Network functions virtualization market to reach $11.6B by 2019, says analyst firm

As service providers like AT&T (NYSE: T) and CenturyLink (NYSE: CTL) ramp up their hardware-to-software transition plans, IHS Infonetics forecasts that the network functions virtualization (NFV) hardware, software and services market will reach $11.6 billion in 2019, up from $2.3 billion in 2015.

The research firm said that while service providers are still early in the long-term, 10- to 15-year transformation to virtualized networks, revenue from outsourced services for NFV projects is projected to grow at a 71 percent compound annual growth rate (CAGR) from 2014 to 2019. One area of NFV revenue growth during this period will come from software-only video content delivery networks (CDNs). IHS forecasts that software-only video CDN functions for managing and distributing data will grow 30-fold from 2015 to 2019.

"NFV represents operators' shift from a hardware focus to software focus, and our forecasts show this," said Michael Howard, senior research director for carrier networks at IHS, in a release. "We believe NFV software will comprise over 80 percent of the $11.6 billion total NFV revenue in 2019." Release

Suggested Articles

LF Edge, an umbrella organization that's part of the Linux Foundation, announced the second release of its Akraino Edge Stack.

Chris Young is leaving his role as CEO of cybersecurity firm McAfee to become a senior advisor with TPG Capital, which has a majority stake in McAfee.

CenturyLink wins a $1.6 billion contract with the U.S. Department of Interior to upgrade its network services and modernize its IT solutions.