Network Function Virtualization (NFV) Market Worth $122 billion by 2027- Exclusive Report

According to a new market research report titled, Network Function Virtualization (NFV) Market by Component (Orchestration, Professional Services), Virtualized Network Function, Application (Virtual Appliances, Core Network), End User (Enterprises, Service Providers, Data Centers)– Global Forecast to 2027”, the network function virtualization market is expected to grow at a CAGR of 34.9% from 2020 to 2027 to reach $122 billion by 2027.

Download Free Sample Report Now @ https://www.meticulousresearch.com/download-sample-report/cp_id=5104

Network function virtualization is a combination of hardware and software networks that creates a virtual network parallel to existing network. The NFV improves scalability and agility by allowing service providers to deliver new network services and applications on-demand, without the requirement of additional hardware resources. Over the years, network function virtualization has gained much importance and is becoming a common part of organizations dealing with huge amounts of data and complex networking systems. Network function virtualization technology is packed with several benefits such as high performance, scalability, reliability, and low latency delivery of real-time applications. Several industries and organizations including military, government, and network service providers are deploying this technology across the globe on a considerable scale. Rising demand for data-intensive applications, IoT deployment, cloud migration, growing number of network complexities, and security agility are the key factors driving the growth of the network function virtualization market. However, the growing number of security risks across the NFV infrastructure and downward trend of the global economy are expected to throw some serious challenges to the growth of the NFV market.

Impact of COVID-19 on the Network Function Virtualization Market

In the first quarter of 2020, the global pandemic of COVID-19 spread rapidly and negatively impacted several economies around the globe. Countries worldwide took several precautionary measures including lockdowns, social distancing, and quarantines to mitigate the spreading of the pandemic and prevent several industries from its negative effect including IT & telecommunication sector. The lockdown has promoted the trend of work from home and distance learning that has boosted the significance of enterprise virtual private network (VPN). Owing to this, tremendous pressure is exerted on the existing communication set-ups and increased the network traffic tremendously. For instance, network traffic in Europe increased by approximately 50% in the first half of 2020. Besides, according to UNESCO, approximately 850 million students are attending online and virtual classes across the globe.

COVID-19 severely impacted leading manufacturing countries such as China that are considered as prime manufacturing hubs for majority of endpoint devices including smartphones, computers, and tablets. Halting of manufacturing and disruption of supply chain has affected network function virtualization market tremendously. Besides, in March 2020, 3GPP, the global association developing the 5G technology, announced a three-month delay in the timeline for the completion of 5G specifications due to COVID 19. This will affect the growth of the commercial development and availability of NFV devices and 5G deployments. As the expected period of recovery from such pandemic is unpredictable, the market condition for NFV is expected to be in the state of instability in 2020 and 2021. However, efforts from major NFV companies and revival packages from local government are predictably help the market to recover from such adversities. It is expected that the network security virtualization market will regain its original track beyond 2024 and thus, providing much needed hope for the industry participants to mitigate the losses from 2020 to 2023. Besides, work from home and distance education becoming the new norm is further expected to help the market at a much faster rate than the overall IT & telecommunication sector.

Speak to our Analysts to Understand the Impact of COVID-19 on Your Business: https://www.meticulousresearch.com/speak-to-analyst/cp_id=5104

The global network function virtualization market study presents historical market data in terms of value (2018 and 2019), estimated current data (2020), and forecasts for 2027. The market is segmented on the basis of component (solution, orchestration and automation, professional services), virtualized network function (storage, compute, and network), application (virtual appliances, core network), and end-user (enterprises, service providers, and data centers). The study also evaluates industry competitors and analyses the market at a country level.

Based on component, the solution segment is estimated to account for the largest share of the overall network function virtualization market in 2020. The large share of this segment is mainly attributed to the growing demand for network virtualization software running on standard server platforms, increasing IT productivity, and simplification of data center management. Growing significance of proper network infrastructure in small and medium scale enterprises and demand for better and affordable software and hardware for NFV is helping the solution segment to dominate the market. However, the orchestration & automation segment is expected to emerge as the fastest-growing segment throughout the forecast period. These solutions allow a smooth workflow within an organization with complex workloads. With present scenario, companies are changing their strategies and are reducing their dependencies over human resources for critical application. With the current scenario of the global pandemic and lack of skilled workforce, the trend of adopting orchestration & automation is expected to continue rapidly, thereby propelling the fast growth of the segment over the coming years.

