Transformative Trends Impacting the Virtual Extensible Local-Area Network (VXLAN) Market Landscape: Advancements In Next-Generation Firewalls Propel VXLAN Market Growth With Enhanced Security And Performance

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How Large Will the Virtual Extensible Local-Area Network (VXLAN) Market Size By 2025?
The market size of the virtual extensible local-area network (VXLAN) has seen substantial growth in the past years. The market, currently valued at $1.81 billion in 2024, is estimated to reach $2.14 billion in 2025, with a compound annual growth rate (CAGR) of 18.2%. Factors that contributed to its growth in the historic period include the escalating need for a scalable network infrastructure, growing demand in multi-tenant surroundings, the broadening of software-defined networking (SDN), the rising need for better network security and segmentation, an increase in ritualized data centers, and heightened network security needs.

How Big Is the Virtual Extensible Local-Area Network (VXLAN) Market Size Expected to Grow by 2029?
In the coming years, the market size of the Virtual Extensible Local-Area Network (VXLAN) is set to experience a significant upsurge expected to reach $4.14 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 17.9%. The anticipated growth during the forecast period is the result of various factors. These include an uptick in data center virtualization, a rise in the demand for better network scalability and flexibility, heightened emphasis on network security and segmentation, an increased shift towards cloud services, and a focus on enhancing network performance and flexibility. The forecast period also sees trends in cutting-edge cloud services, improvements in data center technologies, increased adoption of IoT, and edge computing, enhancements in network virtualization technologies as well as network automation advancements.

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Which Key Market Drivers Powering Virtual Extensible Local-Area Network (VXLAN) Market Expansion and Growth?
The growth of the Virtual Extensible Local Area Network (VXLAN) market is anticipated to be fueled by the rising demand for cloud computing services. Cloud computing refers to the provision of computing resources like servers, storage, databases, networking, software and analytics via the internet. This rise in demand can be attributed to the scalability, flexibility, and cost-efficiency of cloud computing services - features that allow businesses to leverage sophisticated technology solutions without the need for onsite infrastructure management. One notable aspect of cloud computing services is their utilization of VXLAN to amplify network scalability, flexibility, and efficiency. This is achieved by forming segregated virtual networks on top of existing IP infrastructure which supports dynamic and secure multi-tenant environments and integrates smoothly with advanced network technologies. For example, April 2024 Eurostat Statistics data reveal that in 2023, 45.2% of EU businesses adopted cloud computing primarily for email hosting, file storage, and office software. Furthermore, 75.3% of these companies made use of advanced cloud services like security software and database hosting. This accounted for a 4.2% increase in cloud adoption from 2021. Consequently, this surge in cloud computing services is anticipated to propel the VXLAN market.

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Which Fast-Growing Trends Are Poised to Disrupt the Virtual Extensible Local-Area Network (VXLAN) Market?
Leading businesses in the VXLAN (virtual extensible local area network) market are emphasizing the creation of innovative solutions like next-generation firewalls to bolster security, performance, and versatility in contemporary network systems. These advanced firewalls facilitate detailed network partitioning and micro-segmentation within the VXLAN framework. Such segmentations segregate distinct network parts, keeping attacks from spreading and making sure security protocols are uniformly implemented across virtual networks. For example, in June 2022, a US-based firm, Cisco Systems Inc, dealing with digital communications technology, released a line of advanced firewalls dubbed, the Cisco Secure Firewall 3100 Series. The series is well-equipped with VXLAN characteristics, advancing network scalability and adaptability. Through a web interface, it caters to the VXLAN setup while also enabling interface management via FlexConfig for lasting settings. The series ensures efficient handling of encrypted traffic, thanks to the high-performing VXLAN processing. The presence of the Cisco secure firewall management center makes network supervision easier, positioning the 3100 series as a robust solution for VXLAN traffic control, enhancing network security and performance.

What Are the Emerging Segments in 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

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Who Are the Global Leaders in 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.

Which are the Top Profitable Regional Markets for the Virtual Extensible Local-Area Network (VXLAN) Industry?
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.

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