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    UK Virtual Network Functions Market

    ID: MRFR/ICT/60597-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    UK Virtual Network Functions Market Research Report By Component (Solutions, Orchestration and Automation, Services), By Functions (Compute, Storage, Network), By Application (Virtual Appliance, Core Network), By Organization Size (SMEs, Large Enterprises) and By End-User (Service Provider, Data Centers, Enterprises)-Forecast to 2035

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    Table of Contents

    UK Virtual Network Functions Market Summary

    The United Kingdom UK Virtual Network Functions market is poised for substantial growth, reaching 10 USD Billion by 2035.

    Key Market Trends & Highlights

    UK Virtual Network Functions Key Trends and Highlights

    • The market valuation is projected to grow from 1.98 USD Billion in 2024 to 10 USD Billion by 2035.
    • The compound annual growth rate (CAGR) for the period from 2025 to 2035 is estimated at 15.86%.
    • This growth trajectory indicates a robust demand for virtual network solutions in the UK.
    • Growing adoption of cloud technologies due to the increasing need for operational efficiency is a major market driver.

    Market Size & Forecast

    2024 Market Size 1.98 (USD Billion)
    2035 Market Size 10 (USD Billion)
    CAGR (2025-2035) 15.86%

    Major Players

    Hewlett Packard Enterprise, Juniper Networks, Nokia, Mavenir, NEC, Cisco Systems, Red Hat, Ericsson, BT Group, VMware

    UK Virtual Network Functions Market Trends

    The UK Virtual Network Functions market is going through a number of critical changes right now because of new technologies and the changing needs of telecoms. The need for service providers to make their networks more flexible and scalable is a major factor in the market.

    Opportunities to be investigated include the increased integration of artificial intelligence and machine learning inside virtual network services, enabling more effective data management and enhanced service delivery. Also, the growing use of 5G technology in the UK is pushing network operators to use virtualized solutions to handle the higher demands and complexity of next-generation services.

    This also lets small and medium-sized businesses use Virtual Network Functions, which gives them an edge over their competitors. Companies are changing to keep up with the growing attention on cybersecurity. They are adding virtual solutions that not only improve performance but also keep data safe.

    In the UK, technology companies, network operators, and government agencies are working together more and more to encourage new ideas and better service. The UK Virtual Network Functions market is becoming more automated and secure while also adopting new technologies. This makes it an important player in the digital world.

    UK Virtual Network Functions Market Drivers

    Market Segment Insights

    Get more detailed insights about UK Virtual Network Functions Market Research Report-Forecast to 2035

    Regional Insights

    Key Players and Competitive Insights

    The UK Virtual Network Functions Market has become increasingly competitive, driven by the rapid adoption of cloud services, the increased need for network flexibility, and the ongoing digital transformation across various sectors. This market encompasses a range of products and services designed to support networking virtualization, allowing telecom operators and enterprises to enhance their operational efficiency while reducing costs. Firms operating in this space are continually innovating to deliver advanced virtual networking solutions that address the demands of a digitally connected environment.

    The competitive landscape features established tech giants and newer players, each vying to enhance their offerings and capture market share in this evolving market.Hewlett Packard Enterprise has made significant inroads in the UK Virtual Network Functions Market, positioning itself as a strong contender with an emphasis on robust technological solutions. The company leverages its experience in IT infrastructure and networking to offer virtualized solutions that cater to the demands of modern organizations.

    Hewlett Packard Enterprise's strengths lie in its innovative technology, extensive research and development capabilities, and strong customer relationships. The company excels in providing agile network solutions that support seamless integration and scalability, which are critical in today’s fast-paced digital environment. By focusing on innovation and customer-centric solutions, Hewlett Packard Enterprise has positioned itself as a reliable partner in the virtual network functions arena, ensuring it remains competitive in the UK market.

    Key Companies in the UK Virtual Network Functions Market market include

    Industry Developments

    In recent months, the UK Virtual Network Functions Market has witnessed significant developments, particularly concerning major players such as Hewlett Packard Enterprise, and Cisco Systems. In September 2023, Nokia announced a strategic partnership with BT Group aimed at enhancing 5G capabilities through advanced Virtual Network Functions. This collaboration is expected to accelerate innovation in mobile networks.

    Furthermore, in August 2023, Mavenir expanded its offerings in the UK by providing software solutions for operators seeking to optimize their virtualized infrastructure. The recent focus on digital transformation driven by companies like VMware has led to increased market valuations, with investments positively affecting the sector's growth.

