The bottom-up procedure was employed to arrive at the overall market size from the revenues of the key market players.Post arrival at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key individuals, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives.
The global virtual router market size is expected to grow from USD 116.8 million in 2018 to USD 331.5 million by 2023, at a Compound Annual Growth Rate (CAGR) of 23.2% during the forecast period.
The major factors driving the growth of the market are the decrease in CAPEX and OPEX, increase in demand for SDN and NFV, and growing need for mobility.
The research methodology used to estimate and forecast the global virtual router market size began with the capturing of data on the key vendor revenues through secondary research, annual reports, Institute of Electrical and Electronics Engineers (IEEE), Factiva, Bloomberg, and press releases.
Moreover, the vendor offerings were taken into consideration to determine the market segmentation.
Custom virtual routers enable users to build multiple virtual routers within a single routing device as per their specific routing requirements.
The service provider segment is expected to account for the larger market size during the forecast period, whereas the enterprises segment is expected to register a higher CAGR during the forecast period.
Our central thesis is twofold: first, as PC performance continues to improve, it becomes reasonable (through careful virtualization of the device forwarding path) to simultaneously support several virtual routers on a single device; second, it also becomes reasonable to construct powerful, flexible and resilient routers from a cluster of commodity PCs. For our purposes, we define a virtual router to be a router instance able to run concurrently with other instances using the same physical resources of a virtual router platform.
The idea of virtualising a router is not new; indeed, major router vendors offer variations on this theme that share a common binary control and data plane that filters packets to their corresponding virtual router instances.
The Virtual Router Project is a three year EPSRC funded research project between University College London's Computer Science Department and Lancaster University's Computing Department.
The project aims to investigate the design of virtual and distributed router platforms.