ABI: network function virtualization market to reach total $38 billion by 2022

The Network Function Virtualization (NFV) market will generate revenues of some $38 billion in 2022, according to a report by ABI Research.

The analysts said that after a slower start than initially anticipated the NFV market will experience moderate growth spurred by ongoing investments by major telcos.

The report states that North America will lead the market, accumulating $13 billion in NFV-related investments during 2022. Europe will experience the highest growth rate at an estimated 53 percent CAGR between 2017 and 2022.

Network Function Virtualization (NFV) market

The research company said that spending on hardware, including servers, storage devices, and switches, would decline over time. At the same time, software and services will show higher growth rates of 55% and 50%, respectively.

The authors said that despite the fact, that the market is evolving and technical expertise is starting to mature, the standardization and multi-vendor involvement challenges would remain stagnant for the next couple of years.

They added that software and services vendors would have opportunities to identify NFV use-cases in enterprise verticals and use these to offer end-to-end integrated systems.

ABI said that the market experienced in 2015 and 2016 some early successes but mostly reconsiderations and failures with NFV.

“Early adopters conducted proof of concept testing and NFV-integrated system demonstrations with the aim to understand the true impact of NFV in the technical, operational, and cultural domains,” said Neha Pachade, Senior Analyst at ABI Research.

“Our forecasts indicate that NFV will become a sizeable opportunity for vendors, although it is not yet clear whether it will cannibalize existing hardware-based product lines or create new market use cases,” added Pachade.


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