    Analysts note that this continuous push for network virtualization is crucial for the UK's telecommunications framework, aligning with government initiatives aimed at enhancing the national connectivity landscape. As companies intensify their competition in this rapidly evolving market, the emphasis on innovative Virtual Network Functions continues to reshape the future of telecommunications in the UK.

    Market Segmentation

    Virtual Network Functions Market End-User Outlook

    • Service Provider
    • Data Centers
    • Enterprises

    Virtual Network Functions Market Component Outlook

    • Compute
    • Storage
    • Network

    Virtual Network Functions Market Functions Outlook

    • Virtual Appliance
    • Core Network

    Virtual Network Functions Market Application Outlook

    • SMEs
    • Large Enterprises

    Virtual Network Functions Market Organization Size Outlook

    • Service Provider
    • Data Centers
    • Enterprises

    Report Scope

     

    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 1.65(USD Billion)
    MARKET SIZE 2024 1.98(USD Billion)
    MARKET SIZE 2035 10.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 15.84% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Hewlett Packard Enterprise, Orange, Juniper Networks, Nokia, Mavenir, NEC, Cisco Systems, Cavium, Red Hat, Microsoft, Ericsson, AT&T, BT Group, IBM, VMware
    SEGMENTS COVERED Component, Functions, Application, Organization Size, End-User
    KEY MARKET OPPORTUNITIES 5G network deployments, Cloud adoption acceleration, Network automation demand, Edge computing growth, Security solutions integration
    KEY MARKET DYNAMICS increasing demand for cloud services, rise in network automation, growing need for cost efficiency, shift towards 5G technologies, focus on security and compliance
    COUNTRIES COVERED UK

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    What is the expected market size of the UK Virtual Network Functions Market in 2024?

    The UK Virtual Network Functions Market is expected to be valued at 1.98 billion USD in 2024.

    What is the projected market size for the UK Virtual Network Functions Market by 2035?

    By 2035, the UK Virtual Network Functions Market is projected to reach a value of 10.0 billion USD.

    What is the expected CAGR for the UK Virtual Network Functions Market from 2025 to 2035?

    The expected CAGR for the UK Virtual Network Functions Market from 2025 to 2035 is 15.84%.

    Which component of the UK Virtual Network Functions Market is expected to have the largest market size in 2035?

    In 2035, the Solutions component of the UK Virtual Network Functions Market is expected to have the largest size, valued at 4.5 billion USD.

    How much is the Orchestration and Automation component valued in 2024?

    The Orchestration and Automation component of the UK Virtual Network Functions Market is valued at 0.65 billion USD in 2024.

    What is the expected market size for Services in the UK Virtual Network Functions Market by 2035?

    The Services component is expected to reach a market size of 2.25 billion USD by 2035.

    Who are some of the major players in the UK Virtual Network Functions Market?

    Major players in the UK Virtual Network Functions Market include Hewlett Packard Enterprise, Orange, Juniper Networks, Nokia, and Cisco Systems.

    What are the growth drivers for the UK Virtual Network Functions Market?

    Key growth drivers for the UK Virtual Network Functions Market include increasing demand for network virtualization and growing cloud adoption.

    What key trends are expected to shape the UK Virtual Network Functions Market in the upcoming years?

    Emerging trends include the expansion of 5G networks and the increasing need for network agility and flexibility.

    What impact does the current global scenario have on the UK Virtual Network Functions Market?

    Current global scenarios are influencing the UK Virtual Network Functions Market through increased focus on remote connectivity and digital transformation initiatives.

