Market Trends of Netherlands Data Center Networking Industry
IT & Telecommunication Segment to Hold Major Share in the Market
- The robust expansion of mega data centers, widespread adoption of 100GB switch ports, ongoing broadband infrastructure development, growing demand for high-speed internet, and the continuous evolution of internet infrastructure are all contributing significantly to market growth.
- The increased adoption of cloud computing technologies, digitization, virtualization, and a myriad of storage system services primarily fuels this growth. As data generation continues to surge, the necessity for storage and backup solutions is on the rise. Additionally, there is an increasing availability of cloud-based storage arrays, offering easy replication and failover capabilities when required. Notable examples include Hewlett Packard Enterprise Cloud Volumes (Nimble), IBM Spectrum Virtualize, and Oracle Cloud Storage using Oracle ZFS Storage Appliance.
- The adoption of smartphones is on the rise, with more than half of Dutch adults engaging in some form of social media and nearly 90% of them being active internet users. Notably, the social networking platforms LinkedIn and Twitter have achieved the highest internet penetration rates in the Netherlands. This underscores the surging demand for data centers and, consequently, a burgeoning market value for the data center networking sector.
- Furthermore, the significant increase in the number of 5G mobile connections indicates a high penetration rate of 5G mobile technology in the country. This uptick in data traffic is set to further intensify the demand for data center facilities, ultimately augmenting the market value of the data center networking industry.
- The overall growth trajectory is further driven by the expanding base of telecom subscribers and the increasing number of smartphone users. This results in a continuous influx of data, amplifying the demand for data center network solutions within the country
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Ethernet Switches to Hold Significant Share in the Market
- Ethernet is a versatile technology that serves as a practical solution to meet the ever-expanding connectivity needs of data centers. Consequently, the demand for high-bandwidth switches has surged alongside data center expansions.
- The prevalence of Ethernet switches is expected to soar, driven by the growing adoption of power over ethernet (PoE) in various applications, increased Internet connectivity, the development of cloud networks, and the seamless integration of home and business networks.
- The increased investments in the IT industry, the ongoing process of digitalization, and the expansion of numerous sectors, including telecommunications, data centers, and cloud computing, are fueling the widespread use of ethernet switches across the country.
- Ethernet switches find application in a wide range of industrial infrastructure scenarios, such as smart grids, surveillance and security systems, smart rail and transportation networks, and various utilities. These switches play a pivotal role in automating substations within smart grids, simplifying cabling complexities and reducing tension between power transmission and distribution devices.
- One of the driving factors behind the growth of this segment is its operational flexibility, spanning from 10 Mbit/s to 400 Gbit/s. For instance, residential high-speed internet services currently offer speeds of around 60 Mbps for copper-based services, while fiber-optic services provide nearly gigabit ethernet speeds. This increasing demand for ethernet technology is further bolstering the utilization of ethernet switches.
