Network Function Virtualization Market is predicted to reach USD 42.85 billion at a CAGR of 22.90% during the forecast period

Market Research Future (MRFR) has published a cooked research report on the “Network Function Virtualization Market” that contains information from 2018 to 2032. The Network Function Virtualization Market is estimated to register a CAGR of 22.90% during the forecast period of 2023 to 2032.

MRFR recognizes the following companies as the key players in the global Network Function Virtualization Market — Juniper Networks (U.S.), Accenture PLC (Ireland), Cisco Systems, Inc. (U.S.), Alcatel-Lucent S.A. (France), Nokia Corporation (Finland), Huawei Technologies Co. Ltd. (China), NEC Inc. (Japan), Intel Corporation (U.S.), Connectem Inc. (U.S.), Amdocs Inc. (U.S.), 6WIND (France), Ericsson (Sweden), Open Wave Mobility Inc. (U.S.), Oracle Corporation(U.S.), an Oracle Corporation(U.S.), and d Allot communications (U.S.).

Market Highlights

The global Network Function Virtualization Market is accounted to register a CAGR of 22.90% during the forecast period and is estimated to reach USD 42.85 billion by 2032.

Network Function Virtualization (NFV) refers to the virtualization of network services, such as routers, firewalls, load balancers, and other networking functions, that traditionally ran on dedicated hardware appliances. NFV aims to decouple these network functions from the underlying hardware and host them on virtualized environments, often using technologies like virtual machines (VMs) or containers.

Segment Analysis

The global Network Function Virtualization Market has been segmented based on Deployment, Component, and Application.

Based on deployment, the Network Function Virtualization market segmentation includes Cloud and On-premise. The cloud segment dominated the market, accounting for 70% of market revenue. Several of the VNFs offered by VNF providers have transitioned to a container-based design. These VNFs, sometimes referred to as Cloud-Native Network Functions (CNF), make use of several technologies that are frequently used in Internet infrastructure. They include platform-to-platform service sharing for increased efficiency, auto-scaling, and support for continuous delivery and DevOps deployment models.

Based on components, the Network Function Virtualization market segmentation includes Solution & Services. The solution category generated the most income (73%). Its expansion can be ascribed to the rising use of automation and virtualization technologies. The need for mobility services is predicted to increase, and businesses' importance in lowering operational costs using NFV will likely expand. The solution comprises automation, orchestration, and other elements, including virtual infrastructure managers, SDN controllers, NFV orchestrators, and wide area network (WAN) settings.

Based on connectivity, the Network Function Virtualization market segmentation includes Virtual Appliances and Core Networks. The Virtual Appliance category generated the most income. Virtual appliances are generally used for various network functions, including domain name services, traffic forwarding, security, monitoring, and caching. The Virtual Consumer Home Appliance is mostly used to send these processes over the edge (VCPe). Because this has allowed businesses to simplify their networks, the market is anticipated to grow strongly over the next years.

Regional Analysis

The global Network Function Virtualization Market, based on region, has been divided into Asia-Pacific, North America, Europe, and the rest of the world. The Asia-Pacific Network Function Virtualization market area will dominate this market; the adoption of technologies like Software Defined Everything (SDx), cloud computing, and the Internet of Things is the main factor driving the rise. Additionally, the area includes nations like China, India, and Japan, contributing to the increase of the subscriber base, favorable governmental laws, and the need for greater data storage and security in the region, all of which are anticipated to fuel the market's progress. Moreover, China’s Network Function Virtualization market held the largest market share, and the Indian Network, Function Virtualization market, was the fastest-growing market in the Asia-Pacific region. Further, the major countries studied in the market report are Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Europe Network, a Function Virtualization market, accounts for the second-largest market share due to NFV adoption in the area will rise as 5G installations expand. Further, the German Network Function Virtualization market, held the largest market share, and the UK Network Function Virtualization market, was the fastest-growing market in the European region.

The North America Network Function Virtualization Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because technologies like Software Defined Everything (SDx), cloud computing, and IoT are increasing, supporting the expansion. Moreover, the US Network Function Virtualization market held the largest market share, and the Canada Network Function Virtualization market was the fastest-growing market in North America.

Key Findings of the Study

• The global Network Function Virtualization Market is expected to reach USD 42.85 billion by 2032, at a CAGR of 22.90% during the forecast period.


• The North America Network Function Virtualization Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because technologies like Software Defined Everything (SDx), cloud computing, and IoT are increasing, supporting the expansion.


• Based on deployment, the Network Function Virtualization market segmentation includes Cloud and On-premise. The cloud segment dominated the market, accounting for 70% of market revenue. Several of the VNFs offered by VNF providers have transitioned to a container-based design.


• Juniper Networks (U.S.), Accenture PLC (Ireland), Cisco Systems, Inc. (U.S.), Alcatel-Lucent S.A. (France), Nokia Corporation (Finland), Huawei Technologies Co. Ltd. (China), NEC Inc. (Japan), Intel Corporation (U.S.), Connectem Inc. (U.S.), Amdocs Inc. (U.S.), 6WIND (France), Ericsson (Sweden), Open Wave Mobility Inc. (U.S.), Oracle Corporation(U.S.), an Oracle Corporation(U.S.), and d Allot communications (U.S.).