World’s Highest Growth Virtual Router Market in Coming Years, Forecast 2017 to 2025 | VMR

Virtual routers refer to a software-based routing framework that acts like a normal hardware router. When virtual router software is installed on a device, such as a laptop or server, it uses the host’s hardware to perform network and packet routing functionality, performed by a general router. Each virtual router is identified by a unique virtual router identifier, present in the last octet of the address. To improve network reliability, virtual routers can be implemented by the Virtual Router Redundancy Protocol (VRRP). The function of VRRP is to automatically assign any available Internet Protocol (IP) router to a participating host. Virtual routers thus enable virtual routing, a form of network functions virtualization (NFV). Virtual routing instances are independent in nature and therefore allow overlapping IP addresses, without any conflict with each other. Virtual routers are software that can be run on standard commercial hardware (COTS) and allow the hardware to function as a general hardware-based network appliance. Applying a virtual router results in greater cost savings as there is no need to install dedicated hardware solutions for routing purposes. This factor has also had a positive impact on the market demand for virtual routers around the world.

Virtual routing allows the free relocation of routing functions on a network, since the IP routing function is freed from any specific software. For basic routing functions, adding virtual router software to a product server allows the server to function as a router. In complex and advanced distributed routing environments, parts of the virtual router can be moved across the entire network, while still being controlled from a centralized control location. From such an evolution, it can be deduced that the routing functions can be configured dynamically or adapted to the needs of the network. Emerging open source technologies are designed to allow the integration of routing functionalities into software solutions and thus allow distribution over the entire network.

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The virtual router market is primarily driven by the growing popularity of software-defined networks (SDNs) and NFVs globally. Such growth in popularity of NFV and SDN has led to the development of several advanced virtual router software solutions. These solutions allow the encapsulation of traffic via IP tunnels and thus use a “layering” approach. Several virtual routers have also entered the market, which has wide area network (WAN) applications. Additionally, these advanced virtual router solutions can be installed in industry standard hardware, allowing for broader applications. Such features have promoted virtual router applications globally, leading to market growth across the world. In addition, the growing demand for virtual routers as replacement for WAN-based routers has also boosted the global virtual router market.

However, the failure of virtual routers to perform the functions of a heavy-duty core IP router has held back the growth of the market to some extent. Considering the increasing demand for virtual networks in different end-use industries, coupled with increasing advancements of virtual router software, the virtual router market is expected to benefit from several growth opportunities during the forecast period.

The global virtual router market has been segmented, on the basis of implementation into simple implementation, full implementation, and others. Full implementation was the most important segment in 2016, due to the benefits offered by this form of implementation and the higher cost of this type. On the basis of regions, the virtual router market has been segmented into North America, Europe, Asia-Pacific (APAC), South America, and the Middle East & Africa (MEA). North America held the largest market share in 2016, due to the presence of a large number of virtual router vendors.

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The leading companies in the virtual router market in the world are Nokia Corporation [Owners of Alcatel-Lucent] (Finland), Cisco Systems (US), Brocade Communication Systems (US), Huawei Technologies Co., Ltd. (China) and Juniper Networks (United States) among various other companies.

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