Network Function Virtualization Market
Network Function Virtualization Market Forecasts to 2030 - Global Analysis By Component (Services, Solutions and Other Components), End User (Data Centers, Service Providers, Enterprise and Other End Users) and By Geography
According to Stratistics MRC, the Global Network Function Virtualization Market is accounted for $39.53 billion in 2024 and is expected to reach $151.53 billion by 2030 growing at a CAGR of 25.1% during the forecast period. Network Function Virtualization (NFV) is a paradigm shift in the realm of networking, aiming to revolutionize traditional hardware-centric network infrastructures. It involves decoupling network functions, such as routing, firewalling, and load balancing, from proprietary hardware appliances and implementing them as software-based services. By virtualizing these functions, NFV enables them to run on standard hardware platforms, leveraging techniques like virtualization and cloud computing.
According to UNESCO, 850 million students are currently studying and attending at home. At the same time, hundreds of millions of workers suddenly switch to remote work, making a big difference in how they use their communications networks.
Market Dynamics:
Driver:
Increased emergence of cloud services
The increased emergence of cloud services is substantially enhancing the Network Function Virtualization (NFV) market by revolutionizing the way networks are designed, deployed, and managed. Cloud platforms provide a flexible and scalable infrastructure that enables NFV implementations to efficiently virtualize network functions, such as routing, firewalling, and load balancing. This shift to cloud-based NFV solutions allows businesses to dynamically allocate resources based on demand, reducing costs associated with hardware maintenance and upgrades. Moreover, cloud environments facilitate the rapid deployment of new services and applications, accelerating innovation cycles and improving time-to-market for businesses.
Restraint:
Security concerns
Security concerns pose a significant obstacle to the growth of the Network Function Virtualization (NFV) market. NFV involves consolidating network functions onto virtualized platforms, offering flexibility and cost-efficiency. This convergence also creates vulnerabilities, as multiple functions share the same underlying infrastructure. The dynamic nature of virtualized environments complicates security measures, making it challenging to monitor and protect against evolving threats. However, the potential for unauthorized access or manipulation increases in a virtualized environment, raising concerns about data breaches and service disruptions.
Opportunity:
Adoption for IoT technology
IoT devices generate massive volumes of data, necessitating efficient processing and analysis, which NFV facilitates through virtualized network functions. By deploying NFV, organizations can dynamically allocate resources, optimize network performance, and scale operations to accommodate the burgeoning IoT ecosystem. Additionally, NFV enables the creation of virtualized network services, enhancing flexibility and agility in deploying IoT solutions across diverse environments.
Threat:
Complexity of implementation
NFV aims to transform traditional networking by virtualizing network functions, thereby increasing flexibility and scalability while reducing costs. The intricate nature of implementing NFV solutions, involving integration with existing infrastructure, orchestrating multiple virtual network functions (VNFs), ensuring interoperability, and managing virtualized resources, often leads to delays and increased costs for deployment. However, the lack of standardized interfaces and interoperability among NFV components further exacerbates these challenges, making it difficult for organizations to adopt NFV at scale.
Covid-19 Impact:
The COVID-19 pandemic dramatically altered the landscape of the Network Function Virtualization (NFV) market. The pandemic accelerated the adoption of NFV technologies across various sectors, including telecommunications, healthcare, finance, and education. However, the pandemic also posed challenges such as supply chain disruptions, delayed deployments, and financial constraints, impacting the pace of NFV implementation for some organizations.
The Solutions segment is expected to be the largest during the forecast period
Solutions segment is expected to be the largest during the forecast period by offering comprehensive platforms and services tailored to the evolving needs of businesses. These solutions encompass a spectrum of offerings, including virtualized network infrastructure, software-defined networking (SDN), virtualized network functions (VNFs), and management and orchestration (MANO) systems. Furthermore, by integrating these components, Solutions providers enable enterprises to achieve greater flexibility, scalability, and efficiency in managing their network infrastructure.
The Data Centers segment is expected to have the highest CAGR during the forecast period
Data Centers segment is expected to have the highest CAGR during the forecast period. Data centers, with their high-performance computing capabilities and flexible infrastructure, serve as the backbone for NFV deployment. By leveraging virtualization technologies within data centers, NFV enables the decoupling of network functions from dedicated hardware, allowing them to run as software-based instances on standard servers. This decoupling facilitates agility, scalability, and cost-effectiveness in network operations. Moreover, data centers provide the necessary environment for centralized management and orchestration of virtualized network functions, optimizing resource utilization and enhancing overall efficiency.
