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Virtual Customer Premises Equipment (vCPE) Market : Trends & Opportunities with Forecast 2027

Virtual customer premises equipment (vCPE) offers network functions such as routing, security, VPN (virtual private network), NAT (network address translation), access control, etc.

The driving factor for the virtual customer premises equipment (vCPE) market is the rising need for mobility of IT services and growing demand for virtual networking infrastructure solutions & services. Virtual customer premises equipment offers enhanced networking infrastructure, which can be accessed anywhere. Enterprises are adopting virtual customer premises equipment (vCPE) as it hardware requires minimal hardware to the customer. This lowers the capital expenditure of the company. Additionally, with virtual customer premises equipment (vCPE), support and maintenance are provided with software, which increases efficiency.  However, the lack of skilled workforce hampers market growth.

Virtual Customer Premises Equipment (vCPE) Market: Segmentation

The global virtual customer premises equipment (vCPE) market can be segmented based on solution, service model, enterprise size, industry vertical, and region. The virtual customer premises equipment (vCPE) market can be categorized in terms of solution into hardware, software/tools, and services. Software/tools can be fragmented into cloud and on-premise. The services solution can be categorized into professional and managed services. The professional services solution can be classified into installation & integration, support & maintenance, and consulting & training.

Based on service model, the virtual customer premises equipment (vCPE) market can be categorized into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).  In terms of enterprise size, the virtual customer premises equipment (vCPE) market can be segmented into small-medium enterprises (SMEs) and large enterprises. Large enterprise segment dominates the market and it is expected to continue its dominance over the forecast period.

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Based on industry vertical, the virtual customer premises equipment (vCPE) market can be segmented into BFSI, IT and telecom, data centers, manufacturing, retail, government, healthcare, media and entertainment, utilities, hospitality, transportation and warehousing, real estate & construction, education, defense and aviation, consumer goods, and others (legal, etc.). IT and telecom and data center industry segments are expected to see rapid growth during the forecast period. The education industry is projected to create significant incremental opportunity as virtualization technology offers several benefits such as online programs, group discussions, and information exchange.

Virtual Customer Premises Equipment (vCPE) Market: Regional Overview

Based on region, the global virtual customer premises equipment (vCPE) market can be segmented into North America, South America, Europe, Asia Pacific, and Middle East & Africa. North America accounted for highest market share in 2018 due to rising demand for cloud access and services by communications service providers from their enterprise customers. The market in Asia Pacific is expected to grow at the highest rate due to increasing demand for Internet of Things (IoT) devices across industries in the region.

In the Asia Pacific region, industries such as energy and utilities, manufacturing, transport and logistics, and agriculture are expected to lead the market and industrial IoT. South America is expected create significant opportunity in the virtual customer premises equipment (vCPE) market due to rising expansion of companies in this region. For instance, in June 2016, NEC Corporation, a Japanese provider of information technology services and products, based in Tokyo, completed the first phase of a pre-commercial trial for virtual customer premises equipment (vCPE) for residential users in Brazil. The company has completed this trial with Telefonica, S.A., a Spanish multinational telecommunications company with headquarters in Madrid, Spain.

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Companies in the global virtual customer premises equipment (vCPE) market focus on offering better customer experiences. The virtual customer premise equipment reduces the need for hardware. Technological developments in networking also increases competitiveness. Telecommunication providers are entering in network function virtualization. For instance, in January 2018, FairPoint Communications launched a virtual customer premise equipment (vCPE).

Virtual Customer Premises Equipment (vCPE) Market: Key Players Overview

Key companies operating in the global virtual customer premises equipment (vCPE) market are Anuta Networks, Juniper Networks, Inc., NEC Corporation, Netcracker Technology, Spirent Corporation, F5 Networks, Inc., ClearPath, Ericsson Inc., IBM Corporation, Intel Corporation, FairPoint Communications, Hewlett Packard Enterprises (HPE), and others.

 
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