Network Transformation Market Accelerates With the Virtualization for Agile and Scalable Network Infrastructures

May 9, 2024 9:40 AM EDT

Network Transformation Market Report Scope and Overview

The SNS Insider report indicates that the Network Transformation Market size was valued at USD 52.79 Billion in 2023, and is expected to reach USD 877.5 Billion by 2031 and grow at a CAGR of 42.1% over the forecast period 2024-2031. This significant expansion is primarily driven by the ever-increasing adoption of cloud computing and the need for businesses to modernize their data center infrastructure. Cloud-based solutions require robust and adaptable networks to handle massive data volumes seamlessly. Network transformation rebuilds network architecture around data centers, enabling businesses to leverage the scalability and cost-effectiveness of cloud services.

Network transformation offers a comprehensive platform for businesses to modernize their information technology infrastructure. It empowers users to seamlessly manage cloud-controlled environments and facilitates efficient data transfer compared to traditional methods. This transformation optimizes data exchange by minimizing energy consumption and accelerating data processing.

However, the lack of skilled professionals with expertise in developing next-generation network solutions might hinder market growth. The industry demands a skilled workforce capable of utilizing innovative technologies like the Internet of Things (IoT) and data analytics. Currently, theres a dearth of solution development professionals like data analysts and data scientists. To address this, companies are increasingly resorting to partnerships and acquisitions of smaller firms in the field.

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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

Market Segmentation Analysis

Software Defined Networking (SDN) and Network Function Virtualization (NFV) solutions are expected to dominate the network transformation market with the highest revenue share. SDN revolutionizes Wide Area Network (WAN) design by decoupling data and control planes, freeing applications from dependence on specific network hardware, and centralizing network intelligence. This empowers telecom operators with enhanced network control, programmability, and automation through the implementation of SDN and NFV data centers. Furthermore, 5G networks, a critical component of network transformation, are anticipated to be the fastest-growing segment within the market due to the ongoing development and testing of 5G infrastructure across the globe.

The IT and telecom sector currently leads the market, contributing roughly half of the total revenue. This dominance stems from enterprises growing adoption of cutting-edge technologies like big data and machine learning, alongside the deployment of advanced network infrastructure. The manufacturing industry is another segment witnessing rapid growth driven by the increasing automation of production lines. This necessitates seamless wireless communication between actuators, robots, sensors, and other equipment deployed within manufacturing facilities. Consequently, the manufacturing sector is projected to experience significant growth during the forecast period.

Market Segmentation and Sub-Segmentation Included Are:

On The Basis of Solution

  • 5G Networks
  • C-RAN
  • Network Transformation
  • 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

Impact of Global Events

The ongoing Russia-Ukraine war might disrupt the supply chain of network transformation solutions, particularly for components manufactured in the affected regions. Additionally, potential sanctions and counter-sanctions could further exacerbate supply chain constraints. However, the long-term impact of the war remains uncertain.

An economic slowdown could lead to budget tightening by businesses, potentially delaying investments in network transformation projects. However, the long-term benefits of network transformation, including increased efficiency and cost savings, could mitigate the impact of an economic slowdown in the long run.

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Regional Developments

North America is expected to hold a significant share of the network transformation solutions market. This dominance can be attributed to the regions widespread adoption of smart connected devices and trends like Bring Your Own Device (BYOD). Additionally, growing government permits and budgets have incentivized multinational corporations to invest heavily in the region.

The Asia Pacific region is projected to exhibit the fastest market growth due to the rapid expansion of IT infrastructure and the regions openness to embracing new technologies. Numerous companies in the region are expected to contribute to market growth by adopting cloud-based solutions and increasing their spending on data security. Moreover, rising investments in Small and Medium Enterprises (SMEs) by emerging economies like India and China are likely to further propel the market forward.

Key Takeaways

  • Gain a clear understanding of the market drivers and trends influencing network transformation. This knowledge empowers businesses to make informed decisions regarding network infrastructure upgrades and technology adoption to optimize cloud integration, data management, and overall network efficiency.
  • Anticipate future market demands and tailor product development efforts accordingly. The report sheds light on the growing need for skilled professionals and highlights the increasing popularity of network management solutions powered by AI and ML. By understanding these trends, solution providers can develop innovative solutions and upskill their workforce to meet evolving market requirements.

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Table of Contents- Major Key Points

  1. Introduction
  2. Research Methodology
  3. Market Dynamics
  4. Impact Analysis
    • COVID-19 Impact Analysis
    • Impact of Ukraine- Russia war
    • Impact of Ongoing Recession on Major Economies
  5. Value Chain Analysis
  6. Porter’s 5 Forces Model
  7. PEST Analysis
  8. Network Transformation Market Segmentation, by Solution
  9. Network Transformation Market Segmentation, by Service
  10. Network Transformation Market Segmentation, by Enterprise Size
  11. Network Transformation Market Segmentation, by End Use
  12. Regional Analysis
  13. Company Profile
  14. Competitive Landscape
  15. USE Cases and Best Practices
  16. Conclusion

About Us

SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our companys aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.

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