The network function virtualization (NFV) market was valued at around USD 3.9 Billlion in 2021. With a projected CAGR of 6.6% for the next ten years, the market is likely to reach a valuation of nearly USD 7.8 Billion by the end of 2032. The recent surge in data network traffic has triggered the demand for network function virtualization (NFV) market.
Enterprises all over the world are increasingly using NFV appliances and solutions because they enable quicker server provisioning and network service deployment. Virtualization technologies are likely to be increasingly adopted even by SMEs, driving the worldwide network function virtualization (NFV) market forward in the coming years.
Significant expansion in the banking, finance, and insurance (BFSI), healthcare, retail, manufacturing, and information technology (IT) industries. This has raised the demand for advanced network management and NFV solutions to handle the increasing complexity of network traffic and data.
It is connected with the Internet of Things (IoT) and private cloud computing services to improve flexibility. The NFV industry in North America is assisted by the early and rapid adoption of technologies such as cloud computing; Software Defined Everything (SDx), and IoT.
| Attributes | Details |
|---|---|
| Network Function Virtualization Market Size (2021A) | USD 3.9 Billion |
| Network Function Virtualization Market Size (2022E) | USD 4.1 Billion |
| Network Function Virtualization Projected Market Value (2032F) | USD 7.8 Billion |
| Network Function Virtualization Market Growth Rate (2022 to 2032) | 6.6% CAGR |
| North America Network Function Virtualization Market Share (2021) | 40% |
| Key Companies Profiled | CommScope; Ericsson; Comba Telecom Systems Holdings; Amphenol; Cambium Networks; Tongyu Communication; Laird; Wireless Excellence; Powerwave Technologies; Rosenberger; Affirmed Networks; 6WIND; VMware Inc.; A10 Networks Inc.; Allot Ltd. |
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North America is expected to account for the majority of the NFV market. It is an NFV market with strong development potential. High industrialization in nations such as the United States and Canada has always been a beneficial element in facilitating rapid expansion in a variety of commercial sectors.
North American nations have advantageous standards and networking laws, which aid in the expansion of the NFV industry. It is also a potential investment market, offering new avenues for the deployment of NFV infrastructure.
The region's usage of NFV is increasing as 5G deployments expand. However, with NFV, the controller controls the whole network; hence, the adoption necessitates different organizational, functional, and cultural changes inside enterprises.
As a consequence of increased awareness of sustainable smart technologies among consumers in Asia Pacific nations such as China, Japan, and South Korea, it has emerged as the biggest emerging region for the worldwide market. China leads all advanced currencies in the growth of all main network function virtualization sectors and is expected to reach an overall market value during this forecast period.
Principal Consultant
The NFV industry is expected to develop due to the increasing adoption of technologies such as cloud computing and network virtualization. The increasing number of data centers in countries such as Mexico, Brazil, and the Gulf Cooperation Council has enhanced the use of server virtualization technologies to run high workloads and applications in the cloud.
Increasing expenditure on 5G infrastructure development will also drive business expansion. Countries in this area, including Mexico, Saudi Arabia, Dubai, and Kuwait, are investigating 5G technology and conducting live 5G experiments on speed, equipment, and latency. As a result, telecom operators in the region are prepared to transition to virtualization technologies and SDN-based network management solutions.
Businesses are attempting to remove roadblocks to NFV adoption and transformation. Customers will discover a collection of seven separate PDF eBook materials under Digital Services, each specially crafted and geared to assist you in overcoming hurdles to NFV adoption and expediting business transformation.
Through their new 6G Forward program, NFV businesses are sponsoring 6G academic and industry research throughout the world. The initiative is intended to deliver critical experience, technology, and finance to potential research pathways that might lead to breakthroughs in the next generation of wireless technology.
Startups have unveiled major access point name (APN) solutions with simplified staging that enables clients with seamless flexibility and security, faster application deployment, and a completely virtualized packet core gateway to deliver new, creative IoT and industrial IoT services to their consumers more rapidly and efficiently.
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The global market for Network Function Virtualization (NFV) Market expanded at a CAGR of 7% during 2015 to 2021. The market growth is projected to benefit from the surge in data traffic leading to better avenues for the key market players shaping the network function virtualization (NFV) industry in the forthcoming years.
The global Network Function Virtualization (NFV) Market is predicted to surge ahead at a CAGR of 6.6% and record sales worth USD 7.8 Billion by the end of 2032. The USA will continue to be the largest market throughout the analysis period accounting for over USD 1.3 Billion absolute dollar opportunity in the coming 10-year epoch.
