Global Network Transformation Market Size, Share & Trends Analysis Report By Component, By Organization Size, By End Use, By Regional Outlook and Forecast, 2024 - 2031
The Global Network Transformation Market size is expected to reach $977.23 billion by 2031, rising at a market growth of 47.2% CAGR during the forecast period.
The rapid adoption of 5G technology, cloud computing, and IoT devices has driven IT and telecom companies to invest heavily in network transformation to meet growing data demands and improve service delivery. Expanding fiber optic networks and edge computing capabilities have further propelled growth, ensuring better connectivity and low latency services for end-users. This continuous evolution is crucial for maintaining competitive advantage and catering to the ever-increasing digital needs of consumers. Thus, in 2023, the IT & telecom segment registered 29% revenue share in the market. This dominant share is attributed to the sector’s continuous need for high-performance, reliable, and scalable network infrastructure.
The major strategies followed by the market participants are Products Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In February, 2024, Check Point Software Technologies Ltd. introduced the Quantum Firewall Software R82 and innovations for its Infinity Platform, addressing a 75% rise in cyber-attacks. R82 features AI-powered engines for preventing zero-day threats like phishing and malware, with improvements to enhance DevOps agility, security, and operational simplicity. Additionally, In November, 2024, Open Text Corporation unveiled OpenText Partner Network, granting access to its entire portfolio of solutions, including Content Services, Experience Management, and Security, along with cloud, AI, automation, and analytics. This expansion helps global distributors and resellers deepen customer relationships, drive innovation, and support digital transformation across various industries.
Based on the Analysis presented in the KBV Cardinal matrix; Cisco Systems, Inc., VMware, Inc., and IBM Corporation are the forerunners in the Network Transformation Market. Companies such as BMC Software, Inc., Fortinet, Inc., and Check Point Software Technologies Ltd. are some of the key innovators in Network Transformation Market. In October, 2024, VMware, Inc. unveiled Private AI Foundation with NVIDIA (PAIF-N) streamlines AI infrastructure deployment via enhancements in VMware Cloud Foundation 5.2.1. The Private AI Automation Services Quickstart Wizard enables efficient setup of AI Workstations and Kubernetes Clusters, offering version-controlled templates, GPU configuration guidance, and improved governance for AI/ML workloads within a secure, high-performance platform.
Market Growth Factors
As enterprises increasingly rely on digital tools to run their operations, the demand for higher network efficiency and performance has surged. Traditional networks often struggle to handle the growing data traffic and latency-sensitive applications critical for modern business functions. Hence, increasing demand for higher network efficiency and performance in enterprise networks drives the market's growth.
Additionally, the advent of 5G technology is one of the most significant drivers of network transformation. With promises of ultra-low latency, higher bandwidth, and the ability to connect more devices simultaneously, 5G is poised to transform how businesses and consumers use mobile and broadband networks. Thus, rising demand for 5G connectivity and network expansion drives the market's growth.
Market Restraining Factors
One of the most significant barriers to widespread adoption of network transformation is the high initial investment required. Upgrading or completely overhauling an organization’s network infrastructure to support emerging technologies like 5G, SDN, or edge computing involves substantial capital expenditure. Therefore, high initial investment and capital expenditure impede the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
Component Outlook
Based on component, the market is divided into solution and services. The services segment held 34% revenue share in the market in 2023. This segment includes professional services such as consulting, implementation, training, and managed services that support the deployment and ongoing management of network transformation technologies.
Solution Outlook
The solution segment is further subdivided into SDN & NFV, network automation, c-ran, and others. The network automation segment held 24% revenue share in the market in 2023. Network automation involves using software to automate the configuration, management, testing, deployment, and operation of physical and virtual network devices.
Services Outlook
The services segment is further subdivided into professional services and managed services. The managed services segment held 43% revenue share in the market in 2023. Managed services involve outsourcing network management and maintenance tasks to third-party service providers, allowing organizations to focus on their core business activities.
Organization Size Outlook
On the basis of organization size, the market is segmented into large enterprises and small & medium enterprises. In 2023, the small & medium enterprises segment attained 38% revenue share in the market. SMEs increasingly recognize the importance of modernizing their network infrastructures to remain competitive and agile in a rapidly evolving digital landscape.
End Use Outlook
By end use, the market is divided into IT & telecom, energy & utility, healthcare, government, manufacturing, retail, media & entertainment, and others. The manufacturing segment held 11% revenue share in the market in 2023. The rise of Industry 4.0, characterized by smart factories, automation, and IoT-enabled devices, has spurred the demand for advanced networking solutions.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe region generated 32% revenue share in the market. Europe has embraced network transformation to support its digital economy and enhance connectivity across its member states.
Recent Strategies Deployed in the Market
- Apr-2024: Fortinet, Inc. unveiled FortiOS 7.6, enhancing its Security Fabric with advanced features like Secure SD-WAN, SASE, ZTNA, and DEM. Integrating FortiAI with FortiAnalyzer and FortiManager boosts threat analysis and automation. New DLP capabilities ensure robust data protection across hybrid networks, streamlining security operations and risk mitigation.
- Apr-2024: IBM Corporation announced the acquisition of Pliant, a provider of network and IT infrastructure automation products. This acquisition enhances IBM’s ability to simplify infrastructure provisioning, management, and automation for both traditional and cloud environments. Pliant’s integration capabilities and low-code approach align with IBM’s strategy to advance AI and hybrid cloud solutions.
- Apr-2024: BMC Software, Inc. announced the acquisition of Netreo, a leader in IT network and application observability solutions. This integration will enhance BMC Helix with full-stack, open observability, and AIOps capabilities, providing customers with deeper insights across applications, infrastructure, and networks, improving performance, productivity, and issue resolution.
- Jan-2024: Juniper Networks, Inc. unveiled the AI-Native Networking Platform, unifying campus, branch, and data center networks with AI-driven insights and Marvis Virtual Network Assistant. Designed for end-to-end assurance, it reduces costs by up to 85%, resolves issues faster, and minimizes outages, transforming IT operations and enhancing user experiences.
- Jan-2024: Check Point Software Technologies Ltd. unveiled the Quantum Spark 1900 and 2000 next-gen firewalls for SMBs. These security gateways offer AI-driven threat prevention, cloud management, and automated threat handling, providing high-performance protection. Designed to support businesses with up to 1,000 employees, they help SMBs combat evolving cyber threats effectively and affordably.
- Aug-2023: VMware, Inc. partnered with Lenovo, a technology company, to deliver turnkey edge-to-cloud solutions, including AI and hybrid multi-cloud capabilities. This partnership offers scalable, integrated IT solutions like Lenovo TruScale Hybrid Cloud for VMware, supporting businesses' digital transformation with simplified deployment and advanced AI capabilities.
List of Key Companies Profiled
- Cisco Systems, Inc.
- VMware, Inc. (Broadcom Inc.)
- Fortinet, Inc.
- Palo Alto Networks, Inc.
- Juniper Networks, Inc.
- Check Point Software Technologies Ltd.
- IBM Corporation
- Anuta Networks International LLC
- BMC Software, Inc. (KKR & Co., Inc.)
- Open Text Corporation
Global Network Transformation Market Report Segmentation
By Component
- Solution
- SDN & NFV
- Network Automation
- C-Ran
- Other Solutions Type
- Services
- Professional Services
- Managed Services
By Organization Size
- Large Enterprises
- Small & Medium Enterprises
By End Use
- IT & Telecom
- Energy & Utility
- Healthcare
- Government
- Manufacturing
- Retail
- Media & Entertainment
- Other End Use
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA