USD 833.72 billion
Virtual Router Market Size, Share, Growth Analysis, By Type(On - premises, and Cloud based.), By Application(IT and Telecom, BFSI, Healthcare, Government), By End - User(Service Providers, and Enterprises.), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45D2065 |
Region:
Global |
Published Date: March, 2024
Pages:
197
|Tables:
91
|Figures:
76
Virtual Router Market Insights
Global Virtual Router Market size was valued at USD 833.72 billion in 2022 and is poised to grow from USD 900.92 billion in 2023 to USD 1674.96 billion by 2031, growing at a CAGR of 8.06% in the forecast period (2024-2031).
The global virtual router market has witnessed significant growth in recent years, driven by the increasing adoption of software-defined networking (SDN) and network functions virtualization (NFV) technologies. A virtual router is a software-based routing solution that enables network administrators to route network traffic without relying on physical routers. It provides flexibility, scalability, and cost-effectiveness, making it an attractive choice for enterprises and service providers. The growing adoption of cloud computing and the increasing need for on-demand network infrastructure have also fueled the demand for virtual routers. Cloud service providers and data centers are leveraging virtual routers to create virtual private clouds, interconnect multiple cloud environments, and provide network services to their customers. Virtual routers enable the dynamic allocation of network resources, rapid service deployment, and seamless scalability, aligning with the requirements of cloud-based environments. Another factor contributing to the market growth is the rising demand for software-based networking solutions. Virtual routers offer agility and flexibility, allowing network administrators to quickly provision and configure routing services as per the changing requirements. With virtual routers, organizations can build and manage complex networks more efficiently, adapt to evolving business needs, and enhance network performance. Moreover, virtual routers facilitate the implementation of advanced routing features and protocols, such as border gateway protocol (BGP) and open shortest path first (OSPF), enabling enhanced network control and optimization.
US Virtual Router Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Cloud Based
Fastest Growth
Cloud Based
Growth Rate
8.06% CAGR
Global Virtual Router By Country ($ Bn)
Country Share for North America Region (%)
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Virtual Router Market Segmental Analysis
The global virtual router market is segmented on the basis of type, application, end-use, and region. Based on aircraft type, the market can be segmented into on -premises and cloud based. By application it is segmented into IT and Telecom, BFSI, Healthcare, Government, Retail, and Others. By End-use it can be segmented into Service Providers and Enterprises. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and South America.
Virtual Router Market Analysis by Type
On the basis of type segment, cloud-based virtual routers have emerged as the most prominent in the global market in 2022. Cloud-based virtual routers offer numerous advantages such as scalability, flexibility, cost-effectiveness, and ease of deployment. They enable organizations to leverage virtualized network functions in cloud environments, facilitating efficient network management and reducing hardware dependency. The dominance of cloud-based virtual routers can be attributed to the growing adoption of cloud computing, the rise of software-defined networking (SDN), and the increasing demand for virtualized network solutions.
In terms of the fastest growing type, on-premises virtual routers are experiencing significant growth in the global market. While cloud-based virtual routers dominate the market, on-premises virtual routers are witnessing a surge in demand due to certain factors. Some organizations, particularly those in highly regulated industries or with specific security and compliance requirements, prefer to maintain their network infrastructure on-premises. On-premises virtual routers provide greater control, enhanced security, and the ability to integrate with existing on-site infrastructure seamlessly. Additionally, factors such as data sovereignty concerns, network latency requirements, and specialized network configurations contribute to the continued growth of on-premises virtual routers.
Virtual Router Market Analysis by Application
Analysis by application reveals that the IT and Telecom sector is the most dominant segment in the global virtual router market. The IT and Telecom industry extensively adopts virtual router solutions to enhance network scalability, flexibility, and cost-efficiency. With the increasing demand for high-speed data transfer, virtual routers provide a reliable and scalable solution for managing network traffic in this sector. The IT and Telecom industry's dominance in the global virtual router market can be attributed to its continuous technological advancements and the need for efficient network management.
On the other hand, the fastest-growing segment in the global virtual router market is the Healthcare sector. The healthcare industry has been rapidly adopting virtual router solutions to meet the growing demand for secure and efficient network connectivity. Virtual routers enable healthcare organizations to streamline their network infrastructure, ensuring reliable communication, data sharing, and access to medical information. The increasing adoption of telemedicine, remote patient monitoring, and cloud-based healthcare systems has further accelerated the demand for virtual routers in the healthcare sector. As healthcare organizations continue to invest in digital transformation initiatives, the virtual router market is expected to experience substantial growth in the healthcare segment
Global Virtual Router By Type
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Virtual Router Market Regional Insights
In terms of dominance, North America emerges as the most prominent region in the global virtual router market. The region is home to several key players and technology giants that are actively involved in the development and deployment of virtual router solutions. The presence of a well-established IT infrastructure, high internet penetration, and a strong focus on technological innovation contribute to the dominance of North America in this market. Additionally, North American enterprises are early adopters of advanced networking technologies, including virtual routers, further driving market growth.