It is estimated that the Dual-polarized Antenna segment by Polarization of the Network Function Virtualization (NFV) Market will witness a 6% CAGR during the forthcoming years. One of the key attributes associated with the relatively faster growth of the Dual-polarized antenna in comparison with the Single-polarized Antenna is the higher rate of precision involved and its efficiency.
Additionally, the dual-polarized antennas find use in mobile communication systems since they have a wide bandwidth, high port isolation, low cross-polarization, low output correlation, increased channel capacity, and high polarization diversity, immensely aiding mobile communication base stations for enhancing and improving communication.
The telecommunication application of the Network Function Virtualization (NFV) market is forecasted to expand with a CAGR of 6% during the upcoming 10-year epoch. Among the key features associated with the surge in adoption of network function virtualization in the telecommunications sector, enhanced IT agility and network administration centralization take precedence.
Findings of a recent survey noted that by the end of 2022, the global telecommunication industry is projected to account for a total market valuation of USD 1.45 Trillion.
Currently, there are a total of 3 billion internet users globally, and a common factor among all of them is the requirement for better connectivity and faster speed. Among the many ways, the telecommunication application is endeavoring to fulfill this requirement is by transitioning to 5G network services, innovations such as Fiber to the Home (FTTH) and Fiber to the Building (FTTB), which have the added benefit of reducing business costs, and simplifying business processes.
The 5G network transition furthermore expedites the deployment of Network Function Virtualization (NFV) devices. Among the key factors associated with this include Network Function Virtualization (NFV) enabling hardware independence, creating numerous networks on the same hardware, coupled with providing network isolation which bars malfunction in one network from affecting the full capacity production.
With 5G network connections reaching a total volume of 1.3 Billion by the end of 2022, and projected to increase during the upcoming 10-year epoch, the telecommunication application is anticipated to be advantageous to the Network Function Virtualization Market.
Asia-Pacific is expected to be lucrative for the Network Function Virtualization (NFV) Market in the forthcoming years. Crucial facets helping Asia-Pacific are the recent surge in network traffic in the region, coupled with favorable government guidelines, especially in the developing economies.
A recent report reveals that by 2026, the total volume of internet users in India will be 737.5 Million, which is greater than those of the USA, the UK, Canada, and Germany put together at 488.2 Million.
As of 2021, an extensive surge in data network traffic is observed in India, with OTT and Video on Demand witnessing as high as 1317% surge, gaming data traffic facing 1007%, coupled with the ISP traffic at 397%, and social media data traffic surging at 210% between February and December 2020.
A recent survey further revealed that in the upcoming 5 years, more than half of India’s internet traffic will be carried by 5G networks. This transition is aiding the advancement of network functions virtualization since it adds to the requirement of deploying network functions virtualization (NFV) devices.
All these factors are anticipated to be attributed to Asia-Pacific as being extensively lucrative for the Network Function Virtualization (NFV) Industry in the upcoming 10-year epoch.
In the forthcoming years, it is anticipated that North America will maintain its market share of approximately 40% intact in the Network Function Virtualization (NFV) Market. With numerous key players in the firewall, included among the services virtualized using NFV, the sector has begun offering firewall-as-a-service (FWaaS), including all the abilities of firewall tools and packages as a service.
This not only extensively aids the IT sector by saving the companies the added costs of separately deploying, monitoring, and managing their respective firewall, and also aids the Network Function Virtualization (NFV) Market as IT is among the numerous segments which have shifted to Network Function Virtualization (NFVs) to keep up with the extensive surge in digitization.
IT industry finds the use of NFV in new ways for building complex IT applications. Additionally, the North-American region currently accounts for approximately 61% of the global Cloud Computing industry. Cloud computing goes hand in hand with network function virtualization since it is among the different facets of virtualization aiding the firms in building an agile and elastic network coupled with cloud-based security features.
In May 2021, the spectrum available for the development and furthering of competition in the wireless services sector was announced by the Government of Canada. This additionally helps enhance and improve effectively deploying 5G technologies. Along with the USA, the surge in network data traffic in Canada is also aiding the Network Function Virtualization (NFV) industry.
As of January 2022, 57.2% of data traffic in Canada comes from laptops and desktops. In the upcoming 10-year epoch, all these attributes are anticipated to be beneficial to the shaping up of the Network Function Virtualization (NFV) Market in North America.
The USA commands a market share of over 35% in the Network Function Virtualization (NFV) Market and is anticipated to keep it intact in the upcoming 10-year epoch. The market in the country is forecasted to witness a CAGR of 6.3% and an absolute dollar opportunity of USD 1.3 Billion to reach a total market valuation of USD 2.8 Billion by the end of 2032.
A 2020 survey estimates that by the end of 2023, data network traffic in the USA will surge ahead to reach 98.6 Million Exabytes per month, which happens to be an extensive 294.9% higher than the 33.45 Million Exabytes per month in 2018, aiding in expediting the requirement for Network Function Virtualization (NFV).
