Virtual Router Market 2018 Global Analysis By Key Players Cisco, Ericsson, Brocade, Juniper Networks, Huawei Technologies, ZTE Corporation, Arista Networks, Palo Alto Networks, Nokia, Hewlett Packard Enterprise, IBM

North America is leading the virtual router market due to the implementation of NFV and SDN solutions in the region. A rise in mobile subscriptions and the aggressive carrier efforts in the region for the development of 5G infrastructure and the reduction of CAPEX & OPEX also support the market growth. Moreover, supportive government initiatives and policies in the region for the development of digital and smart infrastructures also drive the market.

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The Asia Pacific virtual router market is projected to grow at a high growth rate during the forecast timeline. The growing adoption of 4G and the increasing spending for the development of 5G infrastructure propel the adoption of virtual routers in the region. Over the past three years, a rapid shift toward the higher speed mobile technology in the region has been witnessed. In 2016, mobile broadband technologies such as 3G and above have dominated network technologies. Japan, South Korea, and Australia are the market leaders in terms of 4G adoption. However, China will emerge as one of the key countries in 4G uptake during the forecast period with over one billion 4G connections by the end of 2018.

The key players in the virtual router market are Cisco, Ericsson, Brocade, Juniper Network, Huawei, Nokia, HPE, IBM, 128 Technology, ZTE Corporation, Arista Networks, Palo Alto Networks, Check Point, and Tredent. For instance, Cisco acquired Embrane in 2015 to expand its NFV and SDN offerings and gain an edge over their competitors.

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Virtual Router Market size is projected to grow extensively over the predicted years owing to growing demand for network virtualization (NFV) and software-defined networking (SDN) solutions among the organizations. The rising need among network providers and telecom service providers to cope with the changing network requirements is driving the demand for SDN and NFV solutions. The inflexibility and inefficiencies of the traditional hardware-centric infrastructure to deal with changing network requirements also promote the demand for the virtual routers.

A virtual route has been used in several applications including virtual broadband services, virtual route reflection, and virtual cloud gateways. These routers are deployed in Layer-2 Tunneling Protocol (L2TP) network servers and Broadband Network Gateways (BNGs) to support wholesale and residential broadband services. It enables and supports all the routing protocols and host residential service protocols such as Point to Point Protocol over Ethernet (PPPoE), Dynamic Host Configuration Protocol (DHCP), RADIUS subscriber interfaces, and Pseudowire Headend Termination (PWHT).

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Route reflection is one of the prominent applications of the virtual router. The cost-effectiveness, scalability, and high performance of virtual routers are the primary factors augmenting their demand for route reflection among network service providers. Furthermore, their ability to offload route reflection from hardware routers, which extends their lifespan by freeing up the processor cycle also drives their demand.

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