According to a new report published by Allied Market Research, 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.