China Data Center Networking Market Size
| Study Period | 2018-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.27 Billion |
| Market Size (2029) | USD 1.74 Billion |
| CAGR (2024 - 2029) | 6.56 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Data Center Networking Market Analysis
The China Data Center Networking Market size is estimated at USD 1.26 billion in 2024, and is expected to reach USD 1.74 billion by 2029, growing at a CAGR of 6.56% 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.
- The upcoming IT load capacity in the country is projected to cross 3,300 MW by 2029, boosting the demand for data center racks. The construction of raised floor area for data centers in the country is expected to reach 11.9 million sq. ft by 2029 for under construction raised floor space.
- The country's total number of racks to be installed is expected to touch 600,000 units by 2029. Currently, four submarine cable projects are under construction in the country. One such submarine cable, estimated to start service in 2023, is Asia Direct Cable (ADC), stretching over 19000 kilometers with landing points Chongming, Lantau Island, and Shantou for planned submarine cables.
China Data Center Networking Market Trends
IT and Telecom to have significant market share
- The country's growing demand for streaming services, such as Douyin, Kuaishou, Iqiyi, Youku, and Tencent Video, has significantly increased data consumption due to their high-quality video streaming services. Moreover, short video platforms like Douyin and Kuaishou are preferred over OTT services. In 2021, approximately 931 million users streamed short videos, whereas only 464 million utilized these platforms for streaming.
- As the volume of generated data continues to surge, the requirement for backup and storage solutions is escalating. This necessity accommodates the growing number of network solutions in data centers.
- With most industries adopting Industry 4.0 standards and integrating automation in their factories, end-user data consumption is anticipated to rise. The surge in AI, IoT, and big data workloads is fueling the demand for innovative data center network infrastructure solutions within these facilities. This enables providers to consistently innovate their network portfolios, adapting to the environment and ensuring greater efficiency, scalability, and reliability.
- The escalating demand for 4G services and ongoing infrastructure expansion to facilitate the adoption of 5G services further bolsters the use of data centers. The increasing data volume necessitates a corresponding rise in backup and storage solutions, meeting the expanding need for network solutions in these centers.
- The robust growth of mega data centers, high penetration of 100GB switch ports, expanded broadband development, increased demand for high-speed internet, and the ongoing development of internet infrastructure are all positive contributors to market growth.
- This growth is propelled by an increase in telecom subscribers and a rising number of smartphone users, leading to more data generation and heightened demand for data center network solutions in the country.
Ethernet Switches Holds Largest Market Share
- Data Center Ethernet switches are essential network devices designed for operation within a data center environment. They play a pivotal role in facilitating efficient and rapid data transfer by establishing interconnections between servers, storage devices, and other network equipment. These switches are specifically engineered for high-speed data transmission, supporting gigabit and multigigabit Ethernet, including 10GbE, 25GbE, 40GbE, 100GbE, and beyond.
- The country, like many others, has undergone significant digital transformation across its industries. Businesses are increasingly investing in data centers to streamline processes, services, and operations. Ethernet switches are vital for ensuring the efficiency, reliability, and security of data center operations.
- China's Data Centers extensively utilize networks of Ethernet switches. As Chinese businesses expand and require more processing capacity, Scalable Ethernet switches enable the necessary expansion of data center infrastructure. This scalability is crucial to meet the burgeoning demands of digital services.
- The transformation of businesses, necessitating storage, processing, and analysis of vast amounts of digital data, drives the growing need for robust data center infrastructure in China. This encompasses services like cloud computing, big data analysis, and emerging technologies such as artificial intelligence and the Internet of Things (IoT).
- Ethernet switches find application in diverse industrial infrastructure, including smart grids, surveillance and security systems, smart rail and transportation, and other utilities. They play a critical role in substation automation within smart grids by simplifying the cabling complexity and reducing tension between power transmission and distribution devices.
China Data Center Networking Industry Overview
The landscape of China's Data Center Networking market is characterized by fragmentation, featuring numerous vendors. These players employ various strategies, such as mergers and acquisitions (M&A), collaborations, and partnerships. The surge in cloud computing has attracted a wave of new investors eager to leverage the sector's burgeoning success. Key participants in this dynamic market encompass Schneider Electric SE, Cisco Systems Inc., Arista Networks Inc., Dell EMC, and IBM Corporation.
In March 2023, Arista Networks introduced its Arista WAN routing system, integrating three innovative networking offerings: enterprise-class routing platforms, carrier/cloud-neutral internet transit capabilities, and the Cloud Vision Pathfinder Service. This integration aims to streamline and enhance customer-wide area networks.
In July 2023, Moxa unveiled the MDS-G4020-L3-4XGS series of Ethernet switches, a versatile line of Layer 3 full Gigabit modular managed switches. This series supports four 10GbE + sixteen Gigabit ports, incorporating four embedded ports, four interface module expansion slots, and two power module slots. This design ensures ample flexibility for a diverse range of applications.
China Data Center Networking Market Leaders
Cisco Systems Inc.
Schneider Electric
Arista Networks Inc.
Dell EMC
IBM Corporation
*Disclaimer: Major Players sorted in no particular order
China Data Center Networking Market News
- March 2023: Huawei's CloudEngine 16800, 8800, and 6800 series data center switches passed the security evaluation by SGS Brightsight and earned Common Criteria (CC) Evaluation Assurance Level 4 Augmented (EAL4+) for its products.
- June 2023: Huawei launched CloudEngine 16800-X, a data center switch specifically designed for diversified computing power.
China 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 Utilization of Cloud Storage is Driving the Market Growth
4.2.2 Rising Need for Backup and Storage is Expanding the Market Demand
4.3 Market Restraints
4.3.1 Lack of Skilled Professionals is Hindering the Market Demand
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 Routers
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-Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Cisco Systems Inc.
6.1.2 Juniper Networks Inc.
6.1.3 Arista Networks Inc.
6.1.4 VMware Inc
6.1.5 IBM Corporation
6.1.6 Extreme Networks Inc.
6.1.7 Dell EMC
6.1.8 NEC Corporation
6.1.9 Schneider Electric
6.1.10 ALCATEL-LUCENT ENTERPRISE
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
China 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 China data center networking market is segmented by product (Ethernet switches, routers, storage area network (SAN), application delivery controller (ADC), and other networking equipment), services (installation & integration, training & consulting, and support & maintenance)), and end-user (IT & telecommunication, BFSI, government, and 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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| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-Users |
China Data Center Networking Market Research FAQs
How big is the China Data Center Networking Market?
The China Data Center Networking Market size is expected to reach USD 1.27 billion in 2024 and grow at a CAGR of 6.56% to reach USD 1.74 billion by 2029.
What is the current China Data Center Networking Market size?
In 2024, the China Data Center Networking Market size is expected to reach USD 1.27 billion.
Who are the key players in China Data Center Networking Market?
Cisco Systems Inc., Schneider Electric, Arista Networks Inc., Dell EMC and IBM Corporation are the major companies operating in the China Data Center Networking Market.
What years does this China Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the China Data Center Networking Market size was estimated at USD 1.19 billion. The report covers the China Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Data Center Networking Industry Report
Statistics for the 2024 China Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Data Center Networking analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
