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Virtual Extensible LAN (VXLAN) Market Size

Report ID: GMI9803
Published Date: Jun 2024
Report Format: PDF

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Virtual Extensible LAN Market Size

Virtual Extensible LAN Market was valued at USD 1.5 billion in 2023 and is estimated to register a CAGR of over 15% between 2024 and 2032 owing to the increasing demand for multi-tenancy support and the emergence of 5G networks.

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VXLAN's ability to support multi-tenancy environments makes it ideal for service providers and enterprises hosting multiple tenants on shared infrastructure. Additionally, VXLAN enables efficient network traffic management and optimization, meeting the requirements of high-bandwidth and low-latency applications in 5G networks, further driving its adoption.

The modernization of data centers and the integration of software-defined networking (SDN) technologies are fueling the growth of the virtual extensible LAN industry. As organizations seek to improve scalability, resource utilization, and network agility, VXLAN emerges as a crucial solution. Its ability to facilitate network virtualization and segmentation aligns perfectly with the requirements of modern data center architectures and SDN deployments, driving its adoption across diverse industries.

Virtual Extensible LAN Market Report Attributes
Report Attribute	Details
Base Year:	2023
Virtual Extensible LAN Market Size in 2023:	USD 1.5 Billion
Forecast Period:	2024 to 2032
Forecast Period 2024 to 2032 CAGR:	15%
2032 Value Projection:	USD 5.4 Billion
Historical Data for:	2021 - 2023
No. of Pages:	300
Tables, Charts & Figures:	350
Segments covered:	Component, Enterprise Size, Application and End-User Industry
Growth Drivers:	Growing need for secured multi-tenancy in cloud data centers Rising focus of businesses on modernization of data centers Increasing need for enhanced network performance Growing adoption of cloud computing and virtualization technologies
Pitfalls & Challenges:	Complexity of deployment and management Interoperability challenges and security concerns

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For instance, in October 2023, Aviz Networks collaborated with Cisco to provide an enterprise-grade SONiC offering tailored for large customers seeking to implement the open-source network operating system.

Though the virtual extensible LAN market is thriving, it faces barriers such as interoperability challenges and security concerns. Addressing interoperability challenges and enhancing security measures are pivotal steps toward fostering the growth of VXLAN solutions. By investing in interoperability standards and facilitating seamless integration with existing network infrastructures, VXLAN providers can broaden their market reach and appeal to a wider range of customers. Additionally, prioritizing robust security protocols and offering comprehensive solutions to mitigate potential risks instills confidence in adopting VXLAN technology across diverse industries.

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

Global industry size for virtual extensible LAN was valued at USD 1.5 billion in 2023 and is anticipated to register over 15% CAGR between 2024 and 2032 owing to the increasing demand for multi-tenancy support and the emergence of 5G networks.

The IT & telecommunications segment in the virtual extensible LAN industry held 30% revenue share in 2023 driven by the crucial role in scaling data centers, meeting the growing need for flexible, high-performance networks.

North America virtual extensible LAN (VXLAN) market held 35% revenue share in 2023 owing to the region's robust technological infrastructure and early adoption of advanced networking solutions.

Accenture plc, Arista Networks, Cisco Systems Inc., Extreme Networks Inc., Fortinet Inc., Hewlett Packard Enterprise (HPE), Huawei Technologies Co., Ltd., Juniper Networks, Nokia Corporation, Palo Alto Networks, Inc., and VMware (Broadcom).