Network Function Virtualization Market by Component, Enterprise Size, Virtualized Network Function, Application, End User

Description

List of Tables

[181 Pages Report] The Network Function Virtualization Market size was estimated at USD 34.42 billion in 2023 and expected to reach USD 39.87 billion in 2024, at a CAGR 16.32% to reach USD 99.20 billion by 2030.

The network function virtualization (NFV) market encompasses the global demand for virtualization technologies used in the telecommunications industry. NFV offers a new mode to design, deploy, and manage networking services by decoupling network functions from dedicated hardware appliances so they can run on standardized compute nodes. This market caters to communication service providers (CSPs) and enterprises looking to enhance their network agility, performance, and scale. Increasing demand for network virtualization and automation and rising utilization of cloud-based solutions & services and data-intensive applications drive market growth. Moreover, the surging deployment of the edge computing paradigm has significantly contributed to the adoption of NFV solutions. Integration and interoperability issues and a growing number of security concerns and misconceptions regarding NFV pose a considerable challenge to market growth. Growing investments in 5G network technology and the emerging use of SDN & NFV in IoT infrastructures are the latest opportunities in the network function virtualization (NFV) market.

KEY MARKET STATISTICS
Base Year [2023]	USD 34.42 billion
Estimated Year [2024]	USD 39.87 billion
Forecast Year [2030]	USD 99.20 billion
CAGR (%)	16.32%

Component: Significant demand for orchestration and automation to achieve the scalability and flexibility to support evolving network

Orchestration and automation are foundational components of network function virtualization (NFV), essential for managing and coordinating virtual network functions (VNFs) as well as automating the network services lifecycle. These components enable the dynamic provisioning, configuration, and optimization of network resources, leading to increased agility and reduced operational expenses. Professional services encompass consulting, implementation, support, and maintenance services in the NFV domain. These services are critical for operators who need external expertise to navigate the complexities of designing and deploying NFV architectures. Consulting services provide expert guidance in the planning and execution of NFV strategies. Implementation services are critical in translating NFV plans into action. Providers of these services assist with the deployment of NFV solutions, ensuring that hardware, software, and virtual network functions (VNFs) are properly integrated within the existing network architecture. Training and support services are designed to empower network operators and IT staff with the knowledge and skills required to manage and maintain NFV solutions.

NFV solutions refer to the suite of software tools and platforms that enable the virtualization of network services. They provide the architecture for virtualizing network functions and orchestrating them across the network. While NFV primarily focuses on software, the underlying hardware remains an important consideration. This includes servers, storage systems, and networking equipment that is optimized for virtualization. Software is the cornerstone of any NFV deployment. It comprises the operating systems, virtualization layers, VNFs, and management and orchestration (MANO) tools that facilitate the creation, deployment, and operation of virtualized network services.

End User: Growing use of NFV by telecom service providers for support of large-scale deployments

Data centers require robust, scalable, and highly reliable network infrastructure to manage vast data and traffic. Enterprises adopt NFV to increase network agility, improve disaster recovery capabilities, and integrate with cloud services. The needs of enterprises encompass not only performance but also the security and compliance aspects of networking functions. Telecom service providers are the most engaged sector in the NFV space. They seek to utilize NFV to deploy innovative services faster, reduce reliance on traditional hardware vendors, and prepare their networks for advancements in 5G and IoT (Internet of Things) technologies. When comparing the three segments, it's evident that while all value NFV's potential for flexibility and scalability, data centers tend to focus more on optimizing existing operations, enterprises on security and compliance, and service providers on innovation and speed of service deployment. Data centers invest heavily in NFV to improve their infrastructure efficiency and reduce costs, while enterprises align NFV with business growth and security strategy. On the other hand, service providers leverage NFV to comprehensively transform their business models and service offerings.

Regional Insights

In North America, the United States and Canada are at the forefront of adopting NFV technologies to enhance network flexibility and reduce capital and operational expenditures. There has been a strong emphasis on innovation and collaboration between service providers and NFV vendors, fostering an environment that helps the growth of the NFV market in the region. South America's NFV landscape is emerging, with countries such as Brazil and Argentina gradually adopting virtualization technologies. In Europe, there is a significant push towards NFV, led by initiatives such as the ETSI NFV Industry Specification Group, which substantially impacts global standards. Europe's strong regulatory framework and the presence of leading telecommunications companies aid the adoption of NFV technologies. In contrast, the Middle East and Africa's NFV market is driven by the need to improve network agility to support burgeoning mobile subscriber growth. In the Asia-Pacific, the NFV market is expansive, with significant heterogeneity across different countries regarding technology adoption. Nations such as Japan, South Korea, and Australia are leading NFV deployments due to high technology receptivity, advanced network infrastructure, and supportive government policies. Meanwhile, in emerging economies such as India and Southeast Asian countries, there's an increasing interest in NFV triggered by the demand for cost-effective and scalable network solutions to support their expanding digital economies.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Network Function Virtualization Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Network Function Virtualization Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Network Function Virtualization Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, Amdocs Group, Broadcom Inc., Ciena Corporation, Cisco Systems, Inc., Dell Inc., Fortinet, Inc., Fujitsu Limited, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., Intel Corporation, International Business Machines Corporation, Mavenir Systems, Inc., Microsoft Corporation, NEC Corporation, Netscout Systems, Inc., Nokia Corporation, Oracle Corporation, Palo Alto Networks, Radisys Corporation, Ribbon Communications Inc., Telefonaktiebolaget LM Ericsson, Wind River Systems, Inc., and ZTE Corporation.

