Network Function Virtualization Market by Component (Orchestration And Automation, Professional Services, Solutions), Enterprise Size (Large Enterprises, Small And Medium-sized Enterprises), Virtualized Network Function, Application, End User - Global For

Network Function Virtualization Market by Component (Orchestration And Automation, Professional Services, Solutions), Enterprise Size (Large Enterprises, Small And Medium-sized Enterprises), Virtualized Network Function, Application, End User - Global Forecast 2024-2030

The Network Function Virtualization Market size was estimated at USD 34.42 billion in 2023 and expected to reach USD 39.87 billion in 2024, at a CAGR 16.32% to reach USD 99.20 billion by 2030.

The network function virtualization (NFV) market encompasses the global demand for virtualization technologies used in the telecommunications industry. NFV offers a new mode to design, deploy, and manage networking services by decoupling network functions from dedicated hardware appliances so they can run on standardized compute nodes. This market caters to communication service providers (CSPs) and enterprises looking to enhance their network agility, performance, and scale. Increasing demand for network virtualization and automation and rising utilization of cloud-based solutions & services and data-intensive applications drive market growth. Moreover, the surging deployment of the edge computing paradigm has significantly contributed to the adoption of NFV solutions. Integration and interoperability issues and a growing number of security concerns and misconceptions regarding NFV pose a considerable challenge to market growth. Growing investments in 5G network technology and the emerging use of SDN & NFV in IoT infrastructures are the latest opportunities in the network function virtualization (NFV) market.

Regional Insights

In North America, the United States and Canada are at the forefront of adopting NFV technologies to enhance network flexibility and reduce capital and operational expenditures. There has been a strong emphasis on innovation and collaboration between service providers and NFV vendors, fostering an environment that helps the growth of the NFV market in the region. South America's NFV landscape is emerging, with countries such as Brazil and Argentina gradually adopting virtualization technologies. In Europe, there is a significant push towards NFV, led by initiatives such as the ETSI NFV Industry Specification Group, which substantially impacts global standards. Europe's strong regulatory framework and the presence of leading telecommunications companies aid the adoption of NFV technologies. In contrast, the Middle East and Africa's NFV market is driven by the need to improve network agility to support burgeoning mobile subscriber growth. In the Asia-Pacific, the NFV market is expansive, with significant heterogeneity across different countries regarding technology adoption. Nations such as Japan, South Korea, and Australia are leading NFV deployments due to high technology receptivity, advanced network infrastructure, and supportive government policies. Meanwhile, in emerging economies such as India and Southeast Asian countries, there's an increasing interest in NFV triggered by the demand for cost-effective and scalable network solutions to support their expanding digital economies.

Market Insights

• Market Dynamics
  
  The market dynamics represent an ever-changing landscape of the Network Function Virtualization Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
  • Market Drivers
    • Increasing Demand for Network Virtualization and Automation
    • Rising Utilization of Cloud-Based Solutions & Services and Data-Intensive Applications
    • Surging Deployment of Edge Computing Paradigm
    • Market Restraints
      • Integration and Interoperability Issues
      • Market Opportunities
        • Growing Investments in 5G Network Technology
        • Emerging Use of SDN & NFV in IoT Infrastructures
        • Market Challenges
          • Growing Number of Security Concerns and Misconceptions Regarding NFV
          • Market Segmentation Analysis
            • Component: Significant demand for orchestration and automation to achieve the scalability and flexibility to support evolving network
            • End User: Growing use of NFV by telecom service providers for support of large-scale deployments
            • Market Disruption Analysis
            • Porter’s Five Forces Analysis
            • Value Chain & Critical Path Analysis
            • Pricing Analysis
            • Technology Analysis
            • Patent Analysis
            • Trade Analysis
            • Regulatory Framework Analysis
            FPNV Positioning Matrix
            
            The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Network Function Virtualization Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
            
            Market Share Analysis
            
            The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Network Function Virtualization Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
            
            Recent Developments
            • UST Continues Telecoms Sector Growth with Strategic Investment in VoerEir
              
              UST invested in VoerEir, the Swedish innovator in network testing and certification for Communication Service Providers (CSPs). This strategic move enhances UST's DevSecOps and network engineering offerings, particularly for the emerging 5G realm. With this investment, UST merges its cloud technologies, AI/ML, and telecom expertise with VoerEir's extensive automated testing capabilities.
              
