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The Network Functions Virtualization (NFV) Market: Business Case, Market Analysis and Forecasts 2014-2019


November 2013




Single-user License: $ 2,995 USD
Company-wide License: $ 6,995 USD
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Virtualization, SDN, Software Defined Networks, Network Function Virtualization, NFV, Cloud, Virtualization Cloud, Virtualized EPC, Virtualized IMS


Network Functions Virtualization (NFV) is a telecom led initiative that aims to utilize standard IT virtualization technology to consolidate many telco network equipment types onto industry standard high volume servers, switches and storage. NFV involves implementing network functions in software that can run on a range of industry standard server hardware, and that can be moved to, or instantiated in, various locations in the network as required, without the need to install new proprietary equipment.

With a promise to drive significant CapEx and OpEx reductions, NFV is poised to transform the entire telco infrastructure ecosystem. Mind Commerce estimates that global spending on NFV solutions will grow at a CAGR of 46% between 2014 and 2019. NFV revenues will reach $1.3 Billion by the end of 2019.

This report provides an in-depth assessment of the global NFV market, including a study of the business case, technology, use cases, vendor landscape, and a quantitative assessment of the industry from 2014 to 2019.

The report addresses the following key topics:

  • Key Issues in NFV: An assessment of key issues related to NFV
  • NFV Use Cases: A review of specific use cases for the Big Data market
  • NFV Technology: A review of the underlying technologies that enable NFV
  • The Business Case for NFV: An assessment of the business case, growth drivers and barriers for NFV
  • Vendor Assessment: An assessment of the vendor landscape of leading players within the NFV market
  • Market Analysis and Forecasts: A global and regional assessment of the market size and forecasts for the NFV market from 2014 to 2019

Key Findings

  • Early NFV deployments will target virtualization of the mobile core (EPC) and IMS services
  • NFV IaaS will open a major opportunity for data center and cloud service providers to play a greater role in the telco services market
  • Mind Commerce estimates the NFV market to be worth $203 Million in 2014. Growing at a CAGR of 46 % between 2014 and 2019, NFV revenues will reach $1.3 Billion by the end of 2019
  • Companies with expertise in network virtualization technology as well as commodity hardware manufacturers such as Intel will significantly benefit from the commercialization of NFV

Target Audience

  • SDN providers
  • Mobile network operators
  • Telecom infrastructure providers
  • Cloud and virtualized data centres
  • NFV technology/solution vendors
  • Telecom service providers of all types
  • Digital content and application providers

Companies in Report

Amazon, Azuze, AT&T, 6WIND, Alcatel-Lucent, Amdocs, BT, CIMI Corp, Cisco, Connectem, ConteXtream, Ericsson, F5, Google, Huawei, Intel, Juniper Networks, Meraki, NEC, NSN, Openwave Mobility, Oracle, Skyfire/Opera, Telefonica

Table of Contents

  • Chapter 1: Introduction
  • Executive Summary
  • Topics Covered
  • Key Findings
  • Target Audience
  • Companies Mentioned
  • Chapter 2: NFV Technology and Business Case
  • Defining NFV
  • Why the Confusion between NFV and SDN
  • Taxonomy for NFV
  • Commercial Off The Shelf (COTS) Hardware
  • Cloud Computing
  • Architecture: How to Define a "Network" in an NFV World?
  • Lessons from the Virtualized World: Meraki Case Study
  • Market Drivers
  • CapEx/OpEx Reduction
  • Improved Time to Market
  • Improved Scalability of Services and Network Topology
  • Energy Reduction and Improved Operational Efficiency
  • Market Barriers
  • Performance Trade-Off
  • Security Concerns
  • Integration and Network Stability Challenges
  • Driven by Standards (ETSI/ISG) and "Too Many Cooks"?
  • Case Study: If a Telco was Run with the Same Economies as AWS, Azure or Google Server Farms, What is the Benefit/Value etc?
  • Technology: What is the Real Problem to be Solved?
  • What is the Role of the CloudNFV Group?
  • Chapter 3: NFV Use Cases, Implementation Areas and Case Studies
  • Mobile Core and IMS
  • RAN and HetNets: Enabling Cloud RAN
  • Home Environment Virtualization
  • NFV based Infrastructure as a Service (IaaS)
  • What are the Other Trajectories for the Network and NFV Should/Could be Aware of (They All Matter)?
  • NFV Implementation Case Studies
  • BT
  • AT&T
  • Chapter 4: NFV Vendor Landscape
  • Vendors are Already Lined Up: Who is Doing What?
  • 6WIND
  • Alcatel-Lucent
  • Amdocs
  • Cisco
  • Connectem
  • ConteXtream
  • Ericsson
  • F5
  • Huawei
  • Intel
  • Juniper
  • NEC
  • NSN
  • Openwave Mobility
  • Skyfire/Opera
  • Oracle
  • Chapter 5: Key Issues in an NFV World
  • What are Key Elements from a Cost/Performance Perspective?
  • Dimensioning and Elasticity
  • Transition from Now to New (ie. Fork-Lift vs Selective Implementation)
  • Does NFV Help in Content Delivery?
  • Does NFV Help in Contextual Communications?
  • Will NFV Generate New Revenues, Services and Applications?
  • Money Flows
  • Does the Pie Shrink, or is there More Opportunity: Does NFV Open the Industry for Non-Traditional Telcos?
  • Could an Enterprise Integrate its Cloud/IT Services with NFV and Benefit?
  • Lessons Learned So Far
  • Ecosystem: Who are the Winners and Losers?
  • Chapter 6: Forecasts
  • NFV Revenue: 2014-2019
  • NFV Revenue by Region 2014-2019
  • Asia Pacific
  • Eastern Europe
  • Latin and Central America
  • Middle East and Africa
  • North America
  • Western Europe

List of Figures

  • Figure 1: The ETSI Vision for NFV
  • Figure 2: Relationship between NFV and SDN
  • Figure 3: COTS Hardware in an NFV Setup
  • Figure 4: Energy Reduction in an NFV Setup
  • Figure 5: CloudNFV Open Framework
  • Figure 6: Mobile Core Virtualization
  • Figure 7: Mobile RAN Virtualization
  • Figure 8: CPE Virtualization
  • Figure 9: NFV IaaS Setup
  • Figure 10: NFV IaaS Revenue: 2014-2019 ($ Million)
  • Figure 11: NFV Solution Sales Revenue: 2014-2019 ($ Million)
  • Figure 12: NFV Solution Sales Revenue by Region: 2014-2019 ($ Million)
  • Figure 13: Asia Pacific NFV Solution Sales Revenue: 2014-2019 ($ Million)
  • Figure 14: Eastern Europe NFV Solution Sales Revenue: 2014-2019 ($ Million)
  • Figure 15: Latin and Central America NFV Solution Sales Revenue: 2014-2019 ($ Million)
  • Figure 16: Middle East and Africa NFV Solution Sales Revenue: 2014-2019 ($ Million)
  • Figure 17: North America NFV Solution Sales Revenue: 2013-2019 ($ Million)
  • Figure 18: Western Europe NFV Solution Sales Revenue: 2014-2019 ($ Million)