Increasing Acceptance of Cloud Computing to Boost Growth
The global network function virtualization (NFV) market is expected to post a CAGR of over 41 percent during the period 2018-2022, according to the latest market research report by Technavio. However, the growth momentum of the market is expected to decelerate due to a decrease in the year-over-year growth.
A key factor driving the growth of the market is advances in network infrastructure. The increase in the number of connected devices has led to massive amounts of data generated over the network. Businesses have realized that they can use this data to optimize costs, deliver better services, and boost revenue. Therefore, there is high demand for and adoption of network technologies to improve the efficiency of the business and neutralize cyber threats, which will boost the growth of the global market.
Global network function virtualization market: increasing acceptance of cloud computing
There has been a high acceptance of cloud computing across the world in recent times. This upsurge in the penetration and diffusion of the cloud phenomenon is a significant trend that will affect the adoption and proliferation of NFV solutions across verticals because of its inherent cost-effectiveness and ease of management of cloud-based network virtualization solutions.
The rise in cloud computing is supplemented by innovations in cloud network virtualization and efficiency improvement. As a result, the cloud deployment models are becoming increasingly secure, reliable, and flexible. Therefore, innovations in cloud services are eventually expected to drive the wide reception of NFV solutions among large enterprises.
“NFV is readily adopted by network service providers to reduce the need for hardware such as firewall, CDN, load balancers, WAN acceleration, and RAN. SDNs and virtual networks are also flexible in terms of deployment model depending on the customer's requirement of network services. Hence, the demand for NFV is expected to increase during the forecast period,” says a senior analyst at Technavio for research on data center.
Segmentation analysis
This market research report segments the global network function virtualization market by end-user (IT and telecom, BFSI, government, others) and geographical regions (APAC, EMEA, and the Americas).
The Americas led the market in 2017 with a market share of more than 43 percent, followed by EMEA, and APAC respectively. However, during the forecast period, the APAC region is expected to show the highest incremental growth while the other two regions will witness a decline in their market shares.
