Virtual Networking Market Size Worth $194.63 Billion By 2030

Virtual Networking Market Growth & Trends

The global virtual networking market size is expected to reach USD 194.63 billion by 2030, registering a CAGR of 25.6% from 2023 to 2030, according to a new report by Grand View Research, Inc. Factors such as the growing adoption of Internet-of-Things (IoT) devices, the need for improved network security, the growing adoption of cloud computing, and the rising demand for remote working are the major factors driving the market growth. As more businesses move their applications and infrastructure to the cloud, there is a growing need for virtual networking solutions that can provide secure, high-performance connectivity between different cloud environments.

Integration of virtual switches with Software-defined Networking (SDN) controllers are also expected to drive the demand for the Virtual Networking Market growth. Virtual switches are increasingly being integrated with SDN controllers, which provide centralized management and control of the network infrastructure. This allows for greater flexibility and agility in managing virtual networks and can simplify the deployment of network services such as firewalls, load balancers, and intrusion detection/prevention systems. At the same time, virtual switches are being integrated with cloud orchestration platforms such as Kubernetes and OpenStack, which allow for automated provisioning and management of virtual networks.

Cloud computing and virtual networking solutions are closely interconnected, as virtual networking is an essential component of cloud infrastructure. Cloud computing with virtual networking solutions allows businesses to create a flexible and scalable network infrastructure that can meet the needs of modern applications and workloads. In cloud computing, virtual networking solutions can provide improved performance, reliability, and cost savings compared to traditional networking solutions. By leveraging virtual networking solutions in the cloud, businesses can achieve greater efficiency, agility, and scalability in their IT operations, while also improving security and reducing costs associated with hardware and maintenance

The outbreak of the COVID-19 pandemic had a positive impact on the market. The COVID-19 pandemic has had a significant impact on the adoption and usage of virtual networking solutions, as more businesses and individuals work remotely and rely on cloud-based services. With remote work becoming more prevalent, there is greater emphasis on data security and privacy, driving demand for virtual networking solutions that can provide advanced security features such as encryption, access control, and intrusion detection/prevention. Such factors are anticipated to create more demand for the market over the coming years.

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Virtual Networking Market Report Highlights

• The software segment dominated the market in 2022 owing to their heir ability to increase scalability, resilience, and portability of applications. With the increasing prevalence of cyber-attacks, software solutions are focusing on integrating security features throughout the development lifecycle to protect against threats

• The cloud segment dominated the market in 2022. Cloud solution providers are increasingly offering virtual networking services as part of their cloud solutions, allowing customers to create and manage their own virtual networks within the cloud environment

• The large enterprises segment dominated the market in 2022. By virtualizing network resources, large enterprises can reduce hardware and operational costs, as they no longer need to invest in expensive physical network infrastructure

• The IT & Telecommunication segment dominated the market in 2022. Virtual networking solutions are enabling IT and telecommunications companies to provide connectivity between different cloud environments, allowing customers to use multiple clouds while maintaining a consistent network experience

• North America dominated the regional market in 2022. The rising adoption of cloud computing across the region is anticipated to significantly contribute in driving the regional market growth

Virtual Networking Market Segmentation

Grand View Research has segmented the Virtual Networking Market based on component, deployment, enterprise size, application and region.

Virtual Networking Component Outlook (Revenue, USD Million, 2017 - 2030)

• Hardware

• Software

• Services

Virtual Networking Deployment Outlook (Revenue, USD Million, 2017 - 2030)

• On-Premise

• Cloud

Virtual Networking Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

• Large Enterprises

• Small & Medium Enterprises

Virtual Networking Application Outlook (Revenue, USD Million, 2017 - 2030)

• BFSI

• Public sector

• Manufacturing

• Hospitality

• IT and Telecommunication

• Healthcare

• Others

Virtual Networking Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • U.K.

  • Germany

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Latin America

  • Brazil

  • Mexico

• Middle East & Africa

  • Kingdom of Saudi Arabia (KSA)

  • UAE

  • South Africa

List of Key Payers of Virtual Networking Market

• Huawei Technologies Co., Ltd.

• Hewlett Packard Enterprise Development LP

• VMware, Inc.

• Cisco Systems, Inc

• Microsoft Corporation

• IBM Corporation

• Citrix Systems, Inc.

• Juniper Networks, Inc.

• Oracle

• Verizon Communications Inc.