Italy Data Center Networking - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2030

The Italy data center networking market reached a value of USD 228.61 million in the previous year, and it is further projected to register a CAGR of 9.81% during the forecast period.

Key Highlights

• 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.
• The upcoming IT load capacity of the Italy market is expected to reach 300 MW by 2029. The country's construction of raised floor area is expected to increase more than 2.0 million sq. ft by 2029.
• The country's total number of racks to be installed is expected to reach 102,000 units by 2029. Oslo will likely house the maximum number of racks by 2029. There are close to 32 submarine cable systems connecting Italy, and many are under construction.

Italy Data Center Networking Market Trends

IT & Telecommunication Segment to Hold Major Share in the Market

• The increase in data consumption is a result of the high competition among telecommunications service providers, leading to increased discounts and offers on data and the adoption of 4G and 5G services among consumers, which increased the affordability of mobile data.
• The increase in the number of 5G devices may significantly increase data consumption because of the increased average data speeds delivered, which would further generate more data to be processed. This is expected to generate crucial demand for data center facilities to efficiently handle and analyze data sets. This, in turn, would increase the sales of data center networking systems in the country.
• The rise in artificial intelligence (AI), Internet of Things (IoT), and big data workloads is driving demand for ingenious data center network infrastructure solutions among data facilities. This allows providers to constantly innovate their network portfolio to adapt to the environment and deliver greater efficiency, scalability, and reliability.
• The growth is driven by an increase in telecom subscribers and an increasing smartphone users to generate more information and increase demand for data center network solutions in the country.
• The strong growth of mega data centers, high penetration of 100GB switch ports, increased broadband development, increasing demand for high-speed internet, and development of internet infrastructure are positively contributing to the market growth.
• The growth is being driven by increased adoption of cloud computing technologies, digitization, virtualization, and many storage system services. As the amount of data generated continues to increase, the need for storage and backup solutions increases. More storage arrays have equivalent storage arrays in the cloud that can be easily replicated and failed over if needed. Examples include Hewlett Packard Enterprise Cloud Volumes (Nimble), IBM Spectrum Virtualize, and Oracle Cloud Storage using Oracle ZFS Storage Appliance.

Ethernet Switches to Hold Significant Share in the Market

• Ethernet is a midrange technology that also provides a practical solution to meet growing data center connectivity requirements. Therefore, data center expansion has increased the demand for high-bandwidth switches.
• The segment is growing due to operational flexibility from 10 Mbit/s to 400 Gbit/s. For example, most residential high-speed Internet services currently reach up to around 60 Mbps for copper-based services, while fiber-optic services offer near-gigabit ethernet speeds. This tends to rapidly increase the demand for ethernet technology, further promoting the use of ethernet switches.
• Several companies continue to expand their product portfolios and release higher bandwidth switches. For example, Edgecore Networks launched its EPS120 series, a powerful enterprise product family, in May 2023. Ideal for large retail stores, campuses, and corporate offices, these optimized 1Gbps open switches offer robust 1G switching with high data transfer bandwidth and large packet buffers to handle traffic spikes. Performance. The constant innovation is driving the segment growth in the country.
• Increased investment in the IT industry, increased digitalization, and expansion of many companies, including telecommunications, data centers, and cloud computing, are driving the use of ethernet switches in the country.
• Ethernet switches are used in diverse applications in industrial infrastructure, including smart grids, surveillance and security, smart rail and transportation, and other utilities. These switches play a crucial role in the substation automation in smart grids. This is because integrating the switch into an ethernet-based network reduces the complexity and tension of cabling between power transmission and distribution devices within a substation.

Italy Data Center Networking Industry Overview

The data center industry is currently undergoing a notable shift characterized by increasing fragmentation, as both established vendors and new entrants find themselves locked in intense competition. This trend can be attributed to the burgeoning growth of cloud computing, which has piqued the interest of fresh investors looking to capitalize on the sector's prosperous trajectory. Prominent market participants in this dynamic landscape encompass industry leaders such as Cisco Systems Inc., Arista Networks Inc., Juniper Networks Inc., VMware Inc., and NEC Corporation.

In March 2023, Arista Networks introduced the Arista WAN Routing System, a comprehensive solution that amalgamates three innovative networking components: enterprise-class routing platforms, carrier/cloud-neutral internet transit capabilities, and the CloudVision® Pathfinder Service. This launch aims to simplify and enhance customer-wide area networks, providing a more efficient and streamlined networking experience.

In June 2023, Cisco Inc. unveiled the Cisco Nexus 9800 Series modular switches, further expanding the Cisco Nexus 9000 Series portfolio. This new addition features a cutting-edge chassis designed to support high-speed and port-density line cards, thereby catering to the escalating demands of modern data centers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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