Global Service Provider Network Infrastructure Market Size, Share & Industry Trends Analysis Report By Enterprise Size (Large Enterprises and Small & Medium Enterprises), By Industry, By Technology, By Regional Outlook and Forecast, 2022 - 2028
Special Offering: Industry Insights | Market Trends | Highest number of Tables | 24/7 Analyst Support
Get in-depth analysis of the COVID-19 impact on the Service Provider Network Infrastructure Market
Market Report Description
The Global Service Provider Network Infrastructure Market size is expected to reach $174.1 billion by 2028, rising at a market growth of 4.5% CAGR during the forecast period.
Service Provider Network Infrastructure refers to the hardware resources of telecommunications service businesses that enable wired and wireless network access and communication to transfer speech and data. The Network Infrastructure market lays the groundwork for the advent of technologies such as the Internet of Things (IoT), 5G, cloud-based process and data deployment, and Infrastructure-as-a-Service (IaaS). It provides a framework for these technologies as well as a network to connect them. Wireless applications and associated infrastructure are being driven by the broader change to flexible mobile use cases, both on the service provider and business sides.
Data correlation across numerous corporations, agencies, groups, persons, and locations is a specific strength of network service providers. As all government, commercial, and customer traffic must pass via a supplier backbone at some time, this provides a valuable source of correlation data. Since service providers monitoring internet traffic data on a big scale can often connect the observed activity with established patterns to which also occurrences like worms, the effort is worthwhile. Current computer network security measures such as intrusion detection and prevention are often less accurate in this regard.
Although not all network providers are well-known, they are critical to modern networking. Their high-speed infrastructure and services serve a downstream ecosystem that includes, among others, ISPs, cellular carriers, and virtual network operators, as well as providing a basis for all commercial IP services.
As long as no new technologies that don't rely on fiber in the ground emerge, the current Tier 1 ISPs would likely be the only ones investing in infrastructure in that market. Consider a company like Starlink, formed by Elon Musk and is a part of SpaceX. Starlink is creating a low-latency, broadband internet system to help users and would be supported by a constellation of low-Earth orbit satellites. Some of the largest ISPs have started making significant investments in 5G wireless communication due to the continued demand for higher speeds and an enhanced Internet experience.
COVID-19 Impact Analysis
The telecom industry is playing a crucial role during the COVID-19 pandemic to strengthen the digital foundation of nations. To provide and receive real-time information on COVID-19, every person and government, regardless of federal, state, local, or provincial level, has been in continual contact with one another in society. To stabilize the situation and provide necessary services to every person, healthcare, telecommunications, media and entertainment, utilities, and government institutions are currently working around the clock. For network management to be simple and convenient, network security solutions are necessary. As a result of country-level lockdowns, key industries such as manufacturing, automotive, textiles, transportation and logistics, travel & hospitality, and consumer products have been forced to close.
Market Growth Factors
Global digital transformation is becoming more prevalent
Greater network agility is required as a result of digital transformation for organizations to provide better consumer experiences. As part of the movement toward digital transformation, numerous businesses intend to implement new digital technology. Every firm has chosen a managed network services provider for its digital transformation journey as organizations advance their digital initiatives. Businesses can close the skills gap and expand into new markets with cutting-edge solutions by forming partnerships with the particular managed network service provider who can grasp their needs and opportunities.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The below 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.
Cloud services are being adopted more quickly by both large and small businesses.
The cloud services are more affordable than keeping an on-premises data center and an expensive IT resource to manage the organizations’ whole network, Small and Medium-sized Enterprises (SMEs) and major businesses are now gradually implementing cloud-based services. Additionally, businesses want a network that makes it simple for users to access their infrastructures, apps, and other IT resources whenever they need them. As a result, the adoption of the virtual resource-sharing environment has increased due to these expanding needs.
