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Data Center Fabric Market - Growth, Trends, Covid-19 Impact, And Forecasts (2021 - 2026)

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By Author: Statzy Market Research
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The increased usage of complex interactive applications, expansion of internet services and activity, and the constant advancement of technology has prompted the need for faster data rates, more computing resources, more storage to handle the volume of data being generated, and automated smart data center networks that could adapt to accommodate the dynamic processing requirements of distributed applications. The data center fabric has been hinted at by switch fabric and foreshadowed by grid computing.

- While high-speed, critical transaction processing still relies on the latest and highest performing data center hardware and software, trends, such as security, software-defined networks (SDN), hybrid cloud, and Big Data are essential to deliver higher levels of financial services to clients, while at the same time reducing risk and saving costs.

- With the aid of data center fabrics, physical resources are being virtualized into logical pools. Instead of each application having its own set of IT resources, applications fetch required resources from the logical pools, thus optimizing IT resource utilization.

- ...
... Majority of the largest Electronic Health Record (EHR) vendors are utilizing health system IT to support and optimize EHRs. Also, according to the statistics from CIO magazine, the healthcare industry is witnessing exponential growth in data, from 500 petabytes (PB) in 2013 to an estimated 25,000 PB by 2020.

- Moreover, in Mar 2020, Mellanox Technologies, a provider of solutions for datacentre servers and storage systems, announced the launch of SN4000 Ethernet switches. The Ethernet switch is optimized for cloud, Ethernet storage fabric, and AI applications through its support from Spectrum-3.

- Witnessing massive growth in demand for cloud-based applications and the use of new technologies like AI, machine learning, and AR/VR, the current large and growing community of cloud builders require a unique level of customization and flexibility from networking components to operate and monitor sprawling data centers.

Key Market Trends

Switches Segment is Expected to Hold a Significant Market Share

- Fabric switches play a dynamic role in decreasing infrastructure costs by consolidating data centers. Ethernet switches and fiber channels are the building blocks for congregating server and storage networking in data centers sharing a common infrastructure.

- Fabric infrastructure is scalable allowing data centers to propagate with growing demands of the organization in the future. The operational cost of networking in flattened networks decreases by a massive margin when equated to the traditional networks.

- Increasing the cost of electricity, cloud adoption, and big data storage necessity is motivating organizations to install fabric products in their data centers to decrease the overall cost of operating data centers and escalate the capacity at the same time.

- Efficient fabric switches also decrease the overhead cost of power and cooling facilities by an important margin. Rising IT infrastructure demand of firms to increase business performance by providing application solutions to its customers at any place and at any time need flat network architecture for the real-time analysis of information stored in servers.

- With the growing network traffic of cloud data centers and telecommunication data centers, the use of 100 GbE switches has increased. Data centers that are likely to run mission-critical applications mostly deploy 10/40 GbE fabric switches. However, these switches are being replaced by 25/50100 GbE switches by 2020.

North America is Expected to Hold a Significant Market Share

- North America has shown remarkable growth in data center infrastructure solutions. The expansion of mobile broadband, growth in big data analytics, and cloud computing is driving the demand for the new data center infrastructures.

- However, the increase in data center infrastructures leads to high demand for the data center fabric market. The increased deployment of multi-core processor-based servers, growing demand for virtualized servers that aid in running multiple application on a single server, and the need for high-speed data transfer systems, leads to increase in need for the high bandwidth networking fabric market.

- The United States currently has the highest number of data centers globally and is witnessing robust growth in terms of volume of big data and traffic due to the increase in the number of hyperscale data centers. According to Cisco Systems, the amount of big data in data center storage worldwide is expected to reach 403 exabytes by 2021, of which a large share will be accounted for by the US.

- Moreover, in Nov 2019, Extreme Networks Inc., to augment enterprise IT teams and reduce human error, announced new capabilities for its Extreme Fabric Automation software, available as part of the Extreme Data Center Fabric. The company has also announced two new high-performance switches embedded with guest VMs - the SLX 9150 leaf switch and the SLX 9250 spine switch.

Competitive Landscape

The data center fabric market is highly competitive and consists of several major players. The market appears to be moderately concentrated. The companies are competing against each other to capture the growing market, especially that of mega data centers. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. Some of the major players in the market are Cisco Systems Inc., Oracle Corporation, Hewlett-Packard Enterprise Company, among others.

- March 2019 - Broadcom Inc.launched the BCM8956X, a family of automotive multilayer Ethernet switches, designed to address the growing need for bandwidth, flexibility, security, and time-sensitive networking (TSN) for autonomous and connected vehicles. In addition, Broadcom has begun shipping production quantities of its automotive 1000BASE-T1 PHY transceiver device, the BCM8988X, enabling automotive OEMs to immediately deploy Gigabit Ethernet on single-pair UTP cables for in-car networking applications.

- Jan 2020 - Cisco added proactive problem-solving capabilities to its data center software. This Data Center Network Assurance and Insights suite of software can detect problems in network switch fabric before they affect network services.

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StatzyReports is the premier global market research and business reports company based in India. StatzyReports.com functions under Statzy Market Research. We offer our expertise globally in services related to market research, business strategy consulting, surveys or questionnaire, forecast and statistical data analysis. Our experience working with major business and customer driven companies enabled us to develop some of the best winning strategies for succeeding in various global markets. Our globally renowned experts mastered the art of perfection with their unique skillset and vast experience in research and data analytics.

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