Network Transformation Market Growth & Trends
The global network transformation market size is expected to reach USD 203.37 billion by 2027, registering a CAGR of 41.7% from 2020 to 2027, according to a new report by Grand View Research, Inc. The growth can be attributed to its potential to transform service providers’ networks by offering cloud-based innovation and agility. The telecommunication networks are usually multilayered, complex, and have variety of users that need high network performance and availability. As compared to traditional data centers, a more rigorous set of requirements will be met with the use of network transformation solutions and hence the market is expected to witness tremendous growth.
Network transformation solutions provide ease in functioningto a communication network. These solutions facilitate a telecom operator to lessen the network complexity and lower down the total management cost. The key reason for the adoption of these solutions is that it offers faster service enablement, improved programmability, and lowers down the overall Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) for the service providers. The solutions such as Software Defined Networking (SDN) and Network Functions Virtualization (NFV) offer a complete digital network that is vital to increase customer satisfaction level.
Network transformation solution improves the security compliances of the network by systematizing security compliance. It automates the management, testing, configuration, deployment, and operations of virtual and physical devices within the network. The solution also aids in reducing the network operation cost by mechanizing time-consuming configuration tasks and manual compliance. Furthermore, the market adoption is driven by the rapid growth of network infrastructure essential to support the exponential growth of network traffic generated by data, video, social media, and application usage.
Network Transformation Market Report Highlights
- The 5G networks solution segment is anticipated to expand at a CAGR of over 44% during the forecast period. The advantages such as aggregation and multi-connectivity solutions are the key factors contributing for the development of 5G networks
- The managed services segment is anticipated gain momentum as these services helps companies of all sizesin reducing the overhead costs and boost productivity
- The large enterprises segment is anticipated to witness high phenomenal growth during the forecast period. The large enterprises have huge capital for investing in full scale deployment of network transformation solutions
- The energy and utility segment is expected to expand at the highest CAGR from 2020 to 2027, attributed to the increasing focus of the countries towards the development of smart utilities owing to the smart city initiatives
- The market demand in Asia Pacific is anticipated to expand at a significant CAGR and reach USD 54.9 billion by 2027,owing to the rapid development of the IT infrastructure and the adoption of new technologies