The global network function virtualization market is expected to grow from $ 15.28 billion in 2021 to $ 19.00 billion in 2022 at a compound annual growth rate (CAGR) of 24.3%. The network function virtualization market is expected to reach $ 42.59 billion in 2026 at a CAGR of 22.4%, according to Research and Markets.
The main types of components in network function virtualization are solutions, orchestration and automation, and services. Solutions refer to a unique system that combines people, processes, information, and technologies to support a set of business or technical capabilities that solve one or more business problems.
Solution providers are hired by various industries to solve business problems. The infrastructure utilized consists of hardware resources and virtualized resources. The different applications include virtual appliances and core networks and are employed by several end users such as service providers, data centres, and enterprises.
North America was the largest region in the network function virtualization market in 2021. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the network function virtualization market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Increasing demand for cloud-based services is significantly contributing to the growth of the network function virtualization market going forward. Cloud refers to servers that are provided over the Internet and the software and databases that run on those servers. Network operators can get new network services dynamically using cloud solutions rather than installing new hardware.
For instance, according to the 2019 State of the Cloud Survey by Flexera, a US-based software company, out of 786 technical professionals surveyed, 94% use cloud solutions, and 69% of them are using hybrid cloud solutions. Therefore, the increase in demand for cloud-based services is driving the growth of the network function virtualization market.
Technological advancements have emerged as a key trend gaining popularity in the network function virtualization market. Major companies operating in the NFV sector are focused on developing the latest technologies to sustain their position in the market.
For instance, in February 2022, Mobileum, a US-based telecom analytics company, and VoerEir, a Sweden-based cloud technology company, partnered to create a powerful test platform for network function virtualization infrastructure. The combination of Mobileum’s SITE active test solution and VoerEir’s Touchstone test suite provides a vertically integrated solution that allows communication service providers to fully automate testing of services from the lab to the live network, as well as virtual and cloud-native network functions.