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This market research report analyzes the key players in the global network function virtualization (NFV) market such as Brocade Communication Systems, Cisco, Ericsson, Juniper Networks, Hewlett-Packard Enterprise, Huawei Technologies, Nokia, and VMware. The report also presents a competitive analysis of the market by components (software and infrastructure and services) and by geography (the Americas, APAC, and EMEA).
Overview of the global network function virtualization (NFV) market
Technavio’s market research analysts predict the global network function virtualization (NFV) market to grow rapidly at a CAGR close to 33% by 2020. The increasing adoption of internet-connected devices will provide a major boost to the global NFV market. A rise in the number of connected devices will lead to the generation of large blocks of data. The growing popularity of ideas such as connected car, connected home, connected health, and smart cities has led many industries such as manufacturing, utilities, retail, automotive, and social media to use IoT for increased data transfer. NFV can connect and manage the heterogeneous elements of IoT securely. It is adopted by telecom operators to use the power of virtualization and commercial servers, and open software to build, operate and manage these networks. It maintains the network resources by analyzing and managing the traffic flows throughout the network. Moreover, the deployment of VNFs in NFV platforms such as mobile core, DPI, routing, gateways, traffic management, and security provide the opportunity to customize network services for IoT, which also contribute to this market’s growth over the coming years.
One of the recent trends gaining significant traction in the market is the increasing adoption of NFV by enterprises. Initially, telecom operators were the dominant adopters of NFV, but the market for NFV is expected to move towards enterprise cloud and internet service providers over the coming years. Private cloud is also one of the proposed areas for NFV deployment. For the private cloud to be more agile, network services have to be provisioned on-demand through NFV. With increased innovations towards identifying the cost effective and efficient NFV solutions for enterprise data center environment, these deployment models in the cloud will boost this market’s growth during the forecast period.
Competitive landscape and key vendors
The market has a huge presence of vendors with several solutions for a single NFV deployment. Vendors partner with other solutions providers worldwide to carry out the NFV deployments. The contribution of vendors to open communities like OpenNFV and with strong partner ecosystems will have higher chances of generating revenue. Deployment of NFV dominates the service provider networks such as Vodafone, Telefónica, Orange, and AT&T among others. Vendors providing similar solutions experience more competition compared to the competition between all vendors in the market.
Key vendors in this market are -
•Brocade Communication Systems
•Hewlett Packard Enterprise (HPE)
Other prominent vendors in the market include 6WIND, A10 Networks, Affirmed Networks, Allot Communications, Amdocs, ASTRI, Broadcom, Canonical's Ubuntu, Ciena (Blue Planet), Citrix, Dell, F5 Networks, Fortinet, Fujitsu, GENBAND, Intel, IP Infusion, Ixia, Metaswitch Networks, Mirantis, NEC and Netcracker, NFWare, OneAccess Networks, Oracle, PacketLogic, Palo Alto Networks, PLUMgrid, Quali Systems, Radware. Red Hat, Sonus Networks, Telco Systems, Trend Micro, VeloCloud, Wind River, and ZTE.
Segmentation by components and analysis of the NFV market
•Infrastructure and services
During 2015, the software segment was the major revenue contributing segment in this market. The increase in deployment of virtualized software among enterprise data centers such as cloud service providers (CSPs) and internet service providers (ISPs), will result in the growth of the market. Adoption of NFV eliminates the use of hardware appliance by replacing the latter with virtual software. The software that is included in NFV architecture is NFVI and virtual infrastructure manager (VIM) software. The deployment of these virtualized software will grow among enterprise data centers such as cloud service providers (CSPs) and internet service providers (ISPs). In addition, the commercial deployment of 5G technologies will require VNFs and management software to operate the agile network and provide service on demand which will drive the market segment’s growth.
Geographical segmentation and analysis of the NFV market
In terms of geography, the Americas accounted for majority of the market shares and will continue to lead the market during the forecast period. The region is witnessing a significant move from proof of concepts to commercial deployment of NFV by the telecom operators, which will drive the market growth. Leading telecom operators such as AT&T, Telefónica, Verizon, and CenturyLink are deploying NFV and SDN technologies in areas that can yield higher ROI. The migration to 5G will drive the requirement of deploying NFV and SDN. The intention of vendors in improving the customer experience of using the network will also increase the NFV and SDN usage.
Key questions answered in the report include
•What will the market size and the growth rate be in 2020?
•What are the key factors driving the global NFV market?
•What are the key market trends impacting the growth of the global NFV market?
•What are the challenges to market growth?
•Who are the key vendors in the global NFV market?
•What are the market opportunities and threats faced by the vendors in the global NFV market?
•What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
•What are the key outcomes of the five forces analysis of the global NFV market?
Technavio also offers customization on reports based on specific client requirement.
Network functions virtualization (NFV) is an organized plan to virtualize the network services, which are currently executed by proprietary and dedicated hardware. NFV aims to decrease the amount of proprietary hardware that is required to launch and operate network services. The primary objective of NFV is to decouple network functions from dedicated hardware devices and enable network services to be introduced on virtual machines. NFV makes network and service provisioning flexible, which allows operators and service providers to scale services up or down immediately to address the changing needs. These services are delivered through software applications on any industry-standard server hardware. NFV minimizes the requirement for procuring networking hardware, such as switches and routers as the service providers can take the function associated with the asset and process it as a virtual machine on a server. The growth of NFV is prominent among the carrier network operators as it is anticipated to change the way operators design and implement network services.
The report, global network function virtualization (NFV) market, is part of Technavio’s ICT research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as automatic identification system, cloud computing, data center, enterprise application, IT security, ITO and BPO, and product lifecycle management. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.