The ethernet storage fabric market is projected to be valued at USD 1.9 billion in 2023. The market is anticipated to register a CAGR of 13.1% during the forecast period. By 2033, the valuation is expected to breach the mark of USD 6.5 billion.
Some of the factors that might surge the market growth are
Growth in the demand to adopt enterprise mobility to achieve operational efficiency in different enterprises may further surge the market value. The rise in the adoption of simplified data center management services, especially by small and medium-scale enterprises, is another factor bolstering growth.
The rise in the number of businesses and their data has mandated data storage. As a result, businesses are turning to innovative storage technologies like ethernet storage fabric and big data. As the number of businesses grows, so does the volume of data. Data centers and ethernet storage fabric are becoming more important, which may ultimately drive the market.
The growing need for enterprise mobility to improve efficiency and the rapid adoption of ethernet storage fabric are the key factors that may fuel the market growth. Increased focus on technological advancements and rapid surge in the rate of preference by the various verticals are expected to emerge as a substantial growth factor.
Increasing adoption of ethernet access devices in telecom networks, backhaul, and a decrease in the price of ethernet access devices are also driving growth. In addition to this, the ethernet access device enables the service providers to deliver high-bandwidth and high-quality carrier ethernet services. This ensures low delay over multiple copper pairs to customers.
This is a cost-effective solution for service providers to enhance the quality when users increase. Having a fast ethernet connection to obtain all the data in real-time is the need of the day. The real-time transfer of information is required in all the applications, from a simple transfer of the message to navigation in real-time.
North America dominates the ethernet storage fabric market and is expected to maintain its dominance during the projection period. Growing emphasis on the use of sophisticated data management technologies is expected to fuel growth during the forecast period.
A growing number of small and medium businesses have started embracing digital technology in the region. Furthermore, North America virtually happens to be the hotspot where the latest technology emerges and gradually starts moving to other parts of the world. This factor also ensures rapid adoption of ethernet storage fabric.
| Attributes | Value |
|---|---|
| Ethernet Storage Fabric Market Value (2022) | USD 1.6 billion |
| Ethernet Storage Fabric Market Expected Value (2023) | USD 1.9 billion |
| Ethernet Storage Fabric Market Forecast Value (2033) | USD 6.5 billion |
| Ethernet Storage Fabric Market Expected CAGR (2023 to 2033) | 13.1% |
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These are the times when every sector is trying to make the best use of data. It is only based on this data that product managers across the world are developing products to serve customers in the best possible manner. In such a scenario, the demand for ethernet storage fabric is expected to surge, as it helps in the effective transmission of data.
These are especially useful for SMEs, as the amount to be invested is quite low. However, owing to the number of disruptions because of the COVID-19 pandemic, the market witnessed tepid growth over the past couple of years. This has been reflected in the CAGR as well. While the historical CAGR for the market was a robust 17.3%, the anticipated CAGR is 13.1%.
Short Term (2023 to 2026): This period may be all about regaining the lost momentum. These may be particularly useful for start-ups because of the low investment. Apart from that, the ability to offer high bandwidth along with low latency is expected to drive growth.
Medium Term (2026 to 2029): During this period, the market might witness large businesses adopting this service over other alternatives. With technological upgrade, the Ethernet storage fabric is expected to handle larger volumes of data going further. Owing to this, they are expected to bring in lots of differences in the hyper-converged infrastructure.
Long Term (2029 to 2033): Owing to the growth of the IoT market, the seamlessness offered by ethernet storage fabric is expected to massively surge. The application with the help of IoT might ensure that the traffic systems are effectively utilized. Apart from that, data security is also expected to improve.
The high manufacturing expenses connected with the development of this technology and its accompanying goods may limit the market opportunity. Moreover, the dearth of trained professionals might act as a growth restraint for the market.
In addition, resistance to shifting from conventional technologies is expected to also create hindrances to the growth of the market. The high costs associated with the development and maintenance of ethernet storage fabric technology are expected to dampen the growth rate. The concerns about diverse vendor groups and their inability to adopt new technologies is predicted to hinder the market.
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The expansion of data centers and growth in virtualization technology are the factors that are surging the demand, especially for 100 GbE and above. Moreover, 100 GbE and higher switching port-based solutions are backward-compatible, making implementation easier.
The overall growth and expansion of virtualization technologies are also expected to drive the growth. Surging applications in telecommunications, government, aerospace, oil, and gas, etc. are fueling the growth of the market.