Market Restraining Factors
Network as a Service Market lacks standards
The main challenge in this sector is how to provide clients with Network as a Service while maintaining necessary regulatory compliances. The market vendors must adhere to adequate safeguards and regulatory rules, which are essential for businesses to succeed commercially. To promote the expansion of NaaS solutions, cloud providers must adhere to strict scalability standards for storage, compute, and network resource sharing. These needs include increased security, company restructuring, mergers, and consolidations. At some time, the vendors can discover that it is challenging to keep their technology up to date, secure, and compliant with regulations.
Enterprise Size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. The large enterprises segment acquired the highest revenue share in the Service Provider Network Infrastructure Market in 2021. It is because businesses with more than 1000 employees are considered large companies. These businesses can create and implement new technology because they have enormous budgets. Such businesses also manage their operations efficiently. As a result, the major enterprises category contributes more to the market.
Based on Industry, the market is segmented into BFSI, Government & Defense, Manufacturing, Telecom & IT, Retail & Ecommerce, and Healthcare & Life Sciences. The telecom & IT segment witnessed a substantial revenue share in the Service Provider Network Infrastructure Market in 2021. It includes any company that installs cable and equipment, system operators, telecommunications service providers like Sprint, Verizon, AT&T, governmental organizations, or other tenants. The term "telecommunications service provider" (TSP) refers to a particular category of telecommunications service supplier that has historically offered telephone and related services.
Based on Technology, the market is segmented into Broadband Access & Optical Transport, Routers & Switches, Carrier IP Telephony, Microwave transmission & Mobile Backhaul, and Wireless Packet Core. The broadband access & optical transport segment garnered the highest revenue share in the Service Provider Network Infrastructure Market in 2021. It is due to the need for internet connectivity and optical transport technology rising as there are more and more people using the Internet. Continuous technological advancements that boost network speed are a defining feature of this equipment.
|Market size value in 2021||USD 129.1 Billion|
|Market size forecast in 2028||USD 174.1 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 4.5% from 2022 to 2028|
|Number of Pages||276|
|Number of Tables||402|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Market Share Analysis, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Enterprise Size, Technology, Industry, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The Asia pacific region acquired a substantial revenue share in the Service Provider Network Infrastructure Market in 2021. Due to the fact that the sector has been heavily concentrated in nations like China and India in the past ten years, businesses are investing a lot of money in these regions to take advantage of their potential. They also have a large customer base. As a result of the rapid adoption of digital technology by governments and businesses, this region is expected to grow at a significant CAGR during the forecast period.
KBV Cardinal Matrix - Service Provider Network Infrastructure Market Competition Analysis
Free Valuable Insights: Global Service Provider Network Infrastructure Market size to reach USD 174.1 Billion by 2028
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Huawei Technologies Co., Ltd. is the major forerunner in the Service Provider Network Infrastructure Market. Companies such as Broadcom, Inc., Alcatel-Lucent Enterprise and Ericsson AB are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Huawei Technologies Co., Ltd., Juniper Networks, Inc., Broadcom, Inc., Alcatel-Lucent Enterprise, Avaya Inc., ZTE Corporation, Ericsson AB, Aruba Networks (Hewlett Packard Enterprise Company), and Nokia Corporation.
Recent Strategies Deployed in Service Provider Network Infrastructure Market
» Product Launches and Product Expansions:
- Jun-2022: Huawei introduced CloudCampus 3.0 Solution along with Software-Defined (SD)-WAN, CloudFabric 3.0, three new IP networking solutions. Through this launch, the companies aimed to authorize Middle East businesses with supercomputing intelligence and power to boost digital modification across.
- Apr-2022: Broadcom unveiled Wi-Fi 7 chips, complete end-to-end chipset solutions for spanning Wi-Fi routers, Wi-Fi 7 ecosystem, residential gateways, industry access points, and consumer devices. The new Wi-Fi 7 chips offer double speed as Wi-Fi 6 and 6E solutions, while concurrently providing dedicated low-latency transmissions and comprehensive range.
- Mar-2022: Nokia unveiled Adaptive Cloud Networking, a cloud-native solution. The new Adaptive Cloud Networking is developed to react to the unexpected needs of the 5G generation by supercharging a service operator's data center fabric and seamlessly expanding its functions to the edge clouds. In Addition, this creation in the telco clouds is developed and operation would allow service providers to strengthen crucial role in the 5G digital network worth chain.