However, when considering the fastest-growing region in the global virtual router market, Asia Pacific takes the spotlight. The region is witnessing rapid digital transformation, supported by government initiatives and increasing investments in information and communication technology (ICT) infrastructure. Countries such as China, Japan, South Korea, and India are driving the growth of the virtual router market in Asia Pacific. These countries have a large customer base, a growing number of internet users, and a flourishing e-commerce sector, leading to heightened demand for efficient and scalable networking solutions.
Global Virtual Operator By Geography
- Largest
- Fastest
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Virtual Router Market Dynamics
Virtual Router Market Drivers
Network Function Virtualization (NFV) Adoption
- Virtual routers play a crucial role in network function virtualization, which involves virtualizing various network functions, including routing. NFV enables the consolidation of network services, optimized resource utilization, and simplified network management. As businesses increasingly embrace NFV, the demand for virtual routers is expected to witness a significant upsurge.
Virtual Router Market Restraints
Compatibility and Interoperability Challenges
- Seamless integration of virtual routers with existing networking infrastructure and protocols is essential. However, compatibility and interoperability challenges may arise due to variations in vendor implementations and the absence of standardized protocols. These challenges can create complexities when integrating virtual routers into diverse networking environments, which consist of heterogeneous systems and equipment.
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Virtual Router Market Competitive Landscape
The global virtual router market is characterized by a competitive landscape with numerous players striving to gain a significant market share. This market segment has witnessed considerable growth in recent years, driven by the increasing adoption of virtualization technologies and the demand for cost-effective networking solutions. Virtual routers have emerged as viable alternatives to traditional hardware-based routers, offering flexibility, scalability, and cost savings. They enable the creation of virtual networks, routing functions, and network services within a software-based environment. This virtualization approach allows businesses to optimize their network infrastructure, streamline operations, and enhance network agility.
Virtual Router Market Top Player’s Company Profiles
- Nokia Corporation (Finland)
- Ericsson AB (Sweden)
- Arista Networks, Inc. (US)
- NEC Corporation (Japan)
- Hewlett Packard Enterprise Company (US)
- VMware, Inc. (US)
- Palo Alto Networks, Inc. (US)
- Check Point Software Technologies Ltd. (Israel)
- Citrix Systems, Inc. (US)
- IBM Corporation (US)
- Extreme Networks, Inc. (US)
- F5 Networks, Inc. (US)
- ZTE Corporation (China)
- Broadcom Inc. (US)
- Dell Technologies Inc. (US)
- Fortinet, Inc. (US)
- Riverbed Technology, Inc. (US)
Virtual Router Market Recent Developments
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Leading provider of digital infrastructure in the globe, Equinix, Inc., announced in January 2024 the release of Equinix Fabric Cloud Router, a new virtual routing solution made to simplify the linking of data and apps across on-premises and cloud deployments for enterprises.
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Arista Networks unveiled the Arista WAN Routing System in March 2023 with the goal of improving and streamlining customer-wide area networks. This system integrates three new networking offerings: enterprise-class routing platforms, carrier/cloud-neutral internet transit capabilities, and the CloudVision® Pathfinder Service.
-
Mavenir is the network software provider building the networks of the future with cloud-native solutions that run on any cloud. In February 2023, the company unveiled the Virtual Cell Site Router (vCSR), an innovative solution that relocates the cell-site routing functionality into a containerized virtual function inside the Open RAN DU server (running on COTS hardware). The vCSR not only makes deployment and operation simpler and reduces the amount of cables and sources of failure, but it also frees up rack space for other revenue-generating applications.
Virtual Router Key Market Trends
- Growing Popularity of Software-defined Networking: The increasing adoption of virtual routers by communication service providers (CSPs) and the rising popularity of software-defined networking (SDN) and network functions virtualization (NFV) are driving the market growth. Virtual routers offer benefits such as improved network speed, cost savings, and enhanced security. Factors like the expansion of data centers, the need for faster networks, and the demand for cloud-based services contribute to the positive market outlook. Technological advancements and the implementation of protocols like virtual router redundancy protocol (VRRP) further strengthen the market.
Virtual Router Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to the global virtual router market analysis, the increasing adoption of software-defined networking (SDN) and network functions virtualization (NFV) technologies. These technologies offer flexibility, scalability, and cost-effectiveness to network operators and service providers. Virtual routers, which are software-based routing solutions, play a crucial role in enabling virtualized network infrastructures. The report highlights that the rising adoption of virtualization technologies, along with the increasing demand for cost-effective networking solutions, is driving the growth of the global virtual router market. Organizations are increasingly recognizing the benefits of virtual routers, such as scalability, flexibility, and reduced hardware costs, leading to their widespread deployment across different industry verticals.Another key finding of the report is the surging demand for virtual routers in the service provider segment. Telecommunication service providers are embracing virtual routers as a means to optimize their network infrastructure, enhance service delivery, and reduce operational costs. The ability of virtual routers to enable network functions virtualization (NFV) and software-defined networking (SDN) plays a crucial role in their increasing adoption by service providers.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 833.72 billion |
| Market size value in 2031 | USD 1674.96 billion |
| Growth Rate | 8.06% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Virtual Router Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Virtual Router Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Virtual Router Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Virtual Router Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Virtual Router Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Virtual Router Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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