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    US Virtual Network Functions Market

    ID: MRFR/ICT/18207-HCR
    100 Pages
    Garvit Vyas
    September 2025

    US 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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    US Virtual Network Functions Market Research Report - Forecast till 2035 Infographic
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    Table of Contents

    US Virtual Network Functions Market Summary

    The US Virtual Network Functions market is poised for substantial growth, expanding from 6.35 USD Billion in 2024 to 62.5 USD Billion by 2035.

    Key Market Trends & Highlights

    US Virtual Network Functions Key Trends and Highlights

    • The market is projected to grow at a compound annual growth rate of 23.11% from 2025 to 2035.
    • By 2035, the market valuation is expected to reach 62.5 USD Billion, indicating robust demand.
    • In 2024, the market is valued at 6.35 USD Billion, reflecting a strong starting point for growth.
    • Growing adoption of cloud computing due to increased demand for scalable solutions is a major market driver.

    Market Size & Forecast

    2024 Market Size 6.35 (USD Billion)
    2035 Market Size 62.5 (USD Billion)
    CAGR (2025-2035) 23.11%

    Major Players

    Mavenir, VMware, Ericsson, Avaya, Oracle, NEC Corporation, Red Hat, Samsung Electronics, IBM, Nokia, Fujitsu, Juniper Networks, Broadcom, Cisco Systems, Hewlett Packard Enterprise

    US Virtual Network Functions Market Trends

    The US Virtual Network Functions market is experiencing significant trends driven by the growing demand for network virtualization and increased adoption of cloud services. One of the key market drivers is the shift towards digital transformation across various industries, which is prompting organizations to adopt more agile and flexible network solutions. As businesses continue to move their operations to the cloud, the need for virtual network functions that can provide enhanced scalability and efficiency becomes vital.

    This shift aligns with the federal government's initiatives to modernize IT infrastructure, particularly in sectors such as healthcare and public services, which also contributes to the market's growth. Additionally, the increasing focus on cybersecurity is creating opportunities within the market. As cyber threats evolve, businesses are looking for solutions that can ensure secure data transmission. Virtual network functions offer capabilities such as firewalls and intrusion detection systems, which are essential for safeguarding network integrity. This creates an opportunity for vendors to innovate and offer comprehensive solutions that not only manage networks but also enhance security features.

    Recent trends show that service providers in the US are increasingly adopting a multi-cloud approach, necessitating seamless integration of various virtual functions across disparate systems.Furthermore, edge computing is gaining traction as a means to process data closer to the source, thus reducing latency. This trend drives the demand for virtual network functions that can operate efficiently in decentralized environments. Overall, the US Virtual Network Functions market is poised for growth as organizations seek to embrace advanced networking solutions to stay competitive in a rapidly evolving digital landscape.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    US Virtual Network Functions Market Drivers

    Market Segment Insights

    Get more detailed insights about US Virtual Network Functions Market Research Report - Forecast till 2035

    Regional Insights

    Key Players and Competitive Insights

    The US Virtual Network Functions Market is characterized by rapid advancements in technology and a growing demand for network efficiency and flexibility. This sector plays a crucial role in the digital transformation of enterprises, enabling the transition from hardware-based configurations to software-based solutions. As businesses increasingly seek scalable and efficient networking solutions, competitive insights into this market reveal the dynamics of leading players, their strategies, and their contributions to the overall ecosystem. Competitive advantages often stem from innovation, the ability to adapt to customer needs, and the efficiency with which companies can deploy their solutions.

    Analyzing these factors provides a clearer picture of the landscape and reveals opportunities and challenges faced by various organizations operating within this fast-evolving market.Mavenir holds a significant position within the US Virtual Network Functions Market, leveraging its robust portfolio of cloud-native solutions designed for telecommunications. The company's strength lies in its commitment to providing end-to-end network functions that are both flexible and scalable, making them an enticing choice for telecom operators and service providers. Mavenir's strategic focus on enabling operators to innovate and reduce operational costs positions it favorably in a competitive landscape.

    Moreover, its emphasis on supporting multi-vendor environments allows the company to enhance its overall market presence. The company frequently engages in collaborations and partnerships that facilitate the development of advanced solutions, thus reinforcing its reputation as a leader in providing software-based networking solutions.VMware also plays a pivotal role in the US Virtual Network Functions Market, recognized for its comprehensive suite of virtualization and cloud infrastructure solutions. The company's market presence is anchored in its strong product offerings, including VMware NSX, which delivers advanced networking capabilities optimized for virtual environments.

