Network Transformation Market Scope and Overview
The Network Transformation Market size was valued at USD 52.79 billion in 2023, with a projected CAGR of 42.1% to reach USD 877.5 billion by 2031, as per the SNS Insider report. With rising demand for network transformation solutions and rising technological advancements, businesses today emphasize network transformation solutions. IT teams are actively working to balance cloud along with on-premises CHPC solutions. Companies are scaling out on-premises CHPC resources as required. Simultaneously, cloud service providers have also started to deliver turn-key Network Transformation market solution environments customized to enterprises’ specific workload requirements.
A hybrid CHPC solution results in better efficiencies. Apart from this, it also assists in resolving security and privacy issues and minimizes maintenance costs. Therefore, the rising emphasis on Network Transformation solutions is witnessed to deliver tremendous opportunities for the growth of the market. The capacity of HPC systems to process large amounts of data at high speeds motivates academic institutions, energy companies, defense agencies, government agencies, and the utility sector to adopt HPC systems, which also assists in the expansion of the high-performance computing Market CAGR.
Some of the Major Key Players Studied in this Report are:
- NEC Corporation
- IBM
- Juniper Networks
- Fujitsu
- Cisco Systems
- Dell
- Ericsson
- Ciena
- Intel Corporation
- HPE
- Others
Network Transformation Market Segmentation Analysis
The SDN and NFV solutions are leading the network transformation market. Software Networking changes the Wide Area Network design by decoupling the data planes and control, refining applications from the original network infrastructure, and centralizing network intelligence. By using SDN and NFV data centres, telecom operators get better network control, programmability, and automation over their network. Furthermore, SDN and NFV improve the flexibility and scalability of WAN, which further advances the network availability and performance. All these factors are responsible for increasing the adoption of the solutions and propelling the market growth.
The 5G networks segment is witnessed to emerge as the fastest-growing segment during the forecast period as it is one of the core elements of network transformation. Currently, in most parts of the world, the 5G networks are in the testing and development phase. The path towards 5G includes the mutual motive to assist numerous access networks that are apparent to end-users. Additionally, the key driving factor is the rising adoption of virtual networking environments in telecommunications and the increasing in mobile data traffic that is increasing the adoption of 5G networks…
Market Segmentation and Sub-Segmentation Included Are:
On The Basis of Solution
- 5G Networks
- C-RAN
- Network Automation
- SDN & NFV
On The Basis of Service
- Professional Service
- Managed Service
On The Basis of Enterprise Size
- Large Enterprise
- Small & Medium Enterprise
On The Basis of End Use
- BFSI
- Energy & Utility
- Government
- Healthcare
- IT & Telecom
- Manufacturing
- Retail
- Others
The market is fragmented in nature, and various players hold a major market share. The major industry players are IBM, Cisco Systems, Inc. Juniper Networks Inc., Fujitsu, and NEC Corporation. The players are stressing out on inorganic growth strategies to develop technologically advanced products to gain a competitive edge in the market.
The Companies are involved in partnerships, strategic mergers, and acquisitions, focusing on strengthening their product portfolio, and manufacturing capacities, and providing competitive differentiation. For example, in February 2018, NEC Corporation declared that Vodafone Group had selected NEC Corporation/Netcracker’s Hybrid Operations Management solution to assist its transformation into a telecommunications cloud provider.
The virtualization program focused on the use of cloud-native, SDN/NFV technologies for the development of operational, and business systems, and processes. NEC/Netcracker’s HOM focuses on assisting this initiative by organizing and managing end-to-end services and resources within Vodafone fields. Vodafone Group is a telecommunications company which delivers a range of services involving data, voice, messaging, and fixed communications.
Recent Developments
In March 2021, Cisco has launched Cisco Plus. which is offering as-a-service models for its computing, networking, and storage hardware.
In January 2022, NEC Corporation has acquired Blue Danube Systems. This strategic acquisition is focusing majorly on NEC’s customer service capabilities and expands its assets in the North American region. Additionally, it is also enhancing NEC’s Open RAN solutions that allow the company to meet its customer’s specific requirements and demands.
Regional Outlook
North America dominated the market in 2023 driven by rising adoption of smart connected devices in this region. North America dominated the market and accounted for a major market share in 2023 owing to the rising adoption of smart connected devices and the Internet of Everything. The U.S. is an early adopter of these technologies. The Companies in the country have already implemented novel technology solutions to enhance the flexibility and manageability necessary for adding new network capacity and capabilities. Moreover, raised grants and budgets have motivated numerous leading players in the region to make hefty investments. The market has foreseen massive applications across diverse verticals in the U.S.
Key Takeaways
- The solutions segment held the dominant market; advanced technologies, scalability, network optimization, infrastructure upgrades, agility, automation, and intelligent management. Solutions deliver the mandatory tools and capabilities for companies to convert their networks and address the transforming demands of the digital landscape.
- Key technology providers and network equipment vendors provide overall comprehensive solutions that include software, hardware, and management tools.
Table of Contents
- Introduction
- Industry Flowchart
- Research Methodology
- Market Dynamics
- Impact Analysis
- Impact of Ukraine-Russia war
- Impact of Economic Slowdown on Major Economies
- Value Chain Analysis
- Porter’s 5 Forces Model
- PEST Analysis
- Network Transformation Market Segmentation, by Solution
- Network Transformation Market Segmentation, by Service
- Network Transformation Market Segmentation, by Enterprise Size
- Network Transformation Market Segmentation, by End Use
- Regional Analysis
- Company Profile
- Competitive Landscape
- USE Cases and Best Practices
- Conclusion
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