Market Size of Data Center Fabric Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 2.31 Billion |
Market Size (2029) | USD 8.21 Billion |
CAGR (2024 - 2029) | 28.90 % |
Fastest Growing Market | North America |
Largest Market | Asia Pacific |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Data Center Fabric Market Analysis
The Data Center Fabric Market size is estimated at USD 2.31 billion in 2024, and is expected to reach USD 8.21 billion by 2029, growing at a CAGR of 28.90% during the forecast period (2024-2029).
The growing usage of complex interactive applications, the expansion of internet services and activities, and the constant advancement of technology have highlighted the need for faster data rates, more computing resources, and increased storage capacity to manage the volume of data being generated. Additionally, automated smart data center networks are required to adapt to the dynamic processing requirements of distributed applications. The data center fabric concept has been foreshadowed by grid computing and hinted at by switch fabric.
- While the latest and highest-performing data center hardware and software are still essential for high-speed critical transaction processing, trends such as security, software-defined networks (SDN), hybrid cloud, and big data are crucial to delivering higher levels of financial services to clients while reducing risks and saving costs.
- The virtualization of physical resources into logical pools with the help of data center fabrics optimizes IT resource utilization by enabling applications to fetch required resources from these pools.
- The market value will face challenges due to the expansion of infrastructure, particularly in emerging economies like China and India, the growing use of high-speed data transmission technologies, and increased research and development expertise in relation to complex interactive applications. Nevertheless, the continued expansion of organizational data volumes and the semiconductor sector, especially in emerging nations, will pave the way for further market growth.
- Cloud-based applications are experiencing significant growth, driven by the use of new technologies such as AI, machine learning, and AR/VR. The current large and growing community of cloud builders requires a unique level of customization and flexibility from networking components to operate and monitor sprawling data centers.
- The COVID-19 pandemic had an unanticipated and undetermined impact on people's lives, groups, means of subsistence, and economies. The likelihood of a global economic downturn and employment losses increased. Given that businesses are now employing strategies to optimize profits despite market fluctuations, it has become necessary to forecast the degree of uncertainty. The financial ramifications of lockdown measures have significantly impacted the data center fabric industry, with frequent disruptions in the supply chain hindering its development.
Data Center Fabric Industry Segmentation
Data center fabric is a network-centric system, which can be easily built, dissolved, and rebuilt as necessary to provide data center resources as and when and where they are needed. One of the most obvious advantages of a data center fabric is the consolidation and fabrication of network, computer, storage and application resources.
The data center fabric market is segmented by solution (router, switches, fabric storage area networking), application (IT & communication, banking & financial services, healthcare, retail), end-user (cloud service providers, telecom service providers), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Solution | |
Router | |
Switches | |
Storage Area Networking | |
Other Solutions |
By Application | |
IT & Communication | |
Banking & Financial Services | |
Healthcare | |
Retail | |
Other Applications |
By End User | |
Cloud Service Providers | |
Telecom Service Providers |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle East & Africa |
Data Center Fabric Market Size Summary
The data center fabric market is poised for significant growth, driven by the increasing demand for faster data rates, enhanced computing resources, and expanded storage capacity to manage the burgeoning volume of data. This growth is fueled by the rise of complex interactive applications, the expansion of internet services, and continuous technological advancements. The market is also influenced by trends such as security, software-defined networks, hybrid cloud solutions, and big data, which are essential for delivering improved financial services while minimizing risks and costs. The virtualization of physical resources into logical pools through data center fabrics optimizes IT resource utilization, enabling applications to efficiently access the necessary resources. Despite challenges posed by infrastructure expansion in emerging economies and the need for high-speed data transmission technologies, the market is expected to benefit from the growing organizational data volumes and advancements in the semiconductor sector.
North America is experiencing robust growth in the data center fabric market, driven by the expansion of mobile broadband, big data analytics, and cloud computing. The region's significant investments in research and development are leading to the creation of technologically advanced facilities, further boosting market demand. The United States, with the highest number of data centers globally, is witnessing increased traffic and big data volumes due to the proliferation of hyperscale data centers. The market is semi-consolidated, with major players like Cisco Systems Inc., Oracle Corporation, and Hewlett-Packard Enterprise Company competing for market share. Strategic collaborations and innovative solutions, such as those announced by Cyxtera and Digital Realty, are helping companies enhance IT operations and support the shift to hybrid, data-centric architectures. The market's growth is also supported by the adoption of cloud services and the need for big data storage, as organizations seek to reduce operational costs and improve performance through flat network architectures.
Data Center Fabric Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Demand for Data Storage and Adoption of Cloud Computing
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1.2.2 Need for High Speed Data Transfer
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1.2.3 Increasing Demand of Fabric Switches
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1.3 Market Restraints
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1.3.1 Security issues
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Solution
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2.1.1 Router
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2.1.2 Switches
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2.1.3 Storage Area Networking
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2.1.4 Other Solutions
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2.2 By Application
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2.2.1 IT & Communication
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2.2.2 Banking & Financial Services
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2.2.3 Healthcare
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2.2.4 Retail
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2.2.5 Other Applications
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2.3 By End User
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2.3.1 Cloud Service Providers
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2.3.2 Telecom Service Providers
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2.4 Geography
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2.4.1 North America
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2.4.2 Europe
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2.4.3 Asia-Pacific
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2.4.4 Latin America
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2.4.5 Middle East & Africa
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Data Center Fabric Market Size FAQs
How big is the Data Center Fabric Market?
The Data Center Fabric Market size is expected to reach USD 2.31 billion in 2024 and grow at a CAGR of 28.90% to reach USD 8.21 billion by 2029.
What is the current Data Center Fabric Market size?
In 2024, the Data Center Fabric Market size is expected to reach USD 2.31 billion.