Dublin, May 08, 2026 (GLOBE NEWSWIRE) — The “Data Center Networking Market by Offering, Network Infrastructure, Workload, Data Center Size, End User, and Region – Forecast to 2031” has been added to ResearchAndMarkets.com’s offering.
The data center networking market is witnessing rapid expansion, with projections indicating growth from USD 55.64 billion in 2025 to USD 139.08 billion by 2031, marking a CAGR of 16.5%. The increased deployment of AI training clusters, generative AI models, and GPU-dense computing environments is heightening demand for advanced switching, routing, and offload hardware.
Organizations are revamping network architectures with 400G and 800G technologies to accommodate extensive east-west traffic and scalable cloud infrastructures. As hyperscale operators increase their capacity and enterprises embrace hybrid and multi-cloud strategies, network fabrics must ensure deterministic performance, automation, and enhanced security capabilities.
The integration of software-defined networking and programmable network operating systems is amplifying scalability and operational efficiency. Growing investments in AI infrastructure, sovereign cloud initiatives, and expansive data center campuses are bolstering demand for resilient, high-speed networking solutions worldwide.
This report categorizes the market by offerings, infrastructure type, port speed, workload, data center size, end-user, and region. It provides insights into market growth drivers, challenges, and opportunities. The report profiles major market players, assessing their offerings, strategic initiatives, and recent developments within the data center networking market.
Software Segment Overview
Network management, automation, and observability software are set to register the fastest growth within the software segment, driven by increased network complexity and expansive AI infrastructure deployments. As hyperscale data centers grow and enterprises employ multi-cloud strategies, managing high-speed fabrics operating at 400G, 800G, and beyond necessitates advanced automation and real-time visibility.
These platforms facilitate centralized control, zero-touch provisioning, intelligent configuration management, and continuous telemetry monitoring. Real-time observability and predictive analytics are critical for minimizing downtime, detecting congestion, and optimizing performance, with automation tools further reducing manual intervention and operational costs.
Network Infrastructure Dominance
The solutions segment, particularly network infrastructure, is poised to hold the largest market share. Investments in high-performance switching, routing, and offload hardware are on the rise as AI workloads expand within hyperscale data centers. Demand for advanced Ethernet and InfiniBand switches and high-capacity routers is increasing, driven by the shift to 400G and 800G technologies.
These components form the backbone of contemporary data center architectures, supporting high-speed traffic across various environments. Given its integral role in performance and scalability, network infrastructure remains the dominant force in the data center networking market.
Regional Insights
North America takes the lead in the data center networking market, attributed to its robust hyperscale cloud presence. Investments in 400G and 800G technologies, along with mature fiber connectivity, reinforce its dominant stance. Meanwhile, Asia Pacific is the fastest-growing region, driven by digital transformation and substantial investments in AI infrastructure across key countries.
The region’s expansion involves hyperscale campuses and sovereign cloud projects, accelerating demand for cutting-edge networking solutions.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 415 |
| Forecast Period | 2025-2031 |
| Estimated Market Value (USD) in 2025 | $55.64 Billion |
| Forecasted Market Value (USD) by 2031 | $139.08 Billion |
| Compound Annual Growth Rate | 16.5% |
| Regions Covered | Global |
Market Dynamics
- Drivers
- Hyperscaler Capacity Expansion Programs Driving Full-Fabric Networking Demand
- AI Back-End Ethernet Increasing Network Spend Per Cluster
- High Colocation Pre-Leasing Converting Capacity Commitments into Immediate Networking Demand
- Increase in Data Traffic and Bandwidth
- Restraints
- Interoperability Limitations and Vendor Lock-In Slowing Multi-Vendor Adoption
- Grid Power Constraints Limiting the Pace of Networking Expansion
- Opportunities
- Higher Revenue Per Deployment Through Smart, Offload-Capable Switching
- AI Cluster Expansion Accelerating High-Speed Fabric Adoption
- Rise in Adoption of Virtualization Technologies to Optimize Resource Utilization
- Challenges
- Power and Grid Constraints Delaying Networking Deployment Timelines
- Component Supply Constraints and Extended Lead Times Limiting Networking Equipment Availability
Company Profiles
- Cisco
- Arista Networks
- Nvidia
- Huawei
- HPE
- Dell Technologies
- Extreme Networks
- Nokia
- H3C
- Accton Technology
- Marvell Technology
- Broadcom
- Intel Corporation
- AMD
- Quanta Cloud Technology
- Delta Electronics
- Celestica
- Netris
- Fortinet
- Napatech
- Ruijie Networks
- Palo Alto Networks
- Arrcus Inc.
- Alkira
- Aviz Networks
- Drivenets
- Alcatel-Lucent
- Zpe System
- Nec Corporation
- Zte
- Hedgehog
For more information about this report visit https://www.researchandmarkets.com/r/busj98
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- Data Center Networking Market
