Data Center Fabric Market Size, Share, and Industry Analysis, By Solution (Storage Area Network, Switches, Routers, Network Security Equipment, and Others), By End-user (Telecom Service Providers and Cloud Service Providers), By Industry (Media & Entertainment, Government, BFSI, Education, Retail & Consumer Goods, IT & Telecom, Healthcare, and Others), and Regional Forecast, 2024-2032

Data Center Fabric is designed to showcase how the networking, computing, and software components of data centers work together to deliver IT services. It is intended to be more scalable, flexible, and smart than the architecture of a traditional data center, making it a favored choice for data center network architecture. Based on the three-tier model, traditional data center architecture has several drawbacks that have led to the adoption of data center fabric.

In the digital world, managing data has become an essential aspect for businesses and individuals alike. The volume of data is expected to reach 181 zettabytes by 2025, which is a 3x increase over 2020. As the volume of data increases, the demand for data storage also increases. According to the latest estimates, around 328.7 million terabytes of data are created every year. As per the Komprise survey, around 68% of enterprises spend nearly 30% of their IT budget on data management, data storage, and protection, and nearly 70% of enterprises spent more on storage in 2022. According to Sagiss, the storage capacity requirements are growing at 40% per year. Therefore, as data center fabrics offer flexible and efficient ways to manage and store a vast amount of data, the market is estimated to witness growth in the coming years.

Globally, there are around 8,000 data centers, and it is estimated that data center storage capacity will increase to nearly 5x its size by 2024. Therefore, the increase in the amount of data around the world is creating opportunities for data center fabric players globally.

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Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Impact of Generative AI on the Global Data Center Fabric Market


• Consolidated SWOT Analysis of Key Playe

Analysis by Industry

Data center fabric is used in various industries, such as BFSI, media & entertainment, government, retail & consumer goods, IT & telecom, healthcare, and others.

Banks and financial institutions safeguard customer information in both cloud and on-premise data centers. The security of this data is crucial to the success of the bank. If a bank has a data center, the security of that information is better protected. A bank may be able to reduce its risk by having its own data center, which will require less trust from other parties and make it easier for them to implement new technologies. Due to increasing internet penetration globally, the financial data center segment is estimated to witness growth in the coming years. For instance, data centers have become the backbone of the BFSI sector in India as around 300 million UPI transactions take place per day in India as per Government data, and due to the increasing generation of data, the demand for data centers is increasing in the countries. Therefore, the increasing number of data centers is driving the growth of the data center fabric market.

In the media and entertainment sector, there is increasing demand for high-bandwidth and low-latency networks that are necessary for streaming high-definition content, hosting large digital libraries, and supporting graphic-intensive workflows. Besides this, the increasing investment in data center fabrics to manage and deliver content efficiently, handle peak loads, and provide a seamless user experience is supporting the market growth.

Regional Analysis

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The global data center fabric market is distributed into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. In 2023, North America held a significant market share, owing to highly developed IT infrastructure, an increasing number of data centers, and the presence of major players. Companies in the region heavily invest in research and development, which results in the designing and creation of next-generation facilities that are more technologically advanced and effective in terms of information management. Furthermore, there is a huge presence of data center infrastructure providers in the region, which drives the market growth. There were around 2701 data centers in the U.S. in 2023, the highest among all the countries, and this is one of the major reasons for market growth in the region.

Asia Pacific is estimated to showcase the highest CAGR during the forecast period. The data revolution in Asia Pacific has taken center stage, increasing the number of data center developments and driving the region toward a digital future. Southeast Asia (SEA) is especially witnessing a rise in IT consumption due to increasing industrialization, increasing internet penetration, and the growth of young demographics. This creates opportunities for data center operators who want to bring data and cloud storage closer to consumers in the region. Countries, such as Indonesia, Vietnam, Thailand, and India are experiencing significant growth in digitalization, e-commerce, and digital banking, which creates opportunities for data center operators. Therefore, this is driving the region's market growth.

The distribution of the global Data Center Fabric market by region of origin is as follows:

• North America – 34%


• South America – 10%


• Europe – 25%


• Middle East & Africa – 11%


• Asia Pacific – 20%

Key Players Covered

The key players in this market include Microsoft Corporation, IBM, Dell Technologies, SAP, Oracle, NetApp, HPE, Talend, Splunk, TIBCO Software, Software AG, Teradata, and Splunk.

Key Industry Developments

• August 2023: Cyxtera entered into a collaboration agreement with (HPE) to help customers simplify their IT operations, improving agility and cost savings. Cyxtera Enterprise Bare Metal, with HPE ProLiant servers, helps customers benefit from the flexibility of the cloud with the control, performance, and security of the infrastructure running in Cyxtera’s global data centers.


• February 2023: Huawei introduced the iManager-M, a mobile intelligent management solution, and next-generation indirective evaporating cooling solution EHU. These solutions are introduced with the aim of driving the high-quality development of the data center industry.