Region with largest share:
North America region dominated the largest share over the forecast period. Through NFV, traditional network functions are virtualized, allowing for dynamic allocation and scaling of resources based on demand across the region. This flexibility enables service providers in North America to better utilize their existing infrastructure, reducing the need for over-provisioning and minimizing wastage of resources. Moreover, NFV in the region facilitates the consolidation of hardware, leading to a more streamlined and cost-effective network architecture.
Region with highest CAGR:
Asia Pacific region is poised to hold lucrative growth during the projection period. By instituting policies that promote interoperability, data privacy, and cybersecurity standards, governments are fostering an environment conducive to innovation and investment in NFV technologies across the region. These regulations provide a framework for businesses to operate within, ensuring consumer trust and market stability. Moreover, governments in the region are incentivizing the adoption of NFV by offering subsidies, tax breaks, and funding for research and development in this sector.
Key players in the market
Some of the key players in Network Function Virtualization market include 6Wind SA, Alcatel-Lucent, Amdocs Inc, CIMI Corporation, Connectem Inc, ConteXtream Inc, Ericsson AB, F5 Network Inc, Huawei Technologies Co. Ltd, Intel Corporation, Juniper Network Inc, Nokia Solutions and Network, Open Wave Mobility Inc and Oracle.
Key Developments:
In December 2022, The largest telecom company in the UK, Virgin Media O2, has selected Charmed OSM, as its production-ready orchestrator for the implementation of hybrid workloads.
In August 2022, Red Hat OpenShift Container Platform and Intel Smart Edge Open work together with Intel to enable RAN intelligence. Fujitsu will provide new software vRAN technology in February 2022 that supports 5g and might result in over 50% CO2 emission savings. Nokia stated in May 2021 that it would provide its airframe servers, cloud infrastructure software, and digital operation software to improve PLDT's network.
Components Covered:
• Services
• Solutions
• Other Components
End Users Covered:
• Data Centers
• Service Providers
• Enterprise
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 End User Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Network Function Virtualization Market, By Component
5.1 Introduction
5.2 Services
5.3 Solutions
5.4 Other Components
6 Global Network Function Virtualization Market, By End User
6.1 Introduction
6.2 Data Centers
6.3 Service Providers
6.4 Enterprise
6.4.1 Healthcare
6.4.2 Banking, Financial Services and Insurance
6.4.3 Manufacturing
6.4.4 Retail
6.4.5 Government and Defense
6.4.6 Other Enterprises
6.5 Other End Users
7 Global Network Function Virtualization Market, By Geography
7.1 Introduction
7.2 North America
7.2.1 US
7.2.2 Canada
7.2.3 Mexico
7.3 Europe
7.3.1 Germany
7.3.2 UK
7.3.3 Italy
7.3.4 France
7.3.5 Spain
7.3.6 Rest of Europe
7.4 Asia Pacific
7.4.1 Japan
7.4.2 China
7.4.3 India
7.4.4 Australia
7.4.5 New Zealand
7.4.6 South Korea
7.4.7 Rest of Asia Pacific
7.5 South America
7.5.1 Argentina
7.5.2 Brazil
7.5.3 Chile
7.5.4 Rest of South America
7.6 Middle East & Africa
7.6.1 Saudi Arabia
7.6.2 UAE
7.6.3 Qatar
7.6.4 South Africa
7.6.5 Rest of Middle East & Africa
8 Key Developments
8.1 Agreements, Partnerships, Collaborations and Joint Ventures
8.2 Acquisitions & Mergers
8.3 New Product Launch
8.4 Expansions
8.5 Other Key Strategies
9 Company Profiling
9.1 6Wind SA
9.2 Alcatel-Lucent
9.3 Amdocs Inc
9.4 CIMI Corporation
9.5 Connectem Inc
9.6 ConteXtream Inc
9.7 Ericsson AB
9.8 F5 Network Inc
9.9 Huawei Technologies Co. Ltd
9.10 Intel Corporation
9.11 Juniper Network Inc
9.12 Nokia Solutions and Network
9.13 Open Wave Mobility Inc
9.14 Oracle
List of Tables
1 Global Network Function Virtualization Market Outlook, By Region (2022-2030) ($MN)
2 Global Network Function Virtualization Market Outlook, By Component (2022-2030) ($MN)
3 Global Network Function Virtualization Market Outlook, By Services (2022-2030) ($MN)
4 Global Network Function Virtualization Market Outlook, By Solutions (2022-2030) ($MN)
5 Global Network Function Virtualization Market Outlook, By Other Components (2022-2030) ($MN)
6 Global Network Function Virtualization Market Outlook, By End User (2022-2030) ($MN)
7 Global Network Function Virtualization Market Outlook, By Data Centers (2022-2030) ($MN)