Market Segmentation & Coverage

This research report categorizes the Network Function Virtualization Market to forecast the revenues and analyze trends in each of the following sub-markets:

Component
- Orchestration And Automation
- Professional Services
  - Consulting
  - Implementation
  - Training And Support

Solutions
- Hardware
- Software

Enterprise Size
- Large Enterprises
- Small And Medium-sized Enterprises

Virtualized Network Function
- Computer
- Network
- Storage

Application
- Core Network
  - Mobile Edge Computing
  - Virtual Internet Protocol Multimedia Subsystem
  - Virtualized Evolved Packet Core
  - Virtualized Radio Access Network

Virtual Appliance

End User
- Data Centers
- Enterprises
  - Banking, Financial Services, And Insurance
  - Education
  - Government And Defense
  - Healthcare
  - Manufacturing
  - Retail

Service Providers
- Network Service Providers
- Telecom Operators

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Network Function Virtualization Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Network Function Virtualization Market?

3. What are the technology trends and regulatory frameworks in the Network Function Virtualization Market?

4. What is the market share of the leading vendors in the Network Function Virtualization Market?

5. Which modes and strategic moves are suitable for entering the Network Function Virtualization Market?

Product Code: MRR-807A20B5D06E

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing Demand for Network Virtualization and Automation
  - 5.1.1.2. Rising Utilization of Cloud-Based Solutions & Services and Data-Intensive Applications
  - 5.1.1.3. Surging Deployment of Edge Computing Paradigm
- 5.1.2. Restraints
  - 5.1.2.1. Integration and Interoperability Issues
- 5.1.3. Opportunities
  - 5.1.3.1. Growing Investments in 5G Network Technology
  - 5.1.3.2. Emerging Use of SDN & NFV in IoT Infrastructures
- 5.1.4. Challenges
  - 5.1.4.1. Growing Number of Security Concerns and Misconceptions Regarding NFV
5.2. Market Segmentation Analysis
- 5.2.1. Component: Significant demand for orchestration and automation to achieve the scalability and flexibility to support evolving network
- 5.2.2. End User: Growing use of NFV by telecom service providers for support of large-scale deployments
5.3. Market Trend Analysis
5.4. Cumulative Impact of Russia-Ukraine Conflict
5.5. Cumulative Impact of High Inflation
5.6. Porter's Five Forces Analysis
- 5.6.1. Threat of New Entrants
- 5.6.2. Threat of Substitutes
- 5.6.3. Bargaining Power of Customers
- 5.6.4. Bargaining Power of Suppliers
- 5.6.5. Industry Rivalry
5.7. Value Chain & Critical Path Analysis
5.8. Regulatory Framework Analysis
5.9. Client Customization

6. Network Function Virtualization Market, by Component

6.1. Introduction
6.2. Orchestration And Automation
6.3. Professional Services
6.4. Solutions

7. Network Function Virtualization Market, by Enterprise Size

7.1. Introduction
7.2. Large Enterprises
7.3. Small And Medium-sized Enterprises

8. Network Function Virtualization Market, by Virtualized Network Function

8.1. Introduction
8.2. Computer
8.3. Network
8.4. Storage

9. Network Function Virtualization Market, by Application

9.1. Introduction
9.2. Core Network
9.3. Virtual Appliance

10. Network Function Virtualization Market, by End User

10.1. Introduction
10.2. Data Centers
10.3. Enterprises
10.4. Service Providers

11. Americas Network Function Virtualization Market

11.1. Introduction
11.2. Argentina
11.3. Brazil
11.4. Canada
11.5. Mexico
11.6. United States

13. Europe, Middle East & Africa Network Function Virtualization Market

13.1. Introduction
13.2. Denmark
13.3. Egypt
13.4. Finland
13.5. France
13.6. Germany
13.7. Israel
13.8. Italy
13.9. Netherlands
13.10. Nigeria
13.11. Norway
13.12. Poland
13.13. Qatar
13.14. Russia
13.15. Saudi Arabia
13.16. South Africa
13.17. Spain
13.18. Sweden
13.19. Switzerland
13.20. Turkey
13.21. United Arab Emirates
13.22. United Kingdom

14. Competitive Landscape

14.1. Market Share Analysis, 2023
14.2. FPNV Positioning Matrix, 2023
14.3. Competitive Scenario Analysis
- 14.3.1. UST Continues Telecoms Sector Growth with Strategic Investment in VoerEir
- 14.3.2. NTT DOCOMO and NEC are Onboarding 5G SA Core Using Energy-efficient and High-performance AWS Cloud Computing Services
- 14.3.3. Mobileum and VoerEir Partner to Provide End-to-End Service Assurance and Network Function Virtualization Infrastructure Testing and Benchmarking

15. Competitive Portfolio

15.1. Key Company Profiles
15.2. Key Product Portfolio