Next Generation Network Market Size
|Study Period:||2018 -2028|
|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Next Generation Network Market Analysis
The next generation network market is expected to register a CAGR of 7.3% during the forecast period.
- The architecture of the information and communication infrastructures is rapidly changing to accommodate the requirements of the rapidly growing ICT-enabled services and applications, along with the evolution of next-generation networks and further advancements in future networks.
- The increasing technological development and deployment of the next-generation network are most important for public network carriers. It can be an effective and innovative way for them to differentiate themselves by offering various value-added services at a lower price point and survive and even prosper in this highly competitive market.
- It is also anticipated that the convergence of applications, services, and networks will shape the telecom sector's future. This rapid change in the market is also forcing the network carriers to update their existing network infrastructure to a next-generation platform to meet the current market trends and satisfy the expected increase in demand for advanced networks.
- The corporates' demand bandwidth is increasing by over 50% each year. Also, the amount of capacity deployed on the international internet, public, and switched voice networks doubles as international bandwidth prices gradually decline. Moreover, the bandwidth demands, alongside the organizations, demand for the digital workplace (flexible working, cloud, unified communications, and collaboration) is, also creating a huge requirement for new technologies to be implemented.
- The market is also witnessing the launch of 5G from multiple telecom service providers across the globe, which is also one of the major factors driving the market. For instance, in November 2022, T-Mobile strongly emphasized fixed wireless access (FWA) products, utilizing its 4G and 5G mobile networks to deliver in-home connectivity. As a result, T-Mobile has experienced increasing success in this market since launching its 5G network.
- Also, for instance, UAE has some of the fastest 5G and fixed broadband data speeds worldwide. The country's 5G penetration is rising. Furthermore, the speed is due to increased investment in fiber networks rather than legacy copper networks. The growing number of individuals working from home and more time spent on the internet for entertainment and other uses has raised the need for faster internet connections.
- The coronavirus outbreak intensified the network traffic. Despite this surge in network traffic and global recognition of broadband's overnight significance, service providers warned investors of the financial impact of the pandemic. Also, during that time, network coverage and the availability of compatible devices were restricted. As telecoms sped up their 5G and fiber network rollouts, major smartphone makers launched many new 5G-ready smartphones. Therefore, 5G ramped up in 2020 globally.
Next Generation Network Industry Segmentation
The next-generation network (NGN) is a body of key architectural changes in telecommunication core and access networks. The general idea behind the NGN is that one network transports all information and services by encapsulating these into IP packets, similar to those used on the Internet.
The by offering (hardware, software, and services), end user (telecom service providers, internet service providers, and government), and geography (North America, Europe, Asia-Pacifc, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value in USD million for all the above segments.
|Telecom Service Providers|
|Internet Service Providers|
|Middle-East and Africa|
Next Generation Network Market Trends
Telecom Service Providers are Expected to Witness Significant Growth
- The next-generation network offers a single network capable of carrying information for a phone call, web session, or video conference from the source to the destination. Further, these solution offers value-added service such as real-time and non-real-time transaction and content services. Moreover, these also provide broadband capabilities with end-to-end quality of service. Flexible architecture and low costs make it an effective solution for telecom operators.
- With 5G networks soon to be rolled out, smartphone original equipment manufacturers (OEMs) and telecom players are rapidly gearing toward the shift. Likewise, telecom service providers across the globe are upgrading their product offerings and services to gain a stronghold in the next generation network market.
- The rapidly increasing data traffic across the globe is creating a demand for effective and high-capacity IP-based networks. As a result, telecommunication operators in multiple regions are primarily adopting next-generation networks to manage this increasing data traffic.
- In September 2022, China's ZTE and Thailand's mobile operator AIS jointly launched a 5G innovation center to facilitate local infrastructure upgrades and advance the country's digital economy.
- Further, in February 2022, Mexico's telecoms regulator authorized Telcel, an arm of America Movil, to provide 5G services, opening the path for Latin America's largest commercial 5G network.
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North America is Expected to Witness Significant Growth
- The North American region is expected to witness significant growth in the next-generation network market, owing to fast technological improvement and widespread adoption in countries such as the United States and Canada.
- The region is a primary hub for all major organizations across the world. In addition, the expansion of the retail industry and the growth of the Internet of Things (IoT) are also driving the demand for next-generation networks in the region.
- According to Cisco's recent Visual Networking Index report, smart homes will significantly drive IoT connection development in the following years. By 2022, an average home in the region had nine devices, with video capability accounting for approximately half (48%) of all devices and connections.
