ABI Research: Japan and South Korea to lead high growth of NFV market in Asia Pacific in the next five years

The network function virtualization (NFV) market in Asia Pacific will grow to $9.24 billion in 2022, with revenues growing at an impressive annual growth rate of 51.4 percent, according to a new report published by ABI Research.

The report, entitled “NFV Case Studies in Asia-Pacific: Implementations and Impact” stated that Japan is the largest market in the region, constituting 25.7% of total revenue, followed by South Korea (22.7%) and China (14.6%).

“Japan leads in the region, not only because of the desire to design resilient and reliable networks in preparation for future disaster threats, but also to prepare for the 2020 Summer Olympics,” said Lian Jye Su, Senior Analyst at ABI Research. “South Korea and China are actively preparing for 5G, which requires both cloud radio access networks (C-RAN) and Cloud Core Networks.”

According to report, NFV trials and deployments are definitely gaining momentum in Asia-Pacific. Change is expected to be led by Tier One mobile network operators from the three largest markets.

The report stated that all Asian mobile network operators want NFV deployment to happen on open-source platforms, such as OpenStack, to avoid any vendor lockdown.

ABI believes that the NFVi, virtualized infrastructure manager (VIM), and MANO platforms will be open source in nature but transition from proprietary software will take many years.

The report concludes that the main short-term challenge is that certain carrier-grade enhancements, from certain vendors, will remain proprietary.


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