Global Self-Organizing Networks Market Size, Share & Trends Analysis Report By Offering, By Architecture, By Network Technology (4G/LTE, 2G/3G, and 5G), By Network Infrastructure, By Application, By Regional Outlook and Forecast, 2024 - 2031

Global Self-Organizing Networks Market Size, Share & Trends Analysis Report By Offering, By Architecture, By Network Technology (4G/LTE, 2G/3G, and 5G), By Network Infrastructure, By Application, By Regional Outlook and Forecast, 2024 - 2031

The Global Self-Organizing Networks Market size is expected to reach $15.75 billion by 2031, rising at a market growth of 10.8% CAGR during the forecast period.

As mobile networks transition to 5G and beyond, ensuring robust security becomes critical. SON solutions assist in automating network security measures such as encryption, threat detection, and anomaly identification, which are essential for preventing cyberattacks and ensuring data integrity across the network. Therefore, the network security & authentication segment attained 23% revenue share in the market in 2023. The high revenue share reflects the increasing focus on securing next-generation networks while managing their growing complexity. Moreover, the rise of advanced security requirements in telecommunications, driven by regulatory mandates, fuels the demand for SON solutions.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In October, 2024, Nokia Corporation partnered with NTT DATA, a Japanese multinational information technology service and consulting company to deliver advanced Private 5G solutions for industries like airports and smart cities. Additionally, In August, 2024, Ericsson AB partnered with Uscellular, a mobile network company, to enhance 5G transport infrastructure in rural U.S., improving internet speed, capacity, and reliability. Using Ericsson’s Router 6000 and new Router 6671, the collaboration supports mid-band 5G deployment, enabling services like precision agriculture, remote education, and telemedicine to boost rural digitalization and local economies.

Based on the Analysis presented in the KBV Cardinal matrix; Huawei Technologies Co., Ltd., Cisco Systems, Inc., Siemens AG and Qualcomm Incorporated are the forerunners in the Self-Organizing Networks Market. In July, 2024, Cisco Systems, Inc. announced a partnership with Rockwell Automation to drive digital transformation in the Asia Pacific, Japan, and Greater China region. This partnership aims to deliver secure connectivity and advanced automation solutions, enhancing productivity and operational efficiency for industrial enterprises while addressing unique manufacturing challenges and fostering innovation through shared expertise. Companies such as Nokia Corporation, ZTE Corporation, Amdocs Limited are some of the key innovators in Self-Organizing Networks Market.

Market Growth Factors

The ability of SON to self-optimize and self-heal is critical in the fast-moving 5G environment, where network conditions can change rapidly due to user mobility and varying network loads. SON enables 5G networks to adapt in real time, maintaining the necessary service levels without manual interventions. This contributes to reducing operational costs and improving the overall reliability and scalability of the network, ensuring that telecom operators can manage their 5G infrastructure effectively as demand grows. Therefore, the rising adoption of 5G technology and its impact on network efficiency drive the market's growth.

The demand for improved QoS also extends to business services and critical infrastructure, where uninterrupted connectivity is often a requirement. For telecom providers catering to enterprise clients or public safety services, ensuring reliable, high-performance networks is paramount. SON enables service providers to prioritize traffic for mission-critical services and optimize their infrastructure to deliver the required performance levels, helping maintain the trust of business customers and government clients. In conclusion, demand for enhanced QoS and seamless user experience propels the market's growth.

Market Restraining Factors

While SON systems can lead to operational cost savings by automating tasks and reducing the need for human intervention, the initial capital investment remains a significant obstacle for many telecom providers. Overcoming this barrier requires finding ways to reduce the costs of implementation or developing financial models that make SON solutions more accessible to a broader range of telecom operators. Hence, high initial investment costs for implementing SON solutions are hindering market growth.

Offering Outlook

Based on offering, the market is divided into software and services. In 2023, the software segment garnered 59% revenue share in the market. The growing adoption of advanced software solutions for network automation and optimization in telecommunication networks, especially in 5G deployments, has dominated the software segment. Self-organizing networks leverage sophisticated algorithms and artificial intelligence (AI) to enable network self-management, self-configuration, and self-healing, enhancing network efficiency and reducing human intervention. The software’s ability to dynamically optimize network performance, manage traffic load, and adapt to real-time conditions makes it essential in next-generation network infrastructures.

Architecture Outlook

On the basis of architecture, the market is segmented into centralized self-organizing networks, distributed self-organizing networks, and hybrid self-organizing networks. In 2023, the distributed self-organizing networks segment attained 35% revenue share in the market. Distributed SONs employ a decentralized approach, with each network element (base station or node) autonomously managing its operations based on local conditions. This decentralized model allows for greater flexibility and scalability, as it can adapt more quickly to local network demands. The distributed architecture also enhances fault tolerance and resiliency since failure in one part of the network does not necessarily affect the entire system.

