Key Takeaways
- North America held a larger share in the virtual router market owing to the increasing demand for virtual router software to improve the network infrastructure within the business organizations.
- The growing acceptance of virtual routers to WAN based routers is likely to aid in the market growth of virtual routers.
- An increase in the prevalence of virtual networks across different end-use industries will increase the market demand for the virtual router market in the near future. This is because of the growing developments in virtual router software set to provide a significant number of opportunities for the virtual router market during the forecast period.
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
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
- The objective to reduce the cost of internet browsing cost is boosting the growth of the virtual router market
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.
- The rise in the demand for a private cloud is burgeoning the virtual router market
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
- The functionality difference in comparison with a core IP router hampering the growth of the virtual router market
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.
Market Landscape
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.
