- The surge in data traffic due to IoT, video streaming, and cloud computing is compelling service providers and enterprises to adopt software-defined networking (SDN) and network functions virtualization (NFV), where virtual routers play a critical role
- Virtual routers enable organizations to decouple hardware from software, resulting in cost-efficient and easily upgradable network solutions
- North America dominated the custom virtual router market with the largest revenue share of 38.29% in 2024, driven by the rapid deployment of 5G infrastructure, increasing cloud adoption, and growing demand for scalable, software-defined networking solutions across enterprises and telecom operators
- Asia-Pacific region is expected to witness the highest growth rate in the global custom virtual router market, driven by rapid digital transformation, growing internet penetration, and increased demand for virtualized networking solutions across sectors such as telecom, education, and e-commerce
- The solution segment dominated the market with the largest revenue share in 2024, driven by increasing demand for flexible, scalable, and programmable routing capabilities. Enterprises and service providers are shifting towards software-based routing solutions to enhance network agility and reduce reliance on hardware-centric infrastructure. Custom virtual router solutions enable integration with cloud environments, allowing centralized control and easier policy updates
