Data Center Fabric Market Overview
As per MRFR analysis, the Data Center Fabric Market Size was estimated at 17.35 (USD Billion) in 2022.The Data Center Fabric Market Industry is expected to grow from 18.59(USD Billion) in 2023 to 34.6 (USD Billion) by 2032. The Data Center Fabric Market CAGR (growth rate) is expected to be around 7.15% during the forecast period (2024 - 2032).
Key Data Center Fabric Market Trends Highlighted
Cloud computing has been the growth driver for the data center fabric market, along with the growing number of data-driven applications and activities requiring intense computing. The shift towards more advanced technologies, such as AI, will also create market opportunities for data center fabrics that support increased data complexity and volume.
Innovative approaches in the design of data center fabrics have involved the continuous integration of disaggregated fabrics and employ a software-defined approach for management and orchestration. Apart from that, the market is also transitioning towards higher-speed fabrics, especially 400 G to 800 G fabrics, to cater to generation applications’ needs.
In the last few years, most factors contributing to growth in the data center fabric market have included, but not limited to, the demand for disaggregated networks to improve efficiency while cutting on expenses and the rising star of cloud services. Apart from that, the development stands as a propelling factor, owing to the fact that edge computing will also require low latency and high-performance fabrics.
Figure1: Data Center Fabric Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Fabric Market Drivers
Growing Demand for Cloud and Edge Computing
The increasing adoption of cloud and edge computing is driving the growth of the Data Center Fabric Market Industry. Cloud computing provides businesses with the ability to access computing resources on demand, without the need to invest in and maintain their own IT infrastructure. Edge computing brings computing resources closer to the end-user, reducing latency and improving performance. Both of these trends are driving the need for high-speed, low-latency data center networks, which is, in turn, driving the growth of the data center fabric market.In addition, the growing popularity of artificial intelligence (AI) and machine learning (ML) is also driving the demand for data center fabrics. AI and ML require large amounts of data to train and operate, and this data is often stored in data centers. As the amount of data used for AI and ML continues to grow, so too will the demand for data center fabrics to connect and manage this data. Finally, the increasing adoption of 5G networks is also driving the growth of the data center fabric market.5G networks require high-speed, low-latency connections, which can be provided by data center fabrics. As 5G networks become more widespread, so too will the demand for data center fabrics to support them.
Need for Increased Network Speed and Efficiency
The need for increased network speed and efficiency is another major driver of growth in the Data Center Fabric Market Industry. The increasing adoption of cloud computing and virtualization is putting a strain on traditional data center networks. These networks are often not able to provide the speed and efficiency needed to support the growing number of virtual machines and applications. Data center fabrics can provide the speed and efficiency needed to support these new technologies.In addition, the growing popularity of big data and analytics is also driving the need for increased network speed and efficiency. Big data applications require large amounts of data to be processed and analyzed. This data is often stored in data centers, and the faster and more efficient the network, the faster and more efficiently this data can be processed and analyzed. Finally, the increasing adoption of the Internet of Things (IoT) is also driving the need for increased network speed and efficiency.IoT devices generate large amounts of data, and this data needs to be transmitted to and from the cloud. The faster and more efficient the network, the faster and more efficiently this data can be transmitted.
Growing Adoption of Software-Defined Networking (SDN)
The growing adoption of Software-Defined Networking (SDN) is another major driver of growth in the Data Center Fabric Market Industry. SDN decouples the network control plane from the data plane, which gives network administrators more flexibility and control over their networks. SDN can be used to create more flexible and efficient networks that can be easily adapted to changing needs. In addition, SDN can be used to automate network management tasks.This can save time and money, and can also help to improve network security. As the adoption of SDN continues to grow, so too will the demand for data center fabrics that support SDN.
Data Center Fabric Market Segment Insights
Data Center Fabric Market Technology Insights
The technology segment of the Data Center Fabric Market is broadly classified into Ethernet Switching, Fibre Channel Switching, InfiniBand Switching, and RoCE Switching. Among these, Ethernet Switching holds the largest market share due to its cost-effectiveness, versatility, and wide adoption in data centers. The increasing demand for high-speed and low-latency networks is driving the growth of the Ethernet Switching market, with a projected revenue of USD 12.5 billion by 2024. Fibre Channel Switching is another significant technology segment, primarily used for storage applications.Its high reliability, performance, and scalability make it suitable for mission-critical environments. The Fibre Channel Switching market is expected to reach USD 4.8 billion by 2024, driven by the increasing adoption of Fibre Channel over Ethernet (FCoE) technology. InfiniBand Switching, known for its ultra-low latency and high bandwidth, is gaining traction in high-performance computing (HPC) and artificial intelligence (AI) applications. The InfiniBand Switching market is anticipated to grow at a CAGR of 10.2% during the forecast period, reaching a value of USD 2.6 billion by 2024.RoCE Switching, which combines the benefits of Ethernet and InfiniBand technologies, is emerging as a promising technology for data-intensive applications. The RoCE Switching market is projected to register a CAGR of 15.5% over the next few years, reaching a value of USD 1.9 billion by 2024. Overall, the technology segment of the Data Center Fabric Market is witnessing significant growth driven by the increasing adoption of cloud computing, big data analytics, and AI applications. The market is expected to continue its growth trajectory in the coming years, with Ethernet Switching, Fibre Channel Switching, InfiniBand Switching, and RoCE Switching playing key roles in shaping the future of data center networks.