Fiber channel usage is declining, whereas ethernet storage fabric adoption is increasing due to capabilities, like NVMe and 3D Xpoint SSDs. Any storage architecture or protocol, including hyper-converged infrastructure with rates ranging from 1 to 100 GB per second, can be supported by Ethernet storage fabric.
| Region | North America |
|---|---|
| Country | United States |
| CAGR (2023 to 2033) | 12.9% |
| Region | Europe |
|---|---|
| Country | United Kingdom |
| CAGR (2023 to 2033) | 12.1% |
| Region | Asia Pacific |
|---|---|
| Country | China |
| CAGR (2023 to 2033) | 12.5% |
| Region | Asia Pacific |
|---|---|
| Country | Japan |
| CAGR (2023 to 2033) | 11.5% |
| Region | Asia Pacific |
|---|---|
| Country | South Korea |
| CAGR (2023 to 2033) | 10.7% |
The United States is believed to be one of the most dominant data center markets. As per research reports, the data center market in the United States is expected to be valued at USD 111 billion by 2027.
The ethernet storage fabric is one of the most important components of the data center market. The ethernet storage fabric is optimized for handling massive traffic, and predictable performance to maximize data delivery. Apart from that, these also offer low latency, which ensures almost no data is lost and helps in crucial business storage environments.
| Attributes | Details |
|---|---|
| United States Market Expected Size (2033) | USD 2.3 billion |
| United States Market Absolute Dollar Growth | USD 1.6 billion |
| CAGR % 2017 to 2022 | 16.9% |
The United Kingdom is one of the leading cloud services markets. As per recent market research, the public cloud market is expected to surge beyond USD 30 billion by 2027. With the evolution of technology, ethernet storage fabrics are expected to bring about scalable solutions for data-driven applications.
The growth might be further fueled by the adoption of artificial intelligence, 5G technology, and NVMe storage disaggregation. These factors are expected to enhance the agility offered by businesses, thereby driving consumer growth.
| Attributes | Details |
|---|---|
| United Kingdom Market Expected Size (2033) | USD 273.5 million |
| United Kingdom Market Absolute Dollar Growth | USD 186.4 million |
| CAGR % 2017 to 2022 | 15.9% |
China is considered among the leading markets when it comes to AI and ML. As per the market research, the China Artificial Intelligence market is expected to be valued at USD 45 billion by 2029. The manufacturers of ethernet fabric storage make use of Artificial Intelligence to increase the efficiency of the systems. The application of AI ensures that the process achieves automation, as a result of which only some investment needs to be made at the time of installation. This coupled with the ability to work tirelessly owing to minimum human interference is expected to drive the market growth during the forecast period.
| Attributes | Details |
|---|---|
| China Market Expected Size (2033) | USD 466.4 million |
| China Market Absolute Dollar Growth | USD 322.2 million |
| CAGR % 2017 to 2022 | 16.5% |
Japan is home to a highly sophisticated telecommunication market. The telecom players based out in Japan are facing high demand for ethernet storage fabric. The ability to offer remote direct memory access has grabbed a lot of eyeballs. Apart from that, ethernet storage fabric offers extremely agile, flexible, and cost-effective storage solutions, which has attracted a lot of investments from the telecommunication sector. These also enable effective and easy storage offloading, as a result of which not many cases of attenuation are noticed.
| Attributes | Details |
|---|---|
| Japan Market Expected Size (2033) | USD 381.2 million |
| Japan Market Absolute Dollar Growth | USD 2532. million |
| CAGR % 2017 to 2022 | 15.3% |
The South Korean government has been making some serious investments in technological upgrade. In 2022, the South Korea government released the ‘Digital New Deal’, which was all about investing USD 5.3 billion to upgrade the existing technological infrastructure.
Apart from that, government agencies have been specifically putting their money on ethernet storage fabric for its ability to deal effectively with a huge amount of data. The agencies are also counting upon the reliability offered by this technology, and how it represents a cost-effective solution.
| Attributes | Details |
|---|---|
| South Korea Market Expected Size (2033) | USD 224.3 million |
| South Korea Market Absolute Dollar Growth | USD 143.4 million |
| CAGR % 2017 to 2022 | 13.9% |
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| Segment | Storage Type |
|---|---|
| Attributes | Block Ethernet Storage Fabric |
| CAGR (2017 to 2022) | 17.1% |
| CAGR (2023 to 2033) | 12.8% |
| Segment | Application |
|---|---|
| Attributes | Enterprise Data Centers |
| CAGR (2017 to 2022) | 16.8% |
| CAGR (2023 to 2033) | 12.6% |
The block ethernet storage fabric is expected to be highly preferred during the forecast period. The block ethernet storage fabric increases the processing speed, as it occupies less than 20% of the overall capacity.
