Network Transformation
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What Is the Expected CAGR for the Network Transformation Market Through 2025?
The size of the network transformation market has seen significant expansion in recent times. It is projected to grow from $90.73 billion in 2024 to a staggering $139.37 billion in 2025, achieving a compound annual growth rate (CAGR) of 53.6%. The increase during the historic period can be linked to factors such as outdated infrastructure, increased bandwidth demand, security issues and cost reduction efforts.
What’s the Projected Size of the Global Network Transformation Market by 2029?
The value of the network transformation market is predicted to expand significantly in the coming years, ballooning to approximately $789.96 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 54.3%. This positive projection for the forecast period can be associated with factors such as increasing prevalence of remote working, resilient supply chains, automation in networks, digital transformation, and increased competition. Key future trends shaping this market growth are edge computing, utilization of artificial intelligence and machine learning, advancements including 6G and beyond, embracing Cloud technology, and the Internet of Things (IoT).
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Top Growth Drivers in the Network Transformation Industry: What’s Accelerating the Market?
The network transformation market is predicted to expand due to the increasing implementation of the bring your own device (BYOD) policy in business settings. BYOD policy allows employees to link their personal gadgets like smartphones, tablets, PCs, laptops, etc., to the company’s network, facilitating them in carrying out their assignments. Company network infrastructures may often need to be altered or transformed in order to accommodate these personal devices, which is where network transformation plays its part. As per Cisco, BYOD is permitted by 89% of IT departments in some capacity, with 69% of IT chiefs maintaining a positive standpoint on it. Thus, the escalating uptake of BYOD policy in corporate spheres is anticipated to fuel the growth of the network transformation market.
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What Trends Will Shape the Network Transformation Market Through 2029 and Beyond?
Key players in the network transformation market are concentrating on the creation of novel solutions like modular, scalable data centers, engineered to deliver efficient and adaptable data center solutions in places with limited infrastructure. These types of data centers are designed with flexibility and expansion in mind, offering computing resources housed in self-contained units that can be conveniently modified to adapt to fluctuating demand and optimize the utilization of resources. For example, in February 2023, the US-based cloud computing firm, Amazon Web Services (AWS), declared its AWS Modular Data Center (MDC) available to the U.S. Department of Defense (DoD). This MDC presents an autonomous, climate-controlled unit capable of housing AWS Outposts or Snow Family devices. This facilitates scalable deployments and proactive management in regions with limited infrastructure. Importantly, it empowers U.S. Department of Defense agencies to run applications with minimal latency for military procedures and crisis response, while also streamlining data center administration and improving access to familiar AWS services in edge settings.
What Are the Main Segments in the Network Transformation Market?
The network transformation market covered in this report is segmented –
1) By Solutions: Network Automation, 5G Networks, SDN & NFV, C-RAN
2) By Organization Size: Small and Medium Enterprises, Large Enterprise
3) By Vertical: BFSI, Energy and Utility, Government, IT and Telecom, Manufacturing, Retail, Other Verticals
Subsegments:
1) By Network Automation: Automation Software, Orchestration Tools, AI-Powered Automation Solutions, Network Analytics Tools
2) By 5G Networks: Core Network Infrastructure, Radio Access Network (RAN) Solutions, Edge Computing Solutions, 5G Network Management Tools
3) By Software-Defined Networking (SDN) & Network Functions Virtualization (NFV): SDN Controllers, NFV Infrastructure (NFVI), Virtual Network Functions (VNFs), Network Slicing Solutions
4) By Cloud Radio Access Network (C-RAN): Centralized RAN Solutions, Cloud-Based RAN Management, Virtualized RAN Solutions, C-RAN Transport Solutions
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Which Top Companies are Driving Growth in the Network Transformation Market?
Major companies operating in the network transformation market include International Business Machines Corporation, Fujitsu Ltd., Dell EMC, Ciena Corporation, Hewlett Packard Enterprise Company, Cisco Systems Inc., Juniper Networks Inc., Huawei Technologies Co. Ltd., NEC Corporation, Intel Corporation, Nokia Corporation, Telefonaktiebolaget LM Ericsson, Samsung Group, VMware Inc., Aryaka Networks Inc., Citrix Systems Inc., CenturyLink, Silver Peak Systems Inc., ZTE Corporation, ALE International SAS, BT Group plc, Cato Networks, Colt Technology Services Group Limited, Comarch SA, Coriant GmbH, CSG International, ECI Telecom, Infosys Limited, Fortinet Inc., Broadcom Inc., AT&T Inc., accenture* plc
Which Regions Will Dominate the Network Transformation Market Through 2029?
North America was the largest region in the network transformation market in 2024 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the network transformation market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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