    VMware's strengths lie in its established partnerships and its ability to integrate various network functions within its portfolio seamlessly. Mergers and acquisitions have further enhanced VMware's capabilities, enabling the company to expand its offerings and leverage cutting-edge technologies. By focusing on creating a balance between innovative solutions and practical implementations, VMware solidifies its standing in the competitive landscape of the US Virtual Network Functions Market, catering to enterprises seeking robust, scalable, and efficient networking solutions.

    Key Companies in the US Virtual Network Functions Market market include

    Industry Developments

    Recent developments in the US Virtual Network Functions Market indicate significant activity, particularly among major companies like Mavenir, VMware, and Cisco Systems. In October 2023, VMware announced enhancements to its networking and security portfolio, specifically addressing evolving telecommunications demands. Mavenir is focusing on expanding its cloud-native solutions, aiming to enhance software-defined network capabilities. In August 2023, Cisco Systems revealed a strategic collaboration with Ericsson to streamline network operational efficiencies through Virtual Network Functions integration.Merger and acquisition activity continues to shape the market, with Oracle acquiring a key player in Virtual Network Functions in mid-2023, strengthening its cloud offering.

    Meanwhile, Red Hat's partnerships with Nokia and IBM have led to integrated solutions aimed at enhancing 5G network functionalities, surfacing as pivotal advancements in 2022.Market growth is reflecting increased demand for cloud-based services and 5G implementation, with a substantial rise in market valuation over the last two years. This surge highlights the shift towards agile network solutions as companies adapt to the digital transformation landscape affecting the telecommunications sector across the United States.

    Market Segmentation

    Outlook

    • Service Provider
    • Data Centers
    • Enterprises

    Virtual Network Functions Market End-User Outlook

    • Service Provider
    • Data Centers
    • Enterprises

    Virtual Network Functions Market Component Outlook

    • Solutions
    • Orchestration and Automation
    • Services

    Virtual Network Functions Market Functions Outlook

    • Compute
    • Storage
    • Network

    Virtual Network Functions Market Application Outlook

    • Virtual Appliance
    • Core Network

    Virtual Network Functions Market Organization Size Outlook

    • SMEs
    • Large Enterprises

    Report Scope

    Report Scope:
    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 5.27(USD Billion)
    MARKET SIZE 2024 6.35(USD Billion)
    MARKET SIZE 2035 62.5(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 23.106% (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 Mavenir, VMware, Ericsson, Avaya, Oracle, NEC Corporation, Red Hat, Samsung Electronics, IBM, Nokia, Fujitsu, Juniper Networks, Broadcom, Cisco Systems, Hewlett Packard Enterprise
    SEGMENTS COVERED Component, Functions, Application, Organization Size, End-User
    KEY MARKET OPPORTUNITIES 5G network implementation, Cloud-native VNFs adoption, Edge computing integration, Enhanced cybersecurity solutions, AI-driven network automation
    KEY MARKET DYNAMICS growing cloud adoption, increasing demand for automation, need for cost reduction, rise in cybersecurity threats, regulatory compliance requirements
    COUNTRIES COVERED US

    Market Highlights

    Author
    Garvit Vyas
    Analyst

    Explore the profile of Garvit Vyas, one of our esteemed authors at Market Research Future, and access their expert research contributions in the field of market research and industry analysis

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    FAQs

    What is the expected market size of the US Virtual Network Functions Market by the year 2024?

    The US Virtual Network Functions Market is expected to be valued at 6.35 billion USD in 2024.

    What will be the market value of the US Virtual Network Functions Market in 2035?

    In 2035, the US Virtual Network Functions Market is anticipated to reach a value of 62.5 billion USD.

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

    The expected CAGR for the US Virtual Network Functions Market from 2025 to 2035 is 23.106%.

    Which segment of the market is expected to grow the most by 2035?

    The Solutions segment is expected to grow significantly, reaching a value of 25.42 billion USD by 2035.

    Who are the key players in the US Virtual Network Functions Market?

    Key players in the market include Mavenir, VMware, Ericsson, Avaya, Oracle, and NEC Corporation.

    What is the market value of Services in the US Virtual Network Functions Market in 2024?

    The Services segment is valued at 2.95 billion USD in 2024.