- The increase in the demand for advanced technologies, such as machine-to-machine communication, connected cars, and artificial intelligence, is highest in the region compared to other regions; hence is anticipated to offer massive opportunities for the network providers to grow.
- For instance, in October 2022, SaskTel announced the launch of their 5G wireless network in Moose Jaw. By offering ultra-fast data speeds and good connections, SaskTel's 5G network continues to establish a new standard for connectivity in Saskatchewan.
- In September 2022, NEC Corporation created a North American 5G innovation unit in New Providence, New Jersey, to expand product development and cater to the growing global demand for open RAN solutions.
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Next Generation Network Industry Overview
The next generation network market is highly competitive owing to the presence of several prominent players in the market running their operations in domestic and international markets. The market appears to be moderately competitive, with the major players adopting strategies such as product innovation, strategic partnerships and mergers, and acquisitions primarily to widen their product portfolio and expand their geographic reach. Some of the major players in the market are Cisco Systems, Inc., Huawei Technologies, ZTE Corp., and Ericsson, among others.
In September 2022, Tata Communications, a global digital ecosystem enabler, launched a dedicated private 5G Global Centre of Excellence (CoE) in Pune, India, to accelerate Industry 4.0 applications and capabilities for enterprises. This new CoE is an agile, secure indoor facility to test and trial industry use cases. Tata Communications has developed use cases across automotive, metals and mining, airports and seaports, manufacturing, logistics, and healthcare sectors.
Further, in March 2022, ZTE Corporation, a major international supplier of mobile internet telecommunications, corporate, and consumer technology solutions, introduced an array of new 5G products and solutions at the Mobile World Congress in Barcelona, Spain. The new technologies and solutions demonstrate ZTE's strong commitment to establishing the simplest 5G network with energy efficiency, accelerating industry digital transformation with all-in-one private networks, and operating complicated networks with simplicity.
Next Generation Network Market Leaders
Cisco Systems, Inc.
Huawei Technologies Co., Ltd.
Telefonaktiebolaget LM Ericsson
Juniper Networks, Inc.
*Disclaimer: Major Players sorted in no particular order
Next Generation Network Market News
- October 2022: Qualcomm and Vodafone collaborated to develop and test next-generation 5G open RAN infrastructure. Through this, they will develop, test and integrate next-generation 5G distributed units (DUs) and radio units (RU) with massive multiple-input, multiple-output (MIMO) capabilities, ultimately delivering the commercial deployment of Open RAN in Europe.
- February 2022: Field Solutions Holdings (FSG), an Australian rural carrier, chose Nokia and Maveniras as their primary technology vendors to construct Australia's fourth mobile network. The technology partners will supply 4G and 5G radio access networks and the mobile core network as part of the agreement. Mavenir offers 4G/5G converged packet core services and IP multimedia systems (IMS) voice and messaging.
Next Generation Network Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand for High-Speed Services
4.3 Market Restraints
4.3.1 High Costs Related to the Infrastructure
4.4 Porters Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 on the Next-generation Network Market
5. MARKET SEGMENTATION
5.2 End User
5.2.1 Telecom Service Providers
5.2.2 Internet Service Providers
5.3.1 North America
5.3.4 Latin America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Cisco Systems, Inc.
6.1.2 Huawei Technologies Co., Ltd.
6.1.3 ZTE Corporation
6.1.4 Ciena Corporation
6.1.5 IBM Corporation
6.1.6 Samsung Electronics Co., Ltd.
6.1.7 NEC Corporation
6.1.8 Juniper Networks, Inc.
6.1.9 Nokia Corporation
6.1.10 Telefonaktiebolaget LM Ericsson
7. INVESTMENT ANALYSIS
8. FUTURE OF THE MARKET
Next Generation Network Market Research FAQs
What is the study period of this market?
The Next Generation Network Market is studied from 2018 - 2028.
What is the growth rate of Next Generation Network Market?
The Next Generation Network Market is growing at a CAGR of 7.3% over the next 5 years.
Which region has highest growth rate in Next Generation Network Market?
Asia-Pacific is growing at the highest CAGR over 2018 -2028.
Which region has largest share in Next Generation Network Market?
North America holds highest share in 2022.
Who are the key players in Next Generation Network Market?
Cisco Systems, Inc., Huawei Technologies Co., Ltd., ZTE Corporation, Telefonaktiebolaget LM Ericsson, Juniper Networks, Inc. are the major companies operating in Next Generation Network Market.
Next Generation Network Industry Report
Statistics for the 2023 Next Generation Network market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Next Generation Network analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.