DELRAY BEACH, Fla., Feb. 25, 2026 /PRNewswire/ — The global Data Center Networking Market is projected to grow from USD 55.64 billion in 2025 to USD 139.08 billion by 2031, at a CAGR of 16.5% during the forecast period.
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Data Center Networking Market Size & Forecast:
- Market Size Available for Years: 2020–2031
- 2025 Market Size: USD 55.64 billion
- 2031 Projected Market Size: USD 139.08 billion
- CAGR (2025–2031): 16.5%
Data Center Networking Market Trends & Insights:
- The Data Center Networking Market is driven by the rapid expansion of hyperscale data centers, increasing deployment of AI and HPC workloads, and rising demand for high-bandwidth, low-latency connectivity.
- The network infrastructure segment is expected to hold the largest market value in 2025.
- The data center router segment is expected to grow at the highest CAGR of 18.1% during the forecast period.
- The network security software segment is expected to be the second-fastest-growing during the forecast period.
- North America is expected to hold the largest market value of USD 21,831.3 million in 2025.
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The Data Center Networking Market is driven by the rapid expansion of hyperscale data centers, increasing deployment of AI and HPC workloads, and rising demand for high-bandwidth, low-latency connectivity. Modern cloud environments require scalable leaf-spine architectures, high-speed switching (400G/800G and beyond), and advanced routing platforms to efficiently handle massive east-west traffic. The growing integration of AI accelerators and GPU clusters is intensifying the need for high-performance networking fabrics, SmartNICs, and DPUs to optimize workload performance and reduce bottlenecks.
The shift toward software-defined and automated networking architectures is further accelerating market growth. Enterprises and cloud providers are adopting network automation, observability, and programmable networking solutions to improve agility, operational efficiency, and security. Increasing data center investments, sovereign cloud initiatives, and interconnection requirements are driving infrastructure upgrades globally. Additionally, industries that rely on large-scale digital platforms, edge computing, and hybrid cloud deployments are driving demand for resilient, secure, and scalable data center networking solutions.
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The services segment is expected to register the highest growth rate during the forecast period
InfiniBand switches are expected to register the fastest growth rate during the forecast period. InfiniBand switches are projected to witness the highest growth in the Data Center Networking Market, driven primarily by the rapid expansion of AI and HPC workloads. Large-scale AI training clusters, generative AI models, and GPU-intensive computing environments require ultra-low latency, high bandwidth, and efficient east-west traffic handling—capabilities that InfiniBand architectures are purpose-built to deliver. With native RDMA support and optimized GPU-to-GPU communication, InfiniBand significantly reduces latency and improves data transfer efficiency compared to traditional Ethernet-based fabrics in highly synchronized, accelerator-intensive computing environments. As hyperscale operators and AI infrastructure providers scale deployments from thousands to tens of thousands of accelerators, deterministic performance, advanced congestion control, and predictable latency become critical requirements. The growing establishment of AI supercomputing facilities and large language model training clusters is accelerating adoption, positioning InfiniBand switches as the fastest-growing segment within the overall Data Center Networking Market.
In network infrastructure, data center switches are projected to hold the largest market share during the forecast period
Data center switches continue to account for the largest share of the Data Center Networking Market, as they play a central role in enabling high-performance connectivity in modern data centers. Switches form the backbone of leaf-spine and Clos architectures, facilitating massive east-west traffic flows generated by cloud computing, virtualization, storage networking, and AI workloads. Hyperscale and colocation facilities require high-density switching platforms with 400G and 800G port speeds to support scalable, low-latency environments. As data center capacities expand and rack power densities increase, switching infrastructure must scale accordingly to ensure seamless communication between servers, accelerators, and storage systems. Additionally, ongoing refresh cycles from legacy 10G/40G environments to higher-speed architectures further strengthen switch demand. The critical position of switches within the network fabric, combined with continuous technology upgrades and hyperscale expansion, ensures that data center switches maintain the largest market share within the network infrastructure segment throughout the forecast period.
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North America accounts for the largest market during the forecast period
North America holds the largest share of the Data Center Networking Market due to the strong presence of hyperscale cloud providers, advanced digital infrastructure, and early adoption of high-performance networking technologies. The region leads in AI and HPC deployments, driving significant demand for 400G and 800G switching, InfiniBand fabrics, and advanced network interface hardware. A high concentration of hyperscale data centers, particularly in the United States, supports continuous infrastructure expansion and large-scale network upgrades. This region is home to major hyperscaler providers’ data centers, further strengthening networking investments. Additionally, strong investments in AI research, enterprise cloud transformation, and colocation expansion contribute to sustained demand for scalable, low-latency networking architectures. Supportive regulatory frameworks, mature fiber connectivity, and significant capital expenditure by leading technology companies position North America as the dominant regional market throughout the forecast period.
Top Companies in Data Center Networking Market:
The Top Companies in Data Center Networking Market include Cisco Systems (US), Arista Networks (US), Huawei Technologies (China), NVIDIA (US), HPE (US), Extreme Networks (Taiwan), Dell Technologies (US), Nokia (Finland), H3C (China), and Marvell Technology (US).
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