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The Universal CPE (uCPE) Market size is estimated to grow at a CAGR of 21.29% between 2022 and 2027. The market size is forecast to increase by USD 2,412.02 million. The growth of the market depends on several factors, including the cost benefits of uCPE, the surge in digital transformation in business enterprises, and the increase in the number of smart connected devices. uCPE is an innovative approach to the traditional customer gateway, where multiple network functions can be consolidated into a single, standardized software platform. uCPE is a software-defined form of CPE that resides on commercial off-the-shelf (COTS) hardware. uCPE allows for flexible, cost-effective, and cloud-based solutions for service providers, offering on-demand services that can be customized according to the business requirements of customers. The uCPE standardization ensures that services can be easily added and removed, ensuring that businesses can get benefitted from the latest, most updated technologies.
This uCPE market report extensively covers market segmentation by end-user (enterprise and individual), deployment (on-premises and cloud-based), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The surge in digital transformation in business enterprises is notably driving market growth. Enterprises are increasingly transforming their businesses using digital technology to streamline their business processes, enhance customer reach, reduce risks, and improve business efficiency. In order to meet this kind of critical machine workload, enterprises are modernizing their data centers by offering software-defined solutions. The demand for SD-WAN is expected to increase significantly, which in turn will boost the demand for uCPE solutions during the forecast period.
Moreover, the uCPE solutions offer a cost-effective and flexible way for businesses to deploy and manage their network infrastructure. It provides a platform to deploy SDWAN and NFV, which will allow enterprises to optimize network performance and lower costs. Hence, such factors are positively impacting the universal CPE (uCPE) market. The surge in digital transformation in business enterprises is expected to drive the growth of the global uCPE market during the forecast period as businesses seek to deploy flexible, secure, and cost-effective network infrastructure to support their operations.
The increasing acceptance of cloud computing is a primary trend in the uCPE market. There has been a high acceptance of cloud computing across the world in recent times. The upsurge in the penetration and diffusion of the cloud phenomenon is a significant trend that affects the adoption and proliferation of uCPE solutions across verticals because of its inherent cost-effectiveness and ease of management of cloud-based network virtualization solutions. Technological innovations in cloud network virtualization and improved efficiency are supplementing the growth of cloud computing.
Moreover, UCPE solutions can be seamlessly integrated into different platforms and systems in a variety of geographical areas that allow network management and optimization to take place across an entire enterprise network. With the continued effort to reduce running time, increase efficiency and provide a user interface with ease of use, it is assumed that Cloud Models will become more important over the years. Hence, such factors are positively impacting the universal CPE market. Thus, the rise of cloud computing will increase the demand for uCPE solutions and, in turn, will spur the growth of the market in focus during the forecast period.
The high cost of deployment of uCPE is a major challenge in the uCPE market. The high cost of deployment of uCPE can be a significant hurdle to the growth of the global uCPE market during the forecast period. Despite the cost-saving benefits of uCPE solutions, there are still significant upfront costs associated with deploying these solutions. The cost of hardware is an important expense. Special hardware designed to allow virtual networking is typically required for uCPE solutions. Especially in the case of SMEs, this may be costly.
Moreover, there may be ongoing costs associated with maintaining and upgrading the uCPE solutions over time. This may include the costs for licenses of the software, ongoing maintenance fees, and hardware upgrades or replacements as necessary. In view of the abovementioned costs, a large number of organizations can make use of more conventional network infrastructure solutions. Hence, such factors negatively impact the uCPE market. Thus, the high cost of deployment can be a major barrier to the adoption of uCPE solutions, which will hamper the growth of the market in focus during the forecast period.
The enterprise segment is estimated to witness significant growth during the forecast period. The enterprise segment is a significant and rapidly growing market for uCPE solutions. The demand for uCPE is increasing in enterprises due to several factors, including the need for network agility, enhanced security, cost savings, and flexibility.
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The enterprise segment was the largest segment and was valued at USD 304.93 million in 2017. The need to improve the network's adaptability is one of the primary reasons why businesses are increasingly demanding UCPE. The demand for uCPE solutions in the enterprise segment is increasing rapidly due to the need for network agility and enhanced security, cost savings, and flexibility which will boost the growth of the global uCPE market through the enterprise segment during the forecast period.
The several benefits offered by the on-premise segment will increase the market growth. Some of the main network services offered by the on-premises segment include routing, firewall, switching, and various applications. The increasing adoption of on-premise uCPE is due to the better system security of this segment when compared to cloud solutions. The main advantage of the on-premise segment is that it is priced as per the one-time perpetual license fee, including a recurring fee for support, training, and updates. Customization features and enhanced security offered by the on-premise segment is fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the main factors which are significantly contributing to the growth of the uCPE market in North America are the rising demand for advanced networking infrastructure and cloud-based services and the growth in remote offices and workforces.
Additionally, the growing adoption of cloud computing, 5G, SD-WAN, and infrastructure-as-a-service (IaaS) is also expected to fuel the market growth in the region. Furthermore, factors such as an increase in demand for cloud computing services, data centers, and storage spaces and rising investment in communication network infrastructure are expected to drive market growth in North America during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global uCPE market witnessed significant growth due to the increase in remote work culture and the widespread use of VPNs for remote work and teleconferencing in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of business operations. Such factors are expected to drive the market during the forecast period.
The uCPE market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global uCPE Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The uCPE market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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UCPE Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Decelerate at a CAGR of 21.29% |
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Market growth 2023-2027 |
USD 2,412.02 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
20.99 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 34% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Access Co. Ltd., Adtran Holdings Inc., Advantech Co. Ltd., AT and T Inc., AudioCodes Ltd., Axiomtek Co. Ltd., Cisco Systems Inc., Dell Technologies Inc., Ekinops SA, GTT Communications Inc., Huawei Technologies Co. Ltd., Intel Corp., Iricent Ltd., Juniper Networks Inc., Lanner Electronics Inc., Netfosys Information Technologies India Pvt. Ltd., RAD Data Communications Ltd., Sony Group Corp., Tata Sons Pvt. Ltd., and Versa Networks Inc. |
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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, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Market Share of Vendors
6 Five Forces Analysis
7 Market Segmentation by End-user
8 Market Segmentation by Deployment
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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