Figure2: Data Center Fabric Market, By Technology, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Fabric Market Deployment Type Insights
The deployment type segment of the Data Center Fabric Market is segmented into Top-of-Rack (ToR), Middle-of-Row (MoR), and End-of-Row (EoR). Among these, the ToR segment is expected to hold the largest market share in 2023, owing to its advantages in terms of scalability, flexibility, and cost-effectiveness. Additionally, the growing adoption of cloud computing and virtualization is driving the demand for ToR switches, as they enable efficient and reliable data center operations. The MoR segment is also expected to witness significant growth, driven by the increasing deployment of blade servers and the need for high-density switching solutions.However, the EoR segment is expected to have a relatively smaller market share, due to its higher cost and complexity compared to ToR and MoR deployments.
Data Center Fabric Market Speed Insights
The Data Center Fabric Market is segmented by speed into 10G, 40G, 100G, 200G, 400G. The 100G segment accounted for the largest share of the market in 2023, owing to its wide adoption in data centers for high-performance computing and virtualization applications. The 400G segment is expected to witness the highest CAGR during the forecast period, due to the increasing demand for bandwidth-intensive applications such as artificial intelligence, machine learning, and cloud computing. The 200G segment is also expected to witness significant growth, driven by the adoption of 200G switches and transceivers in data centers.
Data Center Fabric Market Port Configuration Insights
The port configuration segment plays a crucial role in shaping the dynamics of the Data Center Fabric Market. In 2024, the 10G SFP+ port configuration held a significant market share, owing to its cost-effectiveness and wide adoption in small and medium-sized data centers. However, the market is witnessing a gradual shift towards higher port speeds as data traffic continues to surge. The 40G QSFP+ port configuration is expected to gain traction in the coming years, driven by its ability to support higher bandwidth requirements and its growing adoption in large-scale data centers.The 100G QSFP28 port configuration is also gaining popularity, particularly in high-performance computing and cloud applications. The 200G QSFP56 port configuration is expected to emerge as a significant player in the market, driven by the increasing demand for ultra-high-speed connectivity in data centers. The 400G QSFP-DD port configuration is still in its early stages of adoption but is expected to witness significant growth in the future as data centers continue to evolve towards higher speeds and bandwidth requirements.
Data Center Fabric Market Functionality Insights
Functionality Segment Insights and Overview The Data Center Fabric Market is segmented by functionality into Layer 2 Switching, Layer 3 Routing, Storage Area Networking, and Network Virtualization. Layer 2 Switching accounted for the largest share of the market in 2023 and is expected to maintain its dominance throughout the forecast period. The growth of this segment is attributed to the increasing adoption of cloud computing and virtualization technologies, which require high-speed and low-latency connectivity. Layer 3 Routing is expected to witness significant growth over the forecast period.The increasing adoption of software-defined networking (SDN) and network function virtualization (NFV) technologies is driving the growth of this segment. Storage Area Networking is expected to grow at a steady pace over the forecast period. The increasing demand for data storage and the need for efficient and reliable data access are driving the growth of this segment. Network Virtualization is expected to witness exponential growth over the forecast period. The increasing adoption of cloud computing and virtualization technologies is driving the growth of this segment.
Data Center Fabric Market Regional Insights
The regional segmentation of the Data Center Fabric Market offers valuable insights into the market's geographic distribution and growth dynamics. North America is projected to dominate the market, accounting for a significant revenue share in 2023 and continuing its dominance throughout the forecast period. The region's robust data center infrastructure, coupled with the presence of major cloud service providers, drives its growth. Europe follows closely, with a growing demand for data center services fueled by digital transformation initiatives.The APAC region is anticipated to witness substantial growth, driven by rapid urbanization, increasing internet penetration, and government investments in data center infrastructure. South America and MEA are expected to contribute a smaller but steadily growing share, with emerging economies in these regions recognizing the importance of data center infrastructure.
