Service Provider Network Infrastructure Market Size, Share & Trends Analysis Report By Technology (Routers & Switches, Carrier IP Telephony, Broadband Access & Optical Transport, Microwave transmission & Mobile Backhaul, Wireless Packet Core), By Industry (Healthcare, Retail and eCommerce, Banking, Financial Services, & Insurance, Government & Defense, Information Technology & Telecommunications, Manufacturing, Others), By Enterprise Size (SMEs, Large Enterprises) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global service provider network infrastructure market size was valued at USD 134.56 billion in 2021, and is projected to reach USD 195.37 billion by 2030, registering a CAGR of 4.23% from 2022 to 2030.

Unlike the Internet, enterprise networks are not accessible to anybody who wishes to connect. Access to enterprise networks is restricted to particular users, devices, and locations. Transport Layer Security encryption or virtual private networks are routinely used to encrypt data that traverses them. Enterprise networking differs from other types of networking due to its scale. A typical user may have access to a home LAN, which employs a single router to connect several devices to the Internet. On the other hand, internal networks connect thousands of servers and devices to the Internet. The expanding market demand for 5G networks of the next generation enables businesses to implement an advanced telecom network architecture. The capacity and speed capabilities of the 5G network are superior to those of older telecom network architecture. The telecom carriers are conducting 5G network experiments to expedite the network's commercialization.

Businesses are utilizing digital technologies to enhance their operations. As the world grows more digital, network infrastructure is becoming increasingly important. Consequently, demand for network infrastructure is growing. In addition, corporations are modernizing their networks to accommodate the rising bandwidth requirements of cellular networks. The market for enterprise network infrastructure is being pushed by factors such as the increased adoption of mobile devices, the rising need for bandwidth, and the migration to wireless technologies. In addition, businesses are increasing their investments in network improvements to increase speed, which would give a dependable and cost-effective solution, boost performance, and reduce energy consumption.

Market Dynamics

Global service provider network infrastructure market drivers

Proactive problem avoidance and network upkeep

Businesses can better concentrate on their primary goals when they hire a network management services company. They mix high-performance network availability with more incredible speed and flexibility to drive their business's expansion. Network service providers already have the necessary infrastructure, making it possible to do upgrades and installations promptly. Maintenance that is preventative and proactive, as well as inspections and modifications, are carried out on a routine basis inside this sophisticated network architecture. In addition, managed network services make it possible for organizations to gain access to cutting-edge technology that they otherwise may not be able to acquire.

Enhanced protection for the network

Protecting the data and voice networks is the responsibility of managed network services. Anti-spam, anti-malware, anti-virus, anti-intrusion, and anti-inappropriate web material are typically included in the product offerings of network service providers (NSPs). In this arrangement, which is guarded by policies, all transactions, and apps that are critical to the business and data, are safe and secure. One example of a network services solution using a fully-managed network security solution is MaxxSecure. This solution aims to reduce the number of failures that occur and prevent bottlenecks and intrusions. Enhanced voice quality, improved call routing, and enhanced network management with built-in Quality of Service are other benefits companies may enjoy when they engage with a suitable managed network services company (QoS).

Global service provider network infrastructure market restraints

Lack of reliability

Working with their company, the specialist IT staff must comprehend the precise needs for the anticipated IT configuration of the customer. They may, however, lack the expertise and experience of an IT Service Provider. This results in a lack of understanding and communication between the company's IT department and the consulting business. With the goal of corporate expansion in mind, the IT department and IT services provider must have a productive working relationship. When the IT infrastructure has been set up and organized by IT consulting service providers, it isn't brilliant to request assistance from employed IT personnel.

Global service provider network infrastructure market opportunities

Growing investments in network modernization to enhance communication speed

The industry demand is driven by factors such as the increasing demand for network infrastructure services among small and medium-sized businesses, the increasing investments in upgrading networks to improve communication speed, the emergence of public and private network infrastructure, and the increasing adoption of mobile devices. Enterprises are using digital technology to enhance company operations and communication, which are beneficial for disseminating information. In addition, businesses are adopting network infrastructure devices due to their cost-effectiveness, dependability, enhanced performance, and energy efficiency. By providing direct Internet connection to service providers, network service provider vendors sell bandwidth that provides network access. Network technology encompasses cable satellite, mobile cell, and basic Internet protocols.

