What is the projected value of the Next Generation Network market by 2030?

The market is forecast to reach USD 47.68 billion by 2030, reflecting a 7.70% CAGR from 2025. Read More

Which segment will expand fastest in terms of offering?

Services will grow at a 9.2% CAGR as enterprises favor managed and Network-as-a-Service models. Read More

How quickly is Asia-Pacific growing in this space?

Asia-Pacific is advancing at a 10.6% CAGR thanks to regulatory support for private 5G and manufacturing digitization. Read More

Why is network slicing important for carriers?

It enables differentiated, SLA-based services and could unlock USD 300 billion in operator revenue by 2030. Read More

What drives cloud providers’ involvement in next-gen networking?

Hyperscalers are investing heavily to meet AI workload demands and to extend low-latency edge services worldwide. Read More

Next Generation Network Market - Share, Size & Trends

Name: Next Generation Network Market - Share, Size & Trends
Creator: Mordor Intelligence
License: https://www.mordorintelligence.com/privacy-policy

Next Generation Network Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 32.90 Billion
Market Size (2030)	USD 47.68 Billion
Growth Rate (2025 - 2030)	7.70% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	Asia Pacific
Market Concentration	Low
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Next Generation Network Market (2025 - 2030) — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Next Generation Network Market Analysis by Mordor Intelligence

The Next Generation Network Market size is estimated at USD 32.90 billion in 2025, and is expected to reach USD 47.68 billion by 2030, at a CAGR of 7.70% during the forecast period (2025-2030).

This expansion reflects enterprises shifting from legacy architectures to cloud-native, software-defined infrastructures capable of supporting latency-sensitive, data-intensive workloads. Hyperscaler capital expenditure is expected to hit USD 417 billion in 2025, private 5G is proliferating across manufacturing and healthcare, and network slicing is evolving into a revenue-generating model for telecom operators. Hardware retains an outsized presence, yet accelerating growth in managed services underscores a preference for operating-expense models that offload complexity to specialists. Competitive intensity is rising as traditional vendors race to embed AI-driven automation and merge with cloud divisions while new entrants promote intent-based networking platforms that promise faster service rollout and lower operating costs.

Key Report Takeaways

By offering, Hardware led with a 40% share of the Next Generation Network market share in 2024, whereas Services are set to expand at a 9.2% CAGR through 2030.
By end user, Telecom and Internet Service Providers held 36.5% of the Next Generation Network market size in 2024, but Cloud Service Providers are advancing at a 10.4% CAGR to 2030.
By network technology, 5G SA/NSA captured 38.1% revenue share in 2024, while Network Slicing is projected to grow at an 11.2% CAGR through 2030.
By deployment mode, Cloud/Virtualized models commanded 58.3% of the Next Generation Network market share in 2024 and will continue rising at a 9.8% CAGR over the forecast horizon.
By geography, North America accounted for 35.4% of the Next Generation Network market size in 2024; Asia-Pacific is forecast to expand at a 10.6% CAGR to 2030.

Global Next Generation Network Market Trends and Insights

Drivers Impact Analysis

Driver	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Exploding data traffic and low-latency demand	+2.1%	Global, concentrated in North America & APAC	Medium term (2-4 years)
Rapid rollout of 5G and private networks	+1.8%	APAC core, spill-over to North America & Europe	Short term (≤ 2 years)
Adoption of SDN/NFV for agile operations	+1.4%	Global, led by North America & Europe	Medium term (2-4 years)
Generative-AI cluster bandwidth needs	+1.6%	North America & Europe, expanding to APAC	Short term (≤ 2 years)
Spectrum liberalization for industrial NGNs	+0.9%	Europe & APAC, selective North America markets	Long term (≥ 4 years)
Shift toward consumption-based NaaS models	+1.3%	Global, led by North America & Europe	Medium term (2-4 years)
Source: Mordor Intelligence

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Exploding Data Traffic and Low-Latency Demand

Global IP traffic is scaling rapidly as generative-AI, 8K streaming, augmented reality, and IoT sensors flood networks with continuous data streams that legacy infrastructure cannot handle efficiently. Operators respond by deploying edge computing nodes and advanced traffic engineering to cut latency to sub-millisecond levels. T-Mobile’s network-slicing service for Disney Studios shows how dedicated slices guarantee performance for mission-critical workloads. Monetization therefore shifts from bandwidth toward latency- and reliability-based service-level agreements, redefining network economics. ^{[1]“T-Mobile, Disney test 5G network slicing on set,” T-Mobile, t-mobile.com}