    1. EXECUTIVE
    2. SUMMARY
    3. Market Overview
    4. Key Findings
    5. Market Segmentation
    6. Competitive Landscape
    7. Challenges and Opportunities
    8. Future Outlook
    9. MARKET INTRODUCTION
    10. Definition
    11. Scope of the study
    12. Research Objective
    13. Assumption
    14. Limitations
    15. RESEARCH
    16. METHODOLOGY
    17. Overview
    18. Data
    19. Mining
    20. Secondary Research
    21. Primary
    22. Research
    23. Primary Interviews and Information Gathering
    24. Process
    25. Breakdown of Primary Respondents
    26. Forecasting
    27. Model
    28. Market Size Estimation
    29. Bottom-Up
    30. Approach
    31. Top-Down Approach
    32. Data
    33. Triangulation
    34. Validation
    35. MARKET
    36. DYNAMICS
    37. Overview
    38. Drivers
    39. Restraints
    40. Opportunities
    41. MARKET FACTOR ANALYSIS
    42. Value chain Analysis
    43. Porter's
    44. Five Forces Analysis
    45. Bargaining Power of Suppliers
    46. Bargaining
    47. Power of Buyers
    48. Threat of New Entrants
    49. Threat
    50. of Substitutes
    51. Intensity of Rivalry
    52. COVID-19
    53. Impact Analysis
    54. Market Impact Analysis
    55. Regional
    56. Impact
    57. Opportunity and Threat Analysis
    58. UK
    59. Virtual Network Functions Market, BY Component (USD Billion)
    60. Solutions
    61. Orchestration
    62. and Automation
    63. Services
    64. UK
    65. Virtual Network Functions Market, BY Functions (USD Billion)
    66. Compute
    67. Storage
    68. Network
    69. UK
    70. Virtual Network Functions Market, BY Application (USD Billion)
    71. Virtual
    72. Appliance
    73. Core Network
    74. UK
    75. Virtual Network Functions Market, BY Organization Size (USD Billion)
    76. SMEs
    77. Large
    78. Enterprises
    79. UK Virtual Network
    80. Functions Market, BY End-User (USD Billion)
    81. Service
    82. Provider
    83. Data Centers
    84. Enterprises
    85. Competitive Landscape
    86. Overview
    87. Competitive
    88. Analysis
    89. Market share Analysis
    90. Major
    91. Growth Strategy in the Virtual Network Functions Market
    92. Competitive
    93. Benchmarking
    94. Leading Players in Terms of Number of Developments
    95. in the Virtual Network Functions Market
    96. Key developments
    97. and growth strategies
    98. New Product Launch/Service Deployment
    99. Merger
    100. & Acquisitions
    101. Joint Ventures
    102. Major
    103. Players Financial Matrix
    104. Sales and Operating Income
    105. Major
    106. Players R&D Expenditure. 2023
    107. Company
    108. Profiles
    109. Hewlett Packard Enterprise
    110. Financial
    111. Overview
    112. Products Offered
    113. Key
    114. Developments
    115. SWOT Analysis
    116. Key
    117. Strategies
    118. Orange
    119. Financial
    120. Overview
    121. Products Offered
    122. Key
    123. Developments
    124. SWOT Analysis
    125. Key
    126. Strategies
    127. Juniper Networks
    128. Financial
    129. Overview
    130. Products Offered
    131. Key
    132. Developments
    133. SWOT Analysis
    134. Key
    135. Strategies
    136. Nokia
    137. Financial
    138. Overview
    139. Products Offered
    140. Key
    141. Developments
    142. SWOT Analysis
    143. Key
    144. Strategies
    145. Mavenir
    146. Financial
    147. Overview
    148. Products Offered
    149. Key
    150. Developments
    151. SWOT Analysis
    152. Key
    153. Strategies
    154. NEC
    155. Financial
    156. Overview
    157. Products Offered
    158. Key
    159. Developments
    160. SWOT Analysis
    161. Key
    162. Strategies
    163. Cisco Systems
    164. Financial
    165. Overview
    166. Products Offered
    167. Key
    168. Developments
    169. SWOT Analysis
    170. Key
    171. Strategies
    172. Cavium
    173. Financial
    174. Overview
    175. Products Offered
    176. Key
    177. Developments
    178. SWOT Analysis
    179. Key
    180. Strategies
    181. Red Hat
    182. Financial
    183. Overview
    184. Products Offered
    185. Key
    186. Developments
    187. SWOT Analysis
    188. Key
    189. Strategies
    190. Microsoft
    191. Financial
    192. Overview
    193. Products Offered
    194. Key
    195. Developments
    196. SWOT Analysis
    197. Key
    198. Strategies
