IDC Predicts Telecom VNF Market to Grow at a Compound Annual Rate of 45.4%

nternational Data Corporation (IDC) expects the telecom virtual network functions (VNF) market to grow to $16.4 billion in 2022 at a compound annual growth rate (CAGR) of 45.4 percent. Worldwide revenue for the telco VNF market in 2017 stood at only $2.5 billion. The forecast comes from IDC’s inaugural report for the global telecom VNF market. It follows the release of IDC’s first forecast for network functions virtualization infrastructure (NFVI) in August. The newest report, Worldwide Telecom Virtual Network Functions Forecast, 2018-2022, says virtualized architectures are likely to pervade all carrier networks in the future, but the market is in its early stages and therefore relatively small today. However, as use cases such as network slicing in 5G and virtual CPE–based services gain steam, IDC expects this market to achieve significant growth in the near term.