Rapid Rollout of 5G and Private Networks

Private 5G adoption is accelerating in manufacturing, healthcare, and logistics where deterministic performance and data sovereignty are vital. Airtel’s plant-wide 5G deployment for Indian factories enables real-time automation and predictive maintenance. Singtel has commercialized national consumer network slicing, proving carriers can charge premiums for differentiated 5G services. Enterprises gain direct control of configuration and security, reducing reliance on traditional telcos and aligning connectivity precisely to operational needs.^{[2]Surajeet Das Gupta, “Airtel’s private 5G for factories,” The Economic Times, economictimes.indiatimes.com}

Adoption of SDN/NFV for Agile Operations

Software-defined networking centralizes policy control, automates configuration, and lowers operational overhead. Combined with network-function virtualization where firewalls, load balancers, and intrusion detection run on commodity hardware enterprises launch services faster and curb capex. SDN/NFV also streamlines multivendor environments, allowing consistent security enforcement across distributed assets while shortening maintenance windows.

Generative-AI Cluster Bandwidth Needs

Training large language models requires synchronized, high-throughput links among GPU farms, pushing hyperscalers to install 800 Gigabit Ethernet and InfiniBand fabrics. Light Reading reports 800 G port shipments doubling in 2025 as AI workloads dominate data-center network design. Vendors are building AI-optimized switching silicon and optical transceivers that ensure deterministic latency and near-lossless performance across thousands of parallel flows. ^{[3]800G shipments soar on AI demand,” Light Reading, lightreading.com}

Restraints Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
High capex for fiber and small-cell build	-1.2%	Global, acute in rural North America & developing APAC	Medium term (2-4 years)
Legacy-to-cloud integration complexity	-0.8%	North America & Europe	Short term (≤ 2 years)
Shortage of AIOps/intent-based talent	-0.6%	Global, most severe in North America & Europe	Long term (≥ 4 years)
Regulatory compliance for multi-cloud data	-0.5%	Europe & parts of Asia where data-sovereignty laws are stringent	Medium term (2-4 years)
Source: Mordor Intelligence

High Capex for Fiber and Small-Cell Densification

5G relies on dense fiber backhaul and urban small-cell grids, requiring operators to install radios every few hundred meters, a cost burden that pushes telecom capex growth below revenue expansion. Rural regions become viable only when governments subsidize digs or carriers pool infrastructure through neutral-host agreements, slowing coverage timelines and delaying monetization.

Legacy-to-Cloud Integration Complexity

Enterprises juggling mainframes, on-prem data centers, and multiple clouds face policy sprawl, dual-stack management, and inconsistent security postures. Migration often proceeds in phases to avoid downtime, but parallel operations inflate costs and extend schedules. Retraining staff and refactoring workflows add hidden expenses that restrain modernization velocity, especially for regulated industries with mission-critical legacy systems.

Segment Analysis

By Offering: Services Drive Transformation

Services contributed the fastest 9.2% CAGR, underscoring how enterprises outsource design, deployment, and ongoing management while hardware still held a 40% slice of the Next Generation Network market share in 2024. Professional Services dominate as clients engage consultants for architecture blueprints, migration roadmaps, and integration of 5G, SDN, and edge platforms. Managed Services follow as companies off-load day-to-day operations, freeing internal talent for innovation. The Next Generation Network market size for Network-as-a-Service is scaling alongside pay-as-you-go models that eliminate large capital outlays.

Software revenue climbs steadily, propelled by SDN controllers, AI-based analytics, and converged security suites. Modern OSS/BSS stacks orchestrate 5G slices and automate billing, while unified platforms combine traffic engineering with threat detection to simplify policy enforcement. As networking and security converge, integrated solutions reduce vendor sprawl and cut mean-time-to-repair, enhancing resilience for distributed workloads.

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By End User: Cloud Providers Accelerate

Telecom/ISPs retained 36.5% of the Next Generation Network market size in 2024, but hyperscale Cloud Service Providers are growing at 10.4% CAGR through 2030. Amazon’s USD 100 billion expansion budget reflects an arms race to meet AI and edge-computing demand. Manufacturing is the most aggressive enterprise adopter, leveraging private 5G for deterministic control loops and asset tracking. BFSI upgrades networks to process real-time transactions under strict compliance, and healthcare rolls out telemedicine with stringent uptime requirements.