    How much is the Orchestration and Automation segment expected to be worth by 2035?

    The Orchestration and Automation segment is projected to reach 18.3 billion USD by 2035.

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

    Key growth drivers include increasing demand for cloud-based services and the need for network optimization.

    What challenges does the US Virtual Network Functions Market currently face?

    Challenges include the complexity of integration and the need for skilled professionals in the field.

    How has the current global scenario affected the US Virtual Network Functions Market?

    The ongoing global scenario has accelerated the demand for virtual solutions, enhancing market growth.

    1. EXECUTIVE SUMMARY
    2. Market Overview
    3. Key Findings
    4. Market Segmentation
    5. Competitive Landscape
    6. Challenges and Opportunities
    7. Future Outlook
    8. MARKET INTRODUCTION
    9. Definition
    10. Scope of the study
    11. Research Objective
    12. Assumption
    13. Limitations
    14. RESEARCH METHODOLOGY
    15. Overview
    16. Data Mining
    17. Secondary Research
    18. Primary Research
    19. Primary Interviews and Information Gathering Process
    20. Breakdown of Primary Respondents
    21. Forecasting Model
    22. Market Size Estimation
    23. Bottom-Up Approach
    24. Top-Down Approach
    25. Data Triangulation
    26. Validation
    27. MARKET DYNAMICS
    28. Overview
    29. Drivers
    30. Restraints
    31. Opportunities
    32. MARKET FACTOR ANALYSIS
    33. Value chain Analysis
    34. Porter's Five Forces Analysis
    35. Bargaining Power of Suppliers
    36. Bargaining Power of Buyers
    37. Threat of New Entrants
    38. Threat of Substitutes
    39. Intensity of Rivalry
    40. COVID-19 Impact Analysis
    41. Market Impact Analysis
    42. Regional Impact
    43. Opportunity and Threat Analysis
    44. US Virtual Network Functions Market, BY Component (USD Billion)
    45. Solutions
    46. Orchestration and Automation
    47. Services
    48. US Virtual Network Functions Market, BY Functions (USD Billion)
    49. Compute
    50. Storage
    51. Network
    52. US Virtual Network Functions Market, BY Application (USD Billion)
    53. Virtual Appliance
    54. Core Network
    55. US Virtual Network Functions Market, BY Organization Size (USD Billion)
    56. SMEs
    57. Large Enterprises
    58. US Virtual Network Functions Market, BY End-User (USD Billion)
    59. Service Provider
    60. Data Centers
    61. Enterprises
    62. Competitive Landscape
    63. Overview
    64. Competitive Analysis
    65. Market share Analysis
    66. Major Growth Strategy in the Virtual Network Functions Market
    67. Competitive Benchmarking
    68. Leading Players in Terms of Number of Developments in the Virtual Network Functions Market
    69. Key developments and growth strategies
    70. New Product Launch/Service Deployment
    71. Merger & Acquisitions
    72. Joint Ventures
    73. Major Players Financial Matrix
    74. Sales and Operating Income
    75. Major Players R&D Expenditure. 2023
    76. Company Profiles
    77. Mavenir
    78. Financial Overview
    79. Products Offered
    80. Key Developments
    81. SWOT Analysis
    82. Key Strategies
    83. VMware
    84. Financial Overview
    85. Products Offered
    86. Key Developments
    87. SWOT Analysis
    88. Key Strategies
    89. Ericsson
    90. Financial Overview
    91. Products Offered
    92. Key Developments
    93. SWOT Analysis
    94. Key Strategies
    95. Avaya
    96. Financial Overview
    97. Products Offered
    98. Key Developments
    99. SWOT Analysis
    100. Key Strategies
    101. Oracle
    102. Financial Overview
    103. Products Offered
    104. Key Developments
    105. SWOT Analysis
    106. Key Strategies
