How Is The Global Virtual Extensible Local-Area Network (VXLAN) Market Defined?
Virtual extensible local-area network (VXLAN) is a network virtualization technology that extends the capabilities of traditional virtual local area networks (VLANs) to address scalability issues in large-scale network environments, such as data centers. It enhances network scalability, improves resource utilization, and simplifies network management, making it an essential tool for modern data centers and cloud environments.
Virtual Extensible Local-Area Network (VXLAN) Global Market Report 2024 provides data on the global virtual extensible local-area network (vxlan) market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The virtual extensible local-area network (vxlan) market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Virtual Extensible Local-Area Network (VXLAN) Market Size Expected To Change, And What Are The Growth Rate Projections?
The virtual extensible local-area network (VXLAN) market has grown rapidly in recent years. It is expected to grow from $1.54 billion in 2023 to $1.81 billion in 2024, at a CAGR of 17.7%. The growth has been fueled by the rising need for scalable network infrastructure, increased demand for multi-tenant environments, the growth of software-defined networking (SDN), the need for enhanced network security and segmentation, and the growing data centers market. The market is expected to reach $3.51 billion by 2028, at a CAGR of 18.0%. This growth is driven by the increasing adoption of cloud services, demand for improved network scalability and flexibility, a focus on network security and segmentation, and the growth of data center virtualization. Key trends include advancements in cloud services, data center technologies, IoT and edge computing, network virtualization, and network automation.
Which Drivers Are Accelerating Growth In The Virtual Extensible Local-Area Network (VXLAN) Market?
The rise in cloud computing services is expected to drive the growth of the virtual extensible local area network (VXLAN) market. Cloud computing services provide scalable, flexible, and cost-efficient computing resources via the internet, eliminating the need for on-premises infrastructure. VXLAN, which enables the creation of isolated virtual networks over existing IP infrastructure, is increasingly used to improve network scalability and efficiency in cloud computing environments. For instance, data from Eurostat Statistics in April 2024 showed that 45.2% of EU businesses used cloud computing services in 2023, with a 4.2% increase in the adoption of advanced cloud services such as security software and database hosting. This rise in cloud computing adoption is driving the growth of the VXLAN market.
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What Are The Core Segments Of 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
Which Emerging Trends Are Reshaping The Virtual Extensible Local-Area Network (VXLAN) Market Size?
The virtual extensible local area network (VXLAN) market is witnessing innovation in products like next-generation firewalls, which offer robust security, enhanced performance, and greater flexibility for modern networks. These firewalls support granular network segmentation and micro-segmentation within VXLANs, minimizing attack spread and ensuring consistent security policy enforcement. For example, in June 2022, Cisco Systems Inc., a US-based technology firm, introduced the Cisco Secure Firewall 3100 Series. These firewalls incorporate VXLAN features to improve network scalability and flexibility while simplifying configuration and management through an intuitive interface, enhancing overall network security and performance.
What Is The Largest 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 2023. 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.