              NTT DOCOMO and NEC are Onboarding 5G SA Core Using Energy-efficient and High-performance AWS Cloud Computing Services
              
              NTT DOCOMO, INC. collaborated with NEC Corporation (NEC), has embarked on an innovative proof-of-concept (PoC) testing, utilizing the synergies of NEC's cutting-edge 5G core network (5GC) services within a pioneering hybrid cloud arrangement that taps into the potential of Amazon Web Services' (AWS) cloud platform. This strategic alliance is poised to demonstrate the practicality and efficiency of deploying cloud-native mobile networks that incorporate public cloud resources for network function virtualization (NFV).
              
              Mobileum and VoerEir Partner to Provide End-to-End Service Assurance and Network Function Virtualization Infrastructure Testing and Benchmarking
              
              Mobileum Inc. formed an alliance with VoerEir, the innovator in edge cloud technologies. This partnership heralds the advent of a robust, fully-integrated testing environment, aimed at elevating Service Assurance and the rigorous evaluation of Network Function Virtualization Infrastructure (NFVI).
            Strategy Analysis & Recommendation
            
            The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Network Function Virtualization Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
            
            Key Company Profiles
            
            The report delves into recent significant developments in the Network Function Virtualization Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, Amdocs Group, Broadcom Inc., Ciena Corporation, Cisco Systems, Inc., Dell Inc., Fortinet, Inc., Fujitsu Limited, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., Intel Corporation, International Business Machines Corporation, Mavenir Systems, Inc., Microsoft Corporation, NEC Corporation, Netscout Systems, Inc., Nokia Corporation, Oracle Corporation, Palo Alto Networks, Radisys Corporation, Ribbon Communications Inc., Telefonaktiebolaget LM Ericsson, Wind River Systems, Inc., and ZTE Corporation.
            
            Market Segmentation & Coverage
            
            This research report categorizes the Network Function Virtualization Market to forecast the revenues and analyze trends in each of the following sub-markets:
            • Component
              • Orchestration And Automation
              • Professional Services
                • Consulting
                • Implementation
                • Training And Support
                • Solutions
                  • Hardware
                  • Software
                  • Enterprise Size
                    • Large Enterprises
                    • Small And Medium-sized Enterprises
                    • Virtualized Network Function
                      • Computer
                      • Network
                      • Storage
                      • Application
                        • Core Network
                          • Mobile Edge Computing
                          • Virtual Internet Protocol Multimedia Subsystem
                          • Virtualized Evolved Packet Core
                          • Virtualized Radio Access Network
                          • Virtual Appliance
                          • End User
                            • Data Centers
                            • Enterprises
                              • Banking, Financial Services, And Insurance
                              • Education
                              • Government And Defense
                              • Healthcare
                              • Manufacturing
                              • Retail
                              • Service Providers
                                • Network Service Providers
                                • Telecom Operators
                              • Region
                                • Americas
                                  • Argentina
                                  • Brazil
                                  • Canada
                                  • Mexico
                                  • United States
                                    • California
                                    • Florida
                                    • Illinois
                                    • New York
                                    • Ohio
                                    • Pennsylvania
                                    • Texas
                                    • Asia-Pacific
                                      • Australia
                                      • China
                                      • India
                                      • Indonesia
                                      • Japan
                                      • Malaysia
                                      • Philippines
                                      • Singapore
                                      • South Korea
                                      • Taiwan
                                      • Thailand
                                      • Vietnam
                                      • Europe, Middle East & Africa
                                        • Denmark
                                        • Egypt
                                        • Finland
                                        • France
                                        • Germany
                                        • Israel
                                        • Italy
                                        • Netherlands
                                        • Nigeria
                                        • Norway
                                        • Poland
                                        • Qatar
                                        • Russia
                                        • Saudi Arabia
                                        • South Africa
                                        • Spain
                                        • Sweden
                                        • Switzerland
                                        • Turkey
                                        • United Arab Emirates
                                        • United Kingdom
                                        
                                        
                                        Please Note: PDF & Excel + Online Access - 1 Year