What Fueled The Previous Growth In The Virtual Extensible Local-Area Network (VXLAN) Market?
The virtual extensible local-area network (vxlan) market has seen considerable growth due to a variety of factors.
• The virtual extensible local-area network (VXLAN) market has expanded rapidly in recent years. It will grow from $1.81 billion in 2024 to $2.14 billion in 2025, with a CAGR of 18.2%.
The growth is driven by the growing need for scalable network infrastructures, increased demand for multi-tenant environments, the expansion of software-defined networking (SDN), rising requirements for network security and segmentation, and the growing need for data centers.
What Is The Expected Growth In The Virtual Extensible Local-Area Network (VXLAN) Market Size Evolve over the Forecast Period?
The virtual extensible local-area network (vxlan) market is expected to maintain its strong growth trajectory in upcoming years.
• The virtual extensible local-area network (VXLAN) market is projected to grow to $4.14 billion by 2029, at a CAGR of 17.9%.
The growth is attributed to data center virtualization, increasing demand for enhanced network scalability, network security and segmentation, the rise of cloud services, and improving network performance. Key trends include cloud service advancements, data center technology, IoT and edge computing adoption, and network automation.
What Main Forces Are Fueling Expansion In The Virtual Extensible Local-Area Network (VXLAN) Market?
The growth of the virtual extensible local area network (VXLAN) market is predicted to be propelled by the surge in cloud computing services. Cloud computing services deliver computing resources such as servers, storage, databases, networking, software, and analytics via the internet. Their appeal lies in their scalability, flexibility, and cost-efficiency, enabling businesses to access and employ advanced technology solutions without needing to manage their own infrastructure. VXLAN is utilized by cloud computing services to boost network scalability, flexibility, and efficiency, forming isolated virtual networks over existing IP infrastructure, supporting dynamic, secure multi-tenant environments, and integrating effortlessly with advanced network technologies. For example, according to Eurostat Statistics, a provider of statistics and data based in Europe, in 2023, cloud computing was adopted by 45.2% of EU businesses, mainly for email hosting, file storage, and office software. Furthermore, 75.3% of these businesses used advanced cloud services, like security software and database hosting, signaling a 4.2% rise in cloud adoption rates from those in 2021. Consequently, the surge in cloud computing services will catalyze the virtual extensible LAN (VXLAN) market.
What Are The Primary Segments In The Global Virtual Extensible Local-Area Network (VXLAN) Market?
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
Subsegments:
1) By Hardware: VXLAN-Enabled Network Switches, VXLAN Routers, Network Interface Cards (NICs), Hardware Accelerators
2) By Software: VXLAN Management And Orchestration Software, Network Virtualization Software, Security Software For VXLAN, VXLAN Gateways And Controllers
3) By Services: Professional Services (Consulting, Integration, And Support Services), Managed Services (Monitoring And Optimization), Cloud-Based VXLAN Deployment Services
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What Trends Are Reshaping The Future Of The Virtual Extensible Local-Area Network (VXLAN) Market?
Leading companies in the VXLAN market are concentrating their efforts on creating innovative solutions like next-generation firewalls for strengthened security, enhanced performance, and flexibility in contemporary network environments. These advanced firewalls offer detailed network segmentation and micro-segmentation within the VXLAN contexts, fostering isolation of varied network sections. This isolation results in the containment of attacks and the consistent application of security measures across the virtual networks. In a case in point, Cisco Systems Inc., a digital communications technology firm situated in the USA, introduced the Cisco Secure Firewall 3100 Series, which are next-generation firewalls, in June 2022. The series provides features specific to VXLAN and boosts network scalability and adaptability. It also allows for VXLAN configuration via a user-friendly web interface, facilitating the establishment interface and virtual network interfaces (VNIs), along with flexible and persistent settings via FlexConfig interface management. Efficient handling of encrypted traffic is ensured through high-performance VXLAN processing. The series also includes the Cisco secure firewall management center which further streamlines network management, making the 3100 Series a potent tool for regulating VXLAN traffic while enhancing network security and performance.
Who Are the Key Players In The Virtual Extensible Local-Area Network (VXLAN) Market?
Major companies operating in the virtual extensible local-area network (VXLAN) market are:
• Microsoft Corporation
• Alibaba Cloud
• Dell Technologies Inc.
• Huawei Technologies Co. Ltd.
• Intel Corporation
• Cisco Systems Inc.
• Oracle Corporation
• Broadcom Inc.
• NVIDIA Corporation
• Hewlett Packard Enterprise Company
• Nokia Corporation
• VMware LLC
• Keysight Technologies
• Juniper Networks Inc.
• Fortinet Inc.
• Red Hat Inc.
• Arista Networks Inc.
• Extreme Networks
• Ribbon Communications Inc.
• Spirent Communications
• FS.com Inc.
• Arrcus Inc.
• Pica8 Software Inc.
• IP Infusion
• Asterfusion Data Technologies Inc.
What Is The Most Dominant Region In The Virtual Extensible Local-Area Network (VXLAN) Market?
North America was the largest region in the virtual extensible local-area network (VXLAN) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the virtual extensible local-area network (VXLAN) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
