“Global Network Transformation Market to reach a market value of USD 977.23 Billion by 2031 growing at a CAGR of 47.2%”
The Global Network Transformation Market size is expected to reach $977.23 billion by 2031, rising at a market growth of 47.2% CAGR during the forecast period.
The rapid adoption of 5G technology, cloud computing, and IoT devices has driven IT and telecom companies to invest heavily in network transformation to meet growing data demands and improve service delivery. Expanding fiber optic networks and edge computing capabilities have further propelled growth, ensuring better connectivity and low latency services for end-users. This continuous evolution is crucial for maintaining competitive advantage and catering to the ever-increasing digital needs of consumers. Thus, in 2023, the IT & telecom segment registered 29% revenue share in the market. This dominant share is attributed to the sector’s continuous need for high-performance, reliable, and scalable network infrastructure.
The major strategies followed by the market participants are Products Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In February, 2024, Check Point Software Technologies Ltd. introduced the Quantum Firewall Software R82 and innovations for its Infinity Platform, addressing a 75% rise in cyber-attacks. R82 features AI-powered engines for preventing zero-day threats like phishing and malware, with improvements to enhance DevOps agility, security, and operational simplicity. Additionally, In November, 2024, Open Text Corporation unveiled OpenText Partner Network, granting access to its entire portfolio of solutions, including Content Services, Experience Management, and Security, along with cloud, AI, automation, and analytics. This expansion helps global distributors and resellers deepen customer relationships, drive innovation, and support digital transformation across various industries.
Based on the Analysis presented in the KBV Cardinal matrix; Cisco Systems, Inc., VMware, Inc., and IBM Corporation are the forerunners in the Network Transformation Market. Companies such as BMC Software, Inc., Fortinet, Inc., and Check Point Software Technologies Ltd. are some of the key innovators in Network Transformation Market. In October, 2024, VMware, Inc. unveiled Private AI Foundation with NVIDIA (PAIF-N) streamlines AI infrastructure deployment via enhancements in VMware Cloud Foundation 5.2.1. The Private AI Automation Services Quickstart Wizard enables efficient setup of AI Workstations and Kubernetes Clusters, offering version-controlled templates, GPU configuration guidance, and improved governance for AI/ML workloads within a secure, high-performance platform.
As enterprises increasingly rely on digital tools to run their operations, the demand for higher network efficiency and performance has surged. Traditional networks often struggle to handle the growing data traffic and latency-sensitive applications critical for modern business functions. Hence, increasing demand for higher network efficiency and performance in enterprise networks drives the market's growth.
Additionally, the advent of 5G technology is one of the most significant drivers of network transformation. With promises of ultra-low latency, higher bandwidth, and the ability to connect more devices simultaneously, 5G is poised to transform how businesses and consumers use mobile and broadband networks. Thus, rising demand for 5G connectivity and network expansion drives the market's growth.
One of the most significant barriers to widespread adoption of network transformation is the high initial investment required. Upgrading or completely overhauling an organization’s network infrastructure to support emerging technologies like 5G, SDN, or edge computing involves substantial capital expenditure. Therefore, high initial investment and capital expenditure impede the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
Based on component, the market is divided into solution and services. The services segment held 34% revenue share in the market in 2023. This segment includes professional services such as consulting, implementation, training, and managed services that support the deployment and ongoing management of network transformation technologies.
The solution segment is further subdivided into SDN & NFV, network automation, c-ran, and others. The network automation segment held 24% revenue share in the market in 2023. Network automation involves using software to automate the configuration, management, testing, deployment, and operation of physical and virtual network devices.
The services segment is further subdivided into professional services and managed services. The managed services segment held 43% revenue share in the market in 2023. Managed services involve outsourcing network management and maintenance tasks to third-party service providers, allowing organizations to focus on their core business activities.
On the basis of organization size, the market is segmented into large enterprises and small & medium enterprises. In 2023, the small & medium enterprises segment attained 38% revenue share in the market. SMEs increasingly recognize the importance of modernizing their network infrastructures to remain competitive and agile in a rapidly evolving digital landscape.
By end use, the market is divided into IT & telecom, energy & utility, healthcare, government, manufacturing, retail, media & entertainment, and others. The manufacturing segment held 11% revenue share in the market in 2023. The rise of Industry 4.0, characterized by smart factories, automation, and IoT-enabled devices, has spurred the demand for advanced networking solutions.
Free Valuable Insights: Global Network Transformation Market size to reach USD 977.23 Billion by 2031
The network transformation market is highly competitive, driven by rapid advancements in technology, the rise of 5G, and increasing demand for agile, scalable, and software-defined networking solutions. Companies are focusing on innovation, strategic partnerships, and acquisitions to gain a competitive edge. The market also sees intense rivalry between traditional players and emerging tech firms leveraging AI and cloud-based solutions. Customer demand for cost-efficient and secure networks further intensifies competition, pushing providers to enhance performance, reliability, and customization.
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe region generated 32% revenue share in the market. Europe has embraced network transformation to support its digital economy and enhance connectivity across its member states.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 45.40 Billion |
| Market size forecast in 2031 | USD 977.23 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 47.2% from 2024 to 2031 |
| Number of Pages | 365 |
| Number of Tables | 562 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Organization Size, End Use, Region |
| Country scope |
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| Companies Included | Cisco Systems, Inc., VMware, Inc. (Broadcom Inc.), Fortinet, Inc., Palo Alto Networks, Inc., Juniper Networks, Inc., Check Point Software Technologies Ltd., IBM Corporation, Anuta Networks International LLC, BMC Software, Inc. (KKR & Co., Inc.) and Open Text Corporation |
By Component
By Organization Size
By End Use
By Geography
This Market size is expected to reach $977.23 billion by 2031.
Rising Demand for 5G Connectivity and Network Expansion are driving the Market in coming years, however, Data Security and Privacy Concerns restraints the growth of the Market.
Cisco Systems, Inc., VMware, Inc. (Broadcom Inc.), Fortinet, Inc., Palo Alto Networks, Inc., Juniper Networks, Inc., Check Point Software Technologies Ltd., IBM Corporation, Anuta Networks International LLC, BMC Software, Inc. (KKR & Co., Inc.) and Open Text Corporation
The expected CAGR of this Market is 47.2% from 2023 to 2031.
The Solution segment is leading the Market by Component in 2023; thereby, achieving a market value of $636.6 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $332.1 billion by 2031.
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