Based on virtualized network function, the network segment is estimated to account for the largest share of the overall network function virtualization market in 2020. The growing demand for wireless services and mobility and increased mobile broadband speeds are driving the growth of this segment. Besides, rapid investments for the commercialization of 5G networks and growing adoption of disruptive technologies such as IoT and AI will increase the significance of network function and hence, the segment is also expected to grow with the fastest growth rate throughout the forecast period.

Based on end-user, the enterprise segment is estimated to command the largest share of the overall network function virtualization market in 2020. The large share of this segment is mainly attributed to the trend of rapid adoption of network function virtualization solutions by enterprises as it offers significant benefits such as improved network efficiency through centralized management, enhanced IT agility, and network customization through fast and reliable application services. Besides, significant investments in cloud-based virtualization solutions are also expected to aid enterprise sector to scale up the network without increasing the complexities and set-up cost. However, the data center segment is expected to grow with the fastest CAGR over the coming years. The amount of data generated by modern organizations is on tremendous scale and the load on managing auxiliary function besides data storage and management is putting considerable amount of pressure on conventional data centers. Hence, in order to relive data centers, organizations are expected to incorporate NFV. Factors such as reduced enterprise operational costs and enhanced business agility, demand for unified and centralized management of data centers, and increase in data center complexities are supporting the rapid growth of this segment.

Quick Buy – Network Function Virtualization Market Research Report: https://www.meticulousresearch.com/Checkout/30476552

Geographically, the North America is estimated to command the largest share of the overall network function virtualization market in 2020, followed by Europe, Asia Pacific, Latin America, and the Middle East and Africa. However, Asia-Pacific region is expected to witness rapid growth during the forecast period. The rapid growth of this region is mainly driven by the increasing adoption of technologies, such as cloud computing, software defined everything (SDx), and IoT. Besides, the factors such as rapid proliferation of 4G in developing countries of APAC, increasing subscriber base, favorable government policies and regulations, and demand for higher amount of data storage and security are expected to help the region to grow with considerable pace over the coming years. The Japanese government is taking initiatives for the development of network function virtualization across the country which is expected to support the growth of NFV market in the region. In 2019, the Japanese government approved a plan by the country’s four mobile carriers to build 5G wireless networks with investment set to reach $14.4 billion over the next five years. The need for efficient storage, power, and cooling is expected to grow along with the proliferation of 5G technologies. This will create several growth opportunities for the network function virtualization market in the region.

The global network function virtualization market is consolidated and dominated by few major players, namely Cisco Systems Inc. (U.S.), Juniper Networks, Inc. (U.S.), Affirmed Networks (U.S.), Ribbon Communication, Inc. (U.S.), Fujitsu, Ltd. (Japan), Huawei Technologies Co., Ltd (China), VMware, Inc. (U.S.), Nokia Corporation (Finland), Ericsson AB (U.S.), Ciena Corporation (U.S.), Hewlett Packard Enterprises (U.S.), ZTE Corporation (U.S.), Radisys (U.S.), Dell EMC (U.S.), and Wind River Systems, Inc. (U.S.) among others.

To gain more insights into the market with a detailed table of content and figures, click here: https://www.meticulousresearch.com/product/network-function-virtualization-5104/

Contact:
Mr. Khushal Bombe
Meticulous Market Research Inc.
1267 Willis St, Ste 200 Redding,
California, 96001, U.S.
USA: +1-646-781-8004
Europe : +44-203-868-8738
APAC: +91 744-7780008
Email- sales@meticulousresearch.com
Visit Our Website: https://www.meticulousresearch.com/
Connect with us on LinkedIn- https://www.linkedin.com/company/meticulous-research