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

Telco Systems announced that it has achieved a performance milestone in the development of a full Open vSwitch data path hardware offload solution.

GBI is using Nuage Networks' SD-WAN technologies to connect branch locations to both public and private clouds in the Middle East and Africa.

For the first time, Huawei has put some numbers behind the impact that the U.S. ban is having on its bottom line.