Virtual Extensible LAN (VXLAN) Market by Offering (Hardware, Software, Services), Application (Software-Defined Networking Overlays, Network Function Virtualization), Vertical (Manufacturing, BFSI, Healthcare) and Region - Global Forecast to 2029

Virtual Extensible LAN (VXLAN) Market by Offering (Hardware, Software, Services), Application (Software-Defined Networking Overlays, Network Function Virtualization), Vertical (Manufacturing, BFSI, Healthcare) and Region - Global Forecast to 2029

The VXLAN market is estimated to be USD 1.6 billion to USD 3.2 billion at a CAGR of 15.0% from 2024 to 2029. The rapid expansion of IoT devices requires a network that can handle numerous, geographically dispersed endpoints while ensuring security and manageability. VXLAN provides the necessary network segmentation and scalability to integrate IoT devices seamlessly into the existing network infrastructure, facilitating efficient and secure communication, driving the adoption of VXLAN market.

“The Network Management And Orchestration Software segment is projected to register the highest CAGR during the forecast period.”

Network management and orchestration software are critical for overseeing and automating the operations of VXLAN networks. These tools provide centralized control over the entire network, enabling administrators to efficiently manage configurations, monitor performance, and enforce policies across VXLAN environments. Cisco ACI (Application Centric Infrastructure) and VMware vRealize Network Insight are leading examples of such software. These tools offer comprehensive visibility into network operations, facilitating proactive management and troubleshooting. They support automated provisioning and orchestration, which streamline the deployment of network services and ensure consistent policy application.

The BFSI vertical segment contributed the largest market share in the VXLAN market during the forecast period.

The BFSI sector benefits from VXLAN's ability to provide secure and isolated network environments. Financial institutions handle sensitive data and require robust security measures to prevent breaches. VXLAN supports micro-segmentation, allowing banks to isolate critical applications and customer data from potential threats. Additionally, VXLAN's scalability helps financial institutions manage large-scale data centers and disaster recovery sites, ensuring business continuity and regulatory compliance.

""Asia Pacific will register the highest growth rate during the forecast period.”

In the Asia Pacific region, the growth of the VXLAN market is also influenced by the rapid advancement of 5G networks and the increasing deployment of edge computing. Telecommunications companies are leveraging VXLAN to create flexible, scalable network architectures that can support the high bandwidth and low latency requirements of 5G. Moreover, the push towards smart manufacturing and Industry 4.0 across countries like South Korea and Taiwan is driving the need for advanced network virtualization technologies. These industries require reliable and scalable networking solutions to support real-time data processing and seamless connectivity between machines and control systems. Furthermore, the region's focus on enhancing cybersecurity and regulatory compliance in sectors such as finance and government underscores the importance of VXLAN's ability to provide secure, isolated network segments, ensuring data protection and adherence to local regulations.

Breakdown of primaries

The study contains insights from various industry experts, from solution vendors to Tier 1 companies. The break-up of the primaries is as follows:

By Company Type: Tier 1 – 35%, Tier 2 – 39%, and Tier 3 – 26%

By Designation: C-level –25%, D-level – 35%, and Managers – 40%

By Region: North America – 38%, Europe – 40%, Asia Pacific – 21%, ROW- 1%.

The major players in the VXLAN market are Cisco Systems (US), Hewlett Packard Enterprise (US), VMware (US), Juniper Networks (US), Arista Networks (US), Nutanix, Inc. (US), NVIDIA Corporation (US), Citrix Systems (US), Dell Technologies Inc (US), Microsoft Corporation, Inc. (US), Huawei (China), Nokia Corporation (Finland), Keysight Technologies, Inc. (US), Red Hat (US), Ribbon Communications Inc. (US), Extreme Networks, Inc. (US), FS.COM (US), Spirent Communications Inc. (US), Pica8 (US), Arrcus (US), IP Infusion (US), Cubro Network Visibility (Austria), Versa Networks (US), Asterfusion (China), and A10 Networks (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches, product enhancements, and acquisitions to expand their VXLAN footprint.

Research Coverage

The market study covers the VXLAN market size across different segments. It aims to estimate the market size and the growth potential across various segments, including offering (hardware and software, and services), verticals, applications, and region. The study includes an in-depth competitive analysis of the leading market players, their company profiles, key observations related to product and business offerings, recent developments, and market strategies.

Key Benefits of Buying the Report

The report will help the market leaders/new entrants with information on the closest approximations of the global VXLAN market's revenue numbers and subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. Moreover, the report will provide insights for stakeholders to understand the market's pulse and provide them with information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers (increased demand for scalable network segmentation, need for secure multi-tenancy in cloud data centers, rise of containerized applications.), restraints (lexity and deployment costs), opportunities (expansion of iot and edge computing

emergence of 5g networks) and challenges (increased network complexity, maturity of the technology) influencing the growth of the VXLAN market. Product Development/Innovation: Detailed insights on upcoming technologies, research and development activities, and new product and service launches in the VXLAN market. Market Development: Comprehensive information about lucrative markets – the report analyses various regions' VXLAN markets. Market Diversification: Exhaustive information about new products and services, untapped geographies, recent developments, and investments in the VXLAN market. Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Cisco Systems (US), Hewlett Packard Enterprise (US), VMware (US), Juniper Networks (US), Arista Networks (US), Nutanix, Inc. (US), NVIDIA Corporation (US), Citrix Systems (US), Dell Technologies Inc (US), Microsoft Corporation, Inc. (US), Huawei (China), Nokia Corporation (Finland).