Virtual Customer Premises Equipment (vCPE) Market

Virtual Customer Premises Equipment (vCPE) Market Size

             2020                         2024-2032      

Report	Details
Market Size Value	USD 2.7 billion in 2022
Market Size Value	USD 18.6 billion by 2030
CAGR	39.05%
Forecast Period	2024-2032
Base Year	2023
Historic Data	2020
Segments Covered	Offerings, Deployment Mode, Organization Size, and End-use Verticals
Geographics Covered	North America, Latin America, Europe, Asia-Pacific, Middle East & Africa

Major players in Virtual Customer Premises Equipment (vCPE) Market include: Cisco, HPE, Juniper Networks, Broadcom, IBM, Arista Networks, Dell Corporation, Verizon, ADVA Optical Networking, Advantech, Spirent Technologies, Versa Networks, Anuta Networks, Parallel Wireless, Ericsson, NEC Corporation, Intel, and Huawei Technologies

Rising Adoption of network virtualization among enterprises

The adoption of network virtualization, particularly virtual customer premises equipment (vCPE), is experiencing a significant upswing among enterprises owing to the flexibility and scalability provided by network virtualization. Enterprises are attracted to the cost reductions that vCPE provides. Traditional CPE devices require large upfront investments as well as continuous maintenance costs. By moving to virtualized CPE functions, businesses can eliminate the requirement for dedicated hardware at each location leading to lower capital expenses. Additionally, telecommunications businesses have been at the forefront of network virtualization, especially vCPE. Virtualizing CPE functions enables telecom operators to provide their clients with flexible and scalable services. The companies can regulate network operations and effectively expand resources to meet consumer demand. vCPE enables telecom operators to improve service delivery, optimize network use, and minimize expenses associated with physical CPE devices. Furthermore, the healthcare industry recognizes network virtualization's benefits, particularly vCPE in improving patient care and optimizing operations. Virtualizing CPE functions enables healthcare businesses to securely connect their facilities, integrate medical equipment, and provide telemedicine services. vCPE simplifies network management and improves security, allowing healthcare organizations to comply with tight data privacy rules while providing quality treatment.

Emergence of 5G

The emergence of 5G technology is set to transform the Virtual Customer Premises Equipment (vCPE) market providing an abundance of benefits and growth prospects. 5G, the fifth generation of wireless technology, brings considerable improvements in speed, capacity, latency, and connectivity, all of which have immediate consequences for vCPE installations. One of the most significant advantages of 5G technology is its ability to handle significant increases in network capacity. 5G facilitates the transfer of massive volumes of data at ultra-fast rates due to higher frequency bands and bigger bandwidths. This increased capacity is especially beneficial for vCPE installations since it enables the seamless provisioning of virtual network functions (VNFs) and delivers bandwidth-intensive services without sacrificing performance.

5G networks enable the integration of edge computing capabilities, placing computation and storage closer to the end-user or device. The connection allows enterprises to install vCPE capability at the network edge, lowering latency and boosting overall network performance. Edge computing enables vCPE deployments to process data locally, resulting in faster response times and less dependency on centralized data centers.

In conclusion, the introduction of 5G technology opens up considerable prospects for cloud-based vCPE deployments. 5G enables enterprises to harness the benefits of vCPE for higher flexibility, scalability, service agility, edge computing, and interaction with NFV. The combination of 5G with vCPE results in a formidable platform for delivering high-performance network services, enabling IoT deployments, and enabling rapid provisioning of customized services. The convergence of vCPE and 5G is expected to foster more innovation and growth in the telecoms and networking industry as 5G continues to roll out internationally.

Regional Insight

Asia Pacific currently dominates the Virtual Customer Premises Equipment Market owing to the growing adoption of cloud computing and rising demand for bandwidth-intensive applications. Several Asian countries are actively promoting digital transformation efforts across industries. These activities increase the demand for agile and adaptable networking solutions, which makes vCPE an appealing option. Organizations can use vCPE to virtualize and consolidate network functions, resulting in scalability, cost-efficiency, and easier network management. In addition, the Asia-Pacific region has recorded an increase in demand for managed network services. Organizations are looking for managed solutions to effectively handle their networking needs while focusing on essential business operations. vCPE enables service providers to efficiently supply managed network services, giving customized solutions tailored to the specific needs of enterprises in the region.

Japan is one of the leading markets for vCPE in the Asia Pacific. The country's significant emphasis on R&D has resulted in the introduction of cutting-edge technology and solutions in the networking and telecommunications industries. Because of this technological expertise, Japan is a prime market for vCPE solutions, as Japanese enterprises are eager to use modern virtualization and cloud-based networking technologies. The resilient infrastructure encourages the use of vCPE systems by providing the connectivity and bandwidth required to perform virtualized network operations and services. Japan's sophisticated telecommunications ecosystem presents a favorable setting for vCPE deployments.

Additionally, Japan is at the top of IoT deployments, with particular emphasis on smart cities, industrial automation, and linked gadgets. vCPE is crucial in controlling and improving network connectivity for IoT devices, allowing enterprises to maximize the benefits of IoT deployments. Furthermore, the growing need for managed network services, the development of IoT deployments, and Japan's future preparation for 5G all contribute to the country's vCPE growth.

The Virtual Customer Premises Equipment (vCPE) Market research report provides an in-depth overview of the industry including market segmentation by Offering, Deployment Mode, Organization Size, End-use Verticals, and Region. Analysis of the global market with a special focus on high-growth applications in each vertical and fast-growing market segment. It includes a detailed competitive landscape with identification of the key players concerning each type of market, in-depth market share analysis with individual revenue, market shares, and top players’ rankings. Impact analysis of the market dynamics with factors currently driving and restraining the growth of the market, along with their impact in the short, medium, and long-term landscapes. Competitive intelligence from the company profiles, key player strategies, and game-changing developments such as new product launches, collaborations, expansions, investment analysis, mergers, and acquisitions. The market analysis focuses on revenue and forecast by region/countries and by application in terms of revenue forecast for the period 2023-2030.

The report further studies the market strategies of key players, recent development status, plans, and Virtual Customer Premises Equipment (vCPE) Market trends across the world. Also, it splits the market segmentation further to deep dive into research and reveals company profile and prospects.

Major Classifications are as follows:

By Offerings

• Solutions
  • Virtual Switches
  • Virtual Routers
  • Infrastructure Management and Orchestration
  • Security and Compliance
• Services
  • Professional Services
  • Managed Services

By Deployment Mode

• On-Premises
• Cloud

By Organization Size

• SMEs
• Large Enterprises

By End-use Verticals

• BFSI
• IT
• Healthcare
• Government and Public Sector
• Manufacturing
• Others

By Key players

• Cisco
• HPE
• Juniper Networks
• Broadcom
• IBM
• Arista Networks
• Dell Corporation
• Verizon
• ADVA Optical Networking
• Advantech
• Spirent Technologies
• Versa Networks
• Anuta Networks
• Parallel Wireless
• Ericsson
• NEC Corporation
• Intel
• Huawei Technologies

By Region

• • North America
    • US
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Rest of the World
    • Middle East
      • UAE
      • Saudi Arabia
      • Israel
      • Rest of the Middle East
    • Africa
      • South Africa
      • Rest of the Middle East & Africa

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