Virtual Network Functions Market Research Report - Forecast to 2027

Global Virtual Network Functions Market Research Report, By Component (Hardware, Software, And Services), By Organization Size (Sme And Large Enterprises), By Deployment, And By End-Users - Forecast Till 2027

ID: MRFR/ICT/4225-HCR | February 2021 | Region: Global | 100 pages         

Global Virtual Network Functions Market

The virtual network functions market is expected to grow at a high CAGR of approximately 30% by the end of the forecast period of 2027. With total revenue of USD 25 billion.

Segmentation

By Component Hardware Software Services
By Organization Size Sme Large Enterprises

Key Players

  • Alcatel-Lucent (France)
  • Cisco Corporartion (U.S.)
  • Ericsson (Sweden)
  • Huwaei (China)
  • Tech Mahindra (India)
  • Ribbon Communications (U.S.)
  • Telefonica (Spain)
  • Trend Micro (Japan)
  • Verizon Communications (U.S.)
  • Fujitsu (Japan)
  • HP Enterprise( U.S.)
  • NEC corporation (Japan)
  • F5 networks (U.S.)
  • Aricent Incorporation (France)

Drivers

  • Technology of cloud computing is acting as a major driver
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Virtual Network Functions Market Overview


Virtual Network functions are leading the global market in the current scenario. The global virtual network functions Industry is taking up collaborations and aiming for investments to provide the required simplicity, security, overview, as well as, product efficiency on the demanded and required cloud platforms. The virtual network functions market research report portrays that the market is expected to grow at a high CAGR of approximately 30% by the end of the forecast period of 2023. The global market is expecting total revenue of USD 25 billion.


These solutions have been designed to help the customers to gain and develop visibility in the data centers in real-time. There is a growing demand for managed security services amongst various businesses and organizations that are surely helping in boosting the growth of the virtual network functions market by the end of the forecasted period of 2023.


Virtual Network Functions Market COVID 19 Analysis


With the fast spread and unexpected outbreak of the global pandemic - COVID 19, most of the enterprises around the globe were on hold and were facing other issues. To prevent the spread of the pandemic, many businesses and enterprises out there have shifted to the work-from-home scenario. With the use of virtualization applications, it is easier to manage productivity and work smoother in a virtual environment. During the pandemic phase, data breaches have emerged as a major havoc concern. There is a prevalent need for the implementation of various ways to manage the security services for the different functioning organizations. During this time of bouncing back, as the restrictions are being removed, there is a need for the virtual network functions share to take steps for upholding standards along with configurations of the operating systems that are low in cost. Also, the rise in funding and investment is projected to act as a boost to the global Virtual Network Functions Market.


Virtual Network Functions Market Dynamics


The virtual network functions market size is all set to grow by the end of 2023 which is the end of the ongoing forecast period. The Virtual Network Functions market dynamics are stated below:



  • Drivers:


Since the lockdown was imposed to control the spread of the novel coronavirus, the growth in various domestic and international regions. This is expected to go on with an increasing rate by the end of the forecast period in 2023. The technology of cloud computing is acting as a major driving force that is likely to be helping the virtual network functions grow in double folds. It is providing the much-needed virtualization infrastructure a boost through funding and investment that will go on and play a vital role in achieving the estimated growth by the end of the forecast period.



  • Challenges:


However, the global virtual network functions market is facing issues with the components belonging to the methods of virtual network functions size face. Many issues and concerns related to security are likely to hamper the growth of the virtual network functions market share. Also, there are many breaches regarding the security layers by prominent and experienced hackers. Also, the concept of cloud environment is exposed to manipulating the ways of safeguarding the operations. Hence, it is becoming more essential to maintain an aware and valuable security service to manage the operations of the data centers.



  • Value Chain Analysis


The development of virtualization security has circulated a huge demand for a virtually networked environment. The activities that are being rendered by prominent market players like HPE (US), prominent ones like Dell EMC (US), Juniper Networks (US), Affirmed Networks (US), followed by NETSCOUT (US), NEC (Japan), amongst others like Ribbon Communications (US), ZTE Corporation (China), are helping the market. The funding and investment for the research and development departments are likely to help the market. The enterprises are greatly demanding these solutions to limit issues.


