Virtual Router Market Innovation & Sustainability Analysis With Industry Players Cisco, Ericsson, Brocade, Juniper Networks, Huawei Technologies, Nokia, Hewlett Packard Enterprise, IBM, ZTE Corporation, Arista Networks, Palo Alto Networks

Virtual Router Market in Asia Pacific 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.

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The key players in the virtual router market are Cisco, Ericsson, Brocade, Juniper Networks, Huawei Technologies, Nokia, Hewlett Packard Enterprise, IBM,128 Technology, ZTE Corporation, Arista Networks, Palo Alto Networks, Checkpoint and Tredent Data Systems.

The explosion of content & mobile devices, the advent of cloud services, and server virtualization are forcing the networking industry to reconsider the traditional network architecture. The traditional network architecture made sense when client-server computing was dominant. However, such static architecture is unsuitable for the dynamic storage and computing needs of the modern carrier environment and enterprises. Moreover, the increasing pressure to decrease the Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) is also encouraging the adoption of virtual routers among organizations.

The increasing adoption of the virtual routers among Communication Service Providers (CSPs) is also driving the market growth. The CSPs are leveraging on the capabilities for a wide array of applications ranging from data center, network edge, and Customer Premises Equipment (CPE). They are also being widely used to deliver traditional edge services including IP/MPLS and virtual private network services. Furthermore, the migration to wireless networking, 5G, and virtualized CPE also accelerates the adoption of virtual routing among CSPs.

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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).

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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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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