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The US Data Center Fabric Market size is forecast to increase by USD 17.29 billion, at a CAGR of 22.85% between 2022 and 2027. The market's growth is contingent upon various factors, foremost among them being the surging appetite for cloud computing solutions, driven by the need for scalable and efficient data management. Concurrently, the exponential rise in data traffic and digitalization across industries fuels the demand for robust infrastructure and advanced networking technologies. Additionally, the escalating need for high-speed and low-latency connectivity underscores the importance of seamless communication networks in supporting modern digital ecosystems. As businesses and consumers alike embrace digital transformation, the market is poised for significant expansion, propelled by the convergence of cloud computing, data-driven insights, and the imperative for agile and responsive connectivity solutions to meet the demands of an increasingly interconnected world.
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This 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.
The Data centre fabric market in the US is experiencing significant growth due to the increasing demand for Unified Fabric Architecture in various industries, including Banking & Financial Services, High Tech Industries, Insurance, Retail, Government, Education, and Health sectors. This architecture enables the interconnection of Nodes, Servers, Storage devices, and Networks through a single infrastructure, reducing Switching time and enhancing Scalability and Volume of data handling capabilities. Technologies like Cloud Computing, Big Data Analytics, and Data centre virtualization are driving the adoption of Data Center Fabrics. These solutions offer Opportunities for improved Network Security, Routing, and Management Software functionality. The Global market is expected to expand, with key players investing in advanced Switching and Routing technologies to cater to the Industry's needs. The market is expected to grow due to the increasing demand for efficient and secure data center solutions. The market's growth is further fueled by the need for faster Switching and Routing capabilities, Network Security, and Management Software to handle the complexities of modern data centers. The adoption of these solutions is crucial for industries dealing with large volumes of sensitive data, such as Banking & Financial Services and Insurance industry, to ensure data security and maintain regulatory compliance.
One of the key factors driving the market growth is the increasing demand for cloud computing. The market is of significant importance as it underpins the delivery of cloud-based services by ensuring efficient and effective network connectivity within data centers. Strategic moves by key players, such as investments in research and development and partnerships, are essential to stay competitive in this market. The threat of substitutes, including alternative network architectures, poses a challenge to market growth.
Moreover, inter-firm rivalry is intense, with companies vying for market share through operational activities that focus on cost reduction, quality improvement, and efficiency enhancement. Value chain analysis reveals that data center fabric providers must manage various operational activities, including design, manufacturing, installation, and maintenance, to deliver high-quality product launch and services at competitive costs. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the market development is the growth of hyper-converged infrastructure (HCI). The market is experiencing significant growth due to the increasing adoption of Hyper-Converged Infrastructures (HCIs). HCIs integrate computing, storage, and networking resources, simplifying data center management and enhancing scalability. To maintain competitiveness in this market, companies are making strategic moves, such as product innovations and partnerships. However, the threat of substitutes, including traditional data center architectures and cloud services, poses a challenge. Inter-firm rivalry is intense, with players focusing on operational activities to ensure efficiency and effectiveness while minimizing costs and maintaining high quality.
Further, value chain analysis reveals that data center fabric providers must excel in design, manufacturing, and customer support to deliver optimal solutions. Ultimately, the success of such solutions hinges on their ability to provide low latency, high-speed connectivity, and seamless integration of compute and storage resources. Therefore, it is expected to drive the market growth during the forecast period.
The high cost of implementation and maintenance is one of the key challenges hindering the market growth. The market involves significant upfront investments for high-speed switches, routers, and related networking equipment. This cost barrier may deter smaller businesses due to their limited budgets. However, the strategic value of Data Center Fabrics lies in their ability to enhance network efficiency and effectiveness through interconnected switches. Yet, the ongoing expenses for maintenance, software updates, and skilled IT personnel can be substantial.
Moreover, these costs, along with the threat of substitutes and inter-firm rivalry, necessitate a value chain analysis focusing on operational activities to optimize costs and ensure quality. Ultimately, the balance between these costs and the benefits will determine their adoption and long-term success in the market. Therefore, it is expected to hinder market growth during the forecast period.
The market research report includes the adoption lifecycle of the market research and growth, 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 market growth and forecasting strategies.
Customer Landscape
The IT segment is estimated to witness significant growth during the forecast period. The market is driven by the IT industry's reliance on unified fabric solutions for efficient data management. This architecture connects nodes, including servers and storage devices, via high-speed links, reducing switching time and enhancing network performance.
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The IT segment was the largest segment and was valued at USD 1.16 billion in 2017. Technologies like data center fabric enable cloud computing, big data analytics, and data center virtualization, which require quick response times and scalability. The industry's shift towards these solutions presents opportunities in the global market. Key players like Huawei and Juniper offer product launches and ecosystem strategy to cater to stakeholders in banking & financial services, high tech industries, insurance, retail, government, education, health sectors, and enterprises. Network security, switching, routing, management software, and application integration are essential aspects of these solutions. Hence, such factors are fuelling the growth of this segment which, in turn, will drive the market growth during the forecast period.
The increasing demand for cloud services will fuel the cloud service providers (CSPs) segment during the forecast period. The market is a significant sector for Cloud Service Providers (CSPs), as it enables the delivery of efficient and effective IaaS, PaaS, and SaaS through scalable and agile network infrastructure. Strategic moves, such as partnerships and acquisitions, are essential for CSPs to maintain a competitive edge in this market. The threat of substitutes, like private data centers or edge computing, necessitates continuous innovation and improvement. Inter-firm rivalry is intense, with companies vying for market share based on operational activities' efficiency, effectiveness, and costs. Value chain analysis reveals that data center fabric providers contribute significantly to CSPs' success by ensuring network infrastructure's quality and reliability. Operational activities, such as installation, configuration, and maintenance, are crucial for delivering high-quality services at optimal costs. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is experiencing significant growth due to the increasing demand for advanced networking solutions. Unified fabric technologies, such as Architecture, Nodes, Links, Fabric, Switching, Technology, Devices, and Services, are driving this growth. These solutions offer benefits like scalability, security, and ease of management. Fabric providers like Cisco and Arista offer a range of products, including Cloud and Compute fabrics, as well as Software-Defined Networking (SDN) and Application-Specific Integrated Circuits (ASICs). The use of these technologies enables organizations to build highly efficient, flexible, and secure data center environments.
Moreover, the integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies in data center fabrics is expected to further boost the market development. These technologies enable predictive maintenance, traffic optimization, and improved network performance. The market is expected to continue its upward trend, with major players focusing on innovation and expansion to meet the evolving needs of businesses. The increasing adoption of cloud services and the growing importance of data security are also expected to contribute to market growth.
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 17.29 billion |
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 growth analysis, Market Forecasting, 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 market forecast period. |
Customization purview |
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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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