8 Global Network Function Virtualization Market Outlook, By Service Providers (2022-2030) ($MN)
9 Global Network Function Virtualization Market Outlook, By Enterprise (2022-2030) ($MN)
10 Global Network Function Virtualization Market Outlook, By Healthcare (2022-2030) ($MN)
11 Global Network Function Virtualization Market Outlook, By Banking, Financial Services and Insurance (2022-2030) ($MN)
12 Global Network Function Virtualization Market Outlook, By Manufacturing (2022-2030) ($MN)
13 Global Network Function Virtualization Market Outlook, By Retail (2022-2030) ($MN)
14 Global Network Function Virtualization Market Outlook, By Government and Defense (2022-2030) ($MN)
15 Global Network Function Virtualization Market Outlook, By Other Enterprises (2022-2030) ($MN)
16 Global Network Function Virtualization Market Outlook, By Other End Users (2022-2030) ($MN)
17 North America Network Function Virtualization Market Outlook, By Country (2022-2030) ($MN)
18 North America Network Function Virtualization Market Outlook, By Component (2022-2030) ($MN)
19 North America Network Function Virtualization Market Outlook, By Services (2022-2030) ($MN)
20 North America Network Function Virtualization Market Outlook, By Solutions (2022-2030) ($MN)
21 North America Network Function Virtualization Market Outlook, By Other Components (2022-2030) ($MN)
22 North America Network Function Virtualization Market Outlook, By End User (2022-2030) ($MN)
23 North America Network Function Virtualization Market Outlook, By Data Centers (2022-2030) ($MN)
24 North America Network Function Virtualization Market Outlook, By Service Providers (2022-2030) ($MN)
25 North America Network Function Virtualization Market Outlook, By Enterprise (2022-2030) ($MN)
26 North America Network Function Virtualization Market Outlook, By Healthcare (2022-2030) ($MN)
27 North America Network Function Virtualization Market Outlook, By Banking, Financial Services and Insurance (2022-2030) ($MN)
28 North America Network Function Virtualization Market Outlook, By Manufacturing (2022-2030) ($MN)
29 North America Network Function Virtualization Market Outlook, By Retail (2022-2030) ($MN)
30 North America Network Function Virtualization Market Outlook, By Government and Defense (2022-2030) ($MN)
31 North America Network Function Virtualization Market Outlook, By Other Enterprises (2022-2030) ($MN)
32 North America Network Function Virtualization Market Outlook, By Other End Users (2022-2030) ($MN)
33 Europe Network Function Virtualization Market Outlook, By Country (2022-2030) ($MN)
34 Europe Network Function Virtualization Market Outlook, By Component (2022-2030) ($MN)
35 Europe Network Function Virtualization Market Outlook, By Services (2022-2030) ($MN)
36 Europe Network Function Virtualization Market Outlook, By Solutions (2022-2030) ($MN)
37 Europe Network Function Virtualization Market Outlook, By Other Components (2022-2030) ($MN)
38 Europe Network Function Virtualization Market Outlook, By End User (2022-2030) ($MN)
39 Europe Network Function Virtualization Market Outlook, By Data Centers (2022-2030) ($MN)
40 Europe Network Function Virtualization Market Outlook, By Service Providers (2022-2030) ($MN)
41 Europe Network Function Virtualization Market Outlook, By Enterprise (2022-2030) ($MN)
42 Europe Network Function Virtualization Market Outlook, By Healthcare (2022-2030) ($MN)
43 Europe Network Function Virtualization Market Outlook, By Banking, Financial Services and Insurance (2022-2030) ($MN)
44 Europe Network Function Virtualization Market Outlook, By Manufacturing (2022-2030) ($MN)
45 Europe Network Function Virtualization Market Outlook, By Retail (2022-2030) ($MN)
46 Europe Network Function Virtualization Market Outlook, By Government and Defense (2022-2030) ($MN)
47 Europe Network Function Virtualization Market Outlook, By Other Enterprises (2022-2030) ($MN)
48 Europe Network Function Virtualization Market Outlook, By Other End Users (2022-2030) ($MN)
49 Asia Pacific Network Function Virtualization Market Outlook, By Country (2022-2030) ($MN)
50 Asia Pacific Network Function Virtualization Market Outlook, By Component (2022-2030) ($MN)
51 Asia Pacific Network Function Virtualization Market Outlook, By Services (2022-2030) ($MN)
52 Asia Pacific Network Function Virtualization Market Outlook, By Solutions (2022-2030) ($MN)
53 Asia Pacific Network Function Virtualization Market Outlook, By Other Components (2022-2030) ($MN)
