Virtual Router Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Report Covers Global Virtual Router Market Growth & Share and it is Segmented by Component (Solution and Service), End User (Service Providers, Enterprises), and Geography (North America, Europe, Asia-Pacific, Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Virtual Router Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Virtual Router Market Size

Virtual Router Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 340.81 Million
Market Size (2030) USD 940.13 Million
CAGR (2025 - 2030) 22.50 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Virtual Router Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Virtual Router Market Analysis

The Virtual Router Market size is estimated at USD 340.81 million in 2025, and is expected to reach USD 940.13 million by 2030, at a CAGR of 22.5% during the forecast period (2025-2030).

The virtual router market is driven by the increasing demand from the telecommunication and enterprise sector as service providers are increasingly moving from expensive, dedicated hardware devices to virtualized solutions that reduce the total cost of ownership (TCO), flexibility, and scalability.

  • The increasing focus on software-defined networking (SDN) has led to the development of several advanced virtual router software solutions. Moreover, the growing demand for private cloud and virtual router applications across network segments in the telecommunication and enterprise sector is expected to provide significant growth opportunities in the market.
  • Further, in the past few years, enterprise services have been becoming more diversified; more and more enterprises have deployed virtual private clouds (VPCs) on public or private clouds to cloudification and virtualize enterprise networks and IT infrastructure, thereby reducing network costs and implementing fast service rollout. Such factors increase the demand for cost-effective solutions such as Virtual routers in end-user segments owing to their scalability and cost-effective features.
  • Additionally, as cloud-based services develop, applications and traffic surge rapidly. Traditional enterprise WANs face challenges in enterprise infrastructure and service cloudification requirements. Virtual routers cope with trends of network device cloudification and virtualization. In addition, virtual routers save hardware costs because no dedicated hardware platform is required. Such developments resulted in virtual routers gaining significant traction in the past few years, expanding the virtual router market.
  • Moreover, the rising need for private clouds in enterprises coupled with expanding popularity of cloud services is creating growth opportunities for the market over the forecast period. These cloud services are strengthening their operations via the deployment of virtual routers, consequently fostering market growth. The need for virtual routers has significantly increased in the network environment due to their favorable features, which include faster data acquisition, faster network speed increases, and safer storage networks, among others, for cloud services.
  • Most industries faced difficulties as a result of the COVID-19 pandemic. Governments across the world forced indefinite shutdowns and disrupted supply chains. Businesses attempted to reduce maintenance costs across network environments, thus increasing the demand for virtual routers to reduce the total cost of ownership. Moreover, the market is expected to witness significant demand post-pandemic owing to the high penetration of digitization and cloud services and innovations in the virtual router environment.

Virtual Router Industry Overview

The virtual router market has been gaining a competitive edge in recent years and is moderately competitive. The companies in the market are strategically innovating, partnering, and expanding to provide innovative virtual router solutions.

In January 2022, Juniper Networks Inc. introduced new software features and hardware to make it easier for companies to manage their routers, forming a crucial corporate network building block. Juniper expanded its presence in the enterprise router market in 2021 by acquiring a startup called 128 Technology Inc. for USD 450 million. The company repackaged the virtual router software obtained through the acquisition into the Session Smart Router (SSR) product. Businesses can use SSR to establish network connectivity between data centers, branch offices, and cloud deployments.

Virtual Router Market Leaders

  1. Cisco Systems Inc.

  2. Hewlett Packard Enterprise

  3. Juniper Networks Inc.

  4. Broadcom Inc.

  5. Huawei Technologies Co., Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
Virtual Router Market Concentration
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Virtual Router Market News

  • April 2023: Edge networking solutions provider Telco Systems expanded its smart virtualization platform, Edgility, with a new virtual firewall and Virtual router. The update includes Edgility's built-in connectivity function, a virtual router, and a new Next Generation Firewall (vNFGW). The vNGFW strengthens network security and defends against cyber attacks, while the virtual router manages traffic to optimize performance, making for reliable communication between devices.
  • November 2022: BBIX, Inc., a subsidiary of SoftBank Corp. and BBSakura Networks, Inc. ('BBSakura'), a network solutions provider and a subsidiary of BBIX, announced to launch a new feature called OCX-Router(v1) in the Open Connectivity eXchange (OCX), a cloud-based network service. OCX-Router(v1) is a software-based virtual router appliance that provides IP routing on the OCX network. Using OCX-Router(v1), customers could exchange traffic between cloud services or regions within the tenant network without going through their on-premise facilities.

