Global Virtual Customer Premises Equipment (vCPE) Market

Dublin, October 3, 2022 (GLOBE NEWSWIRE) — The “Virtual Customer Premises Equipment (vCPE) Market by Component, Solutions/Tools (Virtual Switches, Virtual Routers), Service, Deployment Mode, Organization Size, Application (Data Center and Enterprise), and Region: Forecast overall by 2027” Report has been added to offering.

The global customer virtual facility equipment market size is expected to grow from USD 2.8 billion in 2022 to USD 15.3 billion by 2027, at a compound annual growth rate (CAGR) of 40.2% during the forecast period.

By deployment mode, the local segment will grow with the largest market share during the forecast period

On-premises deployment refers to the deployment and availability of vCPE software on an organization’s premises. Customers demand local implementation of vCPE solutions as they help control and maintain systems on the network. Customers can implement certain restrictions and monitor the network while using the software.

On-premises deployment also guarantees one-time investments, installation is one-time costs, and customers can gain full ownership of the infrastructure with one-time investments. The local implementation of vCPE provides more features such as IPAM, NAT, Firewall and QOS. vCPE VNF policies at customer premises are supported.

By organization size, the Large Enterprises segment will have the largest market size during the forecast period

Organizations with more than 1,000 employees are considered large companies. Adoption of vCPE software among large enterprises is expected to increase in the coming years. To manage infrastructure, applications, and data on traditional CPE and vCPE technologies, enterprises are deploying vCPE technologies.

They have a substantial network infrastructure that allows them to coordinate daily operations with offices in different regions. To reduce network downtime, vCPE offers a less expensive method of managing your entire network from a single location.

By application, the data center and telecommunications service provider segment is expected to grow to the largest market share during the forecast period

Data centers and telecommunication service providers are the most important application areas in the V-CPE market. The amount of data generated in telecommunications companies is exceptionally large, requiring quality storage solutions and services. The telecommunications service providers segment includes service providers that carry digital information or transfer data electronically over mobile networks.

The segment includes all telecommunications service providers (TSPs), MNOs, CSPs, ISPs, fixed wireless or wireless broadband providers, and MVNOs. These carriers include players that provide carrier services/network services via the wireless network. Telecom operators are the main buyers of vCPE solutions, covering approximately 65-70% of the vCPE market.

Mobile operators face various challenges, such as upgrading legacy systems to meet current end-user demands, intense competition, high CAPEX and OPEX, and lower ROI. Therefore, they look for scalable and cost-effective solutions.

This, in turn, is expected to be the main reason for the rapid adoption of vCPE solutions and services by telecom operators. With V-CPE solutions, telecommunications companies can easily transfer their business functions from one geographic location to another.

Additionally, they can use virtual CPE as a new way to deliver broadband services to business customers, along with most CPE functions such as routing, NAT, VPN, or firewall through a virtual environment. The breakdown of the profiles of the main participants is presented below:

Premium prospects

  • Increasing technological advances to drive market growth
  • Local segment to account for most during the forecast period
  • Solutions/Tools segment and the United States to represent a larger market share
  • Solutions/Tools and the rest of Asia-Pacific will represent high market shares in 2022
  • India to grow at the highest CAGR during the forecast period

market dynamics


  • Adoption of inter-enterprise network virtualization
  • Efficient implementation of managed services
  • Simplified data transfer


  • Security issues in network virtualization
  • Transition to virtualized infrastructure from legacy infrastructure


  • Reduced dependency on hardware
  • Value added services


  • Limited knowledge and shortage of skilled labor
  • Supervision of complex multi-technology virtual networks in infrastructures

industrial trends

  • Value chain
  • Virtual Customer Facility Equipment Value Chain
  • Ecosystem
  • Virtual Customer Facility Equipment Market – Ecosystem
  • Market: Ecosystem

technology analysis

  • Software Defined Networking
  • Cloud Computing
  • edge computing
  • Network functions virtualization

Use cases

  • Case Study 1 – Verizon Offers Wireless Router Solutions
  • Case study 2: Virtualization of equipment on customer premises

Tariff and regulatory impact

  • soc2
  • Digital Millennium Copyright Act
  • Cybersquatting Consumer Protection Act

company profiles

key players. main players

  • cisco
  • HPE
  • juniper nets
  • broadcom
  • IBM
  • Arista Networks
  • Dell Corporation
  • ericsson
  • nec corporation
  • Intel
  • river of wind
  • radar data communication
  • Huawei Technologies
  • Verizon
  • Adva Optical Networks
  • advantech
  • spiritual communications

Start-Ups and SMEs

  • Versa Networks
  • Anuta Networks
  • Parallel Wireless
  • Altiostar
  • Noviflow Inc.
  • cumucora
  • nware
  • netelastic systems
  • Voereir Ab
  • brain4net

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