Global Virtual premises Equipment Market – Overview

Virtual customer premises equipment (vCPE) is a way to deliver network services such as routing, firewall security and virtual private network connectivity to enterprises by using software rather than dedicated hardware devices. By virtualizing CPE, providers can dramatically simplify and accelerate service delivery, remotely configuring and managing devices and allowing customers to order new services or adjust existing ones on demand. By leveraging network functions virtualization (NFV), CSPs can deliver virtual customer premises equipment (vCPE) solutions, which reduce the number and cost of physical hardware appliances required at the customer premises for hosting connectivity and other value-added features. Network services including routing, security and software-defined WAN can all be delivered through dynamic and cost-efficient virtual network functions (VNFs).

Raising need of mobility, increasing demand for virtual networking infrastructure solutions and services, along with varying traffic patterns are some of the key driving factors for the growth of the v-CPE market. Virtual Customer Premises Equipment also provides the enhanced physical networking infrastructure which can be transformed into sharable virtual resources. These can also be accessed from anywhere without using much of the networking hardware. In addition, the high demand for private clouds among enterprises is promoting cloud-based applications is fuelling the growth of the virtual customer premises equipment market.

The increasing demand for security concerns regarding virtual architecture, the reliability issues and the lack of skilled workforce are the factors hindering the growth of the virtual customer premises equipment market. The virtualization of technology helps in information exchange, group discussions, and online programs are expected to drive the market over the forecast period.

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Industry News

January, 2018 – NXP Semiconductors finished a virtualization networking trial with China Mobile Communications Corporation (CMCC) with its virtual customer premises equipment (vCPE) solution. The solution completed laboratory and field testing in Beijing and Shanghai. NXP reports the test went smoothly, achieving initial success within the realm of network functions virtualization (NFV).

May, 2017 – Cloudify launched a new open virtual customer premises equipment (vCPE) to provide organizations and vendors with a framework to build custom vCPE to configure and on-board new virtual network functions (VNFs) quickly and at a low cost. The configuration framework, simplified VNF on-boarding, open, and multi-tenant service portal allows organizations to configure and deploy custom built network service chains.

Global Virtual premises Equipment Market – Competitive Analysis

The Market of virtual premises equipment appears to be highly competitive. To maintain their market position and to drive the market growth, various dynamic and diversified international organizations, domestic organizations and as well as new entrants form a competitive landscape. Market leaders are innovating continuously and increasingly seeking market expansion through various strategic mergers and acquisitions, innovation, increasing investments in research and development and cost-effective product portfolio. Major players are investing on internal R&D and, most of all, in acquiring other firms. Prominent vendors of virtual premises equipment targeting to invest more in technology and research and development activities to innovate their already existing products. The rising government funding is also expected to motivate key companies to invent new technology modules that match the changing trends and needs across the globe.

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Global Virtual premises Equipment Market – Segmentation

The Virtual premises Equipment Market can be segmented in to 5 key dynamics for the convenience of the report and enhanced understanding;

Segmentation by components: Comprises solutions (Virtual switches, virtual routers, security and compliance) and services (professional and managed services)

Segmentation by service model: Comprises infrastructure as a service (IaaS), platform as a service (PaaS).

Segmentation by organization size: Comprises SME and large enterprises.

Segmentation by application: Comprises BFSI, healthcare, IT & Telecommunication, manufacturing.

Segmentation by Regions: Comprises Geographical regions – North America, Europe, Asia Pacific and Rest of the World.

Global Virtual premises Equipment Market – Regional Analysis

Regionally, North-America accounted for the largest market share especially in the countries such as U.S majorly due to the presence of a large number of v-CPE service providers offering custom-made solutions to multiple end-users areas. The Asia Pacific’s market is expected to witness exponential growth and is projected to be the fastest growing region during forecast period. The adoption of Virtual CPE solutions in this region is expected to be fuelled by the increasing need for enterprises mobility and cloud-based solutions. Another reason for the growing demand for Virtual CPE solutions is the rapid expansion of enterprises in the Asia Pacific region.

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