Global Network Transformation Market Research Report: By Component (Solution [5G Networks, C-RAN, Network Automation and SDN & NFV] and Services [Professional Services and Managed Services]), By Organization Size (Small & Medium Enterprise and Large Enterprise), By Vertical (BFSI, Energy & Utility, Government, Healthcare, IT & Telecom, Manufacturing, Retail and Others) and By Region (North America, Europe, Asia-Pacific, Middle East & Africa and South America) - Forecast till 2027
ID: MRFR/ICT/8969-HCR | March 2021 | Region: Global | 100 pages
Market Synopsis
Global Network Transformation Market size is expected to register an exponential CAGR of 39.7% valued at USD 12.15 Billion in 2019 and USD 122.73 Billion by 2026.
Network transformation enables organization to automate their networks to provide new advanced services with speed and cater their customers with excellent usage experience. This is achieved through connected devices, new applications, automation technologies, enhanced security controls, adoption of cloud-based services, among others. Some of the benefits offered by the network transformation include enhanced transperency and control, standardizied services, short deployment cycles, faster site connectivity that enables agile business of digital services, provide customer-oriented product offerings for superior user satisfaction, increase productivity in day-to-day business operations, greater network security to meet regulatory compliances, boost adoption of cloud through via cloud exchanges and direct SaaS connectivity, among others.
Several factors including rising demand for IT as a service platform, increasing trend of bring your own device by organizations, and adoption of network virtualization are some of the factors that are driving the network transformation market. Additionally, the new application architectures (for instance, microservices and containers) to help automate networks are also contributing to the market growth.
However, this market growth is hampered by lack of skilled workforce required for the development and integration to the existing infrastructure. Although, rapid advancements in technology is creating opportunities that can further boost the growth of the network transformation market. For instance, software-defined wide area network (SD-WAN), AI/ML and policy driven network architectures, rise of container-based virtualization, light-weight & portable applications are being launched as discrete microservices, etc. are some of the technological advancements evolving in the industry.
Segmentation
Global Network Transformation Market has been segmented based on Component, Organization Size, Functionality, Vertical, and Region.
By component, the global network transformation market has been divided into solution and services. Further, the solution sub-segment is bifurcated into 5G networks, cloud/centralized radio access network (C-RAN), network automation, and software-defined networking (SDN) & network functions virtualization (NFV). Whereas services sub-segment is divided into professional services and managed services.
By organization size, the global network transformation market has been divided into small & medium enterprise and large enterprise.
Depending on its vertical, the network transformation market is split into BFSI, energy & utility, government, healthcare, IT & telecom, manufacturing, retail, and others.
The global network transformation market has been analyzed for five regions—North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
Regional Analysis
Global Network Transformation Market is estimated to register an robust CAGR over the forecast period. The geographic analysis of the global network transformation market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
North America is expected to be the dominating region in terms of the adoption of network transformation solutions & services. North American market has been segmented into the US, Canada, and Mexico. The US is expected to lead the country-level market, while Canada is projected to be the fastest-growing segment during the forecast period. The US market is expected to report the highest market share, owing to the factors such as faster adoption of advanced technologies to enhance customer experience across all types of devices. Additionally, the North American market for network transformation solutions and services is expected to grow further due to presence of key players in the region such as Ciena Corporation (US), Cisco Systems, Inc. (US), Dell Inc. (US), Juniper Networks, Inc. (US), Hewlett Packard Enterprise Development LP (US), Intel Corporation (US), IBM Corporation (US), NEC Corporation (US), Ribbon Communications Operating Company, Inc. (US), Sakon (US), and Curvature (US). These players are competing to deliver network transformation solutions and services that supports, secures, and delivers containerized applications that need to keep up with this new trend of building once and running-anywhere.
Asia-Pacific region is projected to grow at the fastest rate over the forecast period, with the regional market being segmented into China, Japan, India, and the rest of Asia-Pacific. This growth is attributed to the rapid economic developments, increasing internet users, rise in OTT platforms and digital innovation in major countries including China, Japan, India, Singapore, Malaysia, Australia, among others. Furthermore, IT & telecom companies in the region are developing their digital skills and capabilities to ensure they stay one-step ahead of their competitors across the globe.
Competitive Analysis
Global Network Transformation Market is witnessing a exponential growth due to the rising demand for IT as a service platform, increasing trend of bring your own device by organizations, and adoption of network virtualization technology. Major players have opted for partnerships, acquisitions, and product developments as their key organic growth strategies to enhance their positions in the market and cater to the rapidly changing network demands. Additionally, the companies are focusing on providing proactive, predictive optimization model, ensuring efficiency, speed, and the best customer experience. These are expected to boost the demand for network transformation solutions and services across the globe.
Impact of COVID19
The outbreak of COVID-19 has resulted into several disruptions in the day to day business operations across industry verticals globally. Following to this outbreak, enforcement of lockdown and other movement restrictions for several months to prevent the spread of deadly virus impacted the rapid transformation in the working culture. The demand for network-based services reached its peak during lockdowns and movement restrictions imposed. The adoption of network transformation solutions and services helped organizations across industry verticals to cope up with the consumer demands during the pandemic. The increased dependency over the networks to operate in the flexible working hours, work from home environment, BYOD trend, uneven operating infrastructures, rapid digital transformation across end-use verticals (for instance education sector), among others impacted network capabilities.
Key Players
The Key Players in the Global Network Transformation Market are identified based on their country of origin, presence across different regions, recent key developments, product diversification, and industry expertise. These include Ciena Corporation (US), Cisco Systems, Inc. (US), Telefonaktiebolaget LM Ericsson (Sweden), Dell Inc. (US), FUJITSU (Japan), Juniper Networks, Inc. (US), Hewlett Packard Enterprise Development LP (US), Intel Corporation (US), IBM Corporation (US), NEC Corporation (US), Ribbon Communications Operating Company, Inc. (US), Wipro Limited (India), TATA Communications (India), Sakon (US), and Curvature (US). The key strategies adopted by most of the players are partnerships, acquisitions, agreements, and collaborations.
Global Network Transformation Market, 2018–2026 (USD Billion)
Source: MRFR Analysis
Intended Audience
- Enterprises
- Technology consultants
- Investors and venture capitalists
- Network operators & service providers
- Communication service providers
- Software developers
- Hardware manufacturers
Key Questions Addressed by the Report
- What was the historic market size (2018)?
- Which segmentation (Component/Organization Size/Vertical) are driving the market?
- What will be the growth rate by 2026?
- Who are the key players in this market?
- What are the strategies adopted by key players?
Report Scope:
| Report Attribute/Metric | Details |
|---|---|
| Market Size |
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| CAGR | 39.7% (2019-2026) |
| Base Year | 2019 |
| Forecast Period | 2020-2027 |
| Historical Data | 2018 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By Component, By Organization Size, By Vertical |
| Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Key Vendors | Ciena Corporation (US), Cisco Systems, Inc. (US), Telefonaktiebolaget LM Ericsson (Sweden), Dell Inc. (US), FUJITSU (Japan), Juniper Networks, Inc. (US), Hewlett Packard Enterprise Development LP (US), Intel Corporation (US), IBM Corporation (US), NEC Corporation (US), Ribbon Communications Operating Company, Inc. (US), Wipro Limited (India), TATA Communications (India), Sakon (US), and Curvature (US). The key strategies adopted by most of the players are partnerships, acquisitions, agreements, and collaborations. |
| Key Market Opportunities |
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| Key Market Drivers |
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