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Network Function Virtualization Market by End-user and Geography - Forecast and Analysis 2021-2025

  • Published: Jan 2022
  • Pages: 120
  • SKU: IRTNTR72019
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The network function virtualization market share is expected to increase by USD 37.37 billion from 2020 to 2025, at a CAGR of 26.40%.

This network function virtualization market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers network function virtualization market segmentation by end-user (IT and telecom, BFSI, government, and others) and geography (North America, Europe, APAC, MEA, and South America). The network function virtualization market report also offers information on several market vendors, including Ciena Corp., Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., Fortinet Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Huawei Investment and Holding Co. Ltd., Oracle Corp., and Telefonaktiebolaget LM Ericsson among others.

What will the Network Function Virtualization Market Size be During the Forecast Period?

Network Function Virtualization Market Size

Download the Free Report Sample to Unlock the Network Function Virtualization Market Size for the Forecast Period and Other Important Statistics

 

Network Function Virtualization Market: Key Drivers, Trends, and Challenges

The shift from the CAPEX model to the OPEX model is notably driving the network function virtualization market growth, although factors such as system integration and interoperability issues may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the network function virtualization industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Network Function Virtualization Market Driver

The shift from the CAPEX model to the OPEX model is one of the key drivers supporting the network function visualization market growth. The rising cost pressure due to uncertain business and economic conditions has compelled several companies to use flexible IT solutions. The cost of the on-premises deployment model includes the cost of licensing, hardware, and others. Apart from the cost of the solution, organizations also need to spend a lot of funds for its proper implementation, which increases the overall OPEX. Almost all data centers operating worldwide are using virtualization to run applications. This technology has brought a significant reduction in the CAPEX for telecom operators' data centers. NFV is readily adopted by network service providers to reduce the need for hardware such as firewall, CDN, load balancers, WAN acceleration, and RAN. Hence, the demand for NFV is expected to increase during the forecast period.

Key Network Function Virtualization Market Trend

Increasing acceptance of cloud computing is another factor driving the network function virtualization market growth. The rise in cloud computing is supplemented by innovations in cloud network virtualization market and efficiency improvement. As a result, the cloud deployment models are becoming increasingly secure, reliable, and flexible. Innovations in cloud services are eventually expected to drive the wide reception of NFV solutions among the large enterprises as well though they would prefer a hybrid model. Moreover, the cloud model is expected to gain importance during the forecast period with the perpetual push toward lowering the run-time, increasing efficiency, and providing a simple as well as intuitive user interface.

Key Network Function Virtualization Market Challenge

The system integration and interoperability issues is hindering the network function market growth. The adoption of advanced network technologies in several industry verticals, including BFSI, telecom, healthcare, and government, is increasing significantly as it leads to system integration and interoperability issues. Technical glitches during the operations can incur costs to the organizations and reduce operational efficiencies. The integration of multiple IT systems and advanced technologies in traditional IT infrastructure can create a lot of cross-platform system integration issues. Therefore, vendors should integrate multiple IT systems in organizations along with virtual network infrastructure only when they have the help of an IT team that has the technical expertise to manage the IT infrastructure. This is anticipated to hinder the growth of the global NFV market during the forecast period.

This network function virtualization market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the network function market growth as a part of the global information technology spending market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the network function virtualization market during the forecast period.

Who are the Major Network Function Virtualization Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

  • Ciena Corp.
  • Cisco Systems Inc.
  • Citrix Systems Inc.
  • Dell Technologies Inc.
  • Fortinet Inc.
  • Fujitsu Ltd.
  • Hewlett Packard Enterprise Co.
  • Huawei Investment and Holding Co. Ltd.
  • Oracle Corp.
  • Telefonaktiebolaget LM Ericsson

 

This statistical study of the network function virtualization market encompasses successful business strategies deployed by the key vendors. The network function virtualization market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

  • Ciena Corp - The company offers solutions for network function virtualization that reduces cost and accelerates service deployment for network operators by moving functions like firewalls and encryption from dedicated hardware to commodity servers, under the brand name of Ciena.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The network function virtualization market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Network Function Virtualization Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the network function virtualization market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the information technology spending market includes the following core components:

  • Research and development
  • Developers or manufacturers
  • Sales and distribution
  • End-users

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Network Function Virtualization Market?

Network Function Virtualization Market Market segmentation by region

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36% of the market's growth will originate from North America during the forecast period. The US is the key market for network function virtualization market in North America. Market growth in this region will be slower than the growth of the market in APAC.

