Increase in need to improve network agility and efficient scale out by service providers, growth in demand for software-defined networking (SDN), network functions virtualization (NFV) technologies, shift in preference toward virtual router, and rise in requirement of scalable, agile, and cost-efficient cloud networking solution, majorly boost the market growth. However, the inability of the virtual router to perform functions of heavy duty core IP routers is expected to hamper the growth of the global virtual router market. Furthermore, growing adoption of virtual router technology among small & medium organizations as well as surge in demand for private cloud are expected to provide lucrative opportunities for the market.

According to a recent report published by Allied Market Research, titled,”Virtual Router Market by Component and End-User: Global Opportunity Analysis and Industry Forecast, 2018 – 2025,”the global market was valued at $90.00 million in 2017, and is projected to reach $515.00 million by 2025, growing at a CAGR of 24.40% from 2018 to 2025.

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Based on the component, the solution segment dominated the overall global virtual router market share in 2017 and is expected to continue this trend during the forecast period owing to growth in demand for virtual router solutions as numerous companies are expected to commit to multi-cloud architectures, both public and private, and from several different providers. Furthermore, the services segment is expected to grow at the highest CAGR during the forecast period, as it provides a cost-effective way of allowing easy access and keeping operations activity more secure for the organizations.
The global virtual router market was led by the enterprise segment in 2017 and is projected to maintain its dominance during the forecast period owing to increase in adoption of virtual router technology by large enterprises to streamline and simplify the routing functionality while virtualizing and optimizing the network is fueling the growth of the market. However, the service provider segment is expected to witness the highest virtual router market growth, as adoption of virtual router has become essential for telecom service providers and carriers as they can benefit from virtual router through elasticity, reduced time-to-market, TCO optimization, and orchestration advantages.

Based on the region, the Europe dominated the global virtual router market size in 2017 and is expected to continue this trend during the forecast period due to increasing awareness about NFV and SDN benefits and cautious cost savings in the European region. Moreover, growing trend to reduce operational and capital expenditure while ensuring faster functioning of deployed physical networking architecture in organizations is primarily driving the growth of this market. Furthermore, the Asia-Pacific region is expected to grow at the highest CAGR during the forecast period, owing to rise in adoption of cloud-based computing and storage technology. Moreover, number of key players in the cloud and data center ecosystem are expanding their presence and adopting various development strategies such as partnership in emerging economies due to advancements in the telecom industry in Asia-Pacific.

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