Custom Virtual Router Market Segmentation:
Component Segment Analysis
The software segment is predicted to command 60.4% revenue share by 2035 as networking shifts further in favor of software-defined networking. In reaction to organizations embracing virtualization and cloud deployments, there is an increasing need for agile and scalable routing software. The virtual router software is more agile and economical than hardware, providing dynamic resource allocation and simplicity in management. In April 2024, Nokia Corporation commercially launched its Virtualized Service Router (VSR) in the AWS marketplace, allowing customers to deploy carrier-class routing software directly onto the cloud. The launch provides scalable edge routing of IP and supports heterogeneous services with up to 400 Gbps of proven throughput.
Deployment Mode Segment Analysis
The cloud-based deployment segment is projected to hold a share of 57% through 2035, driven by worldwide adoption of cloud computing and demand for dynamic, scalable networking services. The cloud deployment is also extremely flexible, as it will allow organizations to provision and manage virtual routers without hardware deployment at customers' sites. The strategy is of particular attraction to organizations that require cost savings in capital expenditure as well as simplicity in networking management. Amazon Web Services (AWS) supported Gateway LoadBalancer endpoints as a next-hop in August 2023 in the virtual private gateway route table. The cloud-based feature will allow customers to inspect incoming traffic in AWS with virtual appliances, simplifying security services deployment at networking edges.
End user Segment Analysis
The telecommunications segment is anticipated to garner a 45% custom virtual router market share by 2035, owing to 5G network deployment as well as NFV adoption. Telecom service providers are employing virtual routers in order to develop more efficient and agile networks that will support a wide variety of services, such as mobile broadband to IoT. The dynamic allocation of network resources, as well as automated provision of services, must be fulfilled to sustain 5G-era requirements. In February 2024, Samsung Electronics Co., Ltd. introduced its virtualized RAN (vRAN) 3.0, composed of a new robust baseband unit as well as software-enabled intelligent automation. The market launch aims to support 5G network advancements, enabling operators to deploy, manage, and scale network functions, such as virtual routing, in a more dynamic manner.
Our in-depth analysis of the global custom virtual router market includes the following segments:
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