The growing retail and BFSI sectors coupled with the matured telecom sector and the early adoption of technologies such as 4G and 5G will facilitate the network function virtualization market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

 In 2020, the region was adversely affected by the COVID-19 pandemic, which led to the temporary closure of several commercial spaces, such as offices and retail outlets. Many workers in large organizations such as Microsoft Corp., Google Inc., and Intel Corp. were asked to work from home, which required workers to connect remotely. This led to higher demand for network function virtualizations in 2020 and 2021. Since many organizations are debating over offering a permanent work-from-home policy to their employees, the demand for network function virtualizations in the region is expected to grow during the forecast period.

What are the Revenue-generating End-user Segments in the Network Function Virtualization Market?

Network Function Virtualization Market Segmentation

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The network function virtualization market share growth by the IT and telecom segment will be significant during the forecast period. Telecommunication network service adoption in the organizations is increasing to enhance the network performance and efficiency as well as for better connectivity of the telecom network to remain competitive in their business. Due to the adoption of new network technologies such as 4G and 5G, as well as the need to manage the network systems according to strategic business requirements and strict government laws the IT and telecom segment will grow at a higher pace compared with the global average rate during the forecast period. 

This report provides an accurate prediction of the contribution of all the segments to the growth of the network function virtualization market size and actionable market insights on post COVID-19 impact on each segment.

 

Network Function Virtualization Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Decelerate at a CAGR of 26.40%

Market growth 2021-2025

$ 37.37 billion

Market structure

Fragmented

YoY growth (%)

28.96

Regional analysis

North America, Europe, APAC, MEA, and South America

Performing market contribution

North America at 36%

Key consumer countries

US, Germany, UK, China, and France

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

Ciena Corp., Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., Fortinet Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Huawei Investment and Holding Co. Ltd., Oracle Corp., and Telefonaktiebolaget LM Ericsson

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period

Customization purview

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What are the Key Data Covered in this Network Function Virtualization Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive network function virtualization market growth during the next five years
  • Precise estimation of the network function virtualization market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the network function virtualization industry across North America, Europe, APAC, MEA, and South America
  • A thorough analysis of the market's competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of network function virtualization market vendors

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1. Executive Summary                           

                1.1 Market Overview

                                Exhibit 01:  Key Finding 1

                                Exhibit 02:  Key Finding 2

                                Exhibit 03:  Key Finding 3

                                Exhibit 04:  Key Finding 5

                                Exhibit 05:  Key Finding 6

                                Exhibit 06:  Key Finding 7

                                Exhibit 07:  Key Finding 8

2. Market Landscape                             

                2.1 Market ecosystem             

                                2.1.1 Parent market

                                Exhibit 08:  Parent market

                                Exhibit 09:  Market Characteristics

                2.2 Value chain analysis           

                                2.2.1 Inputs

                                2.2.2 Inbound logistics

                                2.2.3 Primary processing

                                2.2.4 Secondary and tertiary processing

                                2.2.5 Outbound logistics

                                2.2.6 End-customers

                                2.2.7 Marketing and sales

                                2.2.8 Services

                                2.2.9 Innovations

3. Market Sizing                       

                3.1 Market definition

                                Exhibit 10:  Offerings of vendors included in the market definition

                3.2 Market segment analysis 

                                Exhibit 11:  Market segments

                3.3 Market size 2021 

                3.4 Market outlook: Forecast for 2021 - 2026 

                                3.4.1 Estimating growth rates for emerging and high-growth markets

                                3.4.2 Estimating growth rates for mature markets

                                Exhibit 12:  Global - Market size and forecast 2020 - 2025 ($ billion)

                                Exhibit 13:  Global market: Year-over-year growth 2020 - 2025 (%)

4. Five Forces Analysis                          

                4.1 Five Forces Summary        

                                Exhibit 14: Five forces analysis 2021 - 2026

                4.2 Bargaining power of buyers           

                                Exhibit 15: Bargaining power of buyers

                4.3 Bargaining power of suppliers       

                                Exhibit 16: Bargaining power of suppliers

                4.4 Threat of new entrants    

                                Exhibit 17: Threat of new entrants

                4.5 Threat of substitutes         

                                Exhibit 18: Threat of substitutes

                4.6 Threat of rivalry   

                                Exhibit 19: Threat of rivalry

                4.7 Market condition

                                Exhibit 20:  Market condition - Five forces 2021

5. Market Segmentation by End-user                             

                5.1 Market segments

                                The segments covered in this chapter are:

  • IT and telecom
  • BFSI
  • Government
  • Others

                             Exhibit 21:  End-user - Market share 2020-2025 (%)