Government agencies digitize citizen services and roll out smart-city networks, demanding low-latency connections and rigorous data-sovereignty guarantees. Public sector budgets increasingly factor in resilience against cyber threats, expanding opportunities for sovereign cloud and encrypted transport solutions within the Next Generation Network market.

By Network Technology: Slicing Gains Momentum

5G SA/NSA comprised 38.1% revenue share in 2024, laying the groundwork for programmable services, while network slicing is soaring at an 11.2% CAGR. Ericsson projects slicing could unlock USD 300 billion in carrier revenue by 2030. Private LTE/5G delivers high reliability and secure campus coverage, favored by factories and ports. SD-WAN adoption remains brisk as enterprises pivot away from MPLS, optimizing cloud traffic and suppressing costs.

IP Multimedia Subsystem upgrades converge voice and data, enabling integrated communication packages. Operators bundle IMS with slicing to sell tailored voice-and-video services to verticals such as public safety. Integrated platforms that meld SDN, slicing, and edge computing help enterprises align connectivity to application performance objectives inside the Next Generation Network market.

Next Generation Network Market: Market Share by Network Technology — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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By Deployment Mode: Cloud Dominance

Cloud/Virtualized modes represented 58.3% of the Next Generation Network market share in 2024 and are forecast to climb at a 9.8% CAGR. Enterprises value elastic scale, API-driven provisioning, and zero-touch automation, spinning up capacity in minutes rather than months. Traffic bursts from AI training, seasonal e-commerce, or event streaming can be absorbed without permanent over-build.

On-premises deployments remain for data-sovereign or ultra-low-latency workloads, yet even these footprints now use virtual network functions on commodity hardware. Hybrid frameworks blend local control with cloud agility, orchestrated by a single policy engine to maintain consistent security and quality-of-service across disparate domains within the Next Generation Network market.

Geography Analysis

North America held 35.4% of the Next Generation Network market size in 2024, sustained by hyperscaler build-outs, enterprise AI adoption, and vibrant private-network pilots. Federal funding for rural broadband and spectrum auctions accelerates 5G coverage, while edge-computing nodes follow e-commerce distribution hubs to minimize delivery latency.

Asia-Pacific is advancing fastest at a 10.6% CAGR, powered by China’s industrial-internet roadmap and India’s production-linked incentives that steer factories toward automation. Southeast Asian governments auction mid-band spectrum and streamline licensing to encourage private 5G, enticing global manufacturers to relocate supply chains and deploy secure campus networks.

Europe emphasizes regulatory compliance and sustainability, prompting carriers to retrofit infrastructure with energy-efficient radios and carbon-aware orchestration. Data-sovereignty mandates push enterprises to adopt localized edge computing clusters, fueling demand for micro-data centers and encrypted backbone links. Middle East and Africa concentrate spending on economic diversification zones and smart-city corridors, whereas South America expands fiber rings around metropolitan areas, inching forward despite fiscal constraints.

Next Generation Network Market CAGR (%), Growth Rate by Region — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Competitive Landscape

Competition is moderate yet intense, with legacy vendors buying AI-native firms to defend share. HPE’s USD 14 billion Juniper acquisition adds Mist AI analytics to HPE’s edge portfolios. Cisco pledges USD 28 billion for AI-centric switching R&D, pursuing intent-based automation while VMware integrates security into multi-cloud networking stacks. Arista rides hyperscaler demand for 400 G and 800 G leaf-spine fabrics, posting record revenue quarter after quarter.

Emerging players use open-source NOSs, disaggregated white-box hardware, and cloud-native CI/CD pipelines to undercut incumbents on price and agility. Private-5G specialists partner with system integrators to offer turnkey kits that bundle radios, core software, and edge compute in subscription packages, nibbling at the perimeter of the Next Generation Network market. Strategic alliances among chipmakers, optics vendors, and cloud providers shorten innovation cycles, forcing traditional equipment makers to accelerate product roadmaps or risk obsolescence.

