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Michael Howard
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Infonetics forecasts carrier SDN and NFV market to reach $11 billion by 2018

 

Campbell, CALIFORNIA, November 5, 2014—Market research firm Infonetics Research released excerpts from its new Carrier SDN and NFV Hardware and Software market size and forecast report, which tracks network functions virtualization (NFV) and software-defined networking (SDN) hardware and software used in service provider networks. (Infonetics released a related report on the data center and enterprise segment of the market in September.)


The new 46-page report provides detailed analysis of the SDN and NFV markets and their many facets—from SDN router and switch hardware and software, to the many categories of NFV, particularly the virtualized network functions (VNFs) comprising policy (policy and charging rules function [PCRF] and deep packet inspection [DPI]), the mobile packet core and evolved packet core (EPC), IP multimedia subsystem (IMS), and security. To buy the report, contact Infonetics.


In 2015, Infonetics will publish separate, more in-depth reports for the service provider SDN and NFV markets.


“For three years, the telecom industry has been abuzz over SDN and NFV, with anticipation and hard work developing the vision, goals, architectures, use cases, proof-of-concept projects, field trials, and even some commercial deployments. We’ve been gathering data in this early market for nearly two years and are projecting the global service provider SDN and NFV market to reach $11 billion in 2018,” says Michael Howard, Infonetics Research's co-founder and principal analyst for carrier networks.


To better understand spending in this emerging market, we classify SDN and NFV hardware and software in three distinct categories,” Howard continues. “First, revenue from brand new SDN and NFV software, which we expect to make up 20% of the total SDN and NFV market in 2018. Second, revenue that comes from products that companies will buy instead of buying something else—what we refer to as ‘displaced’ revenue, including NFV infrastructure (NFVI) hardware (servers, storage, switches) purchased instead of network hardware (routers, DPI, firewalls, etc.). This segment will make up about 12% of the market in 2018. And third, revenue that comes from newly identified segments of existing markets: mostly the virtualized network functions (VNFs), and also ports on routers, switches, and optical gear that have become SDN capable. This last segment makes up the largest slice of the SDN and NFV pie, 68% in 2018.”


NFV AND SDN MARKET HIGHLIGHTS

  • Infonetics expects global carrier SDN and NFV hardware and software to grow from less than $500 million in 2013 to over $11 billion in 2018
  • NFV represents the lion’s share of the combined SDN and NFV market, from 2014 out to 2018
  • The value of NFV is in the virtualized network functions software—the applications—rather than the orchestration and control; VNF makes up over 90% of the NFV software segment
  • SDN and NFV exemplify the telecom industry’s shift from hardware to software: SDN and NFV software are projected to make up of three-quarters of total SDN/NFV revenue in 2018

SDN ANALYST CONFERENCE CALL FOR CLIENTS

Infonetics clients are invited to join analyst Michael Howard Nov. 10 at noon EST for a carrier SDN and NFV market outlook, live or on-demand at www.infonetics.com/cgp/login.asp?id=859.


REPORT SYNOPSIS

Infonetics' new carrier NFV and SDN report provides worldwide and regional market size, forecasts through 2018, in-depth analysis, and trends for the network functions virtualization and software defined networking markets. The report tracks NFV hardware (NFVI servers, storage, switches) and NFV software (NFV MANO, VNF software). It also covers SDN capable service provider telecom hardware (in-use and not in-use routers, switches, and other hardware) and SDN orchestration and controller software and network applications. To buy the report, contact Infonetics: www.infonetics.com/contact.asp.


RELATED REPORT EXCERPTS


RECENT AND UPCOMING SDN AND NFV RESEARCH

View Infonetics' upcoming 2015 SDN and NFV research, current 2014 market research, publication calendar, events brochure, survey and report highlights, tables of contents, and more at www.infonetics.com/login.


INFONETICS WEBINARS

Visit www.infonetics.com/infonetics-events to register for upcoming webinars, view recent webinars on demand, or learn about sponsoring a webinar.

  • SDN Network Intelligence Holy Grail: The vSwitch or ToR? (Nov. 5: Attend)
  • NFV With SDN Service Chaining for Quickest New Revenue (Dec. 11: Learn More)
  • SDN and NFV Roundup of Trials and Deployments (View on-demand)
  • Making Your Network Run Hotter With SDN (View on-demand)
  • Choosing the Right SDN-NFV Orchestration Platform (2015: Sponsor)
  • Service Provider Experiences with NFV: The Good, the Bad, and the Ugly (2015: Sponsor)

INFONETICS IS HIRING

Infonetics Research is hiring analysts. See job openings here.


TO INQUIRE ABOUT RESEARCH, CONTACT:

  • N. America (West), Asia Pacific: Larry Howard, larry@infonetics.com, +1-408-583-3335
  • N. America (East, Midwest), L. America, EMEA: Scott Coyne, scott@infonetics.com, +1-408-583-3395
  • Greater China, SE Asia, India: 大中华区 Jeffrey Song jeffrey@infonetics.com +86 21-3919-8505
  • Japan: 日本 Takashi Kimura, TAK Analytics takashi.kimura@takanalytics.com +81 3-6408-5566
  • South Korea: 대한민국 Doug Moon, MBAP dougm@mbap.co.kr, +82 2-3453-9400

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively. View Infonetics' About Us slides.


Follow Infonetics on Twitter for the latest headlines: http://twitter.com/infonetics.

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"NFV represents the lion’s share of the combined SDN and NFV market, from 2014 out to 2018."

Michael Howard
Principal Analyst, Carrier Networks

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