The worldwide network equipment market is determined to be esteemed at $65.788 billion by 2032, up from $29.544 billion in 2022, and progressing at a compound annual growth rate (CAGR) of 8.3% during the forecast period.
Network equipment describes the evolution and migration of fixed and mobile network infrastructures, including converged networks, proprietary networks, and other networks based on IP. Network equipment solutions require equipment for deployment that includes mobile backhaul equipment, metro access/aggregation, data center switches, enterprise switches, and routers.
Manufacturers are focusing on designing equipment that is affordable and offers flexible, scalable solutions to deliver the functionality needed in the equipment.
To meet the growing demand for IP services among the consumers, system manufacturers are continuing to invest in next-generation packet-based network elements. This factor acts as one of the prime opportunities for the equipment designing vendors in the coming years.
Drivers and challenges
Rapid technological innovation is a prime factor driving the growth in telecommunication industry. A key innovation is transformation from circuit-based, public-switched telecommunication network to packet-based network using internet protocols.
This transformation includes shifting from traditional copper wire to optical fiber cables that offer high-speed services. Next-gen networks offer several features to support data and voice communication services that encourage the adoption of advanced services among consumers. This factor is expected to positively impact the network equipment market during the forecast period.
The challenges faced by the network equipment manufacturers include ensuring complete compliance and internetworking with a broad range of IPv4, MPLS, IPv6, metro Ethernet, and networking standards; leveraging software investments across diverse hardware platforms in the rapid evolution in market requirement; and delivering packet-based software on time to address requirements for equipment. These factors are expected to act as a challenge to the growth in revenue of global network equipment market.
The global network equipment market can be segmented into equipment type, enterprise type, and regions.
On the basis of equipment type, it can be segmented into high fiber copper cables, broadband wireless access devices, broadband devices over power lines, mobile network devices, and other satellite connecting devices.
On the basis of enterprise type, it can be segmented into small, medium, and large.
On the basis of regions, the global network equipment market can be segmented into North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific excluding Japan, Japan, and the Middle East and Africa.
North America accounts for largest market share in the global network equipment market owing to the advanced technology and easy adoption in the countries such as the U.S. and the majority of the equipment manufacturers located in the region. The revolution in the IT and telecommunication sectors are offering lucrative growth opportunities for regions, such as Western Europe.
Asia-Pacific, excluding Japan, is expected to have maximum potential for the revenue growth of global network equipment market during the forecast period. Latin America, the Middle East and Africa, and Eastern Europe are among the regions expected to witness positive growth during the forecast period.
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