Network Functions Virtualization Market Analysis (2023 - 2030)
By 2027, it is predicted that the market for network functions virtualization will increase to USD 122 billion. From 2022 to 2027, this market will grow at a strong CAGR of 34.09%.
A combination of hardware and software is used in network function virtualization (NFV), which deals with virtual networks. It helps to streamline networks and related activities, consumes less power, and lowers equipment costs. Multiple applications can be accessed more easily on a single network appliance. The reduction of capital and operating expenses is a key benefit of network function virtualization. Additionally, the growth of the market is driven by an increase in the adoption of virtualized software among enterprise data centers, including internet service providers (ISP) and cloud service providers (CSPs). Furthermore, the market size for network function virtualization is anticipated to benefit from the rise in demand for data-intensive applications and the requirement for cloud-based services.
Given the estimated shifts in consumer behavior, buying habits, and market dynamics during the pandemic, the network function virtualization industry is predicted to expand quickly. Even if the market for network function virtualization experienced a tiny decline in the first half of the period, it is anticipated to develop even more in the years to come. Furthermore, it is projected that network function virtualization would have a significant impact on the IT industry. Since it provides a variety of network functions, such as load balancing, IP multimedia subsystems, firewalls, mobile cores, security, routing, or video, network function virtualization has been extremely beneficial for numerous businesses throughout the pandemic.
The adoption of virtual applications technology is sped up by the rising demand for digital infrastructure that incorporates private and cloud systems. It is more suitable for virtualized software to run on virtual infrastructure since it makes IT infrastructure more flexible, agile, and safe. Furthermore, compared to using conventional imaging technologies, virtual desktop infrastructure makes it much faster to centrally control the machines. hence providing profitable chances for business expansion. However, the rise of virtualized software powered by AI is accelerating the development of the network function virtualization industry.
Key Market Insights:
- The major functions of a virtual appliance include networking operations such as domain name service, traffic forwarding, traffic monitoring, security, caching, and intrusion detection. Widespread use of Virtual Customer Premise Equipment (VCPe) over the edge is made of these processes. Due to how much this has influenced businesses to simplify their networks, the market is anticipated to grow at a respectable rate over the next several years.
- Wide Area Network (WAN) configuration, Software-Defined Networking (SDN) controllers, virtual infrastructure managers, and NFV orchestrators are just a few of the components that make up orchestration and automation. By combining Virtualized Network Functions (VNFs), scalability, self-healing, and resource lifecycle management of network services, orchestration's primary goal is to automate and improve the design of network services. VNFs communicate with service orchestrators when there are no cross-domain network orchestrators. Due to the usefulness and importance of orchestration and automation, its deployment is frequently seen, especially when there is no vendor lock-in and the solutions are both specialized and off the shelf.
- As NFV offers substantial advantages like greater network efficiency through centralized management, increased IT agility, and network customization through quick and dependable application services, enterprise customers are quickly embracing it. The enterprise market has been broken down into several verticals, including banking, financial services, and insurance (BFSI), manufacturing, retail, healthcare, education, transportation and logistics, energy, and utilities. Other verticals include hospitality, transportation and logistics, media and entertainment, and utilities. NFV adoption is widespread in the BFSI, retail, industrial, and healthcare sectors at the moment.
- In 2021, North America is anticipated to hold the largest market share for NFV. NFV has a sizable market with room for expansion. The quick and early adoption of technologies like cloud computing, Software Defined Everything (SDx), and IoT has helped the NFV market in North America. High industrialization in nations like the US and Canada has always been beneficial for fostering rapid expansion across a variety of business sectors. The North American nations have advantageous networking standards and laws that support the expansion of the NFV business. Numerous NFV infrastructure suppliers, including Cisco, IBM, Juniper Networks, and Extreme Networks, are based in North America. Additionally, it might be an investment market, creating new chances for NFV infrastructure adoption. The usage of NFV is growing in the area as a result of more widespread 5G deployments. The adoption of NFV, on the other hand, necessitates numerous organizational, functional, and cultural changes within enterprises because the controller in NFV controls the entire network.
Market Segmentation:
By Components:
- Solutions
- Orchestration and Automation
- Services
By Application:
- Virtual Appliances
- Core Network
- Mobile Edge Computing
- Virtualized Radio Access Network
- Virtualized Evolved Packet Core
- Virtual Internet Protocol Multimedia Subsystem
By Application:
- Virtual Appliances
- Core Network
- Mobile Edge Computing
- Virtualized Radio Access Network
- Virtualized Evolved Packet Core
- Virtual Internet Protocol Multimedia Subsystem
By Region:
- North America
- Europe
- Asia-Pacific
- Rest of the World
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