The global network function virtualization market size is expected treach USD 424.72 billion by 2034, according ta new study by Polaris Market Research. The report “Network Function Virtualization Market Size, Share, Trends, Industry Analysis Report: By Component (Solutions, Orchestration and Automation, and Services), Virtualized Network Function, Enterprise Size, Application, End Users, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa) – Market Forecast, 2025–2034” gives a detailed insight intcurrent market dynamics and provides analysis on future market growth.
Network function virtualization (NFV) is a modern architecture that makes use of software treplace hardware-based network functions. It packages network services such as routers, firewalls, and load balancers intvirtual machines that operate on commodity software. That way, service providers can manage their networks on standard servers instead of proprietary software.
The adoption of virtual applications technology tcater tthe ever-growing demand for digital infrastructure that incorporates cloud and private systems is the key factor driving the network function virtualization market growth. A few benefits of NFVs such as user mobility, updates, patches, portability, and ease of software management installation are driving their increased adoption across various sectors.
The increased use of virtual machines for key functions such as traffic control, firewalls, routers, load balancers, and more is expected tdrive the network function virtualization market expansion. In addition, the growing adoption of 5G and edge computing technologies is fueling the demand for cloud-based services, further contributing tthe market development.
Key Highlights of Network Function Virtualization Market Report
Based on component, the orchestration and automation segment dominated the network function virtualization market with the largest revenue share in 2024. Orchestration and automation automate and enhance service creation by integrating virtual network functions, self-healing, scaling, and resource lifecycle management. Also, their capabilities directly address operational challenges and provide flexible solutions for traffic management.
Based on enterprise size, the large enterprises segment led the market with a revenue share of 63.5% in 2024. NFV enables large enterprises treduce device costs and power consumption by giving them the capability tconsolidate devices and leverage the economics of scale.
North America held the largest network function virtualization (NFV) market revenue share in 2024. The presence of several established NFV infrastructure providers, the high adoption rate of advanced technologies, and the rapid industrialization in major economies such as the US and Canada fuel the market growth in the region.
The Asia Pacific network function virtualization market is projected twitness rapid growth from 2025 t2034, fueled by the increasing adoption of technologies, the presence of favorable government initiatives and policies, and the rising demand for data storage and security.
Affirmed Networks, Ciena, CiscSystems, Dell EMC, ECI TELECOM, Ericsson, Fujitsu, HPE, Huawei, Intel, Juniper Networks, Mavenir, Metaswitch, NEC Corporation, NETSCOUT, Nokia, Radisys, Ribbon Communications, VMware, Wind River, and ZTE Corporation are a few of the leading players in the market.
Polaris Market Research has segmented the network function virtualization market research report on the basis of component, virtualized network function, enterprise size, application, end users, and region:
By Component Outlook (Revenue – USD Billion, 2020–2034)
Solutions
Orchestration and Automation
Services
By Virtualized Network Function (Revenue – USD Billion, 2020–2034)
Compute
Storage
Network
By Enterprise Size Outlook (Revenue – USD Billion, 2020–2034)
SMEs
Large Enterprises
By Application Outlook (Revenue – USD Billion, 2020–2034)
Virtual Appliance
Core Network
By End Users Outlook (Revenue – USD Billion, 2020–2034)
Service Providers
Data Centers
Enterprises
BFSI
Manufacturing
Government and Defense
Healthcare
Retail
Education
IT-Enabled Services
Others
By Regional Outlook (Revenue – USD Billion, 2020–2034)
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Netherlands
Russia
Rest of Europe
Asia Pacific
China
Japan
India
Malaysia
South Korea
Indonesia
Australia
Rest of Asia Pacific
Middle East & Africa
Saudi Arabia
UAE
Israel
South Africa
Rest of Middle East & Africa
Latin America
Mexico
Brazil
Argentina
Rest of Latin America
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