Network Equipment Market Size To Reach $190.5 Billion By 2030

Network Equipment Market Growth & Trends

The global network equipment market size is expected to reach USD 190.5 billion by 2030, growing at a CAGR of 3.7% from 2023 to 2030, according to a new study conducted by Grand View Research, Inc.The network equipment comprises the set of components used for setting up the network infrastructure. The market consists of network equipment hardware, software, and related services. The rising deployment of Internet of Things (IoT) enabled devices across consumer, commercial, and industrial infrastructure is one of the leading factors driving demand for network equipment.

Increasing investments by telecom operators and service providers in network equipment infrastructure and solutions are also fueling industry expansion. Cisco Systems, Inc., for example, announced, in January 2022, the extension of its enterprise-grade switching capabilities to protect and upgrade key infrastructure within industrial networks. Such advancements are also encouraging market growth. Furthermore, the widespread use of new technologies has prompted some firms to invest in next-generation 5G network equipment and software.

The 5G-enabled network infrastructure and software applications may provide enterprises with a competitive advantage through assurance of prompt service and assistance to their consumers. Furthermore, 5G-enabled networks enable enterprises to improve operational efficiency and expand their entire customer base. Factors such as the advent of 5G technology, growing penetration of internet connectivity, rising adoption of smart devices, and technological advancements have also positively impacted the demand for network equipment devices and infrastructure. The distance learning and remote work culture boosted the rollout of 5G network services and further propelled the adoption of 5G services.

In terms of the hardware segment, RAN equipment dominated the market in 2022. This is due to the growing adoption of RAN equipment for the increasing deployment of 5G networks. RAN enables network equipment providers and mobile network operators utilizing private 4G or private 5G to offer network slicing solutions assigning capacities to individual enterprises to split network usage within a public mobile network. Market players such as Telefonaktiebolaget LM Ericsson; Huawei Technologies Co. Ltd.; Cisco Systems, Inc.; Nokia Corporation are focused on providing RAN solutions for private 5G networks to enable clients to transform their existing legacy network infrastructure into the next generation 5G network.

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Network Equipment Market Report Highlights

• In terms of component, the hardware segment is expected to witness the fastest CAGR of 4.1% over the forecast period. The increasing adoption of hardware such as RAN and core network by end-users worldwide is anticipated to drive the growth of the segment

• In terms of connectivity, the 5G segment is anticipated to register the fastest CAGR of 22.3% over the forecast period. The growth of the segment can be attributed to the increasing demand for 5G services for improved network and data connectivity globally

• In terms of network type, the public network segment dominated the market in 2022 with a revenue share of 67%. The dominance of the segment can be attributed to increasing demand for improved network services across the public sectors

• Based on end-users, the enterprises segment is expected to register the fastest CAGR of 4.2% over the forecast period. The growth of the segment can be attributed to the increasing deployment of network equipment for private infrastructure across various verticals such as healthcare, public safety, and BFSI

• Based on region, the Asia Pacific regional market is projected to witness the fastest CAGR of 48% over the forecast period. The growing demand for 5G-enabled services across the region is anticipated to play a vital role in driving the growth of the regional market

Network Equipment Market Segmentation

Grand View Research has segmented the global network equipment market based on component, connectivity, network type, end-user, and region:

Network Equipment Component Outlook (Revenue, USD Million, 2017 - 2030)

• Hardware

  • RAN

  • Core Network

  • Fixed Access

  • Others

• Software

  • Infrastructure Software

  • OSS/BSS

  • Others

• Services

  • Professional Services

    • Advisory/Consulting

    • Design / Optimization

    • Tools & Automation

    • Security

  • Deployment Services

    • Testing

    • Installation

    • Integration

  • Managed Services

    • Network Performance & Management

    • App / Data Management

    • RAN Operation Support

    • Core Operation Support

    • Security

    • Training

Network Equipment Connectivity Outlook (Revenue, USD Million, 2017 - 2030)

• 2G/3G

• 4G LTE

• 5G

Network Equipment Network Type Outlook (Revenue, USD Million, 2017 - 2030)

• Public Network

• Private Network

Network Equipment End-user Outlook (Revenue, USD Million, 2017 - 2030)

• Telecom Operators

• Enterprises

  • Public Safety

  • Healthcare

  • Retail and e-Commerce

  • Banking, Financial Services, & Insurance

  • Government & Defense

  • Manufacturing

  • Others

Network Equipment Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • U.K.

  • Germany

  • France

• Asia Pacific

  • India

  • China

  • Japan

• Latin America

  • Brazil

  • Mexico

• MEA

List of Key Players in the Network Equipment Market

• Telefonaktiebolaget LM Ericsson

• Nokia Corporation

• Samsung Electronics Co., Ltd.

• ZTE Corporation

• Juniper Networks, Inc.

• Huawei Technologies Co., Ltd.

• Cisco Systems, Inc.

• Hewlett Packard Enterprise Development LP

• Broadcom

• ALE International (Alcatel-Lucent)

• Check Point Software Technologies Ltd.