PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1425171
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1425171
The virtual switches market is estimated to grow at a CAGR of 5.03% during the forecast period.
Virtual switches are software programs that allow virtual machines (VMs) to communicate with physical networks. They serve as switching stacks for hardware virtualization environments, allowing virtual machines to connect and operate on Ethernet networks. Virtual switches are used in a variety of virtualization software, such as Open vSwitch (OVS), an open-source distributed virtual multilayer switch application. Growing data center strength and technology advancements emerged as a significant driving force behind the substantial growth of the virtual switches industry.
Market Drivers
Increasing data centers play a vital role in the growth of the virtual switch market. As data center traffic continues to grow, there is a greater need for effective and adaptable networking solutions. Virtual switches deliver the flexibility and adaptability required to handle the unpredictable nature of data center workloads. The growing adoption of cloud and Artificial Intelligence by enterprises coupled with improved high-speed data streaming has bolstered the need for data centers. For instance, in March 2023, OVHcloud the cloud leader announced the official launch of its first data center in India. As part of its global expansion plans, OVHcloud's new data center will provide Indian businesses with additional assistance by providing local computing and storage capabilities to meet evolving data compliance requirements.
Ongoing advancements in networking technologies, such as the establishment of high-speed networks and the adoption of advanced protocols are driving the demand for virtual switches and supporting these innovations. Additionally, the widespread adoption of virtualization of server technologies, enabled by virtual machines provided by major international conglomerates such as Microsoft has been a driving force behind the growth of virtual switches. For instance, Microsoft offers Hyper-V Virtual Switch, which allows virtual machines (VMs) to connect to systems outside of the Hyper-V host, including the organization's internet. It is a software-based layer-2 networking switch that is accessible through Hyper-V Manager when the Hyper-V server role is installed.
The adoption of virtual switches with advanced security features is being driven by the need for improved network security and regulatory compliance. Virtual switches enable the execution of security policies and monitoring in virtualized environments. Security solutions such as firewalls, and antivirus programs frequently connect with virtual switches. This combination enables businesses to expand their safety measures into the virtualized environment and apply consistent safety procedures across physical and virtual infrastructure. Due to these security factors, there is booming demand for virtual switches in various businesses which expands the growth of the virtual switch market.
North America is anticipated to dominate the market.
North America is projected to account for a major share of the virtual switches market owing to the region's robust growth in new data center establishments which is driving the demand for virtualization technologies such as virtual switches in the region. Economies such as Mexico and Canada are experiencing the establishment of data centers and favourable investments for the same. For instance, in January 2023, ManageEngine revealed the establishment of two new Canadian data centers in Toronto and Montreal, illustrating the company's commitment to the market and providing centralized data to Canadian customers. In August 2023, Scala Data Centers made investments of $80 million in Tepotzotlan, Mexico's first enormous-scale data center.
Market Challenges
Managing virtual switches in large-scale and changing virtualized environments can be difficult. Establishing, monitoring, and troubleshooting virtual switches requires strong management tools and frameworks, and the complexity will expand as the scale of the virtualized infrastructure increases. This might be a major challenge of the virtual switch market which may restrain the growth of the market.
Market Development
Company Products
Segmentation
Not an exhaustive list