Virtual networking is a technology that streamlines the control of remotely located devices or server through the Internet. It enables users to communicate locally and remotely, across similar and dissimilar networks, through a simplified interface. This technology combines hardware and software network resources and network functionality into a single network. The single network, also known as a virtual network, is a software-based administrative entity that provides cross-platform support and allows remote control between different devices or servers. Virtual networking facilitates the consolidation of a range of services and devices on a single hardware platform over the Internet. With the growing focus on abilities that manage virtual machines, virtual networking services have become more valuable than ever. The various factors contributing to the rising adoption of these services are server virtualization, increased need for cloud computing, growing adoption of software-defined networking in enterprises, and the need for network and physical hardware virtualization to reduce network downtime. Furthermore, the growing demand for industrial automation along with the shifting preference of enterprises towards cloud services also drive the need for virtual networking services. This research report categorizes the virtual networking market by type, application, and region/country. Based on type, the market is segmented into hardware, software, and services. The applications of virtual networking services covered in the study are BFSI, public sector, manufacturing, hospitality, IT & telecommunication, and healthcare. The regions included in the study are North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa (MEA).
The growing adoption of server virtualization by enterprises with multiple locations and the rising demand for software-defined networking (SDN) and software-defined data center (SDDC) for network virtualization are some of the major factors driving the growth of virtual networking market. Moreover, network virtualization is expected to advance its development pace in the coming years owing to the integration of various cloud-based platforms with the Internet of Things (IoT). However, a lack of proper infrastructure and budgetary constraints are some of the issues that slow down the market growth of such technological systems.
The global virtual networking market is expected to register a 34.3% CAGR during the forecast period 2018–2023. In 2017, the market was led by North America with 39.64% share, followed by Europe and Asia-Pacific with 27.29% and 17.99% market shares respectively. Advancements in networking technology and high adoption of advanced communication method by the population in North America and Europe are some of the factors propelling the growth of the virtual networking market. The market in Asia-Pacific and the Middle East & Africa are expected to show positive growth in the coming years owing to the growing disposable income and adoption of advanced technologies by companies in this region.
The global virtual networking market has been segmented based on type, application, and region.
On the basis of type, the market has been segmented into hardware, software, and service. Based on application, the market has been segmented into BFSI, public sector, manufacturing, healthcare, and IT & telecommunication. By region, the market has been segmented into North America, Asia-Pacific, Europe, and the rest of the world.
Based on type, the service segment accounted for the larger share with a market value of USD 5,026.4 million in 2017, which is projected to exhibit a CAGR of 36.36% during the forecast period. Based on application, the IT & Telecommunication segment accounted for the largest market share with a market value of USD 2,679.3 million in 2017 and is projected to register a CAGR of 37.17%.
The global virtual networking market is expected to reach approximately USD 62,080.4 million by 2023, registering a CAGR of 34.32% between 2018 and 2023.
The key players of the global virtual networking market are Huawei Technologies Co. Ltd, Hewlett Packard Enterprise Co, IBM Corporation, Oracle Corporation, Microsoft Corporation, VMware, Inc. Citrix Systems, Inc., Virtual Network Solutions and Verizon Communications Inc.
Global Virtual networking Market Analysis & Forecast, from 2018 to 2023
- To provide a detailed analysis of the market structure along with a forecast of various segments and sub-segments of the virtual networking market for the next five years
- To provide insights about factors affecting the market growth
- To analyze the global virtual networking market based on various factors such as supply chain analysis, and Porter’s five force analysis
- To provide historical and forecast revenue of the market segments and sub-segments with respect to regions and their respective key countries
- To provide country-level analysis of the market with respect to the current market size and future prospective
- To provide country level analysis of the market for segments by deployment, and end-users
- To provide strategic profiling of key players in the market, comprehensively analyzing their core competencies, and drawing a competitive landscape for the market
- To track and analyze competitive developments such as joint ventures, strategic alliances, mergers and acquisitions, new product development, and research and developments in the virtual networking market
- To track and analyze competitive developments such as joint ventures, strategic alliances, mergers and acquisitions, new product developments, and research and developments in the virtual networking market
- Component manufacturers and distributors
- SDN and NFV providers
- Cloud Service Providers
- Software Developers
- Professional service providers
- Network equipment manufacturers
- Analysts and strategic business planners
- Research organizations
- Associations, organizations, and alliances
- The global virtual networking market is expected to reach USD 62,080.4 million by 2023.
- On the basis of type, the service segment accounted for the larger share with a market value of USD 5,026.4 million in 2017, which is projected to register a CAGR of 36.36% during the forecast period.
- Based on application, the IT & Telecommunication segment accounted for the largest market share with a market value of USD 2,679.3 million in 2017 and is projected to exhibit a CAGR of 37.17%.
- Geographically, North America is projected to hold the largest market share in the global virtual networking market followed by Europe, Asia-Pacific, and the rest of the world
Regional and Country Analysis of Virtual networking Market Estimation and Forecast
The global virtual networking market was led by North America had occupied 39.64% of the total market share in 2017. Europe and Asia-Pacific held the second and third position in the global virtual networking market globally by occupying 27.29% and 17.99% of the total market share respectively in 2017. Furthermore, Asia-Pacific is the fastest growing market at 35.71% CAGR. However, the market in the rest of the world is growing at a relatively slow rate and occupied only 15.06% market share in 2017.
The report on the global virtual networking market also covers the following countries for country-level analysis:
- North America
o Rest of Europe
o Southeast Asia
o Rest of Asia-Pacific
- Rest of the World
o Middle East & Africa
o Latin America