Regional Analysis

It is anticipated that Asia Pacific will grow at a compound annual growth rate (CAGR) of 5.9 %. Since the beginning of this century, major economic centres for the industry have emerged in places like China and India. Large sums of money are being invested by businesses in this area to take advantage of the prospects there. Concurrently, these nations have a substantial number of potential clients. Both national governments and private businesses are moving at a breakneck pace to implement digital technologies. As a result, during the time of the forecast, it is anticipated that the region will expand at a high CAGR in this market.

Europe had the third-highest market share in 2021, accounting for more than 25.0 %, and it is projected to maintain a compound annual growth rate of 3.8 % during the forecast period. The increasing use of mobile gadgets and the expanding use of the internet, both experiencing solid year-on-year growth, will continue to propel Europe's development. Countries such as the United Kingdom, Germany, and France contribute significantly to market development. The Banking, Financial Services, and Insurance industry, along with the Information Technology and Telecommunications industry, as well as the Manufacturing industry, are all contributing to the service provider network infrastructure market. As a result, the region contributes to the market's expansion.

Segmental Analysis

The broadband access & visual transportation segment dominated the market in 2021 with a share of more than 28 % and is anticipated to grow at a CAGR of 3.5 % between 2022 and 2030. As Internet users continue to rise, so does the demand for broadband access and optical transmission technology. Continuous technological advancements have resulted in higher network speed for this device. The world has dramatically changed from copper-wired networks to more advanced fibre optic cable networks. Consequently, the industry is advancing demand for broadband access and optical transmission equipment. From 2022 to 2030, the wireless packet core segment is anticipated to grow at the highest CAGR of 5.4%. Wireless packet core is gaining popularity due to its extensive features and capabilities. Telecom operators' needs and exceptions are effectively met by wireless packet core systems that adapt to the network's evolving requirements. Widespread adoption of wireless packet core solutions contributes to the segment's robust growth.

Between 2022 and 2030, the healthcare industry subsector is projected to experience the most significant growth rate, estimated to be 5.5 %. People have grown much more conscientious about their health in response to the growing understanding of the importance of well-being. As a result, healthcare organisations and institutes monitor and keep meticulous records of individuals' medical histories to assist them in providing superior medical treatments and services. As a consequence, healthcare organisations and businesses are embracing digital platforms that use these networks for information sharing. With a contribution of approximately 18 % in 2021, the banking, financial services, and insurance industry continue to maintain its commanding lead in the service provider network infrastructure market. This industry has begun adopting digital platforms to facilitate banking and other associated processes more efficiently. Financial institutions have begun utilising online platforms to provide their customers with a more positive experience. In addition, the requirement for improved communication in the BFSI sector would further propel the expansion of the business. As a result, the contribution of this sector to the market is more significant.

The significant enterprise segment is anticipated to continue to lead the market with a CAGR of 3.5 % from 2022 until 2030. In 2021, the large enterprise segment held around 70 % of the market share. Large firms are defined as companies that have more than one thousand employees. These companies have access to a substantial amount of funding, allowing them to develop and implement innovative technology. In addition, the business operations of such organisations are carried out without a hitch. As a result, the market's contribution from the section of significant firms is more outstanding. The expansion of the segment comprised of SMEs is anticipated to occur at a higher CAGR of 5.5 % between the years 2022 and 2030. The abbreviation for "Small and Medium-sized Enterprises" is "SMEs." These businesses have annual revenues of less than one billion US dollars and less than one thousand employees combined. These businesses typically have insufficient money and a restricted supply of resources. However, governments are helping small and medium-sized businesses by providing tax exemptions and other services. Therefore, during the forecast period, it is anticipated that the category of SMEs will progress at a greater growth rate.

Recent Developments

• In July 2022, China Mobile Research Institute and Huawei Release 5G New Calling Technical White Paper.
• In June 2022, Huawei Unveils a New Optical Vision to Help Operators Achieve Business Success.
• In July 2022, Song Shijie of ZTE: Accelerating development of optical fiber to bridge digital divide.
• In July 2022, ZTE assists Turk Telekom in core sites expansion of 100G&B100G metro optical network.