Next Generation Network Industry Leaders

Cisco Systems, Inc.
Huawei Technologies Co., Ltd.
ZTE Corporation
Ciena Corporation
IBM Corporation
*Disclaimer: Major Players sorted in no particular order

Next Generation Network Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

February 2025: Hewlett Packard Enterprise closed its USD 14 billion purchase of Juniper Networks, combining edge-to-cloud hardware with AI-driven networking software.
January 2025: VIAVI Solutions finalized a USD 1.7 billion Spirent Communications takeover, bolstering 5G and cloud-testing capabilities.
December 2024: T-Mobile introduced commercial network-slicing packages for U.S. enterprises, offering dedicated resources for manufacturing, healthcare, and public safety.
November 2024: Cisco pledged USD 28 billion over three years for AI-optimized networking R&D, covering switching, routing, and automation platforms.

Table of Contents for Next Generation Network Industry Report

1. INTRODUCTION

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Exploding data traffic and low-latency demand
- 4.2.2 Rapid rollout of 5G and private networks
- 4.2.3 Adoption of SDN/NFV for agile operations
- 4.2.4 Generative-AI cluster bandwidth needs
- 4.2.5 Spectrum liberalization for industrial micro-NGNs
- 4.2.6 Shift toward consumption-based Network-as-a-Service models
4.3 Market Restraints
- 4.3.1 High capex for fiber and small-cell densification
- 4.3.2 Legacy-to-cloud integration complexity
- 4.3.3 Shortage of AIOps/intent-based networking talent
- 4.3.4 Regulatory uncertainty on net-neutrality & cloud-telco rules
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Buyers
- 4.7.3 Bargaining Power of Suppliers
- 4.7.4 Threat of Substitute Products
- 4.7.5 Intensity of Competitive Rivalry
4.8 Impact of COVID-19 on the NGN Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Offering
- 5.1.1 Hardware
- 5.1.1.1 Network Infrastructure (Routers and Switches)
- 5.1.1.2 Optical Communication Equipment
- 5.1.1.3 Wireless RAN (5G/Small Cell)
- 5.1.1.4 Edge Computing Hardware
- 5.1.2 Software
- 5.1.2.1 Network Virtualization (SDN/NFV)
- 5.1.2.2 Network Security (NGFW, SASE)
- 5.1.2.3 Network Analytics and Orchestration
- 5.1.2.4 OSS/BSS Platforms
- 5.1.3 Services
- 5.1.3.1 Professional Services
- 5.1.3.2 Managed Services
- 5.1.3.3 Network-as-a-Service (NaaS)
5.2 By End User
- 5.2.1 Telecom and Internet Service Providers
- 5.2.2 Enterprises
- 5.2.2.1 Manufacturing
- 5.2.2.2 BFSI
- 5.2.2.3 Healthcare
- 5.2.2.4 Energy and Utilities
- 5.2.3 Government and Public Sector
- 5.2.4 Cloud Service Providers
- 5.2.5 Other End-users
5.3 By Network Technology
- 5.3.1 5G SA/NSA
- 5.3.2 Private LTE/5G
- 5.3.3 SDN
- 5.3.4 SD-WAN
- 5.3.5 Network Slicing
- 5.3.6 IP Multimedia Subsystem (IMS)
5.4 By Deployment Mode
- 5.4.1 On-Premises
- 5.4.2 Cloud / Virtualized
5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Argentina
- 5.5.2.3 Rest of South America
- 5.5.3 Europe
- 5.5.3.1 United Kingdom
- 5.5.3.2 Germany
- 5.5.3.3 France
- 5.5.3.4 Italy
- 5.5.3.5 Spain
- 5.5.3.6 Rest of Europe
- 5.5.4 Asia-Pacific
- 5.5.4.1 China
- 5.5.4.2 Japan
- 5.5.4.3 India
- 5.5.4.4 South Korea
- 5.5.4.5 Australia and New Zealand
- 5.5.4.6 Rest of Asia-Pacific
- 5.5.5 Middle East and Africa
- 5.5.5.1 Middle East
- 5.5.5.1.1 Saudi Arabia
- 5.5.5.1.2 United Arab Emirates
- 5.5.5.1.3 Turkey
- 5.5.5.1.4 Israel
- 5.5.5.1.5 Qatar
- 5.5.5.1.6 Rest of Middle East
- 5.5.5.2 Africa
- 5.5.5.2.1 South Africa
- 5.5.5.2.2 Nigeria
- 5.5.5.2.3 Kenya
- 5.5.5.2.4 Egypt
- 5.5.5.2.5 Rest of Africa

