet-based networks.
- In November 2022, Siemens renewed and upgraded its Scalance XC/XR-300 series of industrial Ethernet switches, enhancing them with additional features for next-generation industrial networks. The so-called managed layer 2 switches of the Scalance X Industrial Ethernet Switch product family are available in both a compact model and a 19-inch version designed for control cabinets.
- The range of industrial Ethernet switch products available reflects the vendor's continuous product expansion, extending beyond traditional 8-port DIN rail switches to include application-specific services. Vertical integration and infrastructure applications aim for maximum throughput and bandwidth, whereas factory automation applications may seek to limit network traffic.
- Smart Ethernet switches incorporating Power-over-Ethernet (PoE) technology are utilized for security and monitoring purposes. PoE networks deliver power through local network cables to connected devices, proving useful for Internet protocol-based monitoring systems and aiding in accessible browser-based communication and user interface.
IT & Telecommunication is Anticipated to be the Fastest Growing Segment
- Canada boasts a robust domestic technology sector, particularly within its information and communications technology (ICT) industry, which encompasses over 43,200 companies. Predominantly, these entities operate in the software and computer services sector. The majority of this sector comprises small and medium-sized enterprises, with approximately 35,500 having fewer than 10 employees. Additionally, there are around 100 large companies with 500 or more employees, including subsidiaries of multinational corporations based abroad.
- The nation's future blueprint involves the development of smart cities, an endeavor set to integrate cutting-edge technologies like IoT, blockchain, and AI. This initiative foresees a surge in data generation. The Government of Canada's Smart Cities Challenge, initiated in 2017, received applications from over 225 municipalities eager to explore the advantages of the plan, indicating a keen interest in fostering smarter regions. The impending emergence of 5G services and faster network technologies in smartphones will further drive the proliferation of smart devices controlled by smartphone apps. This trend is poised to heighten the demand for data center facilities equipped with suitable PDU units.
- Notably, significant investments by the Canadian government are poised to incentivize major operators to expand their fiber coverage nationwide, thereby fortifying data transmission infrastructure. In August 2022, Rogers and Bell Canada secured grants totaling USD 500 million for fiber builds in underserved areas of Ontario. These investments align with a provincial long-term strategy, amounting to USD 4 billion, aimed at providing broadband services to every location in Ontario by the close of 2025.
- The telecommunications landscape has embraced a hybrid cloud structure, combining both public and private cloud frameworks. This hybrid model aids telecom companies in managing sudden traffic surges, enabling swift deployment of cloud services and minimizing downtime. With bandwidth speeds on the rise, mobile data consumption has surged from 1.5 GB in 2016 to 4.8 GB in 2022, projected to reach approximately 8.6 GB by 2029. As a result of these advancements, the forecast anticipates a growth trajectory for data center facilities
Canada Data Center Networking Industry Overview
The Canada data center networking market is moderately competitive, having gained significant ground in recent years. Currently, market dominance is held by a select few major players, including Cisco Systems Inc., Schneider Electric, Huawei Technologies Co. Ltd., VMware Inc., and Dell Inc.
In March 2023, Arista Networks unveiled a groundbreaking development: the Arista WAN Routing System. This innovative system amalgamates three novel networking products—a high-performance enterprise routing platform, carrier/cloud-agnostic Internet relay capabilities, and the CloudVision Pathfinder Service, aimed at streamlining and enhancing customers' wide area networks. Leveraging Arista's EOS routing capabilities and CloudVision management, the Arista WAN Routing System offers comprehensive architecture, functionalities, and a robust platform, empowering the modernization of federated and software-defined wide-area networks.
Canada Data Center Networking Market Leaders
Cisco Systems Inc.
Schneider Electric
Huawei Technologies Co. Ltd.
VMware, Inc.
Dell Inc.
*Disclaimer: Major Players sorted in no particular order
Canada Data Center Networking Market News
- October 2023: Arista Networks has introduced a portfolio of 25G Ethernet switches to support primarily financial applications that demand high performance and low latency. The new 7130 25G Series boxes are a significant power and features upgrade over the vendor’s current 7130 10G Ethernet line of devices and promise to reduce link latency 2.5-fold for data transmission by reducing queuing, serialization delays and eliminating the need for latency-inducing Forward Error Correction (FEC) typically required by 25G Ethernet.
- May 2023: NVIDIA has announced SpectrumXtreme, an accelerated networking platform manufactured to enhance the performance and efficiency of the cloud-based on Ethernet AI. NVIDIA Spectrum-X is developed on networking developments powered by the firm coupling of the NVIDIA Spectrum-4 Ethernet switch with the NVIDIA BlueField-3 DPU, attaining 1.7x better overall AI performance and power efficiency, along with consistent, predictable performance in multi-tenant environments.
Canada Data Center Networking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Trend of High-Performance Computing across Europe
4.2.2 Growing Investments in IT& Telecom Sector
4.3 Market Restraints
4.3.1 Regulatory constraints
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 By Component
5.1.1 By Product
5.1.1.1 Ethernet Switches
5.1.1.2 Router
5.1.1.3 Storage Area Network (SAN)
5.1.1.4 Application Delivery Controller (ADC)
5.1.1.5 Other Networking Equipment
5.1.2 By Services
5.1.2.1 Installation & Integration
5.1.2.2 Training & Consulting
5.1.2.3 Support & Maintenance
5.2 End-User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End-User
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Cisco Systems Inc.
6.1.2 Arista Networks Inc.
6.1.3 VMware Inc
6.1.4 Huawei Technologies Co. Ltd.
6.1.5 NVIDIA (Cumulus Networks Inc.)
6.1.6 Dell Inc.
6.1.7 IBM Corporation
6.1.8 HP Development Company, L.P.
6.1.9 Intel Corporation
6.1.10 Schneider Electric
6.1.11 Eaton Corporation
6.1.12 Emerson Electric Co.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Canada Data Center Networking Industry Segmentation
Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of applications and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.
The Canada data center networking market is segmented by product (Ethernet switches, routers, storage area network (SAN), application delivery controllers (ADC), and other networking equipment), by services (installation & integration, training & consulting, and support & maintenance), and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end users).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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| Other End-User |
Canada Data Center Networking Market Research FAQs
How big is the Canada Data Center Networking Market?
The Canada Data Center Networking Market size is expected to reach USD 0.66 billion in 2024 and grow at a CAGR of 6.90% to reach USD 0.93 billion by 2029.
What is the current Canada Data Center Networking Market size?
In 2024, the Canada Data Center Networking Market size is expected to reach USD 0.66 billion.
Who are the key players in Canada Data Center Networking Market?
Cisco Systems Inc., Schneider Electric, Huawei Technologies Co. Ltd., VMware, Inc. and Dell Inc. are the major companies operating in the Canada Data Center Networking Market.
What years does this Canada Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the Canada Data Center Networking Market size was estimated at USD 0.61 billion. The report covers the Canada Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Canada Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Canada Data Center Networking Industry Report
Statistics for the 2024 Canada Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Data Center Networking analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