    199. Ericsson
    200. Financial
    201. Overview
    202. Products Offered
    203. Key
    204. Developments
    205. SWOT Analysis
    206. Key
    207. Strategies
    208. AT&T
    209. Financial
    210. Overview
    211. Products Offered
    212. Key
    213. Developments
    214. SWOT Analysis
    215. Key
    216. Strategies
    217. BT Group
    218. Financial
    219. Overview
    220. Products Offered
    221. Key
    222. Developments
    223. SWOT Analysis
    224. Key
    225. Strategies
    226. IBM
    227. Financial
    228. Overview
    229. Products Offered
    230. Key
    231. Developments
    232. SWOT Analysis
    233. Key
    234. Strategies
    235. VMware
    236. Financial
    237. Overview
    238. Products Offered
    239. Key
    240. Developments
    241. SWOT Analysis
    242. Key
    243. Strategies
    244. References
    245. Related
    246. Reports
    247. LIST
    248. OF ASSUMPTIONS
    249. UK Virtual Network Functions Market SIZE
    250. ESTIMATES & FORECAST, BY COMPONENT, 2019-2035 (USD Billions)
    251. UK
    252. Virtual Network Functions Market SIZE ESTIMATES & FORECAST, BY FUNCTIONS, 2019-2035
    253. (USD Billions)
    254. UK Virtual Network Functions Market SIZE
    255. ESTIMATES & FORECAST, BY APPLICATION, 2019-2035 (USD Billions)
    256. UK
    257. Virtual Network Functions Market SIZE ESTIMATES & FORECAST, BY ORGANIZATION
    258. SIZE, 2019-2035 (USD Billions)
    259. UK Virtual Network Functions
    260. Market SIZE ESTIMATES & FORECAST, BY END-USER, 2019-2035 (USD Billions)
    261. PRODUCT
    262. LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    263. ACQUISITION/PARTNERSHIP
    264. LIST
    265. Of figures
    266. MARKET SYNOPSIS
    267. UK
    268. VIRTUAL NETWORK FUNCTIONS MARKET ANALYSIS BY COMPONENT
    269. UK
    270. VIRTUAL NETWORK FUNCTIONS MARKET ANALYSIS BY FUNCTIONS
    271. UK
    272. VIRTUAL NETWORK FUNCTIONS MARKET ANALYSIS BY APPLICATION
    273. UK
    274. VIRTUAL NETWORK FUNCTIONS MARKET ANALYSIS BY ORGANIZATION SIZE
    275. UK
    276. VIRTUAL NETWORK FUNCTIONS MARKET ANALYSIS BY END-USER
    277. KEY
    278. BUYING CRITERIA OF VIRTUAL NETWORK FUNCTIONS MARKET
    279. RESEARCH
    280. PROCESS OF MRFR
    281. DRO ANALYSIS OF VIRTUAL NETWORK FUNCTIONS
    282. MARKET
    283. DRIVERS IMPACT ANALYSIS: VIRTUAL NETWORK FUNCTIONS
    284. MARKET
    285. RESTRAINTS IMPACT ANALYSIS: VIRTUAL NETWORK FUNCTIONS
    286. MARKET
    287. SUPPLY / VALUE CHAIN: VIRTUAL NETWORK FUNCTIONS
    288. MARKET
    289. VIRTUAL NETWORK FUNCTIONS MARKET, BY COMPONENT,
    290. (% SHARE)
    291. VIRTUAL NETWORK FUNCTIONS MARKET, BY COMPONENT,
    292. TO 2035 (USD Billions)
    293. VIRTUAL NETWORK FUNCTIONS
    294. MARKET, BY FUNCTIONS, 2025 (% SHARE)
    295. VIRTUAL NETWORK
    296. FUNCTIONS MARKET, BY FUNCTIONS, 2019 TO 2035 (USD Billions)
    297. VIRTUAL
    298. NETWORK FUNCTIONS MARKET, BY APPLICATION, 2025 (% SHARE)
    299. VIRTUAL
    300. NETWORK FUNCTIONS MARKET, BY APPLICATION, 2019 TO 2035 (USD Billions)
    301. VIRTUAL
    302. NETWORK FUNCTIONS MARKET, BY ORGANIZATION SIZE, 2025 (% SHARE)
    303. VIRTUAL
    304. NETWORK FUNCTIONS MARKET, BY ORGANIZATION SIZE, 2019 TO 2035 (USD Billions)
    305. VIRTUAL
    306. NETWORK FUNCTIONS MARKET, BY END-USER, 2025 (% SHARE)
    307. VIRTUAL
    308. NETWORK FUNCTIONS MARKET, BY END-USER, 2019 TO 2035 (USD Billions)
    309. BENCHMARKING
    310. OF MAJOR COMPETITORS

    UK Virtual Network Functions Market Segmentation

    • Virtual Network Functions Market By Component (USD Billion, 2019-2035)

      • Solutions
      • Orchestration and Automation
      • Services

     

    • Virtual Network Functions Market By Functions (USD Billion, 2019-2035)

      • Compute
      • Storage
      • Network

     

    • Virtual Network Functions Market By Application (USD Billion, 2019-2035)

      • Virtual Appliance
      • Core Network

     

    • Virtual Network Functions Market By Organization Size (USD Billion, 2019-2035)

      • SMEs
      • Large Enterprises

     

    • Virtual Network Functions Market By End-User (USD Billion, 2019-2035)

      • Service Provider
      • Data Centers
      • Enterprises

     

     

     

     

     

     

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    Customer Strories

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