Rapid advancement in technology and improvement in internet connectivity are optimizing the control of servers or remotely located devices through virtual networking. With the combination of hardware and software, along with internet connectivity, virtual networking enables the users to communicate locally or remotely across dissimilar or similar networks by using simplified interface. Increasing utilization of virtual networking across the globe is leading to the expansion of the global virtual networking market at a remarkable CAGR of 34.3% during the forecast period of 2018-2023. It is anticipated to reach the market valuation of USD 62,080.4 Mn by the end of the review period, from USD 10,727.5 Mn in the year 2017. High demand for advanced technology that can consolidate diverse devices and services on a single hardware platform, increasing utilization of services, machinery, and devices that require virtual networking for optimum functioning and rise in adoption of cloud-based solutions are the primary factors that are propelling the growth of the global virtual networking market.
The report on the global virtual networking market offers a comprehensive analysis of the key market trends along with a five-year revenue forecast (2018-2023). This report also includes discussion on the macroeconomic indicators and the governing factors of the global virtual networking market and the sub-markets. Revenue analysis on the basis of different types of components required for virtual networking and also its application is available in this report. The primary types of components assessed in this report, that are required for successful operation of virtual networking system, include hardware, software, and devices. For opportunity analysis, the application areas of virtual networking are also covered in the report on the global virtual networking market.
The prominent players profiled in the report on the global virtual networking market are Huawei Technologies Co. Ltd, Hewlett Packard enterprise Co., IBM Corporation, Oracle Corporation, Microsoft Corporation, VMware, Inc., Citrix Systems, Inc., Virtual Networking Solutions, and Verizon Communications Inc.
This report provides an in-depth insight into the key market players and presents a comprehensive analysis of their position in the global market. This report also provides company information with regards to segmental share, revenue, growth strategies, new product launch, SWOT, geographical income, new product launch, SWOT, latest R&D initiatives and M&A activities.
Market Research Future (MRFR) employs its optimum statistical solution for comprehensive and iterative assessment of critical market indicators for the deliverance of highly accurate market insights. Collaborative approach of data triangulation technique and multi-layered research module aids in conducting a highly qualitative and quantitative analysis of the macroeconomic indicators and governing factors of the global market such as key market dynamics, historical trends, consumer landscape, challenges, and growth opportunities. Primary and secondary research processes are utilized for garnering data through surveys and personal interviews with key opinion holders across the value chain, which is then verified by referring to white papers, paid databases, SEC filings, annual company reports, and other sources available in public domain. The top-down and bottom-up approaches aid in delivering research findings with high accuracy and objectivity.
For scope of the report, Market Research Future offers a detailed segmental analysis of the global virtual networking market
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, By Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Huawei Technologies Co. Ltd, Hewlett Packard enterprise Co., IBM Corporation, Oracle Corporation, Microsoft Corporation, VMware, Inc., Citrix Systems, Inc., Virtual Networking Solutions, and Verizon Communications Inc|
|Key Market Opportunities||The primary types of components assessed in this report, that are required for successful operation of virtual networking system, include hardware, software, and devices. For opportunity analysis, the application areas of virtual networking are also covered in the report on the global virtual networking market.|
|Key Market Drivers||The rise in adoption of cloud-based solutions is the factor that is propelling the growth of the global virtual networking market.|
Frequently Asked Questions (FAQ) :
2018-2023 is the growth period of the company
The valuation of the market will be USD 62,080.4 Mn by 2023.
The rise in adoption of cloud-based solutions is the factor that is propelling the growth of the global virtual networking market.
North America region is grossing the highest market share among other regions.
IBM Corporation, Oracle Corporation, Microsoft Corporation, VMware, Inc., are the leading companies assisting the market with higher growth.
The global virtual networking market is expected to post a strong CAGR of 34.3% during the forecast period (2018-2023). Virtual networking allows the consolidation of diverse services and devices on a single hardware platform over the Internet. The increase emphasis that is being placed on abilities that manage virtual machines has somewhat shifted the spotlight of networking services, making them more valuable than ever.
There are several factors linked with the rising adoption of virtual networking services, which include server virtualization, increased need for cloud computing, increased adoption of software-defined networking in enterprises and the need for network and physical hardware virtualization to reduce network downtime. At the same time, popular trends such as industrial automation and cloud computing making the positive impact on the global virtual networking market. Enterprises are leaning towards application-specific cloud service, thereby marking virtual networking services extremely important. The fast-evolving telecommunication sector also presents lucrative opportunities to market players. The highly anticipated 5G is expected create new growth avenues for virtualization service providers in the near future.
Globalization and digitization is impacting enterprise on multiple areas. The priorities are on abilities that focus on consumer-oriented applications. Enterprises are striving to improve their global reach in order to increase customer base. Such growth strategies are cost-intensive and require proper planning and implementation of advanced solutions that drive agility, reliability and efficiency.
The segmental analysis of the global virtual networking market is conducted on the basis of type, application and region.
By type, the market has been segmented into hardware, software, and service. The service segment holds the largest market share. The segment is expected to capture a CAGR of 36.36% during the forecast period. This primarily owing to the upsurge in cloud virtual network, network automation, and DevOps automation. The service segment is further sub-segmented into professional service, implementation service, support and maintenance service, consulting service, and managed service.
