The Global Virtual Customer Premises Equipment (vCPE) Market size is expected to reach $19 billion by 2028, rising at a market growth of 37.9% CAGR during the forecast period.
The virtual customer premises equipment, which may run on industry-standard servers, implements certain network operations such as routing, VPN, NAT, security, WAN optimization, access control, etc. at the customer's premises. To replace heavy-duty CPEs with lightweight ones and move common operations and sophisticated traffic processing into POP (points-of-presence) or a centralized Datacenter, network devices are virtualized utilizing the ETSI NFV framework.
It may provide numerous services to lines of business that need various physical devices from various vendors due to the vCPE solution. The technology speeds up service activation while providing enormous CapEx and OpEx savings for hundreds of remote locations. The most popular use case for network function emulation has come to be the vCPE solution.
To dynamically alter the capacity in response to client demand, several service providers (CSP, MSP), system integrators, and businesses (with distributed locations like Retail Branch offices, and ATMs) have embraced vCPE. Enterprises can receive network services including routing, firewall security, and connection for virtual private networks by using software rather than specialized hardware through the use of virtual customer premises equipment (vCPE).
By virtualizing CPE, service providers can significantly streamline and speed up the delivery of services by remotely setting and managing devices and enabling customers to order new services or make on-demand changes to existing ones. Customer premises equipment (CPE) is often comprised of specialized hardware devices owned by providers and installed at branch office locations. Deploying additional services can be time-consuming and costly because providers must dispatch network specialists onsite to deliver and set up CPE.
COVID-19 has had an impact on the market, according to the Virtual Customer Premises Equipment Market Report. COVID-19 has caused grief in 215 nations. Lockdowns have been implemented by nations to combat their harmful impacts, which have hurt the virtual customer premises equipment market. Operations in a few crucial industries, including BFSI, IT, healthcare, government & public sector, manufacturing, and others have been seriously hampered by the COVID-19 pandemic. Therefore, it is anticipated that this factor will have a minor market influence across all worldwide industries. The market segment for virtual CPE has benefited from the pandemic.
Virtualization is a prime example of how quickly technology is developing. One of the most widely used computing technologies is virtualization. The use of virtualization is spreading beyond servers, according to the 2020 State of Virtualization Technology. By 2021, Spiceworks predicts that application and storage virtualization will be used by more than half of all organizations worldwide. In the upcoming years, it is anticipated that application virtualization would increase. By 2021, it is also projected that desktop and data & network virtualization usage would grow by double digits.
The majority of people on the planet are reliant on digital devices and require a constant internet connection. In the past two years of the Coronavirus pandemic, increasing reliance on digital processes has occurred, according to a World Economic Forum (WEF) poll. Hardware virtualization has become popular as a result of the decrease in hardware dependence brought about by software and virtualization. The process used to build virtual representations of real desktops and operating systems is called hardware virtualization.
In recent years, virtual customer premises equipment (vCPE) has grown in popularity. It makes it possible to build network infrastructures that are customized to the requirements of various network applications. It helps create ideal conditions for creating and testing fresh designs and protocols. Network virtualization has a wide range of applications; however, the shared usage of communication channels and routing devices raises several security-related issues.
On the basis of Components, the Virtual Customer Premises Equipment (vCPE) Market is divided into Solutions/tools and Service. The service segment witnessed a significant revenue share in the virtual customer premises equipment (vCPE) market in 2021. Professional and managed services make up the services offered in the vCPE market, which are essential to the efficient and effective operation of the network infrastructure.
On the basis of Deployment Type, the Virtual Customer Premises Equipment (vCPE) Market is bifurcated into On-Premises, and Cloud. The on-premise segment garnered the highest revenue share in the virtual customer premises equipment (vCPE) market in 2021. The vCPE VNFs at the customer's premises support additional functionality including IPAM, NAT, Firewall, and QoS Policies. Traffic between the customer's control plane and data plane is sent across a dedicated link that belongs to the service provider.
Based on the Organization Size, the Virtual Customer Premises Equipment (vCPE) Market is divided into Large enterprises and SMEs. The SMEs segment witnessed a substantial revenue share in the virtual customer premises equipment (vCPE) market in 2021. Due to their features, functions, and low cost, vCPE systems are more often adopted by SMEs. vCPE is crucial in all business sectors, including SMEs and major corporations.
By Verticals, the Virtual Customer Premises Equipment (vCPE) Market is segmented into Data Centers and Telecom Service Providers, BFSI, IT, Healthcare, Government and Public Sector, Manufacturing, and Others. The healthcare segment registered a promising revenue share in the virtual customer premises equipment (vCPE) market in 2021. The various types of specialized hospital information systems used by many healthcare organizations include electronic health record (EHR) systems, e-prescribing systems, practice management support networks, clinical decision support, radiology information systems, and computerized physician order entry systems.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 2.1 Billion |
| Market size forecast in 2028 | USD 19 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 37.9% from 2022 to 2028 |
| Number of Pages | 346 |
| Number of Tables | 560 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Deployment Type, Organization Size, Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region-wise, the Virtual Customer Premises Equipment (vCPE) Market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region acquired a promising revenue share in the virtual customer premises equipment (vCPE) market in 2021. due to significant expenditures on smart city and infrastructure initiatives. The area shows a convergence of a population with strong growth rates, emerging economies, and rising internet and mobile penetration.
Free Valuable Insights: Global Virtual Customer Premises Equipment (vCPE) Market size to reach USD 19 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Cisco Systems, Inc., Hewlett Packard Enterprise Company, Juniper Networks, Inc., IBM Corporation, Dell Corporation, Ericsson AB, NEC Corporation, Intel Corporation, Huawei Technologies Co. Ltd., and Verizon Communications, Inc.
By Vertical
By Organization Size
By Deployment Type
By Component
By Geography
The global Virtual Customer Premises Equipment (vCPE) Market size is expected to reach $19 billion by 2028.
Network Virtualization Adoption In Businesses are driving the market in coming years, however, Concerns About Security In Network Virtualization restraints the growth of the market.
Cisco Systems, Inc., Hewlett Packard Enterprise Company, Juniper Networks, Inc., IBM Corporation, Dell Corporation, Ericsson AB, NEC Corporation, Intel Corporation, Huawei Technologies Co. Ltd., and Verizon Communications, Inc.
The expected CAGR of the Virtual Customer Premises Equipment (vCPE) Market is 37.9% from 2022 to 2028.
The Large Enterprises segment acquired maximum revenue share in the Global Virtual Customer Premises Equipment (vCPE) Market by Organization Size in 2021 thereby, achieving a market value of $13.5 billion by 2028.
The North America market dominated the Global Virtual Customer Premises Equipment (vCPE) Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $7.1 billion by 2028.
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