The latest report by IMARC Group, titled “Data Center Fabric Market Report by Solution Type (Switching, Routers, Storage Area Network (SAN), Controllers, Network Security Equipment, Management Software), End-User (Telecom Service Providers (TSPs), Enterprises, Cloud Service Providers (CSPs)), Vertical (Banking, Financial Services and Insurance (BFSI), Media and Entertainment, Government, Education, Healthcare, Retail, and Others), and Region 2024-2032”, offers a comprehensive analysis of the industry, which comprises insights on the data center fabric market trends.
What is the market outlook for the data center fabric market?
The global data center fabric market size reached US$ 36.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 198.8 Billion by 2032, exhibiting a growth rate (CAGR) of 20.3% during 2024-2032.
Factors Driving Growth in the Data Center Fabric Industry:
- Emphasis on Energy Efficiency:
Increasing energy costs and environmental concerns are driving the demand for data center fabrics, offering more efficient and sustainable solutions. These fabrics optimize power consumption and resource utilization, aiding in reducing carbon footprint and operational costs while maintaining performance and reliability through features like network consolidation, virtualization, and energy-efficient hardware. As a result, organizations can achieve cost savings and environmental sustainability goals by streamlining their networking infrastructure.
- Need for Enhanced Scalability:
The escalating requirement for enhanced scalability is propelling market growth, with organizations seeking data center solutions that can adapt to fluctuating workloads and evolving business needs. Data center fabrics offer a highly scalable and flexible networking architecture that accommodates changing demands, enabling seamless scalability through technologies like fabric expansion and automated provisioning, empowering companies to swiftly adjust their infrastructure in response to dynamic workload changes.
- Increasing Adoption of Cloud Computing:
The rising adoption of virtualization and cloud computing is contributing to market expansion, reflecting the need for agile and adaptable networking infrastructure. Data center fabrics provide the flexible and scalable connectivity required to support virtualized environments, optimizing IT resources, streamlining operations, and facilitating rapid service deployment through network virtualization and dynamic resource allocation. This capability empowers companies to fully leverage virtualization and cloud technologies, ensuring seamless communication between virtualized workloads and distributed cloud environments.
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Key Players in the Data Center Fabric Industry:
- Alcatel-Lucent
- Arista Networks
- Avaya
- Brocade Communications Systems
- Cisco Systems
- Dell
- Extreme Networks
- Hewlett-Packard
- Huawei
- IBM India Private Limited
- Juniper Networks
- Oracle Corporation
- Unisys Corporation Ltd.
Data Center Fabric Market Report Segmentation:
By Solution Type:
- Switching
- Routers
- Storage Area Network (SAN)
- Controllers
- Network Security Equipment
- Management Software
Switching represents the largest segment as it ensures optimal performance and reduces latency.
By End-User:
- Telecom Service Providers (TSPs)
- Enterprises
- Cloud Service Providers (CSPs)
Enterprises hold the biggest market share due to the rising need for high-speed data processing, storage, and networking capabilities, to support expanding digital operations.
By Vertical:
- Banking, Financial Services and Insurance (BFSI)
- Media and Entertainment
- Government
- Education
- Healthcare
- Retail
- Others
On the basis of the vertical, the market has been divided into banking, financial services and insurance (BFSI), media and entertainment, government, education, healthcare, retail, and others.
Regional Insights:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
North America enjoys a leading position in the data center fabric market, which can be attributed to the presence of leading technology companies and a highly developed IT infrastructure.
Global Data Center Fabric Market Trends:
The substantial increase in data traffic due to cloud computing and Internet of Things (IoT) device utilization is shaping a positive market outlook. Data center fabrics offer scalable and efficient networking solutions, ensuring seamless data transmission and facilitating effective management and processing of growing data influx. They enable organizations to maintain performance and reliability under increasing data demands, supporting their growth and competitiveness in the digital era.
The rising adoption of hyperconverged infrastructure (HCI) solutions, simplifying data center management, is further driving market expansion. These solutions streamline data center operations and contribute to the growth of the data center fabric industry.
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