Isarel Data Center Networking Market

Isarel Data Center Networking Market Analysis

The Isarel Data Center Networking Market size is estimated at USD 0.11 billion in 2025, and is expected to reach USD 0.15 billion by 2030, at a CAGR of 7.5% during the forecast period (2025-2030).

• 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.
• Under Construction IT Load Capacity: The upcoming IT load capacity of the Israel data center rack market is expected to reach 270 MW by 2029. In 2021, Israel's per capita electricity consumption reached 0.565 tons of oil equivalent (to). It was slightly less compared to the previous year. Consumption fluctuated during the observation period and peaked at 0.577 tons in 2019.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 0.9 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 49,000 units by 2029. Tel Aviv is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 4 submarine cable systems connecting Israel, and many are under construction.

Isarel Data Center Networking Market Trends

Ethernet Switches is Anticipated to be the Largest Segment

• An Ethernet switch is a type of networking hardware that is the foundation of networks and the Internet. Ethernet switches join wired devices such as computers, Wi-Fi access points, PoE lighting and IoT devices, and servers onto an Ethernet LAN so that they can communicate with each other and the Internet.
• Ethernet switches have wide applications in industrial infrastructure such as smart grid, security and surveillance, intelligent rail and transportation, and other utilities driving the industrial Ethernet switch market. In smart grids, Ethernet switches play a key role in substation automation. This is because Ethernet switches reduce the effort and complexity of cabling between many power transmission and distribution substation devices by integrating them into Ethernet-based networks.
• In November 2022, Siemens renewed and upgraded its Scalance XC/XR-300 series of industrial Ethernet switches with additional features for next-generation industrial networks. The so-called managed layer 2 switches of the Scalance X Industrial Ethernet Switch product family are available in both a compact model and a 19-inch version for control cabinets.
• The range of industrial Ethernet switch products available reflects the vendor's continued product expansion beyond traditional 8-port DIN rail switches and application-specific services. Vertical integration and infrastructure applications aim for maximum throughput and bandwidth, while factory automation applications may seek to limit network traffic.
• Smart Ethernet switches with power-over-ethernet (PoE) technology are used for security and monitoring. PoE networks transfer power to local network cables and then to connected devices. This is useful for Internet protocol-based monitoring systems. Helps with accessible browser-based communication and user interface.

IT & Telecommunication is Anticipated to be Largest Segment

• According to the International Monetary Fund (IMF), Israel's GDP is expected to grow to USD 678.59 billion by 2027. The country's GDP is growing significantly due to increased IT investment, which will create new growth opportunities for Israel's ICT market.
• ICT market providers have widely adopted Cloud service, resource management, data storage, backup, orchestration services, and more. Cloud computing technology is used in various sectors such as IT, telecom, healthcare, BFSI, manufacturing, retail, media, and entertainment. Microsoft, for example, will launch its first cloud in Israel and offer cloud services at local data centers across the country.
• Additionally, increasing investments by governments to foster the development of numerous technologies such as 5G, AI, IoT, machine learning, and big data are expected to drive the growth of the ICT market. For example, IBM acquired Israeli data observation software provider Databand.ai. The acquisition will help the company expand its leadership in observability across IT across infrastructure, applications, data, and machine learning, and is part of the company's efforts to expand its hybrid cloud and AI capabilities and strengthen its capabilities.
• Given the growing demand for digital transformation, the Israeli government is striving to strengthen the country's IT sector. For example, the Israel Innovation Authority will fund training and placement programs with a total budget of $10.59 million (public and private funds) under the Human Capital Fund program. Such government initiatives will bring new growth opportunities to Israel's ICT market.

Isarel Data Center Networking Industry Overview

The Israel data center cooling market is moderately competitive and has gained a significant edge in recent years. Among the major players in terms of market share are VMware Inc., Eaton Corporation, Cisco Systems Inc., Dell Inc., and Schneider Electric. These market players are implementing strategies such as partnerships and acquisitions to enhance their product offerings and secure sustainable competitive advantages.

In November 2022, VMware, Inc. unveiled its next-generation SD-WAN solution, featuring a new SD-WAN client. This advancement assists businesses in maintaining the security, reliability, and optimal performance of their applications, data, and services across various sites and branches, regardless of their locations. Users can connect to any device over their network, even from home.

Isarel Data Center Networking Market Leaders

Isarel Data Center Networking Market News

• July 2023: Juniper Networks, a leading provider of secure AI-driven networks, announced the launch of the new EX4100 series, an enterprise-class wired access switch. This switch leverages a modern microservices cloud and Mist AI to deliver superior performance, ease of use, flexibility, and security, providing access to all enterprise layer switching environments, including campus fabric architectures.
• May 2023: NVIDIA has announced SpectrumXtreme, an accelerated networking platform manufactured to enhance the performance and efficiency of the cloud-based on Ethernet AI. NVIDIA Spectrum-X is developed on networking developments powered by the firm coupling of the NVIDIA Spectrum-4 Ethernet switch with the NVIDIA BlueField-3 DPU, attaining 1.7x better overall AI performance and power efficiency, along with consistent, predictable performance in multi-tenant environments.