SRv6 Service Chaining Market Report 2026

The SRv6 service chaining market size has grown exponentially in recent years. It will grow from $2.46 billion in 2025 to $3.02 billion in 2026 at a compound annual growth rate (CAGR) of 22.6%. The growth in the historic period can be attributed to increasing demand for programmable networking, growing adoption of network function virtualization, rising need for scalable service architectures, increasing migration toward IPv6 infrastructure, and expansion of cloud and telecom network deployments.

The SRv6 service chaining market size is expected to see exponential growth in the next few years. It will grow to $6.75 billion in 2030 at a compound annual growth rate (CAGR) of 22.3%. The growth in the forecast period can be attributed to the growing requirement for automated service chaining, increasing adoption of 5G and edge computing, rising demand for low-latency network services, increasing focus on network simplification and modernization, and growing need for efficient multi-cloud connectivity. Major trends in the forecast period include technology advancements in micro-segment identifiers, innovation in stateless service function chaining, development of high-performance SRv6 data planes, advancement in automated orchestration using artificial intelligence (AI) and machine learning (ML), and research and development in SRv6 interoperability and standardization.

The growth of cloud-native and hybrid cloud deployments is anticipated to drive the expansion of the SRv6 service chaining market in the coming years. Cloud-native and hybrid cloud deployments involve operating applications that are either fully optimized for cloud environments or distributed across a mix of on-premises and cloud infrastructures to enhance scalability, flexibility, and operational efficiency. The increase in cloud-native and hybrid cloud adoption is fueled by the rising demand for real-time, high-performance data processing and scalable applications. SRv6 service chaining enables cloud-native and hybrid cloud deployments by providing flexible and programmable traffic steering across distributed network functions. It enhances network agility and scalability by streamlining service integration, improving performance, and enabling dynamic, software-defined infrastructures. For example, in October 2025, the Cloud Native Computing Foundation, a US-based cloud-native organization, reported that 56% of backend developers were classified as cloud native in the third quarter of 2025, an increase from 49% in the first quarter of 2025, reflecting substantial growth over the past five years. Consequently, the expansion of cloud-native and hybrid cloud deployments is driving the growth of the SRv6 service chaining market.

Leading companies operating in the SRv6 service chaining market are concentrating on the development of advanced network routing solutions, including programmable service chaining platforms, to improve traffic management, minimize latency, and increase operational efficiency. Programmable service chaining platforms are solutions that allow network traffic to be routed through a defined sequence of virtual or physical network functions, such as firewalls, load balancers, and deep packet inspection tools, using IPv6-based instructions. For example, in May 2024, Time dotCom, a telecommunications provider based in Malaysia, introduced its segment routing IPv6 (SRv6) service chaining platform. The platform includes native IPv6 service steering, dynamic traffic engineering to ensure consistent bandwidth, and programmable service paths designed to enforce service-level agreements (SLAs) for enterprise and mission-critical applications. This launch marks a notable step forward in network function automation by combining flexible, IPv6-native routing with service chaining, allowing operators to efficiently manage complex traffic flows while supporting scalable enterprise and carrier-grade deployments. The solution delivers a reliable, scalable, and programmable framework for managing modern IP networks and service orchestration.

In October 2024, E.C.I. Networks Ltd., an Israel-based provider of networking and telecommunications solutions, completed the acquisition of NoviFlow Inc. for an undisclosed sum. Through this acquisition, E.C.I. Networks seeks to reinforce its software-defined networking (SDN) and SRv6 service chaining capabilities, expanding its range of high-performance, programmable network solutions for service providers and telecom operators. NoviFlow Inc. is a Canada-based SDN firm with expertise in SRv6 service chaining.

Major companies operating in the srv6 service chaining market are Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Dell Technologies Inc., Telefonaktiebolaget LM Ericsson, Cisco Systems Inc., Intel Corporation, Broadcom Inc., Fujitsu Limited, NEC Corporation, ZTE Corporation, Arista Networks Inc., Marvell Technology Inc., Ciena Corporation, Mavenir Inc., Ribbon Communications Inc., ADVA Optical Networking SE, Ekinops S.A., IP Infusion Inc., H3C Technologies Co. Ltd., Nokia Corporation.

North America was the largest region in the SRv6 service chaining market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the srv6 service chaining market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the srv6 service chaining market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have increased costs of segment-routing-capable routers, switches, and network operating systems used in srv6 service chaining deployments. telecom and data center segments in europe and asia-pacific are most affected due to dependence on imported networking equipment. higher capital costs have slowed large-scale transformation projects for some operators. however, tariffs have supported increased adoption of virtual network functions, software-defined service chaining, and regional sourcing strategies that reduce hardware dependency and improve deployment flexibility.

SRv6 service chaining is a network architecture that employs segment routing over Internet Protocol version 6 to encode ordered sequences of network functions or forwarding instructions as segments within packet headers, allowing packets to traverse a predefined chain of virtual or physical services. Its purpose is to provide scalable, programmable, and efficient traffic steering, enabling operators to orchestrate and deliver service functions in a specific order without maintaining per-flow state in the network, thereby enhancing automation, agility, and service-level control.

The main components of SRv6 service chaining include hardware, software, and services. Hardware comprises physical network devices such as routers, switches, servers, and network interface cards that enable the chaining, routing, and management of SRv6 services across networks. Deployment modes include on-premises and cloud-based solutions, offering organizations flexibility to meet operational, scalability, and performance requirements. Key applications include telecommunications, data centers, cloud service providers, and enterprises. These solutions are utilized by various end users such as service providers, enterprises, and government organizations.

The SRv6 service chaining market consists of revenues earned by entities by providing services such as network design and consulting, deployment and integration of service chains, managed network services and orchestration, professional services and systems integration, and training and technical support. The market value includes the value of related goods sold by the service provider or included within the service offering. The SRv6 service chaining market also includes sales of segment routing enabled routers and switches, network operating system software, network orchestration and automation platforms, virtual network functions (for example virtual firewalls and virtual load balancers), and analytics and monitoring tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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