Network Function Virtualization Nfv Market
Network Function Virtualization (NFV) Market Forecasts to 2032 - Global Analysis By Component (NFV Platform Software, NFV Infrastructure (NFVI), Virtual Network Functions (VNFs) and Other Components), Deployment Model, Primary Use Case, Organization Type, Technology, End User and By Geography
According to Stratistics MRC, the Global Network Function Virtualization (NFV) Market is accounted for $12.30 billion in 2025 and is expected to reach $48.65 billion by 2032 growing at a CAGR of 21.7% during the forecast period. Network Function Virtualization (NFV) is a networking architecture that decouples network functions from proprietary hardware and runs them as software-based virtual machines or containers on standard servers. It enables functions such as firewalls, load balancers, routers, and intrusion detection systems to be deployed, scaled, and managed dynamically through virtualization technologies. NFV improves network agility, reduces capital and operational costs, and accelerates service innovation by allowing service providers and enterprises to rapidly introduce new services without hardware dependency. By leveraging cloud and data center infrastructures, NFV supports flexible, automated, and efficient network operations.
According to recent estimates, the adoption of Network Function Virtualization can reduce capital expenditures by up to 30%.
Market Dynamics:
Driver:
Growing demand for agile networks
Telecom operators are adopting NFV to reduce dependency on proprietary hardware. Cloud-native architectures provide agility in deploying virtualized functions across diverse environments. Enterprises in BFSI, healthcare, and manufacturing are integrating NFV to support digital transformation. Vendors are embedding orchestration tools to simplify deployment and management. Demand for agile networks is ultimately boosting NFV adoption by strengthening operational efficiency and service innovation.
Restraint:
Performance concerns versus dedicated hardware
Operators face challenges in achieving parity with specialized hardware appliances. Mission-critical applications such as real-time communications demand higher reliability. Integration complexity hampers efficiency and slows down deployment timelines. Vendors must invest in optimization frameworks to address performance gaps. Concerns over hardware equivalence are ultimately limiting NFV scalability and slowing adoption in sensitive industries.
Opportunity:
Rapid rollout of 5G networks
NFV enables operators to deploy network slicing and dynamic resource allocation. Cloud-native NFV platforms support ultra-low latency services for IoT, AR/VR, and autonomous systems. Vendors are embedding AI-driven orchestration to enhance scalability. Enterprises are leveraging NFV to monetize new 5G-enabled services. Rollout of 5G is ultimately fueling NFV adoption by strengthening its role as a backbone of next-generation telecom.
Threat:
Security vulnerabilities in virtualized environments
Operators face challenges in protecting sensitive traffic flows from breaches. Regulatory frameworks impose strict compliance requirements on telecom providers. Vendors must invest heavily in encryption, monitoring, and governance. Complexity of virtualized ecosystems increases exposure to cyber threats. Persistent vulnerabilities are ultimately hampering NFV adoption by constraining trust and slowing deployment.
Covid-19 Impact:
The Covid-19 pandemic accelerated digital connectivity and boosted reliance on NFV platforms due to rising demand for resilient and automated telecom services. Remote work and surging data traffic increased pressure on networks. Operators invested in NFV-driven automation to foster resilience and maintain service quality. Budget constraints initially hindered deployment in cost-sensitive markets. Rising emphasis on digital customer engagement propelled stronger investments in NFV-enabled infrastructure.
The NFV infrastructure (NFVI) segment is expected to be the largest during the forecast period
The NFV infrastructure (NFVI) segment is expected to account for the largest market share during the forecast period due to demand for scalable and programmable network foundations. NFVI provides the hardware and software environment required to host virtualized functions. Operators deploy NFVI to reduce reliance on proprietary appliances. Vendors are embedding orchestration and monitoring tools to simplify integration. Adoption across large telecom providers is expanding rapidly. NFVI is ultimately boosting market leadership by anchoring the backbone of NFV deployments.
The cloud & communication service providers segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the cloud & communication service providers segment is predicted to witness the highest growth rate because of expanding demand for flexible and programmable telecom services. Providers are leveraging NFV to deliver dynamic resource allocation and real-time monitoring. Vendors are embedding automation frameworks to support diverse workloads. Cloud-native architectures are broadening accessibility across industries. Adoption is expanding rapidly in Asia Pacific and Latin America. Cloud & communication service providers are ultimately propelling NFV adoption by strengthening next-generation telecom ecosystems.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share, anchored by mature telecom infrastructure and strong enterprise adoption of NFV platforms. The United States leads with significant investments in 5G, edge computing, and NFV orchestration frameworks. Canada complements growth with emphasis on compliance-driven NFV solutions and government-backed digital initiatives. Presence of major telecom providers such as AT&T, Verizon, and T-Mobile consolidates regional leadership. Rising demand for data privacy and regulatory compliance is shaping adoption across industries including BFSI and healthcare.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR due to rapid digitalization and expanding telecom ecosystems. China is investing heavily in NFV-enabled 5G optimization and edge infrastructure. India is fostering growth through a vibrant startup ecosystem and government-backed telecom digitization programs. Japan and South Korea are advancing adoption with strong emphasis on automation and enterprise NFV integration. Telecom, BFSI, and e-commerce sectors across the region are driving demand for intelligent platforms. Asia Pacific is ultimately fueling adoption and strengthening its position as the fastest-growing hub for NFV deployments.