This ensures low-level latency, as a result of which the efficiency increases by multifold times. The adoption of block ethernet storage fabric is known to outperform even fiber channels, which is expected to have a massive influence on the market. These make use of switches and adapters, which ensure zero packet loss.
Enterprise data centers are expected to hold the dominant market share. The increasing number of small and medium-scale enterprises and the adoption of digital technologies might further drive the demand for enterprise data centers.
The enterprise data centers are equipped to handle massive amounts of data, and this is provided without compromising the speed of ethernet storage fabric. These are also built on architectural solutions which are robust and dynamic. Moreover, the growth of the e-commerce sector is expected to have a huge impact on this segment, as growing e-commerce companies make use of this segment.
FThe key players operating in the market are providing unique storage capabilities, which enable switching fabric for data-centric performance. These may make use of Artificial Intelligence and Machine Learning for creating workloads that can be processed with faster performance.
Lightbits Labs: The start-up is meant for providing cost-effective means for higher performance. The company is a disaggregated storage provider, and one of the early adopters of NVMe/TCP. The start-up has been making use of ethernet to bring faster speeds from storage to host at a lower cost. Lightbits Labs is also a software-defined block storage vendor, which enables users to scale computing and storage separately. In June 2022, Lighbits Labs pulled in USD 42 million in funding, taking its net funding to USD 105.3 million.
The key players are putting in the best resources to promote Optical Access Technologies. The industry has been adopting practices wherein broadband networks might be adopting all-optical access to increase data security. All this has been possible through the implementation of Virtual Reality and Augmented Reality. In February 2023, STC and Huawei accomplished the first 50G PON live trial in Saudi Arabia.
Key developments in the market
Dominant players in the market
| Company | Description |
|---|---|
| Huawei | Huawei is the leading global provider of Information and Communications technology infrastructure and smart devices. The company has been employing more than 195,000 workers worldwide and provides operations in 170 countries. The company’s mission is to bring digital to every person, home, and organization for a fully connected world. Huawei has believed in driving ubiquitous connectivity and promoting equal access to networks. The company has always remained in favor of openness and collaboration for shared success. |
| Juniper Networks | Juniper Networks has always believed in delivering network experiences that transform how people connect, work, and live. By challenging the complexities of 5G and the cloud, the company has been providing solutions to the connections that matter the most. The company has always pursued simplicity. Juniper Networks is obsessed with exceptional quality and remarkable customer experience. Even after achieving the goal, the company is looking for ways to enhance customer experience. |
| Arista Networks | Arista Networks is the market leader in data-driven, client-to-cloud networking for data center, campus, and routing environments. The platforms delivered by the company have been providing availability, agility, automation, analytics, and security through the network operating stack. Arista’s core technologies have transformed them into a data-driven cognitive cloud networking company that delivers its Artificial Intelligence value through a network. |
Other significant players profiled: Mellanox Technologies and Hewlett Packard Enterprise Company.
The primary consumer for Ethernet Storage Fabric is the data center industry.
North America is poised to stay attractive, projecting a CAGR of 12.9% in the United States.
The market is estimated to secure a valuation of USD 1.9 billion in 2023.
The market is estimated to reach USD 6.5 billion by 2033.
The data center sector holds high revenue potential.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Storage Type 5.1. Block Ethernet Storage Fabric 5.2. File Ethernet Storage Fabric 5.3. Object Ethernet Storage Fabric 5.4. Hyper-Converged Infrastructure 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Device 6.1. Switches 6.2. Adapters 6.3. Controllers 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Switching Port 7.1. 10 GbE or 25 GbE 7.2. 40 GbE to 50 GbE 7.3. 100 GbE and Above 8. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Application 8.1. Enterprise Data Centers 8.2. Cloud Service Provider Data Centers 8.3. Telecommunications 8.4. Government 9. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. Middle East and Africa 10. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Mellanox Technologies 17.2. Huawei Technologies 17.3. Juniper Networks 17.4. Arista Networks 17.5. Hewlett Packard Enterprise Company 17.6. Intel Corporation 17.7. Dell Technologies Inc. 17.8. Cisco Systems Inc. 17.9. Fujitsu 17.10. Fortinet 17.11. Microsemi Corporation 18. Assumptions & Acronyms Used 19. Research Methodology
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Ethernet Storage Fabric Market