- Nov-2021: Alcatel-Lucent Enterprise introduced Alcatel-Lucent OmniPCX Enterprise Purple, the communications medium developed for the digital generation. The new OmniPCX Enterprise Purple presents a new communication experience allowing associations of any size to curve the future of employment and the digital workplace workers and consumers are pursuing.
- Nov-2021: Alcatel-Lucent Enterprise introduced Network as a Service, offering enterprises the possibility to cost-effectively boost the digital modification of the enterprise. The Network as a Service platform can rapidly rise and adjust with the greatest flexibility to fulfill new industry needs and enhance consumer experience.
- Sep-2021: Huawei unveiled H-OTN, the industry's first optical communication product. The new H-OTN combines OTN and Optical Line Termination device abilities and provides end-to-end hard lines from access networks to Wide Area Networks, ensuring the complete security of middle services and cutting latency by around 60%. Additionally, H-OTN sustaining NHPs guides the process of secure exhibition.
- Sep-2021: Huawei introduced CloudWAN 3.0. The solution permits industries to develop a dedicated, adaptable, and deterministic network, managing the multiple objections enterprises encounter during digital modification in the cloud generation and insinuating new acceleration into digital evolution.
- May-2021: Broadcom introduced Expert Advantage, an extended global channel services associate program. The new Expert Advantage focused on consumer success to boost development across Broadcom Software solutions.
- Jan-2021: Ericsson introduced a 5G network slicing solution for radio access networks. The solution allows communications service suppliers to provide personalized 5G services with assured performance. Additionally, Ericsson 5G RAN Slicing assigns radio resources at 1-millisecond arranging and sustains various dimensional service differentiation handling across slices. Moreover, the Solution bolsters end-to-end slicing abilities for active resource management and orchestration that assure the high-quality end-user experience needed by various use cases.
- Sep-2020: Broadcom unveiled the Brocade X7 Directors and G720 Switch, the industry’s first Gen 7 64Gb/s Fiber Channel switching platforms. Through this launch, the company delivers the first 64Gb/s Fiber Channel optic transceiver, which is suitable for usage of Brocade switches and Emulex adapters, for end-to-end Gen 7 accomplishment.
- Jun-2020: Aruba unveiled Aruba ESP, the industry’s first AI-powered, cloud-native platform. The new Aruba ESP is developed on AIOps, Zero Trust network security, and a Suitable Infrastructure for the data center, campus, branch, and remote worker locations, Aruba ESP provides an automatic, all-in-one platform that constantly examines data across authority, secures SLAs, recognizes irregularities and self-optimizes while noticing and securing strange machines on the network.
» Partnerships, Collaborations and Agreements:
- Jun-2022: ZTE Corporation signed a comprehensive cooperation agreement with Advanced Info Service, Thailand’s number one digital service provider. Under this agreement, ZTE would be AIS’ complete strategic partner to promote key technologies such as 5G to improve network quality and provide superior consumer experiences to AIS consumers, while creating innovations to position Thailand at the vanguard of the digital economy.
- Jan-2022: Aruba came into a partnership with China Telecom Global, one of the largest providers of combined telecommunication services. Through this partnership, the companies aimed to expand CTG's offering with Aruba's safe Edge-to-Cloud networking solutions. In Addition, the added stability and security would permit consumers to develop innovative digital applications and further leverage on global economies.
- Dec-2021: ZTE came into a partnership with Ooredoo Group, a provider of telecommunication services. Through this partnership, ZTE would provide the telco with transport, cloud core, radio, and 4G/5G CPE/terminals, along with CPE instruments such as 5G routers, 5G MiFi, and connected combined and implementation services.
- Oct-2021: Ericsson signed a memorandum of understanding with stc, a frontiersperson digital champion. This agreement aimed to together analyze endurable industries to control the stc network system with intelligent and sustainable energy. In addition, the Agreement would explore other Information and Communication Technology green-site solutions and supportability industries for the Kingdom.