    107. NEC Corporation
    108. Financial Overview
    109. Products Offered
    110. Key Developments
    111. SWOT Analysis
    112. Key Strategies
    113. Red Hat
    114. Financial Overview
    115. Products Offered
    116. Key Developments
    117. SWOT Analysis
    118. Key Strategies
    119. Samsung Electronics
    120. Financial Overview
    121. Products Offered
    122. Key Developments
    123. SWOT Analysis
    124. Key Strategies
    125. IBM
    126. Financial Overview
    127. Products Offered
    128. Key Developments
    129. SWOT Analysis
    130. Key Strategies
    131. Nokia
    132. Financial Overview
    133. Products Offered
    134. Key Developments
    135. SWOT Analysis
    136. Key Strategies
    137. Fujitsu
    138. Financial Overview
    139. Products Offered
    140. Key Developments
    141. SWOT Analysis
    142. Key Strategies
    143. Juniper Networks
    144. Financial Overview
    145. Products Offered
    146. Key Developments
    147. SWOT Analysis
    148. Key Strategies
    149. Broadcom
    150. Financial Overview
    151. Products Offered
    152. Key Developments
    153. SWOT Analysis
    154. Key Strategies
    155. Cisco Systems
    156. Financial Overview
    157. Products Offered
    158. Key Developments
    159. SWOT Analysis
    160. Key Strategies
    161. Hewlett Packard Enterprise
    162. Financial Overview
    163. Products Offered
    164. Key Developments
    165. SWOT Analysis
    166. Key Strategies
    167. References
    168. Related Reports
    169. US Virtual Network Functions Market SIZE ESTIMATES & FORECAST, BY COMPONENT, 2019-2035 (USD Billions)
    170. US Virtual Network Functions Market SIZE ESTIMATES & FORECAST, BY FUNCTIONS, 2019-2035 (USD Billions)
    171. US Virtual Network Functions Market SIZE ESTIMATES & FORECAST, BY APPLICATION, 2019-2035 (USD Billions)
    172. US Virtual Network Functions Market SIZE ESTIMATES & FORECAST, BY ORGANIZATION SIZE, 2019-2035 (USD Billions)
    173. US Virtual Network Functions Market SIZE ESTIMATES & FORECAST, BY END-USER, 2019-2035 (USD Billions)
    174. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    175. ACQUISITION/PARTNERSHIP
    176. MARKET SYNOPSIS
    177. US VIRTUAL NETWORK FUNCTIONS MARKET ANALYSIS BY COMPONENT
    178. US VIRTUAL NETWORK FUNCTIONS MARKET ANALYSIS BY FUNCTIONS
    179. US VIRTUAL NETWORK FUNCTIONS MARKET ANALYSIS BY APPLICATION
    180. US VIRTUAL NETWORK FUNCTIONS MARKET ANALYSIS BY ORGANIZATION SIZE
    181. US VIRTUAL NETWORK FUNCTIONS MARKET ANALYSIS BY END-USER
    182. KEY BUYING CRITERIA OF VIRTUAL NETWORK FUNCTIONS MARKET
    183. RESEARCH PROCESS OF MRFR
    184. DRO ANALYSIS OF VIRTUAL NETWORK FUNCTIONS MARKET
    185. DRIVERS IMPACT ANALYSIS: VIRTUAL NETWORK FUNCTIONS MARKET
    186. RESTRAINTS IMPACT ANALYSIS: VIRTUAL NETWORK FUNCTIONS MARKET
    187. SUPPLY / VALUE CHAIN: VIRTUAL NETWORK FUNCTIONS MARKET
    188. VIRTUAL NETWORK FUNCTIONS MARKET, BY COMPONENT, 2025 (% SHARE)
    189. VIRTUAL NETWORK FUNCTIONS MARKET, BY COMPONENT, 2019 TO 2035 (USD Billions)
    190. VIRTUAL NETWORK FUNCTIONS MARKET, BY FUNCTIONS, 2025 (% SHARE)
    191. VIRTUAL NETWORK FUNCTIONS MARKET, BY FUNCTIONS, 2019 TO 2035 (USD Billions)
    192. VIRTUAL NETWORK FUNCTIONS MARKET, BY APPLICATION, 2025 (% SHARE)
    193. VIRTUAL NETWORK FUNCTIONS MARKET, BY APPLICATION, 2019 TO 2035 (USD Billions)
    194. VIRTUAL NETWORK FUNCTIONS MARKET, BY ORGANIZATION SIZE, 2025 (% SHARE)
    195. VIRTUAL NETWORK FUNCTIONS MARKET, BY ORGANIZATION SIZE, 2019 TO 2035 (USD Billions)
    196. VIRTUAL NETWORK FUNCTIONS MARKET, BY END-USER, 2025 (% SHARE)
    197. VIRTUAL NETWORK FUNCTIONS MARKET, BY END-USER, 2019 TO 2035 (USD Billions)
    198. BENCHMARKING OF MAJOR COMPETITORS

    US 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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