Figure3: Data Center Fabric Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Fabric Market Key Players And Competitive Insights
Major players in the Data Center Fabric Market are continually investing in research and development (R&D) to stay ahead of the competition. They are also forming partnerships and alliances with other companies to expand their market reach and share. The Data Center Fabric Market industry is characterized by a high degree of competition, with several leading players vying for market share. These leading players are focused on developing innovative products and solutions to meet the evolving needs of customers. The Data Center Fabric Market development is being driven by the increasing demand for data center connectivity and the need for efficient and reliable network infrastructure. The Data Center Fabric Market Competitive Landscape is expected to remain competitive in the coming years, with key players continuing to invest in R&D and strategic partnerships to gain a competitive edge.Juniper Networks is a leading player in the Data Center Fabric Market, with a strong portfolio of products and solutions. The company offers a wide range of data center fabrics, including spine and leaf switches, as well as network management software. Juniper Networks has a strong presence in North America and Europe, and is expanding its reach into other regions. The company is also focused on developing innovative technologies, such as artificial intelligence (AI) and machine learning (ML), to enhance the performance of its products.Cisco is another leading player in the Data Center Fabric Market, with a comprehensive portfolio of products and solutions. The company offers a wide range of data center fabrics, including spine and leaf switches, as well as network management software. Cisco has a strong presence in North America and Europe, and is expanding its reach into other regions. The company is also focused on developing innovative technologies, such as software-defined networking (SDN) and network virtualization, to enhance the performance of its products.
Key Companies in the Data Center Fabric Market Include
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ADVA Optical Networking SE
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Inphi Corporation
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Huawei Technologies Co., Ltd.
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Ciena Corporation
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NEC Corporation
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Cisco Systems, Inc.
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ZTE Corporation
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Juniper Networks, Inc.
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Hewlett Packard Enterprise Company
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Infinera Corporation
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Fujitsu Limited
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Dell Technologies, Inc.
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Nokia Corporation
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Extreme Networks, Inc.
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Arista Networks, Inc.
Data Center Fabric Market Industry Developments
The data center fabric market is poised to witness significant growth over the forecast period, driven by increasing data center traffic, adoption of cloud and edge computing, and rising demand for high-speed and low-latency networks. The market is expected to reach a valuation of USD 18.59 billion by 2023, expanding at a CAGR of 7.15% from 2024 to 2032. Key market players include Cisco, Dell, and Arista Networks. Recent developments in the market include the launch of 400GbE switches and the adoption of AI-driven network management solutions. The growing emphasis on sustainability is also driving demand for energy-efficient data center fabrics.
Data Center Fabric Market Segmentation Insights
Data Center Fabric Market Technology Outlook
- Ethernet Switching
- Fibre Channel Switching
- InfiniBand Switching
- RoCE Switching
Data Center Fabric Market Deployment Type Outlook
- Top-of-Rack
- Middle-of-Row
- End-of-Row
Data Center Fabric Market Speed Outlook
Data Center Fabric Market Port Configuration Outlook
- 10G SFP+
- 40G QSFP+
- 100G QSFP28
- 200G QSFP56
- 400G QSFP-DD
Data Center Fabric Market Functionality Outlook
- Layer 2 Switching
- Layer 3 Routing
- Storage Area Networking
- Network Virtualization
Data Center Fabric Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
17.35(USD Billion) |
| Market Size 2023 |
18.59(USD Billion) |
| Market Size 2032 |
34.6(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
7.15% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
ADVA Optical Networking SE, Inphi Corporation, Huawei Technologies Co., Ltd., Ciena Corporation, NEC Corporation, Cisco Systems, Inc., ZTE Corporation, Juniper Networks, Inc., Hewlett Packard Enterprise Company, Infinera Corporation, Fujitsu Limited, Dell Technologies, Inc., Nokia Corporation, Extreme Networks, Inc., Arista Networks, Inc. |
| Segments Covered |
Technology, Deployment Type, Speed, Port Configuration, Functionality, Regional |
| Key Market Opportunities |
1 Adoption of Cloud Computing2 Increasing Demand for Hyperscale Data Centers3 Need for Network Optimization4 Growing Bandwidth Requirements5 Emergence of AI and Machine Learning |
| Key Market Dynamics |
Rising cloud computing, increasing data center virtualization, growing adoption of artificial intelligence AI and machine learning ML, surging demand for highspeed and low-latency networks |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Data Center Fabric Market is expected to reach USD 34.6 billion by 2032, growing at a CAGR of 7.15% from 2024 to 2032.
North America, Europe, Asia Pacific, and Rest of the World are the key regions in the Data Center Fabric Market.
Data Center Fabric is used in various applications such as data center networking, cloud computing, and enterprise networking.
Key competitors in the Data Center Fabric Market include Cisco, Huawei, Arista Networks, Juniper Networks, and Extreme Networks.
Key trends in the Data Center Fabric Market include the adoption of cloud computing, the growth of data traffic, and the need for increased network flexibility.
Challenges in the Data Center Fabric Market include the complexity of managing large-scale networks, the need for high-performance and reliable networks, and the cost of implementing and maintaining Data Center Fabric solutions.
The Data Center Fabric Market is expected to grow at a CAGR of 7.15% from 2024 to 2032.
Key factors driving the growth of the Data Center Fabric Market include the increasing adoption of cloud computing, the growing demand for high-performance networks, and the need for increased network flexibility.
Key opportunities in the Data Center Fabric Market include the development of new technologies, the expansion of the cloud computing market, and the increasing demand for network virtualization.
Key challenges in the Data Center Fabric Market include the complexity of managing large-scale networks, the need for high-performance and reliable networks, and the cost of implementing and maintaining Data Center Fabric solutions.
