Virtual Extensible LAN Market Size, Share, By Type (Hardware, Software, and Services), By Industry Type (Manufacturing, Banking, Financial Services, and Insurance (BFSI), Healthcare, and Others), By Application [(Software-Defined Networking (SDN) Overlays, and Network Function Virtualization (NFV)], and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Trends, Analysis and Forecast till 2034

The Virtual Extensible LAN Market is valued at US$ 1.65 billion by 2024 and is expected to grow at a CAGR of 15.1% to reach US$ 5.94 billion by 2034.

VXLAN uses UDP-based encapsulation to create a Layer 2 overlay network on a Layer 3 network. Each VXLAN segment is identified by a 24-bit VXLAN Network Identifier (VNI), allowing up to 16 million unique segments segment, better than VLAN. Limit 4096. VXLAN significantly improves network scalability by providing more isolation and segmentation options. It supports many isolated logical networks, making it suitable for multi-tenant cloud environments. Many network vendors widely support VXLAN, and it can be deployed on many network devices, including switches, routers, and servers. VXLAN is a powerful network virtualization technology that improves modern data center networks' scalability, flexibility, and efficiency. By encapsulating Layer 2 frames in Layer 3 packets, VXLAN enables the creation of large, isolated, and flexible virtual networks that can span multiple physical locations. Its support for many network segments makes it especially suitable for large-scale, multi-tenant cloud environments.