Next Generation Network Market Size (2024 - 2029)

Next Generation Network Market Analysis

The Next Generation Network Market size is estimated at USD 30.55 billion in 2024, and is expected to reach USD 44.26 billion by 2029, growing at a CAGR of 7.70% during the forecast period (2024-2029).

A next-generation network is a packet-based network used for telephony and data. It uses numerous broadband and quality of services (QoS) transport technologies to create advanced communication systems. These networks are capable of handling multiple types of services/traffic, such as voice, video, audio, and other multimedia, in a single platform and are cost-effective in the long run.

• The increasing need for bandwidth is driving market growth. Data generation and consumption are increasing rapidly due to the increased activities such as streaming, gaming, virtual reality, and cloud-based applications, increasing strain on traditional networks and leading to slowdowns and congestion.

• The rapid growth in rolling out of 5G from numerous telecom companies globally also adds to the market growth. The next generation of telecom networks, or 5G, has grown significantly in the past few years and continuously expands. For instance, in December 2023, Huawei stated that its 5.5G Intelligent Packet Core Network offering had accepted the Next-Generation Mobile Internet to support an intelligent 5.5G core network. The company has made these changes in response to the rising necessity for 10 Gbps pipes and network intelligence.

• Software-defined networks are powering the next generation of government networks undergoing transformation. As government agencies are realizing the benefits of using SDN to build software-defined wide-area networks (SD-WAN) at lower cost, the development of this network is anticipated to drive market growth.

• However, the market is facing many challenges, such as complete compliance and inter-networking with a broad range of IPv4, MPLS, IPv6, metro Ethernet, and networking standards, on-time delivery of packet-based software to address requirements for NGN equipment, software investments across diverse hardware platforms in the rapid technologically evolving market. All these factors are expected to challenge the growth in the next-generation network market.

• The rapid change in the technology landscape is also transforming the services landscape, paving the way for next-generation services and resilient network operations post-pandemic. Remote deployment support, remote Network Operations Center (NOC) management, and predictive maintenance are becoming a necessity.

Next Generation Network Industry Segmentation

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.