Virtual router market size is set to grow at a CAGR of 23% during the forecast period 2020-2025 and projected to reach $501.5 million by 2025. The increase in demand for Network Functions Virtualization (NFV) and software-defined networking (SDN) along with the requisite for mobility are acting as the driving factors of the virtual router market. This demand is, in turn, rising the requirement for numerous advanced virtual router software solutions. The key networking players are engaged in producing varied virtual routing products which consist of virtual private network, BGP routing, router firewalls, traffic engineering, network virtualization route reflectors, and Virtual CPE for the WAN contributes to the expansion of global virtual router market size.
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Component – Segment Analysis
Presently, the solution held the largest share in the virtual router market size in 2018. This component not only offers an integration pack of transparency and effective control of the routing capability but also assist in saving the operational cost. Therefore, this factor is creating a demand influx in the virtual router market. On the other hand, the custom virtual router segment established a major share in the virtual router market in 2018 and is projected to grow at a higher CAGR during the forecast period. These virtual routers allow users to form multiple virtual routers using a single routing device following the specific routing requirements if any exists. This flexibility factor is burgeoning the customer base for virtual router installation online.
End-User – Segment Analysis
Service providers such as telecom, datacenter, and cloud are aimed to provide efficient output through improved network agility. For this, the telecom service providers are employed in adopting virtual router solutions and services which deliver scalable and flexible routing functionalities to boost up the potential of overall network capacity. Whereas, cloud service providers are engaged in the deployment of virtual routers in order to enhance their operations within the infrastructure. Thus, the service provider end-user has been established with a notable share in the global virtual router market.
Geography – Segment Analysis
North America’s virtual router market share dominated the global virtual router market, accounts for 40%, followed by APAC and Europe. It is majorly due to the presence of a giant base of virtual router vendors in this region. Additionally, the rise in the number of investments made by the key service providers such as Cisco Systems, Inc., Juniper Networks, Inc., and IBM, to adopt virtual routers and for further developments in the virtual router solutions, especially in the U.S., Canada, and Mexico. Furthermore, North America is generating a larger share of the global virtual router revenue, owing to the increased focus of networking players to optimize the network infrastructure, which in turn, raised the requirement of virtual router solutions. APAC is estimated to experience a faster growth rate in the global virtual router market during 2020-2025. Since, the growth in the penetration level of both NFV and SDN specifically in the eminent economies such as China, Japan, and India are collectively augmenting the growth of the APAC virtual router market.
Drivers – Virtual Router Industry Outlook
In this contemporary world, the usage of the internet has become a part of daily life. Modern generation population including professionals and individuals are relying much on the internet for all cases such as business purposes, social media, advertising, marketing, and various other purposes. In addition to this, the flexibility of internet speed, bandwidth, size of software, maximum user acceptance, range of coverage offered by the virtual router software is leading to increasing the customer base which includes business organizations, individuals, and professionals to experience a smooth and cost-effective connection. Connectify Hotspot, mHotspot, My WiFi Router, MaryFi, VirtualRouter Plus, MO Virtual Router, MyPublicWiFi, Bzeek, OSToto, and ARPMiner are the popular virtual router software’s which provide a secured internet access point.
Currently, the IT originations are showcasing their interest to rely on a self-service interface to support legacy applications and also to run a mass number of applications. Besides, data centers are adopting virtual routers to deliver rapid provisioning of new data center compute and storage resources. The scalability offered by the router manipulates the resources used as required. Hence, the private cloud is creating huge opportunities for the expansion of the virtual router market.
Challenges – Virtual Router Industry
However, the virtual routers fails to perform the functions the same as of a heavy-duty core IP router in some cases. Hence, this factor resulted in restraint to the growth of the virtual router market. Moreover, unwillingness to transform from the legacy system to the virtualized environment coupled with the lack of skills and expertise in operating the virtual router software together act as a challenge for the virtual router market.
Mergers & Acquisitions, R&D activities, and new operating systems are key strategies adopted by players in the virtual router market. In 2018, the market of virtual router has been fragmented by the top five players accounting for 28% of the share. The International Business Machines Corporation (IBM), Cisco Systems, Inc., Huawei Technologies Co., Ltd., Juniper Networks, Inc., Brocade, The Hewlett Packard Enterprise Company (HPE), Arista Networks, Telefonaktiebolaget LM Ericsson, ZTE Corporation, and Palo Alto Networks, Inc. are the virtual router top 10 companies.
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