iCrowdNewswire Feb 2, 2021 8:00 AM ET
The market for Data Center Fabric is forecast to reach $83.1 billion by 2025, growing at a CAGR of 23.8% from 2020 to 2025. The widespread use of complex interactive applications, expansion of internet services and activity, and the incessant advancement of technology prompted the need for faster data rates, more compute resources, more storage to handle the volume of data being generated, and automatic smart data center networks that could adapt to accommodate the dynamic processing requirements of distributed applications. Moreover, continuously developing next-generation enterprise Information Technology (IT) architecture for data centers is enhancing the adoption and utilization of fabric in the data centers during the forecast period 2020 – 2025.
Solution – Segment Analysis
By solutions, the switching segment is expected to witness significant growth of around 26.4% during the forecast period 2020 – 2025. Fabric switches play a dynamic role in decreasing infrastructure cost by consolidating data centers. Ethernet switches and fiber channels are the building blocks for congregating server and storage networking in data centers sharing a common infrastructure. Efficient fabric switches also reduce overhead cost of power and cooling facilities by significant margin. Growing IT infrastructure demand of organizations to enhance business performance by providing application solutions to its clients at any place and at any time require flat network architecture for the real-time analysis of information stored in physical and virtual servers. The fabric products make networking swift, delivering best experience to mobile end users using applications such as online media streaming, social media and online data storage.
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End User Environment – Segment Analysis
The Data Center Fabric Market is broadly classified by end user environment into Enterprise, Telecommunication provider and cloud service provider. Among these, enterprise segment held the major share accounting to around 49% in 2019. Business demands are continuously growing with technological advancements and increase in the availability of resources. To cater to these increasing business demands, organizations have increased their dependency on IT. In the present scenario, organizations need to have a strong, agile, and cost-effective IT infrastructure in order to cope up with customers’ demands. Even in the data center industry, business demands are growing rapidly, with continuously surging need for efficient and cost-effective data storage. Shrinking IT budgets are making the situation more critical, by impacting the need for extensive reduction in the operational cost of data centers. Data center fabric market is emerging with cost-effective and efficient networking solutions.
Geography – Segment Analysis
The Data Center Fabric Market is segmented across five regions, namely, North America, Asia Pacific (APAC), Europe, RoW, and South America. North America is expected to account for the largest share of the overall Data Center Fabric Market in 2019. North America has shown remarkable growth in data center infrastructure solutions. The expansion of mobile broadband, growth in big data analytics and cloud computing is driving the demand for the new data center infrastructures. However, the increase in data center infrastructure leads to high demand for the data center fabric market. The increased deployment of multi-core processor-based servers, growing demand for virtualized servers that aid in running multiple application on a single server and the need for high-speed data transfer systems, leads to increase in need for the high bandwidth networking fabric market in this region.
Drivers – Data Center Fabric Market
Data center fabric as a replacement to traditional and legacy networking infrastructure
One of them major driving factors for the Data Center Fabric Market is its potential o replace traditional and legacy networking infrastructure. The data center fabric market is thriving, and in the coming years, the fabric networking is expected to replace the traditional and legacy networking infrastructure to a great extent. Some companies have already transformed their legacy networking infrastructure with the fabric infrastructure, and a significant number of companies are planning to do so. Data center fabric decreases the energy consumption, enhances the agility and flexibility, and reduces the capital expenditure, which is a major factor driving the market growth during the forecast period 2020 – 2025.
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Challenges – Data Center Fabric Market
Complexity of the Infrastructure
One of the major hindrances in the data center fabric market is the complexity of the infrastructure. The challenge in building large data center fabrics, whether it’s Facebook’s or other large data centers, is that it must scale as one logical, high-performance entity. This requires the ability to plug in modular elements and be able to “scale-out” in rapid fashions as new resources and networking elements are needed.
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Data Center Fabric Market. Data Center Fabric driver market is expected to be dominated by major companies such as Huawei, Juniper, Cisco, Avaya, Arista Networs, HP, Extreme Networks and Dell among others.
March 2019 – Broadcom Inc. launched the BCM8956X, a family of automotive multilayer Ethernet switches, designed to address the growing need for bandwidth, flexibility, security and time-sensitive networking (TSN) for autonomous and connected vehicles. In addition, Broadcom has begun shipping production quantities of its automotive 1000BASE-T1 PHY transceiver device, the BCM8988X, enabling automotive OEMs to immediately deploy Gigabit Ethernet on single-pair UTP cables for in-car networking applications.
March 2019 – Broadcom Inc. announced the immediate availability of its 7nm 100G PAM-4 PHY device, the BCM87106, designed for hyper-scale data centre and cloud networks. Leveraging Broadcom’s proven 7nm Centenario 112G PAM-4 technology and 100G single-lambda optics, the device completes the 7nm PAM-4 optical platform for addressing 100G DR, 100G FR, 400G DR4 and 400G FR4 transceiver applications. The platform provides unprecedented performance and power efficiency, enabling the industry to transition to 400G Ethernet.
North America has shown remarkable growth in data center infrastructure solutions attributed to the expansion of mobile broadband, growth in big data analytics and cloud computing.
One of them major driving factors for the Data Center Fabric Market is its potential to replace traditional and legacy networking infrastructure.
One of the major hindrances in the data center fabric market is the complexity of the infrastructure.
With the growing network traffic of cloud data centers and telecommunication data centers, the use of 100 GbE switches has increased.
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