Advancements In Next-Generation Firewalls Propel VXLAN Market Growth With Enhanced Security And Performance Trend: A Crucial Influence on the Virtual Extensible Local-Area Network (VXLAN) Market's Transformation in 2025

What Is the Expected Size and Growth Rate of the Virtual Extensible Local-Area Network (VXLAN) Market?
In recent years, there has been a notable increase in the size of the virtual extensible local-area network (VXLAN) market. Its growth is expected to jump from $1.81 billion in 2024 to $2.14 billion in 2025, indicating a compound annual growth rate (CAGR) of 18.2%. The factors that contributed to this growth in the historic period include the escalating need for a scalable network infrastructure, growing demand in multi-tenant environments, wider adoption of software-defined networking (SDN), heightened needs for better network security and segmentation, an increase in virtualized data centers, and stricter network security requirements.

The size of the market for Virtual Extensible Local Area Network (VXLAN) is poised for a swift expansion in the coming years. The market is projected to reach a size of $4.14 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 17.9%. This future growth can be tied to factors such as increased data center virtualization, a rising need for improved network scalability and versatility, an enhanced focus on network security and segmentation, greater adoption of cloud services, and improvements in network performance and flexibility. Significant trends expected to mark the forecast period encompass progress in cloud services, advancement in data center technologies, the uptake of IoT and edge computing, breakthroughs in network virtualization techniques, and progression in network automation.

What Factors Are Fueling Growth in the Virtual Extensible Local-Area Network (VXLAN) Market?
The growth of the virtual extensible local area network (VXLAN) market is projected to be fuelled by an upsurge in cloud computing services. These services, which provide computing resources such as servers, storage, databases, networking, software, and analytics over the web, are experiencing higher adoption rates due to their scalability, adaptability, and cost-effectiveness. This allows businesses to leverage sophisticated technological solutions without the demand for on-site infrastructure management. The application of VXLAN in cloud computing services improves network scalability, flexibility, and efficiency by constructing virtual networks over the existing IP infrastructure. This facilitates a dynamic and secure multi-tenant environment and integrates seamlessly with progressive network technologies. For example, Eurostat Statistics reported in April 2024 that, in 2023, 45.2% of EU businesses adopted cloud computing mainly for email hosting, file storage, and office software usage. Of these businesses, 75.3% employed advanced cloud services like security software and database hosting, signifying a 4.2% increase in cloud adoption rates compared to 2021. Hence, the surge in cloud computing services is set to bolster the VXLAN market.

Get Your Free Sample Now - Explore Exclusive Market Insights:
https://www.thebusinessresearchcompany.com/sample.aspx?id=16569&type=smp

Which Leading Companies Are Shaping the Growth of the Virtual Extensible Local-Area Network (VXLAN) Market?
Major companies operating in the virtual extensible local-area network (VXLAN) market are Microsoft Corporation, Alibaba Cloud, Dell Technologies Inc., Huawei Technologies Co. Ltd., Intel Corporation, Cisco Systems Inc., Oracle Corporation, Broadcom Inc., NVIDIA Corporation, Hewlett Packard Enterprise Company, Nokia Corporation, VMware LLC, Keysight Technologies, Juniper Networks Inc., Fortinet Inc., Red Hat Inc., Arista Networks Inc., Extreme Networks, Ribbon Communications Inc., Spirent Communications, FS.com Inc., Arrcus Inc., Pica8 Software Inc., IP Infusion, Asterfusion Data Technologies Inc.

What Are the Major Trends Shaping the Virtual Extensible Local-Area Network (VXLAN) Market?
Companies primarily engaged in the VXLAN sector are concentrating on creating innovative solutions like next-gen firewalls, equipping the contemporary network environment with enhanced security, flexibility, and performance. The ability of these modern firewalls to provide fine-grained network segmentation and micro-segmentation in VXLAN environments aids in isolating various network segments. This not only confines the extent of attacks but also aids in consistent enforcement of security policies across virtual networks. A case in point was in June 2022, when Cisco Systems Inc., a US-based firm specializing in digital communication technologies, introduced the Cisco Secure Firewall 3100 Series - a next-gen firewall line. This series boasts of VXLAN features that augment network scalability and flexibility. The series, responding to VXLAN setup via a web interface, assists in uncomplicated arrangement of interfaces, virtual network interfaces (VNIs) and ensures enduring, flexible settings through FlexConfig interface management. Efficient management of encrypted traffic is made possible by high-performance VXLAN processing. The Cisco secure firewall management center further eases the network surveillance process. Hence, the 3100 Series is a formidable solution for managing VXLAN traffic and boosting network security and performance.

What Are the Key Segments of the Virtual Extensible Local-Area Network (VXLAN) Market?
The virtual extensible local-area network (VXLAN) market covered in this report is segmented -

1) By Component: Hardware, Software, Services
2) By Application: Multi-Tenancy, Workload Mobility, Software-Defined Networking (SDN) Overlays, Network Function Virtualization (NFV), Other Applications
3) By Enterprise Size: Large Enterprises, Small And Medium-Sized Enterprises (SMEs)
4) By End-User: Manufacturing, Healthcare, Banking, Financial Services, And Insurance (BFSI), Retail, Media And Entertainment, Government, Information Technology (IT) And Information Technology Enabled Services (ITeS), Telecommunications, Other End-Users

Subsegments:
1) By Hardware: VXLAN-Enabled Network Switches, VXLAN Routers, Network Interface Cards (NICs), Hardware Accelerators
2) By Software: VXLAN Management And Orchestration Software, Network Virtualization Software, Security Software For VXLAN, VXLAN Gateways And Controllers
3) By Services: Professional Services (Consulting, Integration, And Support Services), Managed Services (Monitoring And Optimization), Cloud-Based VXLAN Deployment Services

Pre-Book Your Report Now For A Swift Delivery:
https://www.thebusinessresearchcompany.com/report/virtual-extensible-local-area-network-vxlan-global-market-report

Which Region Dominates the Virtual Extensible Local-Area Network (VXLAN) Market?
North America was the largest region in the virtual extensible local-area network (VXLAN) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the virtual extensible local-area network (VXLAN) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Virtual Extensible Local-Area Network (VXLAN) Global Market Report?

- Market Size Analysis: Analyze the Virtual Extensible Local-Area Network (VXLAN) Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Virtual Extensible Local-Area Network (VXLAN) Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Virtual Extensible Local-Area Network (VXLAN) Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Virtual Extensible Local-Area Network (VXLAN) Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

Unlock Exclusive Market Insights - Purchase Your Research Report Now!
https://www.thebusinessresearchcompany.com/purchaseoptions.aspx?id=16569

Connect with us on:
LinkedIn: https://in.linkedin.com/company/the-business-research-company,
Twitter: https://twitter.com/tbrc_info,
YouTube: https://www.youtube.com/channel/UC24_fI0rV8cR5DxlCpgmyFQ.

Contact Us
Europe: +44 207 1930 708,
Asia: +91 88972 63534,
Americas: +1 315 623 0293 or
Email: mailto:info@tbrc.info

Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

This release was published on openPR.