54 Asia Pacific Network Function Virtualization Market Outlook, By End User (2022-2030) ($MN)
55 Asia Pacific Network Function Virtualization Market Outlook, By Data Centers (2022-2030) ($MN)
56 Asia Pacific Network Function Virtualization Market Outlook, By Service Providers (2022-2030) ($MN)
57 Asia Pacific Network Function Virtualization Market Outlook, By Enterprise (2022-2030) ($MN)
58 Asia Pacific Network Function Virtualization Market Outlook, By Healthcare (2022-2030) ($MN)
59 Asia Pacific Network Function Virtualization Market Outlook, By Banking, Financial Services and Insurance (2022-2030) ($MN)
60 Asia Pacific Network Function Virtualization Market Outlook, By Manufacturing (2022-2030) ($MN)
61 Asia Pacific Network Function Virtualization Market Outlook, By Retail (2022-2030) ($MN)
62 Asia Pacific Network Function Virtualization Market Outlook, By Government and Defense (2022-2030) ($MN)
63 Asia Pacific Network Function Virtualization Market Outlook, By Other Enterprises (2022-2030) ($MN)
64 Asia Pacific Network Function Virtualization Market Outlook, By Other End Users (2022-2030) ($MN)
65 South America Network Function Virtualization Market Outlook, By Country (2022-2030) ($MN)
66 South America Network Function Virtualization Market Outlook, By Component (2022-2030) ($MN)
67 South America Network Function Virtualization Market Outlook, By Services (2022-2030) ($MN)
68 South America Network Function Virtualization Market Outlook, By Solutions (2022-2030) ($MN)
69 South America Network Function Virtualization Market Outlook, By Other Components (2022-2030) ($MN)
70 South America Network Function Virtualization Market Outlook, By End User (2022-2030) ($MN)
71 South America Network Function Virtualization Market Outlook, By Data Centers (2022-2030) ($MN)
72 South America Network Function Virtualization Market Outlook, By Service Providers (2022-2030) ($MN)
73 South America Network Function Virtualization Market Outlook, By Enterprise (2022-2030) ($MN)
74 South America Network Function Virtualization Market Outlook, By Healthcare (2022-2030) ($MN)
75 South America Network Function Virtualization Market Outlook, By Banking, Financial Services and Insurance (2022-2030) ($MN)
76 South America Network Function Virtualization Market Outlook, By Manufacturing (2022-2030) ($MN)
77 South America Network Function Virtualization Market Outlook, By Retail (2022-2030) ($MN)
78 South America Network Function Virtualization Market Outlook, By Government and Defense (2022-2030) ($MN)
79 South America Network Function Virtualization Market Outlook, By Other Enterprises (2022-2030) ($MN)
80 South America Network Function Virtualization Market Outlook, By Other End Users (2022-2030) ($MN)
81 Middle East & Africa Network Function Virtualization Market Outlook, By Country (2022-2030) ($MN)
82 Middle East & Africa Network Function Virtualization Market Outlook, By Component (2022-2030) ($MN)
83 Middle East & Africa Network Function Virtualization Market Outlook, By Services (2022-2030) ($MN)
84 Middle East & Africa Network Function Virtualization Market Outlook, By Solutions (2022-2030) ($MN)
85 Middle East & Africa Network Function Virtualization Market Outlook, By Other Components (2022-2030) ($MN)
86 Middle East & Africa Network Function Virtualization Market Outlook, By End User (2022-2030) ($MN)
87 Middle East & Africa Network Function Virtualization Market Outlook, By Data Centers (2022-2030) ($MN)
88 Middle East & Africa Network Function Virtualization Market Outlook, By Service Providers (2022-2030) ($MN)
89 Middle East & Africa Network Function Virtualization Market Outlook, By Enterprise (2022-2030) ($MN)
90 Middle East & Africa Network Function Virtualization Market Outlook, By Healthcare (2022-2030) ($MN)
91 Middle East & Africa Network Function Virtualization Market Outlook, By Banking, Financial Services and Insurance (2022-2030) ($MN)
92 Middle East & Africa Network Function Virtualization Market Outlook, By Manufacturing (2022-2030) ($MN)
93 Middle East & Africa Network Function Virtualization Market Outlook, By Retail (2022-2030) ($MN)
94 Middle East & Africa Network Function Virtualization Market Outlook, By Government and Defense (2022-2030) ($MN)
95 Middle East & Africa Network Function Virtualization Market Outlook, By Other Enterprises (2022-2030) ($MN)
96 Middle East & Africa Network Function Virtualization Market Outlook, By Other End Users (2022-2030) ($MN)
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
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