The Virtual Extensible Local-Area Network (VXLAN) Market Overview 2025 report reveals that the market size has grown significantly over the past few years, with projections indicating further expansion.
The market size of the Virtual Extensible Local-Area Network (VXLAN) has seen a fast-paced growth recently. There was a growth from $1.81 billion in 2024 to $2.14 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 18.2%.
The market size of the Virtual Extensible Local-Area Network (VXLAN) is projected to reach $4.14 billion in 2029, expanding at a compound annual growth rate (CAGR) of 17.9%.
Download Your Free Sample of the 2025 Virtual Extensible Local-Area Network (VXLAN) Market Report and Uncover Key Trends Now!The drivers in the virtual extensible local-area network (vxlan) market are:
• Surge in need for scalable network infrastructure
• Increased demand for multi-tenant environments
• Expansion of software-defined networking (SDN)
• Increased need for improved network security and segmentation
The virtual extensible local-area network (VXLAN) market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Application: Multi-Tenancy, Workload Mobility, Software-Defined Networking (SDN) Overlays, Network Function Virtualization (NFV), Other Applications
3) By Enterprise Size: Large Enterprises, Small And Medium-Sized Enterprises (SMEs)
4) By End-User: Manufacturing, Healthcare, Banking, Financial Services, And Insurance (BFSI), Retail, Media And Entertainment, Government, Information Technology (IT) And Information Technology Enabled Services (ITeS), Telecommunications, Other End-Users
The trends in the virtual extensible local-area network (vxlan) market are:
• Advancements in cloud services are shaping the future of the VXLAN market.
• The adoption of IoT and edge computing is emerging as a major trend in the market.
• The VXLAN market is being influenced by advancements in network virtualization technologies.
• The market is seeing a trend towards advancements in network automation.
The major players in the virtual extensible local-area network (vxlan) market are:
• Microsoft Corporation
• Alibaba Cloud
• Dell Technologies Inc.
North America was the largest region in the virtual extensible local-area network (VXLAN) market in 2024