Network Function Virtualization (NFV) is a way to reduce cost and accelerate service deployment for network operators by decoupling functions such as a firewall or encryption from dedicated hardware and moving them to virtual servers. Instead of installing expensive proprietary hardware, service providers can purchase inexpensive switches, storage and servers to run virtual machines that perform network functions. This collapses multiple functions into a single physical server, reducing costs and minimizing truck rolls. The virtualization of network functions reduces dependency on dedicated hardware appliances for network operators, and allows for improved scalability and customization across the entire network.
Further, virtualized network function is flexible and dynamic solution that is often cloud-based and can be deployed anywhere in the network. Moreover, the flexibility of virtualized network function offers a secure infrastructure for hybrid and multi-cloud environments, where information and data migrate around a complex ecosystem involving various vendors. In addition, the rise in incorporation of artificial intelligence-based infrastructure in BFSI, IT & telecommunication, and government sectors in acting as a prime driver for the market growth.
Factors such as rise in adoption of NFV to reduce complexity, ease management and rapid advancement and accelerating digitalization in businesses fuel the growth of the market. In addition, increase in deployment of virtualized software among enterprises including data center and service provider drive the growth of the market. Furthermore, increase in adoption of emerging technologies such as 5G and Edge computing and rise in demand for cloud-based services is expected to provide lucrative growth opportunities for the market in the upcoming year. However, security issue and lack of standards hamper the market growth.
The network function virtualization (NFV) market is segmented on the basis of component, enterprise size, end user, and region. By component, it is bifurcated into hardware, solution and services. On the basis of enterprise size, it is categorized into large enterprises and SMEs. By end user, it is segregated into service providers, data centers and enterprises. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The market players operating in the network function virtualization (NFV) market, which includes Affirmed Networks, Ciena, Cisco Systems, Inc., Comba telecom systems, Dell EMC, ECI Telecom, Ericsson, Fujitsu Limited, Hewlett Packard Enterprise, Huawei Technologies Co., Ltd., NEC Corporation, Mavenir, NETSCOUT, Nokia Corporation, VMware, Inc., Wind River Systems, Inc. and ZTE Corporation. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which drive growth of the network function virtualization (NFV) market globally.
Further, virtualized network function is flexible and dynamic solution that is often cloud-based and can be deployed anywhere in the network. Moreover, the flexibility of virtualized network function offers a secure infrastructure for hybrid and multi-cloud environments, where information and data migrate around a complex ecosystem involving various vendors. In addition, the rise in incorporation of artificial intelligence-based infrastructure in BFSI, IT & telecommunication, and government sectors in acting as a prime driver for the market growth.
Factors such as rise in adoption of NFV to reduce complexity, ease management and rapid advancement and accelerating digitalization in businesses fuel the growth of the market. In addition, increase in deployment of virtualized software among enterprises including data center and service provider drive the growth of the market. Furthermore, increase in adoption of emerging technologies such as 5G and Edge computing and rise in demand for cloud-based services is expected to provide lucrative growth opportunities for the market in the upcoming year. However, security issue and lack of standards hamper the market growth.
The network function virtualization (NFV) market is segmented on the basis of component, enterprise size, end user, and region. By component, it is bifurcated into hardware, solution and services. On the basis of enterprise size, it is categorized into large enterprises and SMEs. By end user, it is segregated into service providers, data centers and enterprises. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The market players operating in the network function virtualization (NFV) market, which includes Affirmed Networks, Ciena, Cisco Systems, Inc., Comba telecom systems, Dell EMC, ECI Telecom, Ericsson, Fujitsu Limited, Hewlett Packard Enterprise, Huawei Technologies Co., Ltd., NEC Corporation, Mavenir, NETSCOUT, Nokia Corporation, VMware, Inc., Wind River Systems, Inc. and ZTE Corporation. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which drive growth of the network function virtualization (NFV) market globally.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the network function virtualization market analysis from 2021 to 2031 to identify the prevailing network function virtualization market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the network function virtualization market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global network function virtualization market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Component
- Hardware
- NFV Servers
- Storage
- Switches
- Software
- Services
- Professional Services
- Managed Services
By Enterprise Size
- Large Enterprises
- SMEs
By End User
- Service Providers
- Data Centers
- Enterprises
- IT and Telecom
- Consumer Goods and Retail
- BFSI
- Government and Defense
- Healthcare
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Cisco Systems, Inc.
- Ericsson
- Huawei Technologies Co., Ltd.
- VMware, Inc.
- Nokia Corporation
- Hewlett Packard Enterprise Company
- DELL EMC
- Juniper Networks, Inc.
- ZTE Corporation
- FUJITSU LIMITED
- Comba Telecom Systems
- Affirmed Networks
- NetScout Systems, Inc.
- Wind River Systems, Inc.
