Network Functions Virtualization (NFV) Market Report

Network Functions Virtualization (NFV) Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies And Forecasts, 2015 To 2022

Format: PDF  |  Report ID: GVR1596

Growing demand for managing and deploying networking services is expected to drive the NFV market (Network Functions Virtualization) over the forecast period. NFV decouples network functions such as firewalls, Network Address Translation (NAT), Domain Name Service (DNS), and intrusion detection. The mobile sector has witnessed more requirements for data-intensive applications, which further demands better network capacity to meet the customer requirements, which is anticipated to fuel the NFV market growth. Reducing power, cooling and spacing requirements of equipment, and simplifying management of network services have significantly encouraged the NFV market demand. Increasing need of cloud-based services and demand for data-intensive applications is projected to favor market demand. Additionally, technological advancements and usage of routers, switches, mobile edges, and optical transport owing to enhanced performance and lowering costs are expected to boost the NFV market over the forecast period. NFV is a core structural change in the way a telecommunication infrastructure is deployed, and brings a considerable change in the way applications are delivered to the service providers.

NFV is expected to replace traditional network functions such as DHCP, DNS, and IPAM owing to decreasing costs and enhanced performance of telecom service providers. Technological advancements aimed at managing images, folders, programs, and files from a single physical site are anticipated to boost market demand. Increasing need for faster networks is posing challenge to market growth as network monitoring, management or security tool unable to operate at 40Gbps or 100Gbps. Network visibility controllers also known as network packet brokers deal this challenge by filtering, capturing, optimizing, and aggregating traffic, which enables 1Gbps or 10Gbps performance management and security systems to run on 40Gbps or 100Gbps networks.

The Network Functions Virtualization (NFV) market is segmented on the basis of application as traffic analysis, switching elements (routers), security function, next generation signaling, and service assurance. Fuelled by high demand in the U.S., North America is expected to emerge as a key regional market. Increasing demand and popularity in China and India are expected to drive growth across the Asian market.

Some of the major players in the Network Functions Virtualization market include Alcatel-Lucent, Ericsson AB, 6Wind SA, Huawei Technologies Co. Ltd., Amdocs Inc., Nokia Solutions and Network, CIMI Corporation, Connectem Inc., Intel Corporation, ConteXtream Inc., Juniper Network Inc., F5 Network Inc., Open Wave Mobility Inc., NEC Inc., Opera Software, HP and Oracle Corporation. Increased R&D spending is expected to be a key growth strategy adopted by industry participants. For example, Intel Corporation developed a technology that enables modems to act as virtual servers. Market participants are focused on strategies such as collaboration, merger & acquisition to enter new market along with new product development, increased R&D spending, and innovation in order to establish a foothold in the market. 

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