Network Function Virtualization (NFV) Market Analysis

Network Function Virtualization Market Analysis

The hardware network function virtualization (NFV) market is expected to witness a growth rate of over 35% from 2017 to 2024 due to the heavy usage of hardware equipment such as switches, storage devices, and servers. To support the diverse networking demands of enterprises, they need high-performance virtual switches and routers, which play a key role in IT architecture and enable robust & flexible NFV infrastructure. The training & consulting service segment will exhibit a growth rate of above 50% as these services assist customers in analyzing gaps and assessing operational & infrastructural readiness. The increasing inclination toward virtualized networks will fuel the need for training & consulting service providers, helping enterprises in effective planning for NFV-based deployments.

The BFSI sector will hold a market share of above 15% by 2025 as banking and financial institutions are rapidly transforming their traditional IT infrastructure to more robust and flexible network infrastructure. These institutions are highly dependent on IT networks to deliver services including online banking, mobile banking, and core banking services. This increases the demand for network virtualization and cloud computing platforms to improve network performance, scalability, and deliver faster network services. The investment in cloud-based virtualization solutions will enable BFSI institutions to scale up the network with minimal effort, while retaining the control of every asset.
 

The LAMEA NFV market is estimated to witness a growth rate of over 45% due to the growing popularity of technologies such as cloud computing and network virtualization. The rising number of data centers in countries including Mexico, Brazil, and GCC increased the uptake of server virtualization solutions to run heavy workloads and applications in the cloud. The rising investments for the development of 5G infrastructure will also fuel market growth. In this region, countries including Mexico, Saudi Arabia, Dubai, and Kuwait are exploring 5G technology and undertaking live trials of 5G on speed, equipment, and latency. Therefore, telecom operators in the region are preparing to switch to virtualization technologies and SDN-based solutions for flexible and scalable network management.