- ECI Telecom
- Mavenir
- Ciena Corporation
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: NETWORK FUNCTION VIRTUALIZATION MARKET, BY COMPONENT
CHAPTER 5: NETWORK FUNCTION VIRTUALIZATION MARKET, BY ENTERPRISE SIZE
CHAPTER 6: NETWORK FUNCTION VIRTUALIZATION MARKET, BY END USER
CHAPTER 7: NETWORK FUNCTION VIRTUALIZATION MARKET, BY REGION
CHAPTER 8: COMPANY LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Network function virtualization Market," the network function virtualization market was valued at $21.90 billion in 2021, and is estimated to reach $180.67 billion by 2031, growing at a CAGR of 23.8% from 2022 to 2031.The global network function virtualization (NFV) market was valued at $21.90 billion in 2021, and is projected to reach at $180.67 billion by 2031, growing at a CAGR of 23.8% from 2022 to 2031. Network functions virtualization is a way to virtualize network services, such as routers, firewalls, and load balancers, that have traditionally been run on proprietary hardware. These services are packaged as virtual machines (VMs) on commodity hardware, which allows service providers to run their network on standard servers instead of proprietary ones. Further, virtualized network function can centralize the tasks while advancing scalability and capability, lead to the consolidation of the network environment and ease of management. Likewise, it acts as a security barrier installed to ensure secure access to a network as it can provide security services and traffic isolation within a cloud infrastructure, along with a customized firewall. Moreover, rapid automation across IT, sectors are propelling the growth of the Network Function Virtualization Industry.
On the basis of enterprise size, the large enterprises segment captured the largest Network Function Virtualization Market Share in 2021, and is expected to continue this trend during the forecast period. Network function virtualization facilitates large enterprises for the expansion of network resources as well as new servers while minimizing the administrative burden. The combination of orchestration, automation, and programmability provided by virtualization enables the IT department of large enterprises to become more agile. However, SMEs segment is expected to witness the highest growth market share in the upcoming year. Surge in need to make business more streamlined, and rise in need to improve efficiency by shortening the time taken to troubleshoot a solution majorly drive the growth of the network function virtualization among small- & medium-sized businesses.
Depending on end user, the enterprises segment dominated the growth in 2021 and is expected to continue this trend during the Network Function Virtualization Market Forecast period. Increased focus of enterprises on re-architecting their networking infrastructure to achieve automation, network security, and application performance is one of the major factors leading to significant adoption of network function virtualization technologies among enterprises. In addition, surge in adoption of advanced technologies in these enterprises such as cloud computing services, bring your own device (BYOD), Internet of Things (IoT), and Big Data are some of the factors driving the growth of the network function virtualization market. However, data center segment is expected to witness the highest growth in the upcoming year. Network function virtualization offers data center providers with advanced capabilities such as secured sharing on network, managing large network, efficiency, and flexibility of networking operations. Furthermore, surge in use of cloud computing services & mobile devices and focus on technological developments in organizations, the Network Function Virtualization Industry is expected to grow at a notable rate.
The network function virtualization (NFV) market was valued at $ 26.44 billion in 2022, and is projected to reach $180.67 billion by 2031, registering a CAGR of 23.8%. The current estimation of 2031 is projected to be higher than pre-COVID-19 estimates. The Covid-19 pandemic is anticipated to provide various opportunities for growth of the market in the coming years. NFV aids greater visibility into networks which provides lucrative opportunities for the market growth. Enterprises are adopting NFV to eliminate usage and destruction of physical devices. Moreover, NFV enhances resilience during downtime and thus reducing downtime. Thus, organizations are widely deploying network function virtualization to increase their efficiency. Furthermore, the virtual environment of NFV allows segregation into multiple virtual machines. This enables the developers to quickly resolve the issue. This provides an ideal situation for developers to test and create a clone quickly and run tests issues without hampering the work and production. In addition, the centralized network gives comprehensive visibility into the network and infrastructure, which provides the enormous potential for the Network Function Virtualization Market Sizegrowth during the forecast period.
Key Findings of the Study
- By component, the hardware segment dominated the NFV market in 2021. However, the services segment is expected to exhibit significant growth during the forecast period.
- Depending on enterprise size, the large enterprises generated the highest revenue in 2021. However, the SMEs segment is expected to witness the highest growth rate in the near future.
- Depending on end user, the enterprises segment generated the highest revenue in 2021. However, the data centers segment is expected to witness the highest growth rate in the near future.
- Region-wise, the NFV market was dominated by North America in 2021. However, Asia-Pacific is expected to witness significant growth in the coming years.
- This report gives an in-depth profile of some key market players in the network function virtualization (NFV) market, include Affirmed Networks, Ciena, Cisco Systems, Inc., Comba telecom systems, Dell EMC, ECI Telecom, Ericsson, Fujitsu Limited, Hewlett Packard Enterprise, Huawei Technologies Co., Ltd., NEC Corporation, Mavenir, NETSCOUT, Nokia Corporation, VMware, Inc., Wind River Systems, Inc. and ZTE Corporation. This study includes market trends, Network Function Virtualization Market Analysis, and future estimations to determine the imminent investment pockets.
Companies Mentioned
- Cisco Systems, Inc.
- Ericsson
- Huawei Technologies Co. Ltd.
- Vmware, Inc.
- Nokia Corporation
- Hewlett Packard Enterprise Company
- Dell Emc
- Juniper Networks, Inc.
- Zte Corporation
- Fujitsu Limited
- Comba Telecom Systems
- Affirmed Networks
- Netscout Systems, Inc.
- Wind River Systems, Inc.
- Eci Telecom
- Mavenir
- Ciena Corporation
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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