Data Center Networking
Manufacturers of high-speed switches and interconnect for data centers.
Market snapshot
These figures describe Networking Equipment (9.3.7), the segment that Data Center Networking sits within — not Data Center Networking on its own.
- Market size
- ~$41B
- Growth
- ~3.4%CAGR (2017–22, nominal)
- Companies
- ~1,200
U.S. Census Bureau 2022 CBP/Economic Census, NAICS 334210 (telephone apparatus) + 334220 (radio/TV/wireless communications equipment) + 334290 (other communications equipment); AI-networking demand has accelerated since 2022.
Business model & economics
Revenue model
Networking-hardware sales plus software and support
Key economics
- Recurring revenue
- Moderate
- EBITDA margin
- Strong
- Capex intensity
- High
hardware plus recurring software/support
scaled hardware-plus-software economics
Characteristics
- Led by Cisco, Arista, Juniper.
- AI data-center networking a major growth driver.
- High-speed optics and software-defined networking.
Geographic concentration
Networking equipment manufacturing concentrates in Maryland and Texas.
U.S. Census Bureau — 2022 County Business Patterns (employment by state), NAICS 334210. Concentration shown by location quotient.
M&A deal context
Who’s acquiring
- Networking majors
- Hyperscalers & data-center buyers
- Optics & component acquirers
What’s driving deals
- AI/data-center networking demand.
- High-speed optics and disaggregation.
- Cloud and 5G networking.
Find Data Center Networking acquisition targets
Search Acquisera’s index for companies classified under Data Center Networking (9.3.7.1) and build a targeted deal pipeline.
Search companies