Virtual Customer Premises Equipment (vCPE) Market Report

Virtual Customer Premises Equipment (vCPE) Market Analysis By Solution/Tool (Virtual Switches), By Service (Professional & Managed), By Service Model (IaaS, PaaS, SaaS), By Organization Size (SMEs, Large Scale Enterprises), And Segment Forecasts, 2014 To 2025

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  • Report ID: GVR4338
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Virtual enterprise CPE (vE-CPE) solutions are also known as virtual business CPE (vB-CPE) solutions. Virtual customer premise equipment (vCPE) is a way to deliver network services such as routing, firewall security and virtual private network connectivity to enterprises by using software rather than dedicated hardware devices. By virtualizing CPE, providers can dramatically simplify and accelerate service delivery, remotely configuring and managing devices and allowing customers to order new services or adjust existing ones on demand.

Virtual Customer Premises Equipment Market is globally segmented by solution/tool, by service, by service model, by organization size, by application, and by region.

On the basis of solution/tool, globally, virtual customer premises equipment (vCPE) market is classified into virtual switches, virtual routers, application and controller platform, security and compliance, and infrastructure management and orchestration. The adoption of network virtualization among enterprises has increased the demand for network function virtualization (NFV) technology, which ultimately increases the demand for V-CPE infrastructure. The virtual infrastructure has reduced the hardware dependence for enterprises and minimized the cost related to networking infrastructure. Anuta networks NCX acts as the NFV Orchestrator and VNF manager for leading L2-L7 virtual network functions from multiple vendor products such as Cisco CSR1000V, Cisco Nexus 1000V, etc.

On the basis of service, globally vCPE market is classified into professional services (marketing, training & consulting, advertising, and policy & governance services), and managed services. Professional services also comply with network-based regulatory standards of V-CPE technologies and therefore professional services segment is expected to grow gradually in the V-CPE market during the forecast period.

On the basis of service model, vCPE market is globally classified into IaaS (Infrastructure-as-a-Service)- compared to SaaS and PaaS, IaaS users are responsible for managing applications, data, runtime, middleware, and OSes. IaaS extends current data center infrastructure for temporary workloads. Amazon Web Services, Cisco Metapad, Microsoft Azure, etc are the examples.  PaaS (Platform-as-a-Service)- PaaS are used for applications, and other development, while providing cloud components to software. PaaS makes the development, testing, and deployment of applications quick, simple and cost effective. It increases developer’s productivity and utilization rates while decreasing an applications time-to-market. SaaS (Software-as-a-Service)- represent the largest cloud market and are still growing at a faster pace. SaaS replaces traditional on-device software. Google apps, salesforce, and the others are the examples.

On the basis of organization size, vCPE market is globally classified into SMEs, and Large Enterprises. The enterprise vCPE solution represents an attractive opportunity for CSPs in the geographies analyzed. The impact of vE-CPE implementation in the cloud represents greater savings for large enterprises than small and medium enterprises (SEMs) and is similar in four geographies: the cost reduction is 32% in the united states, 36% in Europe and Asia, and 39 % in Latin America.

By application, virtual customer premises equipment (vCPE)  market is globally classified into Data centers and telecom service providers and Enterprises (banking, financial services, and insurance (BFSI), ITES, healthcare, government and public sector utilities, manufacturing, others). Data centers and telecom service providers segment is expected to have gradual growth during the forecast period. As this segment is most significant areas in the V-CPE market. The data generated by telecom companies, which is stored and retrieved from data centers, is huge. With the help of V-CPE solutions, telecom companies can easily transfer their business functions from one geographic location to another. The application of V-CPE in the education industry is transforming the education system by providing benefits of virtualization technology such as online programs, group discussions, and information exchange.

Geographically, the global vCPE market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. North America is expected to hold the maximum share and would dominate the V-CPE solutions and services market during forecast period due to increased usage of NFV and SDN among data centers and telecom companies, well established economies, advanced technology. The Asia Pacific’s market is expected to witness exponential growth and is projected to be the fastest growing region during forecast period.

The major players of the global vCPE market are as follows:

Arista Networks, Brocade Communications Systems, Cisco System, Dell, Ericsson, Hewlett Packard Enterprises (HPE), International Business Machines (IBM) Corporation, Juniper Networks, NEC Corporation, Versa Networks, and others

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