The Business Research Company’s Virtual Customer Premises Equipment Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, December 4, 2025 /EINPresswire.com/ -- "How Much Is The Virtual Customer Premises Equipment Market Worth?
The market size for virtual customer premises equipment has seen significant growth in the recent past. The market, valued at $9.91 billion in 2024, is projected to rise to $12.65 billion in 2025 with a compound annual growth rate (CAGR) of 27.6%. Factors driving this growth historically include an increasing shift towards cloud-based network services, a growing demand for network virtualization, the rising need for cost-efficient IT solutions, an increase in remote work setups and enterprise connectivity needs, and the increased use of software-defined networking solutions.

In the coming years, the market size of virtual customer premises equipment is projected to witness substantial expansion. The size is forecasted to increase to $33.21 billion in 2029, with an annual growth rate (CAGR) of 27.3%. The rise in the projected period is attributed to the bolstered focus on compliance and network security, escalation in edge computing infrastructure investment, surging demand for managed network services, increased incorporation of AI and analytics into network operations, and the growing requisite for scalable connectivity in enterprises. Notable trends in the forecasted term encompass advancement in the deployment of cloud-based virtual customer premises equipment (vCPE), progress in AI-powered network management, transit from physical to virtual network functions, enhancement in virtual security features, and the evolution of edge computing-enabled virtual customer premises equipment (vCPE).

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What Are The Factors Driving The Virtual Customer Premises Equipment Market?
The surge in utilization of cloud-based services is anticipated to fuel the advancement of the virtual customer premises equipment market in the future. Cloud-based services, which are computing resources and applications provided via internet on distant servers instead of local infrastructure, facilitate on-demand access to scalable IT capabilities. Organizations are increasingly opting for cloud-based services to lessen capital expenditures on physical infrastructure. These cloud solutions negate the need for expensive on-site hardware upkeep and offer adaptable, pay-as-you-go pricing structures. The growth of cloud-based services bolsters virtual customer premises equipment by allowing network functions typically handled by physical hardware to be virtualized and presented through cloud platforms. This allows businesses to set up and manage network services remotely without the need for dedicated on-site equipment. For example, as per March 2024 data from Flexera, a US-based computer software company, organizations are increasingly moving towards multi-cloud strategies, with usage climbing from 87% in 2023 to 89% in 2024. As such, the surge in deployment of cloud-based services is propelling the expansion of the virtual customer premises equipment market. The ever-increasing demand for bandwidth is expected to further boost the growth of the virtual customer premises equipment market in the future. Bandwidth, which designates the highest volume of data that can be transmitted over a network connection within a specific time frame, usually quantified in bits per second (bps) is in high demand. This is due to the escalating use of cloud services as businesses and users are transferring larger volumes of data to and from cloud-based applications, storage, and platforms. This necessitates faster, more dependable network connections. The burgeoning demand for bandwidth underlines the need for virtual customer premises equipment as it provides service providers the capacity to efficiently deliver scalable network functions and bandwidth-intensive services without the need for physical hardware at customer sites. For example, in November 2024, the UK Parliament's House of Commons Library, a UK government administration, reported that as of January 2024, 78% of UK premises were outfitted with gigabit-capable broadband. This reflects an escalation from 72% in January 2023 and 64% in January 2022. As such, the burgeoning demand for bandwidth is driving the expansion of the virtual customer premises equipment market.

Who Are The Major Players In The Virtual Customer Premises Equipment Market?
Major players in the Virtual Customer Premises Equipment Global Market Report 2025 include:
• Huawei Technologies Co. Ltd.
• Dell Technologies Inc.
• Cisco Systems Inc.
• Intel Corporation
• Hewlett Packard Enterprise Company
• Telefonaktiebolaget LM Ericsson
• NEC Corporation
• Nokia Corporation
• Telstra Corporation Limited
• Palo Alto Networks Inc.

Which Segment Accounted For The Largest Virtual Customer Premises Equipment Market Share?
The virtual customer premises equipment market covered in this report is segmented –

1) By Component: Software, Services, Hardware
2) By Deployment Type: On-Premises, Cloud-Based, Hybrid
3) By Enterprise Size: Large Enterprises, Small And Medium Enterprises
4) By Application: Network Security, Software-Defined Wide Area Network (SD-WAN), Unified Communications, Data Analytics, Configuration Management
5) By End-User Industry: Telecom And Internet Service Providers, Banking, Financial Services And Insurance (BFSI), Healthcare, Retail And E-Commerce, Information Technology And Data Centers, Other End-User Industry

Subsegments:
1) By Software: Network Management Software, Security And Firewall Software, Device Configuration Software, Analytics And Monitoring Software
2) By Services: Installation And Deployment Services, Maintenance And Support Services, Consulting And Integration Services, Remote Monitoring Services
3) By Hardware: Routers And Gateways, Modems And Network Interfaces, Edge Computing Devices, Connectivity Modules

What Are The Regional Trends In The Virtual Customer Premises Equipment Market?
In the Virtual Customer Premises Equipment Global Market Report 2025, North America emerged as the dominant region for the year 2024. It is projected that the region with the fastest growth rate will be Asia-Pacific. This comprehensive report encompasses all regions, including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

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