The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. It has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services, and affecting many markets globally.
The network transformation market includes revenues earned by entities by providing various solutions and services to enhance the network architecture such as system integration, staging, and deployment, VNF migration, network designing, component development, and product & engineering solutions. The market value includes the value of related goods sold by the service provider or included within the service offering.
Market size in 2023
According to ReportLinker, the global network transformation market is forecast to grow from US$38.85 billion in 2022 to US$59.89 billion in 2023 at a compound annual growth rate (CAGR) of 54.2%. The network transformation market is expected to grow to US$346.65 billion in 2027 at a CAGR of 55.1%.
Network transformation refers to the process of updating one’s core network. Network transformation is a step-by-step approach to reimagining the complete network, including the cloud, WAN, branch, data centres, remote user connection, and network security architecture.
The main solutions provided in the network transformation include network automation, 5G networks, SDN & NFV, and C-RAN. Network automation refers to the process of automating the configuration, management, testing, installation, and administration of physical and virtual network equipment.
Trends and drivers
The growing adoption of bring your own device (BYOD) policy in companies is expected to propel the growth of the network transformation market. BYOD policy is when employees connect to the organization’s network and access what they need to complete their tasks using their personal devices such as smartphones, tablets, computers, laptops, and others.
Network transformation helps reconstruct network architecture when companies want to change their network infrastructure based on employees’ devices. According to Cisco, 89% of IT departments enable BYOD in some form and 69% of IT leaders are positive about BYOD.
The growing adoption of the BYOD policy in companies is expected to drive the network transformation market.
The adoption of artificial intelligence (AI) is a key trend in the network transformation market. Next-generation cloud networks are vital for growth, and digitally modernizing the network infrastructure to become more open, frictionless, and efficient is critical for retaining that growth. As data and networks become more commercialized, telecommunications companies seek ways to save money and innovate wherever feasible. Telecommunications operators are using AI to study and forecast network disruptions before they occur, reducing response times and interruptions in service.