- Jul-2021: Nokia came into a partnership with Xantaro, which specializes in network technologies and services for carriers, service and cloud providers, and data center operators. Through this partnership, the Nokia aimed to support alternative service providers with fiber technology through partner Xantaro.
- Aug-2020: Alcatel-Lucent Enterprise came into a partnership with RingCentral, a supreme provider of global enterprise cloud communications. Through this partnership, the companies aimed to introduce a new joint cloud solution Rainbow Office powered by RingCentral, creating it exclusive and special for Alcatel-Lucent Enterprise. Additionally, Alcatel-Lucent Enterprise’s powerful existence in Europe and beyond would improve company capability to together allow consumers and associates to boost migration to cloud communication solutions in industry.
» Acquisitions and Mergers:
- Feb-2022: Juniper Networks completed the acquisition of WiteSand, the cloud-based zero-trust protection startup. Through this acquisition, the company aimed to comprise WiteSand's access control technology within the cloud-based Mist network managing platform for branch offices and branches. Additionally, WiteSand's zero-trust network access controls would evolve key elements in the AI-driven Mist offering.
- Dec-2021: Broadcom completed the acquisition of AppNeta, a SaaS platform that allows big companies to achieve visibility. Through this acquisition, AppNeta's SaaS-based solution, IT and Network Ops units at extensive, and distributed companies can rapidly identify problems that impact network and business crucial cloud application performance, however where they appear.
- Npv-2020: Ericsson took over Cradlepoint, the US-based market superior in Wireless WAN Edge 4G and 5G solutions. Through this acquisition, the company can connect vehicles, sites, mobile workforces, and IoT devices securely and easily utilizing cellular technology. In Addition, by utilizing the integrated portfolio, Ericsson would be able to develop valuable new income streams for its consumers by sustaining 5G-enabled benefits for the company and increasing returns on investments in the network.
Scope of the Study
Market Segments Covered in the Report:
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
- Government & Defense
- Telecom & IT
- Retail & Ecommerce
- Healthcare & Life Sciences
- Broadband Access & Optical Transport
- Routers & Switches
- Carrier IP Telephony
- Microwave transmission & Mobile Backhaul
- Wireless Packet Core
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Huawei Technologies Co., Ltd.
- Juniper Networks, Inc.
- Broadcom, Inc.
- Alcatel-Lucent Enterprise
- Avaya Inc.
- ZTE Corporation
- Ericsson AB
- Aruba Networks (Hewlett Packard Enterprise Company)
- Nokia Corporation
Unique Offerings from KBV Research
- Exhaustive coverage
- The highest number of Market tables and figures
- Subscription-based model available
- Guaranteed best price
- Assured post sales research support with 10% customization free
How valuable will the service provider network infrastructure market be in the future?
The global service provider network infrastructure market size is expected to reach $174.1 billion by 2028.
What are the key driving factors and challenges in the service provider network infrastructure market?
Global digital transformation is becoming more prevalent are driving the market in coming years, however, Network as a Service Market lacks standards limited the growth of the market.
What are the major top companies in the competitive landscape?
Huawei Technologies Co., Ltd., Juniper Networks, Inc., Broadcom, Inc., Alcatel-Lucent Enterprise, Avaya Inc., ZTE Corporation, Ericsson AB, Aruba Networks (Hewlett Packard Enterprise Company), and Nokia Corporation.
Which segment dominated the service provider network infrastructure market in 2021?
The Information Technology (IT) segment dominated the Global Service Provider Network Infrastructure Market by Business Function in 2021, thereby, achieving a market value of $9.50 Billion by 2028.
Which segment is leading the market in 2021?
The On-premise segment is leading the Global Service Provider Network Infrastructure Market by Deployment Type in 2021, thereby, achieving a market value of $15.9 Billion by 2028.
Which region is fastest growing region in the market?
The North America is the fastest growing region in the Global Service Provider Network Infrastructure Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $10.1 Billion by 2028.