Key players in the market
Some of the key players in Network Function Virtualization (NFV) Market include Nokia Corporation, Ericsson AB, Huawei Technologies Co., Ltd., Cisco Systems, Inc., VMware, Inc., Hewlett Packard Enterprise Company, Dell Technologies Inc., Juniper Networks, Inc., NEC Corporation, ZTE Corporation, Intel Corporation, Samsung Electronics Co., Ltd., Ribbon Communications Inc., Mavenir Systems, Inc. and Affirmed Networks, Inc.
Key Developments:
In December 2024, Cisco launched its latest networking chips, the Silicon One G200 and G800, designed for AI/ML workloads and cloud-scale infrastructure. These processors provide the high-performance foundation needed for data-intensive virtualized network functions (VNFs) and service provider core routing.
In February 2023, Huawei entered a strategic partnership with MTN Group to modernize the operator's transport and core networks across Africa using NFV and SDN technologies. This agreement focuses on building a simplified, agile, and automated network infrastructure to enhance service delivery.
Components Covered:
• NFV Platform Software
• NFV Infrastructure (NFVI)
• Virtual Network Functions (VNFs)
• Management, Orchestration & Automation (MANO)
• Security & Network Assurance Solutions
• Other Components
Deployment Models Covered:
• On-Premise
• Cloud-Based
Primary Use Cases Covered:
• Core Network Virtualization
• Access Network Virtualization
• Enterprise & Private Network Virtualization
• Network Automation & OSS/BSS Integration
• Security & Firewall Virtualization
• Other Primary Use Cases
Organization Types Covered:
• Large Enterprises
• Small & Medium Enterprises
Technologies Covered:
• Software-Defined Networking (SDN)
• Edge Computing Integration
• AI & Machine Learning for Network Automation
• API-Driven Network Integration
• Other Technologies
End Users Covered:
• Telecom Service Providers
• Internet Service Providers
• Mobile Virtual Network Operators
• Cloud & Communication Service Providers
• 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 2024, 2025, 2026, 2028, and 2032
- 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
o 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 Technology Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 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 (NFV) Market, By Component
