Virtual routers refer to a routing framework, based on software,
which acts a normal hardware router. When virtual router software is
installed in a device, such as a laptop or a server, it utilizes the
hardware of the host to perform the network and packet routing
functionalities, performed by a general router. Each virtual router
is identified through a unique virtual router identifier, which is
present at the last byte of the address. To improve the reliability
of the network, virtual routers may be implemented by the Virtual
Router Redundancy Protocol (VRRP). The VRRP functions to
automatically assign to a participating host, any available Internet
Protocol (IP) router. Virtual routers thus enables virtual routing, a
form of Network Functions Virtualization (NFV). Virtual routing
instances are independent in nature and hence allows for overlapping
of IP addresses, without any conflict with each other. Virtual
routers are software which can be run on commercial off-the shelf
(COTS) hardware and enable the hardware to function like a general
hardware based network appliance. Virtual routing enables the free
relocation of routing functions across a network, since IP routing
function is liberated from any specific software. In case of basic
routing functions, addition of virtual router software to a commodity
server allows the server to function as a router. In complex and
advanced distributed routing environments, parts of the virtual
router can be moved across the whole network, while being controlled
from a centralized control location. From such an evolution it can be
inferred that routing functions can be dynamically configured or
adapted to the network needs. Open source emerging technologies are
being designed to enable the routing functionalities to be integrated
into software solutions and thus allowing for distribution throughout
the network.
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The market for virtual routers is primarily being driven by the
growing popularity for software defined networking (SDN) and NFV
globally. Such growth in NFV and SDN popularity has led to
development of several advanced virtual router software solutions.
These solutions allow for encapsulation of traffic through IP based
tunnels and thus utilize an ‘overlay’ approach. Also several
virtual routers have penetrated the market, which has Wide Area
Networking (WAN) applications. Also, these advanced virtual router
solutions can be installed in industry standard hardware, allowing
for wider applications. Such features have been promoting the
applications of virtual routers globally, leading to growth of the
market across the globe. Additionally, application of virtual router
leads to higher cost saving since dedicated hardware solutions are
not required to be installed for routing purposes. This factor has
also been positively impacting the demand for virtual routers
globally. Furthermore, the growing demand for virtual routers as a
replacement for WAN based routers has also been promoting the global
market for virtual routers. However, the fact that virtual routers
are unable to perform the functions of a heavy duty core IP router
has been restraining the growth of the market to some extent.
Considering the growing demand for virtual networks across different
end use verticals, coupled with the growing advancements of virtual
router software, the market for virtual routers can be expected to be
provided with several growth opportunities, during the forecast
period.
The global virtual router market has been segmented, on the basis of
implementation into simple implementation, full implementation and
others. Full implementation was the largest segment in 2016, owing to
the advantages offered by this form of implementation and the higher
cost of this type. On the basis of regions, the market for virtual
routers has been segmented into North America, Europe, Asia Pacific
(APAC), South America and Middle-East & Africa (MEA). North
America held the largest market share in 2016, owing to the presence
of large number of virtual router vendors.
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The major companies of the virtual router market globally are Nokia
Corporation [Owners of Alcatel-Lucent] (Finland), Cisco Systems (The
U.S.), Brocade Communication Systems (The U.S.), Huawei Technologies
Co., Ltd. (China), and Juniper Networks (The U.S.) among various
other companies.
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