Global Virtual Network Function Software Market - Segmented by Component (Hardware, Software, Service), Deployment (On-premises, On-cloud), End-user Industry (BFSI, IT & Telecom, Manufacturing, Healthcare, Government), and Region - Growth, Trends, and Forecast (2018 - 2023)
The market for virtual network function software is expected to register a CAGR of 38.7%, during the forecast period (2018 - 2023). The scope includes different component of virtual network function software market, such as hardware, software and service. The regions considered under the scope of the report include North America, Europe, Asia-Pacific, and Middle East & Africa.
Factors such as increase in telecom service providers and growing demand for cloud services are expected to drive the virtual network function market during the forecast period. Moreover, growing market development in virtual network functions is expected to add fuel to the growth of market. Major firms, such as Verizon Communication partnered with Amazon web services to provide virtual network services.
Increased Adoption of Internet of Things (IoT)
The number of connected devices is expected to grow by more than 50 billion by 2023. IoT is connecting various devices ranging smart home gadgets to agricultural sensors and big manufacturing systems. It being a new technology comes with new security threats. Thus, network function software can not only help communication service provider reduce costs, enable agile service delivery and provide security solutions using current information technologies, like virtualization, standard servers, and open software.
IT is Set to Become the Fastest Growing Segment
The market for network virtual function software market is expected to move towards enterprise cloud and internet service providers in the coming years. Private cloud is also one of the proposed areas for deployment of this market. In order to make private cloud more agile, network services have to be provisioned on-demand through this technology. With increased innovations towards identifying the cost-effective and efficient network function software solutions for enterprise data center environment, these deployment models in the cloud are likely to promote this market growth during the forecast period.
North America to Lead the Market
North America is accounted to have a largest share in the market owing to a significant move of commercial deployment of network function virtualization by the telecom operators, which will drive the network function software market growth. Migration to 5G will further promote the need of deploying network function virtualization (NFV).
Key Developments in Market