Custom Virtual Router Market size was over USD 201.74 million in 2023 and is projected to exceed USD 2.04 billion by the end of 2036, witnessing over 19.5% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of custom virtual router is evaluated at USD 233.21 million.
Extensive research associated with virtual routers in western countries, along with the factors that contribute in the growth of the market comprise of reduction in capital expenditure and operating expenditure of the organizations and Improved network agility and efficient scale-out by service providers.
Additionally, the custom virtual router market's growth is majorly attributed to the increasing focus of end user's scalability of solutions while maintaining focus on cost reduction. The ease of scaling resources and the ability to quickly move routing functions within a network offered by these solutions fuel their adoption among the end-users. As 5G wireless gains traction in developing and developed economies and enterprises move towards vCPE, solid growth of the market can be expected over the projected period.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024–2036 |
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CAGR |
19.5% |
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Base Year Market Size (2023) |
USD 201.74 million |
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Forecast Year Market Size (2036) |
USD 2.04 billion |
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Regional Scope |
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Based on component, the virtual router market has been segmented into solution and service. The solution segment is expected to have the largest market share and is estimated to grow at a rapid pace during the forecast period. The virtual routing solutions help to independently allocate physical data centre resources for virtual machines within the network and grow the capacity of virtual machines independently as per requirement, lowering the hardware costs.
The custom virtual router market, furthermore, based on solution the market has been segmented into integrated solution and standalone solution. The integrated large suites provide outstanding throughput performance by offering high transparency and better control of the routing capability and saving operational costs leading to the adoption of integrated solutions in virtual router market.
The service segment in the virtual router market has been segmented into professional services and managed services. The rising demand for tailor-made features to improve performance efficiencies and the need to provide technical support and consulting service for adding value to interaction with clients is leading to the adoption of professional services in virtual router market.
Based on type the virtual router market, has been segmented into custom and predefined. Custom segment is expected to account for larger market size during the forecast period as custom virtual router enables creating and configuring additional virtual routers within the single routing device as per requirement leading to its adoption in virtual router market.
By end user, the service provider segment in the virtual router market is expected to account for larger market size during the forecast period as the deployment of virtual router helps service providers to increase their network agility and deliver scalable and flexible routing functionalities with considerable reduction in capital expenditure and operating expenditure of the organisations
The virtual router market, by service provider has been segmented into telecom, data centre, and cloud. The telecom service provider segment is expected to have the highest adoption of virtual routers during the forecast period as the virtual routers enable them to scale the resources and boost the overall network capacity. Virtual routers provide control over flexible scaling and deployment options lowering the operational costs for telecom service providers.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Component |
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end-user |
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Geographically, the custom virtual router market is segmented into North America, Latin America, Europe, Asia Pacific and the Middle East & Africa region. The global market in North America industry is predicted to account for largest revenue share by 2036, due to increasing adoption of virtual routers by service providers, and huge investments by key companies for development of virtual router solutions. in the US, Canada, and Mexico. Additionally, Asia-Pacific is expected to be the fastest growing region in the virtual router market due to growing penetration of software defined networking (SDN) and network function virtualization (NFV) in countries such as China, India, Japan, and others.
Author Credits: Abhishek Verma
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