Network Function Virtualization (NFV) Market Size, Share & Segmentation by Component (Solutions, Orchestration and Automation, and Services), by Virtualized Network Functions (Compute. Storage, Network), by Applications (Virtual Appliance and Core Network), by End Users (Service Providers, Data Centers, Enterprises, Banking, Financial Services, and Insurance, Healthcare, Retail, Manufacturing, Government and Defense, Education, IT-enabled, Services, Others), by Enterprise Size (SMEs and Large enterprises), by Regions and Global Market Forecast 2023-2030

Report Score & Overview:

Network Function Virtualization (NFV) Market size was valued at USD 21.17 Bn in 2022 and is expected to reach USD 116.70 Bn by 2030, and grow at a CAGR of 23.78% over the forecast period 2023-2030.

Network function virtualization (NFV) is a virtual network that is made up of a combination of hardware and software. It aids in the optimization of networks and related processes, as well as the reduction of power consumption, lowering equipment costs. It allows several apps to be accessed from a single network appliance. Network function virtualization provides a significant reduction in capital and operating costs. Hundreds of network devices, such as switches, workstations, hubs, routers, firewalls, virtual machines, servers, and other network-related components, make up a business network. Because network function virtualization solutions may give insights into bandwidth usage, network traffic, protocol analysis, and business applications, they are required for maintaining and controlling these devices. Identifying risks, detection, and moderation of security assaults, as well as improved network design in the future, all require different sorts of solutions.

VodafoneZiggo Chooses Amdocs Network Virtualization Solutions to Help Dutch Businesses Transition to Service Cloud Networks. Amdocs will offer VodafoneZiggo with an agile, feature-rich solution set enabling corporate clients to construct their own virtual private networks, with the opportunity to add-on future features such as security and other enterprise apps, all of which will be managed by Amdocs in the cloud.

MARKET DYNAMICS:

KEY DRIVERS:

• Enterprise data centers, including internet service providers (ISPs) and cloud service providers, are increasingly deploying virtualized software (CSP).

• Allowing operators more freedom in traffic control to increase network efficiency.

• Enables firms to lower their operational expenses.

RESTRAINTS:

• This market is hampered by a delay in the implementation of this technology.

OPPORTUNITY:

• Over the next five years, automation will have the greatest influence on networking.

• Demand for network virtualization and automation is increasing.

• Need for data-intensive applications is increasing, as is the demand for cloud-based services.

IMPACT OF COVID-19:

The COVID-19 epidemic has had a negative impact on several economies all around the world. Lockdowns, social distance, and quarantines used to combat COVID-19 have had a significant negative impact on various businesses throughout the world, including the IT and telecommunications sectors. Enterprise virtual private network (VPN) servers have become a lifeline for enterprises and schools, with some people working from home and kids learning digitally.

In early 2020, China, one of the world's top producers and consumers of endpoint devices like as smartphones, PCs, and tablets, began to assess the impact of the COVID-19 outbreak on the worldwide network function virtualization industry. The closure of production factories in China for a few months, as well as limitations on the export and import of endpoint devices to and from China's restricted region, disrupted the supply chain and had a significant impact on the industry's production, sales, and operations. Furthermore, due to COVID 19, 3GPP, the worldwide organization creating 5G technology, announced a three-month delay in the completion of 5G standards in March 2020. The commercial development of NFV devices and 5G deployments would be slowed if releases are delayed. The COVID-19 epidemic has sent global economic activity into a tailspin never seen before. As a result, interruptions in the supply chain and delays in the release of 5G standards are expected to have a negative impact on the worldwide network function virtualization market.

MARKET ESTIMATION:

Various networking functions, such as traffic forwarding, traffic monitoring, security, caching, intrusion detection system, and domain name service, are included in virtual appliances. These tasks are commonly carried out over the edge using Virtual Customer Premise Equipment (VCPe). This has had a significant impact on businesses' efforts to simplify their network complications, and the category is likely to grow at a healthy pace in the future years.

Software-Defined Networking (SDN) controllers, virtual infrastructure managers, NFV orchestrator, and Wide Area Network (WAN) configuration are just a few of the components that make up orchestration and automation. Orchestration's major goal is to automate and improve network service development using a mix of Virtualized Network Functions (VNFs), scalability, self-healing, and network service resource lifecycle management. When there are no cross-domain network orchestrators, VNFs interface with service orchestrators. Because of the usefulness and criticality of orchestration and automation, it is widely used, especially when there is no vendor lock-in and the solutions are customized and off the shelf.

Enterprise clients are quickly adopting NFV because it provides major benefits such as centralized network administration, increased IT agility, and network customization through fast and reliable application services. Banking, Financial Services, and Insurance (BFSI), manufacturing, retail, healthcare, education, transportation and logistics, energy and utilities, and others, which include hospitality, transportation and logistics, media and entertainment, and utilities, have all been classified as enterprise customers. NFV implementation is currently widespread throughout the BFSI, retail, industrial, and healthcare industries.

KEY SEGMENTS:

On The Basis of Components:

• Solutions

• Orchestration and Automation

• Services

On The Basis of Virtualized Network Functions:

• Compute

• Storage

• Network

On The Basis of Applications:

• Virtual Appliance

• Core Network

On The Basis of End Users:

• Service Providers

• Data Centers

• Enterprises

• Banking, Financial Services, and Insurance

• Healthcare

• Retail

• Manufacturing

• Government and Defense

• Education

• IT-enabled Services

• Others

On The Basis of Enterprise Size:

• SMEs

• Large enterprises

REGIONAL ANALYSIS:

North America is expected to dominate the global network function virtualization market in 2021, followed by Europe, Asia Pacific, Latin America, the Middle East, and Africa. During the projected period, however, the Asia-Pacific area is predicted to develop rapidly. The increased use of technologies such as cloud computing, software-defined everything (SDx), and the Internet of Things (IoT) is driving this region's fast growth. Furthermore, factors such as the quick spread of 4G in APAC's developing countries, growing subscriber base, favorable government policies and regulations, and the need for greater data storage and security are projected to aid the region's rapid growth in the next years.

REGIONAL COVERAGE:

• North America

  • USA

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • The Netherlands

  • Rest of Europe

• Asia-Pacific

  • Japan

  • south Korea

  • China

  • India

  • Australia

  • Rest of Asia-Pacific

• The Middle East & Africa

  • Israel

  • UAE

  • South Africa

  • Rest of Middle East & Africa

• Latin America

  • Brazil

  • Argentina

  • Rest of Latin America

KEY PLAYERS:

The major key players are Ericsson AB, Hewlett Packard Enterprise, VMware Inc., Nokia Corporation, Huawei Technologies, 6WIND, A10 Networks, Affirmed Networks, Allot Communications, Amdocs.

Frequently Asked Questions (FAQ) :