                5.2 Comparison by End-user  

                                Exhibit 22:  Comparison by End-user

                5.3     IT and telecom - Market size and forecast 2020-2025       

                                Exhibit 23:  IT and telecom - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 24:  IT and telecom - Year-over-year growth 2020-2025 (%)

                5.4     BFSI - Market size and forecast 2020-2025            

                                Exhibit 25:  BFSI - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 26:  BFSI - Year-over-year growth 2020-2025 (%)

                5.5     Government - Market size and forecast 2020-2025            

                                Exhibit 27:  Government - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 28:  Government - Year-over-year growth 2020-2025 (%)

                5.6     Others - Market size and forecast 2020-2025       

                                Exhibit 29:  Others - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 30:  Others - Year-over-year growth 2020-2025 (%)

                5.7     Market opportunity by End-user              

                                Exhibit 31:  Market opportunity by End-user

6. Customer landscape                         

                6.1     Overview           

                                Exhibit 32:  Customer landscape

7. Geographic Landscape                     

                7.1 Geographic segmentation

                                The regions covered in the report are:

  • North America
  • Europe
  • APAC
  • MEA
  • South America

                            Exhibit 33:  Market share by geography 2020-2025 (%)

                7.2 Geographic comparison   

                                Exhibit 34:  Geographic comparison

                7.3     North America - Market size and forecast 2020-2025        

                                Exhibit 35:  North America - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 36:  North America - Year-over-year growth 2020-2025 (%)

                7.4     Europe - Market size and forecast 2020-2025       

                                Exhibit 37:  Europe - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 38:  Europe - Year-over-year growth 2020-2025 (%)

                7.5     APAC - Market size and forecast 2020-2025          

                                Exhibit 39:  APAC - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 40:  APAC - Year-over-year growth 2020-2025 (%)

                7.6     MEA - Market size and forecast 2020-2025           

                                Exhibit 41:  MEA - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 42:  MEA - Year-over-year growth 2020-2025 (%)

                7.7     South America - Market size and forecast 2020-2025        

                                Exhibit 43:  South America - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 44:  South America - Year-over-year growth 2020-2025 (%)

                7.8 Key leading countries        

                                Exhibit 45:  Key leading countries

                7.9 Market opportunity by geography

                                Exhibit 46:  Market opportunity by geography ($ billion)

