Mexico Data Center Networking Market Size
| Study Period | 2018-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.79 Billion |
| Market Size (2029) | USD 1.12 Billion |
| CAGR (2024 - 2029) | 7.13 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Mexico Data Center Networking Market Analysis
The Mexico Data Center Networking Market size is estimated at USD 0.79 billion in 2024, and is expected to reach USD 1.12 billion by 2029, growing at a CAGR of 7.13% 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 Bload capacity of the Mexico data center rack market is expected to reach 480 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 2.2 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 120,000 units by 2029. Querétaro is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are around 11 submarine cable systems connecting Mexico, and many are under construction.
Mexico Data Center Networking Market Trends
Ethernet Switches is Anticipated to be the Largest Segment
- An Ethernet switch is a type of networking hardware that serves as 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, to an Ethernet LAN, enabling communication between them and access to 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, reducing the effort and complexity of cabling among various power transmission and distribution substation devices by integrating them 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. These managed layer 2 switches, part of the Scalance X Industrial Ethernet Switch product family, are available in both compact models and a 19-inch version suitable for control cabinets.
- The range of industrial Ethernet switch products available reflects the vendor's continued product expansion beyond traditional 8-port DIN rail switches and application-specific services. Vertical integration and infrastructure applications aim for maximum throughput and bandwidth, while factory automation applications may prioritize limiting network traffic.
IT & Telecommunication is Anticipated to be the Fastest Growing Segment
- Approximately 80% of Mexican businesses utilize cloud-based services, employing either private or hybrid cloud models. This adoption stems from favorable government initiatives that have reduced entry barriers for domestic cloud providers and mitigated investment risks linked to technological obsolescence and change.
- Mexican government agencies prioritize delivering cloud-based e-government services as part of their digitalization efforts. This initiative is expected to boost internet usage among the population, consequently driving market growth. The phenomenon is widely regarded as the next-generation computing revolution, particularly within major vertical end-use markets like the public sector, banking, financial services and insurance, healthcare, and retail.
- In 2018, 48% of Mexican businesses invested in cloud products and services. Among the adopters, 30% allocated part of their IT budget to public clouds, while the remaining 18% invested in private clouds. Microsoft, in early 2020, announced plans to construct its inaugural cloud data center in Mexico, earmarking a USD 1.1 billion investment in the country over five years.
- Key players in Mexico's cloud computing industry include Microsoft Corporation, Amazon Web Services, IBM Corporation, Accenture, Oracle Corporation, SAP SE, Google, Rackspace, Salesforce.com, and Telefonica. These cloud service providers aim to expand their service portfolios and existing delivery models—like public and private cloud models—to provide comprehensive solutions to their customers.
- The surge in Mexico's digital economy and the growing number of internet users underscore the escalating need for data storage and processing. Consequently, the proliferation of hybrid cloud service providers has heightened the demand for colocation services and increased rack utilization.
Mexico Data Center Networking Industry Overview
The Mexico data center cooling market has shown moderate competitiveness but has notably gained a competitive edge in recent years. Several key players, including Eaton Corporation, Cisco Systems Inc., Schneider Electric, Emerson Electric Co., and Dell Inc., hold significant market shares. These entities are leveraging strategies such as partnerships and acquisitions to augment their product offerings and establish sustainable competitive advantages.
As of July 2023, Broadcom unveiled a groundbreaking development for enterprise data centers: the Broadcom Trident 4-X7 Ethernet Switch ASIC. This fully programmable switch, boasting speeds of 4.0 Tbit/s, is tailored for Top of Rack (ToR) boxes, addressing their specific requirements.
Mexico Data Center Networking Market Leaders
Eaton Corporation
Cisco Systems Inc.
Schneider Electric
Emerson Electric Co.
Dell Inc.
*Disclaimer: Major Players sorted in no particular order
Mexico Data Center Networking Market News
- July 2023: Juniper Networks, a leading provider of secure AI-driven networks, announced an enterprise-class wired access switch that leverages a modern microservices cloud and Mist AI to deliver superior performance, ease of use, flexibility, and security. Announced the new EX4100 series. Access to all enterprise layer switching environments, including campus fabric architectures.
- 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.
Mexico 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 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 VMware Inc
6.1.3 Huawei Technologies Co. Ltd.
6.1.4 NVIDIA (Cumulus Networks Inc.)
6.1.5 Dell Inc.
6.1.6 IBM Corporation
6.1.7 Intel Corporation
6.1.8 Schneider Electric
6.1.9 Eaton Corporation
6.1.10 Emerson Electric Co.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Mexico 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 Mexico 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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| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-Users |
Mexico Data Center Networking Market Research FAQs
How big is the Mexico Data Center Networking Market?
The Mexico Data Center Networking Market size is expected to reach USD 0.79 billion in 2024 and grow at a CAGR of 7.13% to reach USD 1.12 billion by 2029.
What is the current Mexico Data Center Networking Market size?
In 2024, the Mexico Data Center Networking Market size is expected to reach USD 0.79 billion.
Who are the key players in Mexico Data Center Networking Market?
Eaton Corporation, Cisco Systems Inc., Schneider Electric, Emerson Electric Co. and Dell Inc. are the major companies operating in the Mexico Data Center Networking Market.
What years does this Mexico Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the Mexico Data Center Networking Market size was estimated at USD 0.73 billion. The report covers the Mexico Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mexico Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mexico Data Center Networking Industry Report
Statistics for the 2024 Mexico Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mexico 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.
