The global network function virtualization (NFV) market grew rapidly between 2015 and 2020. Looking ahead, the market is expected to grow at a CAGR of around 28% between 2021 and 2026.
Businesses Mentioned
- Affirmed Networks, Inc. (Microsoft Corporation)
- The company Allot Ltd.
- Amdocs
- The Ciena Corporation (Tellabs Inc.)
- Cisco Systems, Incorporated
- Dell EMC (Dell Technologies Inc.)
- Huawei Technologies Co., Ltd.
- Intel Corporation
- Juniper Networks, Inc.
- The NEC Corporation
- Nokia Corporation, Telefonaktiebolaget LM Ericsson, and ZTE Corporation are among the companies involved.
Keeping the uncertainties of COVID-19 in mind, the analyst is constantly tracking and evaluating the pandemic’s direct and indirect impact on various end use industries. These findings are cited in the report as a significant market contributor.
The process of designing, deploying, and managing networking services is referred to as network function virtualization (NFV). NFV performs various networking functions, runs them on a hardware foundation, and allows the user to run software in virtual machines. Modern NVF solutions, unlike traditional firewalls and routers, can be deployed on a variety of hardware platforms. It’s frequently used in conjunction with other services like domain name service (DNS), network address translation (NAT), firewalls, and caching. An element manager, virtualized infrastructure manager, orchestrator, and operation support system comprise the NFV architecture.
One of the key factors driving the market’s positive outlook is significant growth in the banking, financial services and insurance (BFSI), healthcare, retail, manufacturing, and information technology (IT) industries. This has increased the demand for advanced network management and NFV systems to handle the increasing complexities of network traffic and data. Additionally, widespread adoption of virtual appliances is propelling the market. They are typically based on network operations such as traffic forwarding, monitoring, security, caching, intrusion detection systems, and domain name service. NFV provides optimised network scalability and agility to manage the entire network and improve overall performance, which is another growth-inducing factor. For increased flexibility, it can also be integrated with the Internet of Things (IoT) and private cloud computing services. Other factors, such as rising demand for data centre consolidation and server virtualization, as well as increased investment in 5G network technology, are expected to drive the market even further.
Key Advantages
- The study provides an in-depth analysis of the global network function virtualization market, as well as current and future trends, in order to identify potential investment opportunities.
- There is information about the key drivers, restraints, and opportunities, as well as an analysis of their impact on market size.
- Porter’s Five Forces analysis depicts the power of buyers and suppliers in the industry.
- To determine market potential, a quantitative analysis of the market from 2017 to 2023 is provided.
Network functions virtualization (NFV) refers to methods for virtualizing network services that were previously run on proprietary, dedicated hardware. It uses cloud and virtualization technologies to accelerate the development of new network services while ensuring scalability and automation. It entails decoupling network functions from proprietary hardware appliances and running them in virtual machines as software (VMs). NFV has greatly aided the global IT industry in modernising their enterprise networks. It can virtualize traditional network functions such as switching, routing, firewalls, and so on. Furthermore, NFV improves scalability and agility by enabling service providers to deliver new network services and applications on demand without the need for additional hardware resources.
The growing adoption of cloud computing and IoT has resulted in a shift in business requirements in terms of agility. As a result, network complexities and cloud-based services have increased significantly in recent years. Network function virtualization has emerged as one of the most important tools for organisations to address network infrastructure issues. Because of the growing demand for data-intensive applications and cloud-based services, the demand for network function virtualization solutions and services is expected to rise significantly in the coming years, contributing to market growth.
