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The US - Data Center Fabric Market size is estimated to grow at a CAGR of 22.85% between 2022 and 2027. The market size is forecast to increase by USD 17,285.97 million. The growth of the market depends on several factors, including the increasing demand for cloud computing, the growing data traffic and digitalization, and the increasing demand for high-speed and low-latency connectivity. Data center fabric refers to the interconnected network infrastructure within a data center environment. It provides a highly scalable and flexible platform, which enables efficient communication and data transfer between various components, such as servers, storage devices, and switches. The fabric is designed to support high-speed data transmission, along with low latency and improved reliability, ultimately enhancing the performance and agility of the data center infrastructure.
This US data center fabric market report extensively covers market segmentation by application (IT, BFSI, retail, healthcare, and others) and end-user (cloud service providers (CSPS), enterprises, and telecom service providers (TSPS)). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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One of the key factors driving the US data center fabric market growth is the increasing demand for cloud computing. The emergence of cloud computing has revolutionized the way businesses and individuals access and store data, enabling greater flexibility, scalability, and cost-effectiveness. As there is an increase in the adoption of cloud computing services across businesses and organizations, it is fuelling the need for a robust and efficient data center fabric.
Moreover, the data center fabric plays a major role in enabling the delivery of cloud-based services by offering the necessary network infrastructure to support the high volume of data traffic generated by cloud computing. Furthermore, the data center fabric improves the agility of cloud computing by facilitating quick and easy accessibility to network resources. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the US data center fabric market growth during the forecast period.
A key factor shaping the US data center fabric market growth is the growth of hyper-converged infrastructure (HCI). There is an increasing adoption of HCI as it combines several operations such as computing, storage, and networking resources into a single integrated system, thereby simplifying data center management and enhancing scalability. As a result, there is an increase in demand for efficient and high-performing data center fabric solutions.
Moreover, the main advantage of the data center fabric is that it offers the necessary connectivity and intercommunication between the different components of HCI. Additionally, it facilitates smooth integration of compute and storage resources, thereby ensuring efficient data transfer and minimizing latency. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the US data center fabric market growth during the forecast period.
The high cost of implementation and maintenance is one of the key challenges hindering the US data center fabric market growth. There is a substantial initial investment associated with the deployment of data center fabric solutions including high-speed switches, routers, and other networking equipment. As a result, there is only limited adoption of data center fabric solutions across small enterprises with limited budgets.
Moreover, there is a huge cost burden associated with the maintenance and upgrade of data center fabric solutions. Some of these costs include maintenance checks, software updates, and the need for skilled IT personnel to monitor and manage the data center fabric architecture. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the US data center fabric market growth during the forecast period.
The IT segment is estimated to witness significant growth during the forecast period. There is an increasing adoption of data center fabric solutions across the IT segment as it highly depends on data centers to store, process, and manage vast amounts of digital information (data). There are numerous benefits offered by the data center fabric solutions in the IT segment. The main advantage of data center fabric solutions in the IT segment is that they offer high-speed and low-latency connectivity, allowing the efficient transfer of data and real-time processing.
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The IT segment was the largest segment and was valued at USD 1,163.19 million in 2017. The data center fabric solutions are essential for several IT operations including cloud computing, big data analytics, and real-time applications, which require quick response time. In addition, the main benefit of the data center fabric is it improves agility and scalability, enabling IT enterprises to adapt to changing demands, and scale up or scale down their operations as needed. One of the key features that fuels the adoption of data center fabric solutions across IT verticals is its flexibility which facilitates the the seamless integration of new applications and technologies. Hence, such factors are fuelling the growth of this segment which, in turn, will drive the US data center fabric market growth during the forecast period.
The increasing demand for cloud services will fuel the cloud service providers (CSPs) segment during the forecast period. CSPS can be referred to as companies that provide different cloud-based services, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and Software-as-a-service (SaaS) to businesses and individuals. There is an increasing adoption of data center fabric solutions as they play a major role in facilitating cloud service providers to deliver efficient and effective services to their customers. The main advantage of these solutions is that they offer the necessary network infrastructure to support the high volume of data traffic generated by cloud computing. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the US data center fabric market growth during the forecast period.
The US data center fabric market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
US Data Center Fabric Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Appian Corp: The company offers data center fabric solutions such as De Silo, a data fabric that can turn data into an asset that enables the organization to grow.
Broadcom Inc: The company offers data center fabric solutions such as directors, director blades, extensions, and fiber channel networking switches.
CDW Corp: The company offers data center fabric solutions such as data center power and cooling, server room technology and hyper-converged infrastructure.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The US data center fabric market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
US Data Center Fabric Market Scope |
|
Report Coverage |
Details |
Page number |
132 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 22.85% |
Market growth 2023-2027 |
USD 17,285.97 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
22.15 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Appian Corp., Broadcom Inc., CDW Corp., Cisco Systems Inc., Cologix Inc., CyrusOne LLC, Cyxtera Technologies Inc., Dell Technologies Inc., Digital Realty Trust Inc., EdgeConneX Inc., Equinix Inc., EVODC LLC, Expedient, Hewlett Packard Enterprise Co., International Business Machines Corp., KDDI Corp., Nippon Telegraph And Telephone Corp., Sabey Corp., TierPoint LLC, and Vantage Data Centers Management Co. LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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