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
- 6.4.1 Cisco Systems, Inc.
- 6.4.2 Huawei Technologies Co., Ltd.
- 6.4.3 Nokia Corporation
- 6.4.4 Telefonaktiebolaget LM Ericsson
- 6.4.5 ZTE Corporation
- 6.4.6 Juniper Networks, Inc.
- 6.4.7 Ciena Corporation
- 6.4.8 IBM Corporation
- 6.4.9 Samsung Electronics Co., Ltd.
- 6.4.10 NEC Corporation
- 6.4.11 Arista Networks, Inc.
- 6.4.12 Palo Alto Networks, Inc.
- 6.4.13 Fortinet, Inc.
- 6.4.14 Broadcom Inc.
- 6.4.15 Hewlett Packard Enterprise (Athonet)
- 6.4.16 Marvell Technology Group
- 6.4.17 VMware, Inc.
- 6.4.18 Celona, Inc.
- 6.4.19 Check Point Software Technologies Ltd.
- 6.4.20 F5, Inc.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-space and Unmet-need Assessment

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Global Next Generation Network Market Report Scope

The next-generation network market is defined based on the revenues generated from the sale of hardware, software, and services by key vendors across the world.

The next-generation network market is segmented by offering (hardware, software, and services), end user (telecom and internet service providers, government, and other end users), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.

By Offering

Hardware	Network Infrastructure (Routers and Switches)
	Optical Communication Equipment
	Wireless RAN (5G/Small Cell)
	Edge Computing Hardware
Software	Network Virtualization (SDN/NFV)
	Network Security (NGFW, SASE)
	Network Analytics and Orchestration
	OSS/BSS Platforms
Services	Professional Services
	Managed Services
	Network-as-a-Service (NaaS)

By End User

Telecom and Internet Service Providers
Enterprises	Manufacturing
	BFSI
	Healthcare
	Energy and Utilities
Government and Public Sector
Cloud Service Providers
Other End-users

By Network Technology

5G SA/NSA

Private LTE/5G

SDN

SD-WAN

Network Slicing

IP Multimedia Subsystem (IMS)

By Deployment Mode

On-Premises

Cloud / Virtualized

By Geography

North America	United States
	Canada
	Mexico
South America	Brazil
	Argentina
	Rest of South America
Europe	United Kingdom
	Germany
	France
	Italy
	Spain
	Rest of Europe
Asia-Pacific	China
	Japan
	India
	South Korea
	Australia and New Zealand
	Rest of Asia-Pacific

Middle East and Africa	Middle East	Saudi Arabia
		United Arab Emirates
		Turkey
		Israel
		Qatar
		Rest of Middle East

	Africa	South Africa
		Nigeria
		Kenya
		Egypt
		Rest of Africa

By Offering	Hardware	Network Infrastructure (Routers and Switches)
		Optical Communication Equipment
		Wireless RAN (5G/Small Cell)
		Edge Computing Hardware

	Software	Network Virtualization (SDN/NFV)
		Network Security (NGFW, SASE)
		Network Analytics and Orchestration
		OSS/BSS Platforms

	Services	Professional Services
		Managed Services
		Network-as-a-Service (NaaS)
By End User	Telecom and Internet Service Providers

	Enterprises	Manufacturing
		BFSI
		Healthcare
		Energy and Utilities
	Government and Public Sector
	Cloud Service Providers
	Other End-users
By Network Technology	5G SA/NSA
	Private LTE/5G
	SDN
	SD-WAN
	Network Slicing
	IP Multimedia Subsystem (IMS)
By Deployment Mode	On-Premises
	Cloud / Virtualized

By Geography	North America	United States
		Canada
		Mexico

	South America	Brazil
		Argentina
		Rest of South America

	Europe	United Kingdom
		Germany
		France
		Italy
		Spain
		Rest of Europe

	Asia-Pacific	China
		Japan
		India
		South Korea
		Australia and New Zealand
		Rest of Asia-Pacific

	Middle East and Africa	Middle East	Saudi Arabia
			United Arab Emirates
			Turkey
			Israel
			Qatar
			Rest of Middle East

		Africa	South Africa
			Nigeria
			Kenya
			Egypt
			Rest of Africa