Virtual Private Network Market to rocket from $50 million to $600 million in 2026
Virtualization has come a long way from the early days of computing; today, it’s rocket fuel for market growth in wireless, and a new report from Mobile Experts details just how the virtual private network market will lead us into a new era of communication services.
The fundamental idea that users can share underlying resources is foundational in today’s cloud computing era. Data centers virtualize physical hardware like servers or networking equipment into logical virtual machines that can spin up or down based on demand. This report starts where the recently published Virtual Mobile Networks report, produced by Mobile Experts and Exact Ventures, left off—at Virtual Private Networks.
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“In this report, we break down the market into network functions (VNFs and CNFs) software for vDU, vCU, and vCore, and hardware elements, including radios and commercial off-the-shelf servers. We have produced detailed conclusions highlighting that about 75-80% of total market revenue resides in network functions and virtualization layer,” commented Principal Analyst Kyung Mun. “We foresee an increase from $50 million in 2021 to over $600 million in 2026—a CAGR of 66%.”
Including 71 pages of analysis and 49 in-depth charts and figures, Mobile Experts analysts have built a field guide for the fast-moving future of virtualization in private networks. They lay out the future of RAN and core network software, as well as the forecast for server hardware.
“The trend toward virtualization and cloud-native has been progressing in network operators core networks for nearly a decade. As these principles are applied to private networks, it will help to drive improved economics and increased flexibility into the RAN. Given their scale and expertise in cloud-native platforms and orchestration, public cloud players have a key role in the growth of this market,” commented Greg Collins, founder of Exact Ventures.