Virtual Network Functions Market Segment Overview


The global virtual network functions market segregation and segmentation is done on the following basis:


Based on Components:



  • Solutions

  • Orchestration and Automation

  • Services


Based on virtualized Network Functions



  • Compute

  • Storage

  • Network


Based on Applications:



  • Virtual Appliance

  • Core Network


Based on End Users:



  • Service Providers

  • Data Centers

  • Enterprises


    • Banking, Financial Services, and Insurance (BFSI)

    • Healthcare

    • Retail

    • Manufacturing

    • Government and Defense

    • Education

    • IT-enabled Services

    • Others (Hospitality, transportation and logistics, media and entertainment, and utilities)



Based on Enterprise Size



  • SMEs

  • Large enterprises


Based on Regions:



  • North America


    • US

    • Canada


  • Europe


    • UK

    • Germany

    • France

    • Rest of Europe


  • APAC


    • China

    • Japan

    • India

    • Rest of APAC


  • MEA


    • Middle East

    • South Africa

    • Rest of MEA


  • Latin America


    • Brazil

    • Mexico

    • Rest of Latin America



Virtual Network Functions Market Regional Analysis


The virtual network functions market trends are on a rise, globally. Owing to the market share and area of operations, the market is functional in 5 major regions that are a part of the market segmentation. The Asia Pacific consisting of India, China, as well as Japan, along with other regions like North America that is home to countries like Mexico, Canada, as well as the US, are the dominant forces. The European countries are also projected to be emerging in the game of the functions market. This is a result of the populous demand amongst both the domestic and the international markets that are trending as server virtualization. The implementation of an excellent degree of technology is likely to help the virtual network functions market excellently. The main result of this is an expected rise in the CAGR by the end of the forecast period of 2023.


Virtual Network Functions Market Competitive Landscape


The global virtual network functions market have some dominant players letting out their impeccable services. Some of the established names of the market are stated underneath:



  • Cisco (US)

  • Wind River (US)

  • Mavenir (US)

  • Ericsson (US)

  • Radisys (US)

  • Huawei (China)

  • ECI Telecom (Israel)

  • VMware(US)

  • Ciena (US)

  • Metaswitch (UK)

  • Nokia (Finland)

  • Fujitsu (Japan)


The global network functions market has a very high degree of market competition. Mergers, acquisitions, investment and opportunity seeking, and much more is likely to be done by the established biggies. The prominent market players have a better hand at catering to the demand of access management, thus boosting the supply chain system.


Virtual Network Functions Market Recent Developments



  • In November 2019, one of the prominent market companies - VMware expanded its partnership with Nokia to conduct processes to simplify large-scale, multi-cloud operations. This partnership also aims to increase the investments, along with technology collaboration and advanced research & development, to develop integrated solutions.

  • In October 2019, another market biggie - Ericsson took to the market and collaborated with NVIDIA to provide 5G radio access networks (RAN). Under this collaboration, both the market companies are likely to be focusing on developing the technologies that will enable communication service providers to build virtualized 5GRAN. It will further, help to accelerate the introduction of new AI- and IoT-based services.

  • In October 2019, one of the prominent market companies - Nokia took to the international market and launched new packet-optical switches for 5G cloud RAN. These newly introduced packet-optical transport switches help in offering Time-Sensitive Networking (TSN), ultra-low latency, and other advantages like cloud-native radio architectures required to support time-critical services in 5G.

  • In September 2019, Cisco also moved forward to expand its market and released the latest version 3.12.x of Cisco Enterprise NFVIS. This newly launched market product has added enhanced features include Data Plane Development Kit (DPDK) enhancements, such as service bridge extension to platforms and migration for Virtual Machines (VMs) with Physical Network Adapter (PNIC) that are associated with the DPDK bridge.

  • In March 2019, another prominent player in the market - Huawei has launched a new solution, Telco Cloud Networking. The solution will be forwarding its assistance to carriers and providing innovative services that will empower 5G, IoT, and Virtual Reality (VR).


Intended Audience



  • Telecommunication Service Providers

  • Mobile Network Operators

  • IT Suppliers

  • Cloud Service Providers

  • Enterprise Data Center Professionals

  • Networking and Telecommunication Companies

  • Data Center Software Vendors

  • Infrastructure Architects

  • Government Councils

  • Research Firms



Report Scope:
Report Attribute/Metric Details
  Market Size   USD 25 Billion (2023)
  CAGR   30% (2017-2023)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Component, By Organization Size
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Alcatel-Lucent (France), Cisco Corporartion (U.S.), Ericsson (Sweden) , Huwaei (China) , Tech Mahindra (India), Ribbon Communications (U.S.), Telefonica (Spain), Trend Micro (Japan), Verizon Communications (U.S.), Fujitsu (Japan), HP Enterprise( U.S.), NEC corporation (Japan), F5 networks (U.S.), and Aricent Incorporation (France).
  Key Market Opportunities   The United Kingdom, France, and Germany are expected to be leading countries due to the increase in service providers, who will mainly emphasize on virtual network platforms over the next few years.
  Key Market Drivers   The growing adoption of SDN can bolster the global market of virtual network functions.


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Frequently Asked Questions (FAQ) :

The virtual network functions market can thrive at 30% CAGR by 2023.

The virtual network functions market can value at USD 25 Bn by 2023.

NEC corporation (Japan), HP Enterprise(U.S.), Aricent Incorporation (France), and F5 networks (U.S.) are some major players in the virtual network functions market.

The growing adoption of SDN can bolster the global market of virtual network functions.

The North America virtual network functions market is expected to experience a surge in the coming years.