5.1 Introduction
5.2 NFV Platform Software
5.3 NFV Infrastructure (NFVI)
5.4 Virtual Network Functions (VNFs)
5.5 Management, Orchestration & Automation (MANO)
5.6 Security & Network Assurance Solutions
5.7 Other Components
6 Global Network Function Virtualization (NFV) Market, By Deployment Model
6.1 Introduction
6.2 On-Premise
6.3 Cloud-Based
7 Global Network Function Virtualization (NFV) Market, By Primary Use Case
7.1 Introduction
7.2 Core Network Virtualization
7.3 Access Network Virtualization
7.4 Enterprise & Private Network Virtualization
7.5 Network Automation & OSS/BSS Integration
7.6 Security & Firewall Virtualization
7.7 Other Primary Use Cases
8 Global Network Function Virtualization (NFV) Market, By Organization Type
8.1 Introduction
8.2 Large Enterprises
8.3 Small & Medium Enterprises
9 Global Network Function Virtualization (NFV) Market, By Technology
9.1 Introduction
9.2 Software-Defined Networking (SDN)
9.3 Edge Computing Integration
9.4 AI & Machine Learning for Network Automation
9.5 API-Driven Network Integration
9.6 Other Technologies
10 Global Network Function Virtualization (NFV) Market, By End User
10.1 Introduction
10.2 Telecom Service Providers
10.3 Internet Service Providers
10.4 Mobile Virtual Network Operators
10.5 Cloud & Communication Service Providers
10.6 Other End Users
11 Global Network Function Virtualization (NFV) Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
13.1 Nokia Corporation
13.2 Ericsson AB
13.3 Huawei Technologies Co. Ltd.
13.4 Cisco Systems, Inc.
13.5 VMware, Inc.
13.6 Hewlett Packard Enterprise Company
13.7 Dell Technologies Inc.
13.8 Juniper Networks, Inc.
13.9 NEC Corporation
13.10 ZTE Corporation
13.11 Intel Corporation
13.12 Samsung Electronics Co., Ltd.
13.13 Ribbon Communications Inc.
13.14 Mavenir Systems, Inc.
13.15 Affirmed Networks, Inc.
List of Tables
1 Global Network Function Virtualization (NFV) Market Outlook, By Region (2024-2032) ($MN)
2 Global Network Function Virtualization (NFV) Market Outlook, By Component (2024-2032) ($MN)
3 Global Network Function Virtualization (NFV) Market Outlook, By NFV Platform Software (2024-2032) ($MN)
4 Global Network Function Virtualization (NFV) Market Outlook, By NFV Infrastructure (NFVI) (2024-2032) ($MN)
5 Global Network Function Virtualization (NFV) Market Outlook, By Virtual Network Functions (VNFs) (2024-2032) ($MN)
6 Global Network Function Virtualization (NFV) Market Outlook, By Management, Orchestration & Automation (MANO) (2024-2032) ($MN)
7 Global Network Function Virtualization (NFV) Market Outlook, By Security & Network Assurance Solutions (2024-2032) ($MN)
8 Global Network Function Virtualization (NFV) Market Outlook, By Other Components (2024-2032) ($MN)
9 Global Network Function Virtualization (NFV) Market Outlook, By Deployment Model (2024-2032) ($MN)
10 Global Network Function Virtualization (NFV) Market Outlook, By On-Premise (2024-2032) ($MN)
11 Global Network Function Virtualization (NFV) Market Outlook, By Cloud-Based (2024-2032) ($MN)
12 Global Network Function Virtualization (NFV) Market Outlook, By Primary Use Case (2024-2032) ($MN)
13 Global Network Function Virtualization (NFV) Market Outlook, By Core Network Virtualization (2024-2032) ($MN)
14 Global Network Function Virtualization (NFV) Market Outlook, By Access Network Virtualization (2024-2032) ($MN)
15 Global Network Function Virtualization (NFV) Market Outlook, By Enterprise & Private Network Virtualization (2024-2032) ($MN)
16 Global Network Function Virtualization (NFV) Market Outlook, By Network Automation & OSS/BSS Integration (2024-2032) ($MN)
17 Global Network Function Virtualization (NFV) Market Outlook, By Security & Firewall Virtualization (2024-2032) ($MN)
18 Global Network Function Virtualization (NFV) Market Outlook, By Other Primary Use Cases (2024-2032) ($MN)
19 Global Network Function Virtualization (NFV) Market Outlook, By Organization Type (2024-2032) ($MN)
20 Global Network Function Virtualization (NFV) Market Outlook, By Large Enterprises (2024-2032) ($MN)
21 Global Network Function Virtualization (NFV) Market Outlook, By Small & Medium Enterprises (2024-2032) ($MN)
22 Global Network Function Virtualization (NFV) Market Outlook, By Technology (2024-2032) ($MN)
23 Global Network Function Virtualization (NFV) Market Outlook, By Software-Defined Networking (SDN) (2024-2032) ($MN)
24 Global Network Function Virtualization (NFV) Market Outlook, By Edge Computing Integration (2024-2032) ($MN)
25 Global Network Function Virtualization (NFV) Market Outlook, By AI & Machine Learning for Network Automation (2024-2032) ($MN)
26 Global Network Function Virtualization (NFV) Market Outlook, By API-Driven Network Integration (2024-2032) ($MN)
27 Global Network Function Virtualization (NFV) Market Outlook, By Other Technologies (2024-2032) ($MN)
28 Global Network Function Virtualization (NFV) Market Outlook, By End User (2024-2032) ($MN)
29 Global Network Function Virtualization (NFV) Market Outlook, By Telecom Service Providers (2024-2032) ($MN)
30 Global Network Function Virtualization (NFV) Market Outlook, By Internet Service Providers (2024-2032) ($MN)
31 Global Network Function Virtualization (NFV) Market Outlook, By Mobile Virtual Network Operators (2024-2032) ($MN)
32 Global Network Function Virtualization (NFV) Market Outlook, By Cloud & Communication Service Providers (2024-2032) ($MN)
33 Global Network Function Virtualization (NFV) Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
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.
For more details about research methodology, kindly write to us at info@strategymrc.com
Frequently Asked Questions
In case of any queries regarding this report, you can contact the customer service by filing the “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
Yes, the samples are available for all the published reports. You can request them by filling the “Request Sample” option available in this page.
Yes, you can request a sample with your specific requirements. All the customized samples will be provided as per the requirement with the real data masked.
All our reports are available in Digital PDF format. In case if you require them in any other formats, such as PPT, Excel etc you can submit a request through “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
We offer a free 15% customization with every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.
We have 3 different licensing options available in electronic format.
- Single User Licence: Allows one person, typically the buyer, to have access to the ordered product. The ordered product cannot be distributed to anyone else.
- 2-5 User Licence: Allows the ordered product to be shared among a maximum of 5 people within your organisation.
- Corporate License: Allows the product to be shared among all employees of your organisation regardless of their geographical location.
All our reports are typically be emailed to you as an attachment.
To order any available report you need to register on our website. The payment can be made either through CCAvenue or PayPal payments gateways which accept all international cards.
We extend our support to 6 months post sale. A post sale customization is also provided to cover your unmet needs in the report.
Request Customization
We offer complimentary customization of up to 15% with every purchase. To share your customization requirements, feel free to email us at info@strategymrc.com or call us on +1-301-202-5929. .
Please Note: Customization within the 15% threshold is entirely free of charge. If your request exceeds this limit, we will conduct a feasibility assessment. Following that, a detailed quote and timeline will be provided.
WHY CHOOSE US ?
Assured Quality
Best in class reports with high standard of research integrity
24X7 Research Support
Continuous support to ensure the best customer experience.
Free Customization
Adding more values to your product of interest.
Safe & Secure Access
Providing a secured environment for all online transactions.
Trusted by 600+ Brands
Serving the most reputed brands across the world.
