The Network Function Virtualization market size is projected to grow from USD 12.9 billion in 2019 to USD 36.3 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 22.9% during the forecast period. The major factors driving the growth of the NFV market include the demand for network virtualization and automation, increased emergence of cloud services and server virtualization, and need for advanced network management systems.
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Among end user, the enterprises segment to grow at the highest CAGR during the forecast period
Enterprise customers are rapidly adopting NFV architecture, as it offers significant benefits such as improved network efficiency through centralized management, enhanced IT agility, and network customization through fast and reliable application services. These customers have been categorized into various verticals, including Banking, Financial Services, and Insurance (BFSI), manufacturing, retail, healthcare, education, IT-enabled services, and government and defense. In the present scenario, the deployment of NFV is prevalent across IT-enabled services, BFSI, and retail verticals.
Under services, the implementation segment to grow at the highest CAGR during the forecast period
Implementation services add value to the network infrastructure of businesses. These services assist end users in optimizing their network operations effectively. In addition to this, they help enhance service delivery and manage network performance monitoring and management costs. They support companies in efficiently deploying and managing the implementation of new solutions. NFV vendors are also providing migration services that play a vital role in integrating and deploying NFV.
Cisco is one of the global leaders in the Network Function Virtualization market. The company offers solutions and services across the globe. Huge spending in R&D has helped Cisco in developing a robust portfolio of network-specific solutions and services. The company has been continuously upgrading its NFV portfolio to keep up with the pace of the market with regular innovations in terms of products and solutions. It is focused on both organic and inorganic growth strategies to maintain its position in the NFV market. In line with inorganic growth strategies, the company is more focused on collaborations and partnerships. Recently, Cisco partnered with PLDT and Rakuten with an intent to devolve and deploy advanced technologies for 5G and Software-Defined Network (SDN).
Huawei has established itself as a global leader in the Network Function Virtualization market by providing a comprehensive NFV portfolio to all its customers and pushing global NFV adoption. The company invested 14.1% of the total annual revenue in 2018 in R&D. Moreover, its 45% workforce is deployed in R&D. It has R&D institutes in several countries, such as India, China, Pakistan, Germany, and Finland. According to its 2017 annual report, it had invested USD 58.02 billion in R&D in the past decade. Huawei is focused on strengthening its growth in the NFV market through organic and inorganic growth strategies. For instance, in March 2019, Huawei launched a new solution, Telco Cloud Networking. The solution will empower 5G, IoT, and Virtual Reality (VR). The company is upgrading its solutions and helping companies deploy 5G networks in local areas; for instance, Huawei helped Deutsche Telekom launch a 5G network in Poland in December 2018.