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Network Function Virtualization (NFV) Market Size to hit $70bn by 2024

  • Published Date: July 25, 2018

Network Function Virtualization (NFV) Market size is set to reach USD 70 billion by 2024; according to a new research report by Global Market Insights Inc.

The network function virtualization market is expected to witness an accelerated growth over the forecast timeline as the network virtualization solution eliminates the need to deploy costly hardware equipment including routers, servers, and switches, enabling enterprise’s IT team to focus on other aspects of running the business smoothly. Virtualization technologies including Software Defined Networking (SDN) and network functions virtualization ensure greater business continuity and provide employees to access files and software anywhere.

Another factor fueling NFV market growth is the growing popularity of network virtualization solutions in sectors including manufacturing, healthcare, IT & telecom, and banking to simplify the management of complex IT networks. For instance, the manufacturing sector is highly reliant on IT networks and the increased adoption of connected devices has further accelerated the demand for real-time analytics to track assets and resources at remote locations. To optimize the production process and maximize efficiency of the core manufacturing system infrastructure, manufacturing organizations are embracing virtualization solutions.


Network Function Virtualization (NFV) Market

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The software segment is expected to grow at a CAGR of over 45% from 2018 to 2024 due to the growing demand for network virtualization software running on standard server platforms, enabling enterprises to modernize their networks. In this segment, the VNF software market is estimated to grow at a CAGR of over 50% as the software enables customers to orchestrate, configure, and monitor their IP network infrastructures. By deploying this software, companies can rapidly build and deliver new network services to their customers.

The managed service segment is projected to exhibit a growth rate of over 55% from 2018 to 2024 as the enterprises are rapidly migrating their workloads to cloud platforms due to their cost-effectiveness and high scalability. The managed service providers host enterprise networks in their own data centers to further support virtual network functions. They help customers to manage their virtual IT environments by delivering a wide range of services including remote monitoring & management, disaster recovery strategy, and 24/7 help desk support.

Browse key industry insights spread across 240 pages with 268 market data tables & 28 figures & charts from the report, “Network Function Virtualization (NFV) Market Size By Component (Hardware [NFV Servers, Storage, Switches], Software [NFV Management and Orchestration {NFV-MANO}, VNF Software], Service [Training & Consulting, Integration & Maintenance, Managed Service]), By Application (IT & Telecom, BFSI, Healthcare, Retail & Consumer Goods, Government, Manufacturing), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Spain, China, Japan, Australia & New Zealand (ANZ), South Korea, India, Brazil, Mexico, GCC, South Africa), Growth Potential, Competitive Market Share & Forecast, 2018 - 2024” in detail along with the table of contents:

The healthcare network function virtualization market is projected to hold a share of above 15% by 2024 due to the rising penetration of virtualization technologies to manage vast healthcare IT networks. With a virtualized network, healthcare institutions gain the ability to prioritize critical traffic, improve network agility, and reduce operational costs. For instance, for these institutions, it becomes very crucial to identify & prioritize network traffic and allocate high bandwidth to critical applications as it relates to patient care. The adoption of server and network virtualization is enabling hospitals to manage their application workloads in the hospital data centers.

The North America network function virtualization (NFV) market held a dominant position in 2017 and is expected to maintain its position by 2024 with a share of above 35%. The market growth is attributed to factors including high investments in 5G networks, increasing adoption of cloud platforms, and several favorable government initiatives & standards for the deployment of network virtualization technology. Moreover, a higher concentration of virtualization solution vendors is aiding to the growth of the market in this region. Many organizations have moved to cloud services to manage vast amounts of data, which also opens huge growth opportunities for the market.

Some of the prominent companies present in the NFV market are focusing on product developments and collaborations to deliver new NFV solutions to customers. For example, in October 2017, NoviFlow and Lumia Networks entered into a strategic partnership to provide an SDN solution, which enables network providers to evolve their core networks, retaining protocols and reliability of their existing networks. For instance, in May 2017, AT&T added new network connectivity options and new security applications to its AT&T FlexWare NFV solution. With this release, the solution got enabled with connectivity options including Ethernet, VPN, and dedicated internet as well as broadband. These options helped AT&T FlexWare to integrate virtually with any network.

The key players operating in the market are Cisco, Ericsson, Juniper, AT&T, F5 Networks, Broadcom, Nokia, HP, Huawei, NFWare, WindRiver, 6Wind, Riverbed, Oracle, Verizon, Arista, Amdocs, VMware, Citrix, IBM, and Pluribus.

The network function virtualization (NFV) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2013 to 2024 for the following segments:

By Component

  • Hardware
    • NFV Severs
    • Storage
    • Switches
  • Software
    • NFV Management and Orchestration (MANO)
    • Virtual Network Function (VNF) Software
  • Service
    • Training and Consulting
    • Integration and Maintenance
    • Managed Service

By Application

  • IT & Telecom
  • BFSI
  • Healthcare
  • Retail & Consumer Goods
  • Government
  • Manufacturing

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
  • APAC
    • China
    • Japan
    • Australia & New Zealand (ANZ)
    • South Korea
    • India
    • Brazil
    • Mexico
    • GCC
    • South Africa
Authors: Ankita Bhutani, Preeti Wadhwani