8. Drivers, Challenges, and Trends                   

                8.1 Market drivers     

                                8.1.1 Shift from the CAPEX model to the OPEX model

                                8.1.2 Advances in network infrastructure

                                8.1.3 Increase in the number of smart connected devices

                                8.1.4 Penetration of wireless network infrastructure

                8.2 Market challenges              

                                8.2.1 System integration and interoperability issues

                                8.2.2 Data privacy and security concerns

                                8.2.3 Increase in data center consolidation

                                8.2.4 Lack of skilled network consultants

                                Exhibit 47:  Impact of drivers and challenges

                8.3 Market trends      

                                8.3.1 Increasing acceptance of cloud computing

                                8.3.2 Increased adoption of BYOD

                                8.3.3 Introduction of next-generation networks

                                8.3.4 Increased involvement in open platforms

9. Vendor Landscape                             

                9.1     Overview           

                                Exhibit 48:  Vendor landscape

                9.2     Landscape disruption    

                                Exhibit 49:  Landscape disruption

                                Exhibit 50:  Industry risks

                9.3     Competitive landscape 

10. Vendor Analysis               

                10.1 Vendors covered              

                                Exhibit 51:  Vendors covered

                10.2 Market positioning of vendors    

                                Exhibit 52:  Market positioning of vendors

                10.3  Ciena Corp.        

                                Exhibit 53:  Ciena Corp. - Overview

                                Exhibit 54:  Ciena Corp. - Business segments

                                Exhibit 55:  Ceiena Corp. – Key news

                                Exhibit 56:  Ciena Corp. - Key offerings

                                Exhibit 57:  Ciena Corp. - Segment focus

                10.4  Cisco Systems Inc.           

                                Exhibit 58:  Cisco Systems Inc. - Overview

                                Exhibit 59:  Cisco Systems Inc. - Business segments

                                Exhibit 60:  Cisco Systems Inc. – Key news

                                Exhibit 61:  Cisco Systems Inc. - Key offerings

                                Exhibit 62:  Cisco Systems Inc. - Segment focus

                10.5  Citrix Systems Inc.           

                                Exhibit 63:  Citrix Systems Inc. - Overview

                                Exhibit 64:  Citrix Systems Inc. - Business segments

                                Exhibit 65:  Citrix Systems Inc. - Key offerings

                                Exhibit 66:  Citrix Systems Inc. - Segment focus

                10.6  Dell Technologies Inc.    

                                Exhibit 67:  Dell Technologies Inc. - Overview

                                Exhibit 68:  Dell Technologies Inc. - Business segments

                                Exhibit 69:  Dell Technologies Inc. - Key offerings

                                Exhibit 70:  Dell Technologies Inc. - Segment focus

                10.7  Fortinet Inc.       

                                Exhibit 71:  Fortinet Inc. - Overview

                                Exhibit 72:  Fortinet Inc. - Business segments

                                Exhibit 73:  Fortinet Inc. - Key offerings

                                Exhibit 74:  Fortinet Inc. - Segment focus

                10.8  Fujitsu Ltd.         

                                Exhibit 75:  Fujitsu Ltd. - Overview

                                Exhibit 76:  Fujitsu Ltd. - Business segments

                                Exhibit 77:  Fujitsu Ltd. - Key offerings

                                Exhibit 78:  Fujitsu Ltd. - Segment focus

                10.9  Hewlett Packard Enterprise Co. 

                                Exhibit 79:  Hewlett Packard Enterprise Co. - Overview

                                Exhibit 80:  Hewlett Packard Enterprise Co. - Business segments

                                Exhibit 81:  Hewlett Packard Enterprise Co. - Key offerings

                                Exhibit 82:  Hewlett Packard Enterprise Co. - Segment focus

                10.10                Huawei Investment and Holding Co. Ltd.

                                Exhibit 83:  Huawei Investment and Holding Co. Ltd. - Overview

                                Exhibit 84:  Huawei Investment and Holding Co. Ltd. - Business segments

                                Exhibit 85:  Huawei Investment and Holding Co. Ltd. – Key news

                                Exhibit 86:  Huawei Investment and Holding Co. Ltd. - Key offerings

                                Exhibit 87:  Huawei Investment and Holding Co. Ltd. - Segment focus

                10.11                Oracle Corp.      

                                Exhibit 88:  Oracle Corp. - Overview

                                Exhibit 89:  Oracle Corp. - Business segments

                                Exhibit 90:  Oracle Corp. – Key news

                                Exhibit 91:  Oracle Corp. - Key offerings

                                Exhibit 92:  Oracle Corp. - Segment focus

                10.12                Telefonaktiebolaget LM Ericsson              

                                Exhibit 93:  Telefonaktiebolaget LM Ericsson - Overview

                                Exhibit 94:  Telefonaktiebolaget LM Ericsson - Business segments

                                Exhibit 95:  Telefonaktiebolaget LM Ericsson – Key news

                                Exhibit 96:  Telefonaktiebolaget LM Ericsson - Key offerings

                                Exhibit 97:  Telefonaktiebolaget LM Ericsson - Segment focus

11. Appendix                            

                11.1 Scope of the report         

                                11.1.1 ????Market definition

                                11.1.2 Objective

                                11.1.3 Notes and caveats

                11.2 Currency conversion rates for US$            

                                Exhibit 98:  Currency conversion rates for US$

                11.3 Research Methodology 

                                Exhibit 99:  Research Methodology

                                Exhibit 100:  Validation techniques employed for market sizing

                                Exhibit 101:  Information sources

                11.4 List of abbreviations        

                                Exhibit 102:  List of abbreviations

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

TechnavioINFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases
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TechnavioDATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts
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TechnavioREPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape
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Network Function Virtualization market growth will increase by $37.37 billion during 2020-2025.
The network function virtualization market is expected to grow at a CAGR of 26.40% during 2020-2025.
Technavio has segmented the network function virtualization market by end user (IT and telecom, BFSI, Government, and Others) and geographic (North America, Europe, APAC, MEA, and South America).
Ciena Corp., Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., Fortinet Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Huawei Investment and Holding Co. Ltd., Oracle Corp., Telefonaktiebolaget LM Ericsson are a few of the key vendors in the network function virtualization market.
North America will register the highest growth rate of 35.54% among the other regions. Therefore, the network function virtualization market in North America is expected to garner significant business opportunities for the vendors during the forecast period.
The key factors driving the network function virtualization market growth are:
  • Shift from the CAPEX model to the OPEX model
The network function virtualization market vendors should focus on grabbing business opportunities from the it and telecom segment as it accounted for the largest market share in the base year.
  • What are the key global market and the regional market share?
  • What are the revenue-generating key market segments?
  • What are the key factors driving and challenging this market’s growth?
  • Who are the key market vendors and their growth strategies?
  • What are the latest trends influencing the growth of this market?
  • What are the variables influencing the market growth in the primary regions?
  • What are the factors influencing the growth of the parent market?
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