According to new market research the virtual router market size is expected to grow from USD 116.8 in
2018 to USD 331.5 million by 2023, at a Compound Annual Growth Rate (CAGR) of 23.2%
during the forecast period.
Virtual router solutions enable service providers and enterprises
enhance network reliability and scalability, and thereby increase revenue and
profit margins. The major factors driving the of the virtual router market are
the decrease in CAPEX and OPEX, increase in demand for SDN and NFV, and growing
need for mobility.
Asia Pacific (APAC) is expected to grow at the highest CAGR during the
forecast period. With the growth in adoption of advanced technologies, the APAC
region is experiencing increased data traffic on network, this is exerting
extra pressure on service providers to deploy virtual router solutions to meet
changing network requirements.
The virtual router market by component has been segmented into solution
and service. The service segment is expected to grow at a higher rate during
the forecast period. The virtual router software provides advanced routing,
stateful firewall, and VPN capabilities without sacrificing the reliability and
carrier-class performance of hardware networking solutions. Therefore,
these benefits are expected to create the demand for virtual router solutions
among service providers and enterprises.
The solution segment is further classified into integrated solution and
standalone solution.
The standalone solution is expected
to grow at a higher CAGR during the forecast period. Standalone solutions
include software that can be deployed as software routers on Commercial-Off-the-Shelf
(COTS) servers. With increasing use cases and adoption of standalone virtual
router solutions, it will gain traction in coming years.
Based on services, the virtual router market has been divided into
professional services and managed services. The professional services segment
is expected to grow at a higher rate during the forecast period. Professional
services include training and consulting, deployment and integration, technical
services, and optimization services for all the virtual router stakeholders.
The virtual router market by end-user includes service providers and
enterprises.
The enterprises segment is expected to grow at a higher CAGR during the
forecast period, as modern enterprises are primarily looking for
solutions that can cater to the growing need to be flexible and agile in their
business operations.
The service providers in the virtual router market are telecom, data
center, and cloud service providers. Virtual routing solutions help telecom
service providers reduce network congestions and minimize the cost associated
with hardware requirement for network user expansions, leading to the largest
market size of telecom service providers. The cloud service provider segment is
expected to grow at the highest rate during the forecast period due to flexibility
and ease of deployment of virtual router solutions and services.
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