Service Provider Network Infrastructure Market Rising With Growth In New Technology Trends Research By 2028

Posted by Mrudula Karmarkar on December 21st, 2022

The global service provider network infrastructure market size is expected to reach USD 184.7 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 4.1% from 2022 to 2028. The global market for service provider network infrastructure is expected to advance due to 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.

The routers & switches segment dominated the market with a revenue share of over 26% in 2021. Ethernet access services enable a large global or regional virtual footprint with a deterministic and consistent service for its end-user customers. Expansion of cloud networking and increased usage of high-speed Ethernet are expected to contribute to the market revenue in the coming years.

The retail and e-commerce industry segment is likely to expand with the second-highest CAGR of 4.9% from 2022 to 2028. Service Provider Network Infrastructure devices assist in sharing information about suppliers and customers with behavioral experiences, shopping preferences, and social things. Information is required for analysis purposes. Results of the analysis are used to make key business decisions by market segmentation and predictive analytics.

This type of information helps enterprises in decision-making, maintain customer relationships, and increase footprints across the globe and revenue. This will help improve brand loyalty among customers. Thus, retail and eCommerce enterprises are contributing to the service provider network infrastructure industry.

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

North America held the largest revenue share of around 33% in 2021. The U.S. is positively contributing to the growth of the regional market. The presence of well-established device manufacturing vendors is one of the key factors supporting the market growth. This is one of the promising regions to launch new technology in terms of IT infrastructure and advanced research and development activities that help innovate and manufacture high-speed Service Provider Network Infrastructure devices. Additionally, the ease of availability of IT resources and related technological talents contribute to and drive the market in the region.

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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.

Service Provider Network Infrastructure Market Report Highlights

  • North America held the largest revenue share of above 30% in 2021. The presence of well-established service provider network infrastructure device manufacturers is one of the key factors supporting the regional market growth
  • The retail and e-commerce industry segment is likely to expand with the 2nd highest growth rate of 4.9% from 2022 to 2028. Service provider network infrastructure devices assist in sharing information about suppliers and customers with behavioral experiences, shopping preferences, and social things
  • The large enterprises segment dominated the market with a revenue share of around 70.0% in 2021. These enterprises with huge budgets can invent new technology and adopt the same

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.

List of Key Players of Service Provider Network Infrastructure Market

  • 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

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Mrudula Karmarkar

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Mrudula Karmarkar
Joined: March 30th, 2020
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