Data Center Networking Market to Expand at 17.6% CAGR Through 2030

“The report explores AI-driven network automation, high-capacity optical interconnects, advanced switching fabrics and emerging challenges in power efficiency and thermal management amid rising cloud and edge demands.”

Boston, Feb. 13, 2026 (GLOBE NEWSWIRE) -- According to the latest BCC Research report, “Data Center Networking Technologies: Global Markets” is expected to grow from $45.8 billion in 2025 to $103 billion by the end of 2030, at a compound annual growth rate (CAGR) of 17.6% during the forecast period of 2025 to 2030.

The report provides an in-depth analysis of the global market for data center networking technologies, segmented by components, data center types and industry verticals. Components include hardware, software and services, while data center types cover colocation, hyperscale, enterprise, and managed services facilities. It also examines industry adoption across sectors such as IT and telecom, Banking, Financial Services and Insurance (BFSI), government, healthcare, media and entertainment, retail, manufacturing, energy, and others.

Additionally, the study evaluates the global market across regions including North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa. It highlights key market drivers, challenges, and emerging trends such as AI-based data centers. The report concludes with insights into leading companies and their offerings, using 2024 as the base year and projecting growth from 2025 to 2030, including the compound annual growth rate (CAGR) for the forecast period.

The factors driving the market include:

Rising Demand for Cloud Computing and Hyperscale Data Centers: The rapid shift to cloud services for scalability and cost efficiency is driving the need for large hyperscale data centers. These facilities require advanced networking to manage massive data volumes and ensure seamless connectivity for global cloud platforms.

Increasing Adoption of Advanced Networking Solutions: Traditional networks cannot effectively handle modern workloads such as artificial intelligence (AI) and the Internet of Things (IoT). Technologies such as Software-Defined Networking (SDN) and Network Function Virtualization (NFV) are being adopted to enable greater flexibility, automation, and improved traffic management.

Growing Need for Low-Latency and High-Bandwidth Data Transmission: Applications such as real-time analytics and streaming demand ultra-fast data transfer. To meet these demands, data centers are deploying high-speed Ethernet (400G+) and fiber optics to reduce latency while delivering the high bandwidth essential for performance-critical operations.

Growing Integration of AI and Automation in Data Center Networks: Managing complex networks manually is inefficient. AI-driven automation enables predictive maintenance, intelligent traffic routing, and self-healing capabilities, reducing downtime and improving operational efficiency.

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Report Synopsis

Innovations:

• In August 2025, Broadcom launched the Tomahawk 6 Ethernet switch chip, which can support up to 102.4 Tbps bandwidth, alongside the Jericho4 fabric router. These products enable hyperscale AI data centers with secure, high-speed interconnects.

• In July 2025, Arista announced a $1 billion investment in India to establish local manufacturing for data center and campus switches and access points, reinforcing India’s digital infrastructure growth.

• In June 2024, Arista introduced its Etherlink AI Networking platforms, optimized for lossless, low-latency Ethernet fabrics tailored for large AI clusters, co-developed with hyperscale customers.

Emerging startups:

• Alkira
• Nexthop
• Celestial AI

AI Impact on Market for Data Center Networking Technologies

AI is revolutionizing data center networking solutions by supporting predictive congestion management, workload self-routing, and zero-touch automation to make traffic faster and more efficient. It also improves network security, energy efficiency, and scalability, allowing data center fabrics to respond more effectively to hyperscale and edge AI workloads.

For an in-depth analysis of AI’s impact on this sector, explore the complete AI Impact on Data Center Networking Technologies Market - BCC Pulse Report

The report addresses the following questions:

1. What are the projected market size and growth rate?

• The market is estimated to reach $103 billion by the end of 2030, growing at a CAGR of 17.6% during the forecast period.

2. What factors are driving the growth of the market?

• Rising demand for cloud computing and hyperscale data centers.
• Increasing adoption of advanced networking solutions.
• Growing need for low-latency and high-bandwidth data transmission.

3. What are the challenges and opportunities of the market?

• Key challenges include:

• High capital investment and operational costs.
• Data security and privacy concerns.

• Key opportunities include:

• Growing integration of AI and automation in data center networks.

4. What market segments are covered in the report?

• Component, Data center type, Industry vertical, and Region.

5. Which component segment will be dominant through 2030?

• The hardware is expected to dominate in the component segment by the end of 2030, owing to the surging demand for high-performance Ethernet switches, routers and optical interconnects that form the backbone of AI and hyperscale data centers.

6. Which region has the largest market share?

• North America has the largest market share in terms of demand contribution to the global data center networking technologies market. This is due to the surge in deployment of advanced data centers paired with the integration of AI-powered solutions. In addition, the rapid digital transformation of enterprises across this region is a prime factor expected to drive the market by 2030.

Market leaders include:

• ARISTA NETWORKS INC.
• BROADCOM
• CIENA CORP.
• CISCO SYSTEMS INC.
• DELL INC.
• EQUINIX INC.
• EXTREME NETWORKS
• FORTINET INC.
• FUJITSU
• HEWLETT PACKARD ENTERPRISE DEVELOPMENT LP
• HUAWEI TECHNOLOGIES CO. LTD.
• IBM CORP.
• INTEL CORP.
• NOKIA
• NVIDIA CORP.

Related reports:

Global Data Center Market: The report provides an analysis of the data center market, segmented by infrastructure, model, type, tier level, and end user. It includes regional insights for North America, Europe, Asia-Pacific, South America, and the Middle East and Africa, with detailed country-level coverage for major markets such as the U.S., Canada, China, India, Germany and Brazil. The report presents historical, current, and future trends in an easy-to-understand format with tables and figures, highlighting growing opportunities for data centers globally.

Electrical Switches: Technologies and Global Markets: The report examines global trends in the electrical switches market, providing revenue data in millions of dollars across segments and regions. It covers market segmentation by switch type, materials, technology, configuration, distribution channel, application, and region, with detailed analysis for North America, Europe, Asia-Pacific, and the Rest of the World. Additionally, the report explores emerging technologies, competitive dynamics, and includes profiles of leading companies, offering a comprehensive view of market opportunities and developments.

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