Virtual Router Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.2.1 Bargaining Power of Buyers/Consumers
    • 4.2.2 Bargaining Power of Suppliers
    • 4.2.3 Threat of New Entrants
    • 4.2.4 Threat of Substitute Products
    • 4.2.5 Intensity of Competitive Rivalry
  • 4.3 Assessment of the Impact of the COVID-19 on the Market

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Growing Need to Improve Network Agility and Efficient Scale Out by Service Providers
    • 5.1.2 Increase in the Demand for SDN and NFV
    • 5.1.3 Demand of Reduction in Total Cost of Ownership (TCO)
  • 5.2 Market Restraints
    • 5.2.1 Security Concerns Associated with the Virtualized Environment

6. MARKET SEGMENTATION

  • 6.1 By Component
    • 6.1.1 Solution
    • 6.1.2 Service
  • 6.2 By End-User
    • 6.2.1 Service Provider
    • 6.2.2 Enterprise
  • 6.3 By Geography
    • 6.3.1 North America
    • 6.3.1.1 United States
    • 6.3.1.2 Canada
    • 6.3.2 Europe
    • 6.3.2.1 United Kingdom
    • 6.3.2.2 Germany
    • 6.3.2.3 France
    • 6.3.2.4 Rest of Europe
    • 6.3.3 Asia-Pacific
    • 6.3.3.1 China
    • 6.3.3.2 Japan
    • 6.3.3.3 India
    • 6.3.3.4 Rest of Asia-Pacific
    • 6.3.4 Rest of the World
    • 6.3.4.1 Latin America
    • 6.3.4.2 Middle-East & Africa

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 Broadcom Inc.
    • 7.1.2 Cisco Systems Inc.
    • 7.1.3 Juniper Networks, Inc.
    • 7.1.4 Huawei Technologies Co., Ltd.
    • 7.1.5 Hewlett Packard Enterprise
    • 7.1.6 IBM Corporation
    • 7.1.7 Telefonaktiebolaget LM Ericsson
    • 7.1.8 Nokia Corporation
    • 7.1.9 Netronome Systems, Inc.
    • 7.1.10 ZTE Corporation
    • 7.1.11 netElastic Systems
  • *List Not Exhaustive

8. INVESTMENT ANALYSIS

9. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Virtual Router Industry Segmentation

A Virtual Router is a software function that replicates in software the functionality of a hardware-based Layer 3 Internet Protocol (IP) routing, which has traditionally used a dedicated hardware device.

The Global Virtual Router Market is segmented by Component (Solution and Service), End-User (Service Providers, Enterprises), and Geography (North America, Europe, Asia-Pacific, Rest of the World).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component Solution
Service
By End-User Service Provider
Enterprise
By Geography North America United States
Canada
Europe United Kingdom
Germany
France
Rest of Europe
Asia-Pacific China
Japan
India
Rest of Asia-Pacific
Rest of the World Latin America
Middle-East & Africa
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Virtual Router Market Research FAQs

How big is the Virtual Router Market?

The Virtual Router Market size is expected to reach USD 340.81 million in 2025 and grow at a CAGR of 22.5% to reach USD 940.13 million by 2030.

What is the current Virtual Router Market size?

In 2025, the Virtual Router Market size is expected to reach USD 340.81 million.

Who are the key players in Virtual Router Market?

Cisco Systems Inc., Hewlett Packard Enterprise, Juniper Networks Inc., Broadcom Inc. and Huawei Technologies Co., Ltd. are the major companies operating in the Virtual Router Market.

Which is the fastest growing region in Virtual Router Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Virtual Router Market?

In 2025, the North America accounts for the largest market share in Virtual Router Market.

What years does this Virtual Router Market cover, and what was the market size in 2024?

In 2024, the Virtual Router Market size was estimated at USD 264.13 million. The report covers the Virtual Router Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Virtual Router Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Virtual Router Industry Report

Statistics for the 2025 Virtual Router market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Virtual Router analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.