Among the various examples of services virtualized using network function virtualization (NFV), the likes of virtualized load balancers, session border controllers, WAN accelerators, intrusion detection devices, and firewalls are included.
During the upcoming 10-year epoch, the shift from hardware firewalls to software-as-a-service (SaaS) and virtual-based network security is anticipated to benefit the Network Function Virtualization (NFV) market in the USA Certain studies have found that by the end of 2026, Software-as-a-service (SaaS) and virtual based network security will represent approximately 51% of the total market valuation of USD 33 Billion of the Network Security Market.
All these attributes are expected to aid the impactful role of the USA in the Global Network Function Virtualization (NFV) Market in the forthcoming forecast years.
CommScope Holding Company Inc., Telefonaktiebolaget LM Ericsson, Comba Telecom Systems Holdings, Amphenol Corporation, Cambium Networks, Tongyu Communication Inc., Laird, Wireless Excellence Ltd., Rosenberger Group, Affirmed Networks, 6WIND, VMware Inc., A10 Networks Inc., and Allot Ltd. (Allot Communications) are among the key players worldwide driving the competitive landscape of the market.
To expand their product portfolio and simultaneously capitalize on the growing market demand, many of these companies are adopting strategies such as mergers, acquisitions, and partnerships.
The Network Function Virtualization (NFV) Market is segmented based on type, polarization, diameter, frequency range, application, and region.
The Network Function Virtualization (NFV) Market was valued at USD 3.9 Billion in 2021.
The Network Function Virtualization (NFV) Market industry is set to witness a growth rate of 6.6% over the forecast period and be valued at USD 7.8 Billion by 2032.
CommScope Holding Company Inc., Telefonaktiebolaget LM Ericsson, Comba Telecom Systems Holdings, Amphenol Corporation, Cambium Networks, Tongyu Communication Inc., Laird, Wireless Excellence Ltd., Rosenberger Group, Affirmed Networks, 6WIND, VMware Inc., A10 Networks Inc., and Allot Ltd. are among the key players shaping the Network Function Virtualization (NFV) Market industry.
The data network traffic across the globe is consistently increasing and is anticipated to favorably impact the global demand for network function virtualization (NFV) over the forecast period till 2032.
The market in the USA is expected to reach a valuation of USD 2.8 Billion by 2032 at a CAGR of 6.3% between 2022 and 2032.
The Asia Pacific market is expected to grow significantly during the forecast period mainly due to a consistent increase in transition to 5G Network services.
1. Executive Summary 2. Market Overview 3. Market Risks and Trends Assessment 4. Market Background 5. Key Success Factors 6. Global Market Demand Analysis 2015 to 2021 and Forecast, 2022 to 2032 7. Global Market Value Analysis 2015 to 2021 and Forecast, 2022 to 2032 8. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Type 8.1. Parabolic Antenna 8.2. Flat Panel Antenna 8.3. Yagi Antenna 9. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Polarization 9.1. Single-polarized Antenna 9.2. Dual-polarized Antenna 10. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Diameter 10.1. 0.2m to 0.9m 10.2. 1.0m to 3.0m 10.3. 3.1m to 4.6m 11. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Frequency Range 11.1. 1 GHz to 9.9 GHz 11.2. 10 GHz to 29.9 GHz 11.3. 30.0 GHz to 86.0 GHz 12. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Application 12.1. Telecommunication 12.2. Commercial/Industrial 12.3. Military and Defense 12.4. Satellite 12.5. Others 13. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Region 13.1. North America 13.2. Latin America 13.3. Europe 13.4. Asia Pacific 13.5. Middle East and Africa (MEA) 14. North America Market Analysis 2015 to 2021 and Forecast 2022 to 2032 15. Latin America Market Analysis 2015 to 2021 and Forecast 2022 to 2032 16. Europe Market Analysis 2015 to 2021 and Forecast 2022 to 2032 17. Asia Pacific Market Analysis 2015 to 2021 and Forecast 2022 to 2032 18. Middle East and Africa Market Analysis 2015 to 2021 and Forecast 2022 to 2032 19. Key Countries Market Analysis 2015 to 2021 and Forecast 2022 to 2032 20. Market Structure Analysis 21. Competition Analysis 21.1. Commscope 21.2. Ericsson 21.3. Comba Telecom Systems Holdings 21.4. Amphenol 21.5. Cambium Networks 21.6. Tongyu Communication 21.7. Laird 21.8. Wireless Excellence 21.9. Powerwave Technologies 21.10. Rosenberger 22. Assumptions and Acronyms Used 23. Research Methodology
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Network Function Virtualization (NFV) Market
