The global network function virtualization market is anticipated to expand during the forecast period, 2021 – 2028. The growth of the market is attributed to the growing demand for managing and deploying networking services.
Network function virtualization (NFV) is a virtual network that uses software applications to operate its network on a standard server that can help to function effective communication. The system also allows service providers to offer network service without using proprietary hardware. It helps in the optimization of networks and associated processes besides reducing of electricity consumption and lowering equipment costs. It allows multiple apps to be accessed from a single network appliance and provides a significant reduction in capital and operating costs. Using this network, the system provides key network services such as firewalls, routes, and domain name service (DNS). The requirement for data-intensive applications has increased in the mobile industry, which in turn, raising the demand for greater network bandwidth to satisfy consumer needs.
Market Trends, Drivers, Restraints, and Opportunities
• Factors such as reduction of equipment capacity, spacing requirements, and the simplification of network service management are key drivers for the rising demand for the network system.
• Increasing need for cloud-based services and growing demand for data-intensive applications are projected to fuel the market expansions.
• Technological advancements and usage of services including routers, mobile edges, and optical transport due to enhanced performance and lowering costs are expected to boost the NFV market during the forecast period.
• Rising demand for data center expansion and cloud virtualization, as well as increased investments in 5G network infrastructure act as key drivers boosting the market growth.
• Lack of adequate investment for cyber security from many small and medium-sized businesses and rising concerns for data violation are key challenges impeding the market growth. The system provides a centralized control point of network setting and once it is compromised, the intruder can access to all individual networks.
• High access to the internet of things (IoT) and rising adoption of artificial intelligence to support all of the devices connected to these networks, which in turn, boosting the global demand for network function virtualization.
Global Network Function Virtualization Market Segment Insights
Security Function segment is expected to represent a key share
On the basis of applications, the market is divided into traffic analysis, switching elements (routers), security function, next-generation signaling, and service assurance. The security function segment is expected to represent a key share during the forecast period owing to the rising adoption of the system for filtering cyber threat and enhancing cyber security.
NAT segment is projected to register a high CAGR
In terms of network functions, the global network function virtualization market is segmented into firewalls, network address translation (NAT), domain name service (DNS), and intrusion detection. The NAT segment is projected to register a high CAGR in the coming years owing to rising development of new technology and innovative software solution for the network.
North America dominates the market
Based on regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a large market share of the market in 2020 and is anticipated to dominate the market during the forecast period owing to the growing expansion of telecom service and rising growth of 5G network in the region. On the other hand, Europe held a large market share trailing after North America and is projected to exhibit substantial growth during the forecast period.
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