Service Provider Network Infrastructure Market Size, Share, & Trends Analysis Report By Technology (Routers & Switches, Broadband Access & Optical Transport), By Industry, By Enterprise Size, By Region, And Segment Forecasts, 2022 - 2028

Report Overview

The global service provider network infrastructure market size was valued at USD 139.21 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.1% from 2022 to 2028. Factors such as the growing demand for network infrastructure services among small and medium-sized enterprises, increasing investments in upgrading networks to improve communication speed, the emergence of the public and private network infrastructure, and the rising adoption of mobile devices are driving the industry demand. Enterprises are adopting digital technology to improve business operations and communication, which are useful for sharing information. Additionally, enterprises are adopting network infrastructure devices as they provide cost-efficient solutions with reliability, increase performance, and save energy.

Network service provider vendors sell bandwidth that offers access to the network by offering direct Internet access to the service providers. Network technology includes cable satellite, mobile cell, and standard internet protocols. During the COVID-19 pandemic and lockdown situation, the governments of various countries restricted the physical movement and citizens preferred to stay at home as a precautionary measure.

Enterprises allowed employees to work from home due to the pandemic lockdown situation and subsequent government restrictions. Thus, there was a sudden increase in the demand for service provider infrastructure hardware. But due to the pandemic situation, there were limitations in supply chains. As a result, vendors were unable to satisfy the demand. Thus, a short-term negative impact on the market was observed in 2020.

Industry Insights

The healthcare industry segment is likely to expand with the highest growth rate of 5.5% from 2022 to 2028. With the increasing awareness about well-being, citizens have become very careful about their health. Thus, healthcare institutes and enterprises closely monitor and track the health history of patients to aid in offering better health treatments and services. As a result, healthcare institutes and enterprises are adopting digital platforms using these networks for sharing information.

The banking, financial services, & insurance industry is dominating the service provider network infrastructure market with a contribution of around 18% in 2021. This sector has started the adoption of digital platforms for the ease of banking and related operations. To offer a better experience to the clients, financial institutes have started using online platforms. In addition, better communication required in BFSI will further drive the industry’s growth. Thus, this segment contributes more to the market.

Enterprise Size Insights

The large enterprises segment dominated the market with a share of around 70.0% in 2021 and is expected to progress with a CAGR of 3.5% from 2022 to 2028. Large enterprises include enterprises with more than 1000 employees. These enterprises have a huge budget and can invent new technologies and adopt the same. Additionally, such enterprises run their business operations smoothly. Thus, the contribution of the large enterprises segment is more to the market.

The SMEs segment is likely to expand at a higher CAGR of 5.5% from 2022 to 2028. SMEs stand for the Small and Medium-sized enterprises. These enterprises are with less than a billion USD in revenue and have less than 1000 employees. These enterprises are generally short of funds and limited resources. But governments are supporting SMEs by offering tax exemptions and other services. Thus, during the forecast period, the SMEs segment is expected to advance with a higher growth rate.

Technology Insights

The broadband access & optical transport segment dominated the market with a share of more than 28% in 2021 and is expected to advance with a CAGR of 3.5% from 2022 to 2028. With the continuously increasing number of Internet users, the demand for broadband access and optical transport equipment is increasing. This equipment is characterized by continuous technological improvements that result in increased network speed.

The world has witnessed a significant shift to more sophisticated fiber optic cables network from copper-wired ones. Thus, demand for broadband access & optical transport equipment is contributing to the market advancement. The wireless packet core segment is likely to advance at the highest CAGR of 5.4% from 2022 to 2028. Wireless packet core is getting traction due to its wide range of features and functionalities.

Wireless packet core solutions efficiently address the need and exceptions of telecom operators, as per the changing requirement of the network. Wide adoption of the wireless packet core solutions is contributing to the healthy growth of the segment.

Regional Insights

Asia Pacific is likely to expand at the highest CAGR of 5.9% from 2022 to 2028. Countries such as China and India are major hubs for the industry for the last decade. Enterprises are investing huge amounts in this region to grab their opportunities. Simultaneously, these countries have a huge customer base. Governments and enterprises are adopting digital technologies at a rapid pace. Thus, during the forecast period, the region is expected to expand at a significant CAGR in this market.

Europe held the 3^rd largest share of over 25.0% in 2021 and is expected to continue with a CAGR of 3.8% during the forecast period. Europe will continue to rise with the growing use of mobile devices, and increasing internet penetration with significant year-on-year growth.

Countries such as the U.K., Germany, and France are contributing to the market advancement. Industries such as Banking, Financial Services, & Insurance, Information Technology & Telecommunications, and Manufacturing are contributing to the Service Provider Network Infrastructure market. Thus, the region is enabling market growth.

Key Companies & Market Share Insights

The market is characterized by the presence of various well-established multinationals, and several small and medium vendors. Equipment vendors are focusing on research & development activities to launch the latest technology to improve access speed and increase the Service Provider Network Infrastructure space. Moreover, these vendors are expanding their reach across all the regions of the world to increase their market presence.

These types of initiatives are expected to boost the adoption rate of Service Provider Network Infrastructure equipment. The Service Provider Network Infrastructure vendors are aggressively following organic as well as inorganic strategies to expand their footprints across the globe. Some prominent players in the global service provider network infrastructure market include:

• Huawei Technologies Co. Ltd.

• ZTE Corporation

• Juniper Networks Inc

• Alcatel–Lucent S.A.

• Brocade Communications Systems Inc.

• Avaya Inc.

• Ericsson Inc.

• Aruba Networks Inc.

• Bluecoat Systems In.

• Nokia Siemens Networks

Service Provider Network Infrastructure Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global service provider network infrastructure market report on the basis of technology, industry, enterprise size, and region:

• Technology Outlook (Revenue, USD Million, 2017 - 2028)

  • Routers & Switches

  • Carrier IP Telephony

  • Broadband Access & Optical Transport

  • Microwave transmission & Mobile Backhaul

  • Wireless Packet Core

• Industry Outlook (Revenue, USD Million, 2017 - 2028)

  • Healthcare

  • Retail and eCommerce

  • Banking, Financial Services, & Insurance

  • Government & Defense

  • Information Technology & Telecommunications

  • Manufacturing

  • Others

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2028)

  • SMEs

  • Large Enterprises  

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa