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The Trend of Moving from Hardware-based Solutions to Software-based Solutions Will Boost Market Growth and Brand Image
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The global network function virtualization (NFV)/software-defined networking (SDN) market is estimated to experience an approximate 22.8% compound annual growth rate (CAGR) from 2016 to 2023.The objective of this study is to identify the key trends prevailing in the NFV/SDN market in the base year and what factors boost and restrain market growth. In particular, it also discusses the product areas that bolster growth for the forecast period 2017 to 2023.With 2016 as the base year, the research provides estimates of the market size and future growth prospects up to 2023. For this purpose, a specific methodology is followed that includes discussion with senior management of NFV/SDN original equipment manufactures (OEMs) and is supported by secondary research/desk research.This study covers the following from a product scope standpoint: Security TechnologiesSwitchesApplication Platform and ControllersSoftware-defined Storage (SDS) PlatformsRoutersThe various regions covered in this global study are:North America: Canada and the United StatesEurope: Western, Central, Eastern Europe, and RussiaAsia-Pacific: Countries on the western border of the Pacific Ocean (including those on the Indo-Chinese peninsula), the Pacific Islands, and Central AsiaEmerging Regions: Central and South America, the Caribbean islands, the Middle East, and AfricaDiscussion highlights:NFV is witnessing a move from hardware-based solution to software-based solution and this trend is expected to boost the market growth in high double digits during the forecast period.Of SP investments, 80% is expected to be on software with the transformation to virtualized networks.The use of mobile services is increasing, which in turn makes the network more complex. This requires the efficient managing of network infrastructure, which can be well achieved with the deployment of SDN.Some CSPs have built their own proprietary software. However, new applications are driving them to adopt third-party SDN software, which is expected to boost market growth.From the routers perspective, virtual routers (or vRouters) are expected to accelerate in sales mainly from demand in the Asia-Pacific region.The study offers a holistic picture of the opportunities, challenges, and threats for the NFV/SDN OEMs across the globe. The research methodology involves interviews with key market participants along the supply chain for primary research coupled with secondary research from various sources. This includes the use of in-house data. Desk research also includes data that has been gathered from company Web sites, industry organizations, and other online databases.
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