Network Technology Outlook

Based on network technology, the market is categorized into 4G/LTE, 2G/3G, and 5G. In 2023, the 4G/LTE segment registered 50% revenue share in the market. The widespread deployment and adoption of 4G/LTE networks across the globe have significantly driven the demand for SON solutions. As mobile operators seek to enhance network performance, optimize resource utilization, and improve user experience in high-density environments, 4G/LTE networks benefit from the automation and optimization capabilities that SON technologies offer.

Network Infrastructure Outlook

By network infrastructure, the market is divided into radio access network, core network, backhaul, and others. The core network segment procured 29% revenue share in the market in 2023. The core network is fundamental to overall network operations, as it handles data routing, management, and service delivery. As networks scale and adopt newer technologies like 5G, core networks become increasingly complex and require automation to maintain optimal performance. SON solutions in the core network assist in load balancing, fault management, and ensuring end-to-end service reliability.

Application Outlook

Based on application, the market is divided into network security & authentication, intermachine communication, gaming, global positioning system, WAP, and others. In 2023, the intermachine communication segment procured 20% revenue share in the market. IMC, which involves direct communication between machines without human intervention, is fundamental to the Internet of Things (IoT) and Industry 4.0 applications. As IoT devices proliferate and network communication between machines becomes more critical, SON technologies help to automate the configuration, optimization, and fault management of IMC networks. The demand for efficient, scalable IMC systems across sectors like manufacturing, logistics, and energy continues to drive the growth of this segment within the SON market.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 35% revenue share in the market in 2023. This dominance can be attributed to the advanced telecommunications infrastructure in the region, including the widespread adoption of 5G networks, which drives the need for efficient network management solutions. The United States, in particular, remains a significant player, with telecom companies heavily investing in SON technologies to manage network complexity, ensure service quality, and enhance automation in network operations.

Recent Strategies Deployed in the Market

• Aug-2024: Nokia Corporation teamed up with YellowScan, an Electronics manufacturer Company to enhance industrial operations by integrating the YellowScan Surveyor Ultra LiDAR scanner with Nokia's Drone Networks. This collaboration aims to automate 5G-based LiDAR scanning for inspections in telecommunications, utilities, and mining, potentially reducing operational costs by over 60% while enabling real-time data streaming and accurate digital twins.
• Jun-2024: Huawei Technologies Co., Ltd. unveiled the 5G-A Pioneers Program, gathering global operators to discuss advancing 5G-A networks. With the official release of 3GPP Release-18, 2024 marks the first year of commercial 5G-A deployment, aimed at expanding business opportunities and driving long-term growth toward an intelligent future.
• Jul-2024: Nokia Corporation signed an agreement with Telefónica, a Spanish multinational telecommunications company to develop Spain’s private 5G network market, focusing on industries like ports, manufacturing, and logistics. Nokia will deploy 100 advanced solutions, including DAC, MPW, and MXIE, to enhance productivity, safety, and sustainability, integrating with Telefónica’s infrastructure for digital transformation.
• May-2024: Cisco Systems, Inc. partnered with Lenovo, a technology company, to provide integrated infrastructure and networking solutions. The partnership would accelerate digital transformation with AI-powered, edge-to-cloud solutions.
• Mar-2024: Nokia Corporation announced the partnership with Batelco, a Bahrain Telecommunication Company, to deliver 5G private wireless networks across Bahrain. Batelco will use Nokia’s advanced private wireless solutions, including edge computing and industrial devices, to support various industries, boost operational KPIs, unlock new revenue streams, and enhance health and safety standards.

List of Key Companies Profiled

• Qualcomm Incorporated (Qualcomm Technologies, Inc.)
• Ericsson AB
• ZTE Corporation
• Nokia Corporation
• Rohde & Schwarz GmbH & Co. KG
• Siemens AG
• Cisco Systems, Inc.
• Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
• Amdocs Limited
• CommScope Holding Company, Inc.

Global Self-Organizing Networks Market Report Segmentation

By Offering

• Software
• Services

By Architecture

• Centralized Self-Organizing Networks
• Distributed Self-Organizing Networks
• Hybrid Self-Organizing Networks

By Network Technology

• 4G/LTE
• 2G/3G
• 5G

By Network Infrastructure

• Radio Access Network
• Core Network
• Backhaul
• Other Network Infrastructure

By Application

• Network Security & Authentication
• Intermachine Communication
• Gaming
• Global Positioning System
• WAP
• Other Application

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