Global Virtual Router Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Predefined, Custom), By Product (Software, Services), By Deployment Model (On-Premise, Cloud), By End-User Industry (Telco Providers, Cloud Providers, Enterprises), And By Geography - Forecasts From 2022 To 2027

The global virtual router market is projected to grow at a CAGR of 23.86% during the forecast period to reach US$683.633 million by 2027, from US$152.862 million in 2020.

Virtual routers are simply multiple distinct routers that are supported within one single router that allows service providers to configure multiple, separate, secure routers within a single frame. This functionality can be used to create separate routers for wholesale customers, corporate virtual private network (VPN) users, or users of a particular traffic type. Furthermore, the virtual router enables the host device which may be a computer of a server to operate as a typical router and have the abilities of a full-fledged router over a local area network (LAN). It is a software-based routing structure. It allows sharing an internet connection with the WIFI device enabling the network paths to divide for multiple devices. Moreover, it allows the end-user to avoid vendor lock-in as the individual using the virtual router does not need to depend on the vendor’s road maps. Further, it allows the user to upscale and downscale the network when needed. These modern systems can provide functionalities like traffic routing, and overlapping of IP addresses, and enable the solution to function as a general hardware-based network appliance. These numerous benefits along with the development of 5G infrastructure are expected to drive the market for virtual routers during the forecast period. The global virtual router market is segmented into type, product, deployment model, end-user industry, and by geography.

The growth of the global virtual router market is majorly attributed to the increasing focus on user scalability of solutions while maintaining a focus on cost reduction. The ease of scaling resources and the ability to easily move routing functions within a network offered by these solutions are fueling their adoption among the end-users.

Furthermore, the growing demand for private cloud operations in many large enterprises along with medium and small enterprises is expected to propel the market.

Over the years, cloud-based operations have proved their reliability to end users via technological advancement, additional security measures, and cloud protection. For instance, in October 2022, Microsoft introduced a new Microsoft Defender for Cloud innovations and expanded the vision of cloud security. The Microsoft Defender for DevOps and Microsoft Defender Cloud Security Posture Management (CSPM) allows organizations to adopt an infinite approach to cloud security and brings security to the developers right away. Moreover, the benefits of customization, efficiency, and privacy are further supporting the growing demand for private clouds to manage their network. Additionally, the deployment of virtual routers through private clouds further allows cost-efficiency to the organization, consequently helping the IT teams to effectively manage the network of the organization. Furthermore, 5G wireless gains traction in both developing and developed economies, and enterprises move towards Virtual Customer Premises Equipment (vCPE) resulting in the solid growth of this market over the projected period.

The Global Virtual router market in the North American region is expected to hold a significant share during the forecast period. Countries like the US and China are leading the adoption of advanced security solutions. Additionally, due to its highly developed internet infrastructure and the roll-out of technologies such as 5G, the growing adoption of virtual routers solutions by service providers in order to optimize their networking coupled with a rising preference to enhance the customer experience across all the major industry verticals in this region is expected to drive the demand for virtual routers in North America and Asia Pacific regions.

Product offering

• Juniper Networks offers vMX Series Universal Routing Platform that provides sophisticated routing capabilities for business and broadband services, including route reflection. This platform also supports a variety of optional virtualized services, significantly expanding its application range. Its key features include control-plane scale, full-featured, scalable routing support, and integration with Tier-1 cloud provider infrastructure.
• Cisco Systems, Inc. offers Cisco hardware routers as software called Integrated Services Virtual Router (ISRv). It has the ability to extend network security and services into the cloud while providing outstanding throughput performance, this ability allows the ISRv to earn Miercom Performance Verification certification.

COVID-19 Impact on the Virtual Router Market

The pandemic had a significant impact on the global virtual router market. Due to restrictions, many businesses and offices took their work culture to online platforms to continue their operations without any uncertain disruption. Data communication from one location to another substantially increased. Additionally, businesses moved a lot of their processes, data, and transactions online. As a result, the demand for virtual routers increased during this period. However, the temporary closure of offices worldwide hindered the demand growth for these services in the market, consequently affecting the overall growth of the virtual router market.

Global Virtual Router Market Scope:

Segmentation

• By Type
  • Predefined
  • Custom
• By Product
  • Solution
  • Services
• By Deployment Model
  • On-Premises
  • Cloud
• By End-User Industry
  • Telco Providers
  • Cloud Providers
  • Enterprises
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Others