NFV and SDN are transformational technologies, and even leading CSPs are in the early stages of evolving

Despite market and complexity challenges, CSP spend on NFV/SDN will grow at a TBR-projected 32.4% CAGR from 2019 to 2024 to nearly $147B

NFV/SDN spend will increase at a CAGR of 32.4% to $146.9 billion between 2019 and 2024, compared to nearly flat overall communication service provider (CSP) spend (capex plus external opex) for the global market. NFV/SDN spend will scale through the forecast period as leading CSPs broaden their transformation initiatives and as additional CSPs begin their transformational journeys.

5G will be a key catalyst that will push more CSPs to adopt and broaden their NFV- and SDN-related initiatives. COVID-19 will serve as a catalyst for digital transformation, which implicates NFV and SDN, as operators will increase investment in the technologies to improve network cost efficiencies long term and support shifting data usage trends arising from the increased number of work-from-home employees and remote learners. Rakuten, along with China- and U.S.-based CSPs, will be key drivers of the spend increase in the early years of the forecast. TBR expects lower-tier CSPs in developed countries and key CSPs in emerging markets will ramp up NFV/SDN spend in the later years of the forecast period, driving continued spend growth in the overall market.

Most CSP spend on NFV/SDN to date has been on virtual machines, but this will increasingly transition to container-based and cloud-native, microservices-based spend through the forecast period as CSPs continue their evolutionary journeys.

TBR’s NFV/SDN Telecom Market Forecast details NFV and SDN trends among the most influential market players, including both suppliers and operators. This research includes current-year market sizing and a five-year forecast by multiple NFV and SDN market segments and by geography as well as examines growth drivers, top trends and leading market players. TBR’s NFV/SDN Telecom Market Landscape includes key findings, market size, customer and geographic adoption, operator and vendor positioning and strategies, and acquisition and alliance strategies.