By application, the market has been segmented into BFSI, public sector, manufacturing, healthcare and IT & telecommunication. The IT & telecommunication segment commands for the largest market share and the trend is likely to continue throughout the forecast period. In 2017, the segment accounted for 25% share of the market. In addition, the segment is expected to surpass a market valuation of USD 17,500 Mn by 2023, reflecting a handsome CAGR. Virtual networking services within the telecom sector allow operators to create new business network services, generate new revenue streams, and improve their operational efficiency. Moreover, the growth of the telecom sector and expanding reach of the Internet has led to a significant rise in generated and stored data.
On the basis of region, the market has been segmented into North America, Europe, Latin America, the Middle East & Africa (MEA) and Asia Pacific (APAC). Of these, North America is likely to remain a highly profitable market for virtual networking. The region currently accounts for close to 40% market share. In the year 2017, the North America networking market surpassed a valuation of USD 4,252.5 Mn. During the forecast period, the market in the region is expected to post a CAGR of 24.83% Europe is the second largest market for virtual networking and is expected hold the position throughout the assessment period. By the year 2023, the market in the region is expected to surpass a valuation of USD 16,400 Mn. whereas Asia-Pacific is expected to exhibit the highest growth rate during the forecast period. China remains a major contributor to the growth of the market in APAC. China is followed by Japan and Korea respectively.
Huawei Technologies Co. Ltd, Hewlett Packard Enterprise Co., IBM Corporation, Oracle Corporation, Microsoft Corporation, VMware, Inc., Citrix Systems, Inc., Virtual Network Solutions and Verizon Communications Inc are among the leading companies operating in the global virtual networking market.
The global virtual networking market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain market share. Intense competition, rapid advances in technology, and frequent changes in government policies are key factors that confront market growth. The vendors compete based on quality of service, pricing, and network reliability. It is crucial for the vendors to provide advanced technology and value-added services for virtual networking to survive and succeed in an intensely competitive market environment.
The growth of the market vendors is dependent on the market conditions, government support, and industry development. Thus, the vendors should focus on expanding geographically and advancement in digital services. Huawei Technologies Co. Ltd, Hewlett Packard Enterprise Co, IBM Corporation, Oracle Corporation, Microsoft Corporation, VMware Inc, Citrix systems Inc, Virtual Network Solutions, and Verizon Communications Inc. are major companies in the market that compete in terms of services offered, pricing, and availability of components from suppliers. These companies primarily focus on the development of switches, network infrastructure, and server virtualization. Although the global players are dominating the market, regional players with small market shares also have a presence in the market. The global players are expected to strengthen their presence worldwide through organic and inorganic growth during the forecast period.
The vendors with better technical and financial resources can develop innovative product that render the competitors' products, obsolete and non-competitive even before they are launched, or costs are recovered. Therefore, vendors must develop new technologies and stay in touch with emerging technologies that could affect the continuing competitiveness of their product lines in the market.
Huawei Technologies Co. Ltd (Huawei) is one of the leading providers of global information and communications technology (ICT) solutions. The company offers competitive solutions, products, and services to telecom service providers, enterprises, and consumers. The company operates through four business divisions — carrier business, enterprise business, consumer business, and Huawei cloud. Huawei is focused on increasing investments in its business segments that allows it to provide better services for connectivity and cloud while securing a solid share of opportunities in the market. The company also emphasizes investments in key emerging economies, allowing them to enter high-end markets.
Hewlett Packard Enterprise (HPE) is one of the leading providers of technology solutions with a focus on increasing customers' traditional information technology services. The company operates through three business segments namely, enterprise group (EG), financial services (FS), and corporate investments. HPE launched virtualized operations support system (OSS), HPE vTeMIP, to help communication service providers to increase service assurance management and network agility with lower cost. As a part of market development, HPE focuses on strategic partnerships and collaborations. HPE has collaborated with various companies to expand its business in cloud-based services and hybrid information technology environment. Additionally, HPE invests a major share of their revenue in research and development in developing new technologies to compete in cloud-based services market.
International Business Machines (IBM) Corporation is a leading provider of information technology, innovation, and research & development worldwide. The company has a prominent history of manufacturing computer systems, computer hardware, software, and offering information technology consulting services. The company has major operations in the US, Japan, and the rest of the world. The company operates through the following business segments: cognitive solutions, technology services, business services, global financing services, software services, and system hardware. IBM Corporation primarily aims to increase its business productivity by building partnerships with tech giants and exploring the untapped market as a part of its inorganic growth strategy. The company’s strategy mainly focuses on innovation by constant re-invention and transformation.
VMware is a global provider of cloud infrastructure and digital workspace technology which offers flexibility and freedom to the customer for building and evolving in IT environment. The company provides various types of products including software-defined data center, end-user computing, and hybrid cloud computing. The company operates in 3 different business segments — software maintenance, license, and professional services. Few subsidiaries of VMware are AirWatch, CloudHealth Technologies, CloudVolumes, VeloCloud Networks, Inc., and Zimbra, Inc. The company focuses on the development of a unified hybrid cloud and business mobility solution. The company invests its revenue in research and development of DevOps, agile development, Linux containers, and microservices based applications to increase speed the development of various software.