The global network engineering services market size is projected to surpass around USD 97 billion by 2033 from USD 45 billion in 2023, notable at a CAGR of 8% from 2024 to 2033.
The network engineering services market is witnessing robust growth driven by the increasing complexity of network infrastructures and the rising demand for efficient and secure communication systems. Network engineering services encompass a wide range of activities, including design, implementation, optimization, and maintenance of networks for various industries such as telecommunications, IT, healthcare, finance, and manufacturing. With the rapid evolution of technologies like cloud computing, IoT (Internet of Things), and 5G, organizations are increasingly relying on network engineering services to ensure seamless connectivity, scalability, and reliability of their networks.
Key Points
- North America contributed more than 32% of market share in 2023.
- Asia-Pacific is estimated to expand the fastest CAGR between 2023 and 2032.
- By service type, the professional services segment has held the largest market share of 62% in 2023.
- The managed services segment is anticipated to grow at a remarkable CAGR of 18.7% between 2024 and 2033.
- The wired segment generated over 58% of the market share in 2023.
- The wireless segment is expected to expand at the fastest CAGR over the projected period.
- The communication service providers segment generated over 66% of the market share in 2023.
- The enterprise segment is expected to expand at the fastest CAGR over the projected period.
Growth Factors
Several factors contribute to the growth of the network engineering services market. Firstly, the proliferation of digital transformation initiatives across industries has led to a surge in the adoption of advanced networking solutions to support new technologies and business models. Additionally, the growing volume of data generated by devices and applications necessitates sophisticated network infrastructures capable of handling high bandwidth and low latency requirements. Moreover, the rising importance of cybersecurity has propelled organizations to invest in network engineering services to fortify their defenses against cyber threats and data breaches.
Network Engineering Services Market Scope
| Report Coverage | Details |
| Growth Rate from 2024 to 2033 | CAGR of 8% |
| Global Market Size in 2023 | USD 45 Billion |
| Global Market Size by 2033 | USD 97 Billion |
| U.S. Market Size in 2023 | USD 10.08 Billion |
| U.S. Market Size by 2033 | USD 21.86 Billion |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | By Service Type, By Connection Type, and By End-use |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Network Engineering Services Market Dynamics
Trends:
One notable trend in the network engineering services market is the shift towards software-defined networking (SDN) and network function virtualization (NFV) technologies. SDN and NFV enable organizations to automate network provisioning, optimize resource utilization, and enhance scalability by decoupling network control from the underlying hardware. Another trend is the emergence of edge computing, where computing resources are deployed closer to the data source to reduce latency and improve performance. This trend necessitates network engineering services to design and manage distributed network architectures capable of supporting edge computing environments.
Opportunities:
The network engineering services market presents numerous opportunities for vendors and service providers. One such opportunity lies in catering to the growing demand for managed network services, where organizations outsource the management of their network infrastructure to third-party providers. Managed network services offer benefits such as cost savings, improved network performance, and access to specialized expertise. Furthermore, the expansion of 5G networks presents opportunities for network engineering services providers to offer consulting, design, and implementation services to telecom operators and enterprises looking to leverage 5G technology for enhanced connectivity and innovative applications.
Restraints:
Despite the favorable market conditions, the network engineering services market faces certain restraints that may hinder growth. One such restraint is the shortage of skilled network engineers with expertise in emerging technologies such as SDN, NFV, and cybersecurity. Addressing this skills gap requires investment in training and development programs to equip professionals with the necessary knowledge and certifications. Additionally, budget constraints and economic uncertainties may impede organizations’ ability to invest in network engineering services, particularly in industries heavily impacted by external factors such as the global pandemic or geopolitical tensions.
Segments:
The network engineering services market can be segmented based on various criteria, including service type, organization size, end-user industry, and geography. In terms of service type, the market encompasses consulting services, design and implementation services, maintenance and support services, managed network services, and training and certification services. Organization size segments may include small and medium-sized enterprises (SMEs) and large enterprises. Furthermore, end-user industries such as telecommunications, IT and technology, healthcare, finance, manufacturing, and others represent key segments within the market. Geographically, the market can be segmented into regions such as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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Recent Developments
- In July 2022, Mphasis allocated ₹21 crore to support fundamental and applied research in quantum technologies at IIT Madras. The collaboration involves a Memorandum of Understanding (MoU) between Indian Institute of Technology Madras and Mphasis, with the goal of establishing a hub for quantum science and technology. The partnership aims to foster high-quality graduates by encouraging research in both fundamental and applied aspects of quantum technologies.
- In August 2022, SkyMax and Ericsson formalized a partnership through a Memorandum of Understanding (MoU) to develop an advanced 5G broadband network and digital services delivery platform across Sub-Saharan Africa (SSA).
- In August 2022, TCS achieved the Compliance and Privacy distinction in the AWS Security Competency, setting it apart as an AWS Partner specializing in consulting services tailored for large global enterprises. These services aid in the adoption, development, and deployment of security measures in AWS environments, enhancing overall security posture.
- In August 2022, Ericsson unveiled a groundbreaking triple-band, tri-sector radio (Radio 6646) capable of performing the functions of nine radios. This innovation significantly reduces energy consumption by 40% compared to triple-band single-sector radios and decreases weight by 60%, incorporating aluminum for a more environmentally friendly solution.
- In September 2022, Juniper Networks introduced Apstra Freeform, an expansion of its multivendor data center automation and assurance platform. This capability empowers Juniper’s enterprise, service provider, and cloud provider customers to efficiently manage and automate their data center operations, irrespective of topology and protocols used.
Competitive Landscape:
The network engineering services market is highly competitive, with numerous players vying for market share through strategies such as partnerships, collaborations, acquisitions, and product innovations. Key players in the market include multinational IT service providers, networking equipment manufacturers, telecommunications companies, and specialized network engineering firms. These players offer a wide range of services tailored to the specific needs of their clients, ranging from network design and deployment to performance optimization and security management. Additionally, vendors are increasingly focusing on integrating artificial intelligence (AI) and machine learning (ML) capabilities into their network engineering solutions to enhance automation, analytics, and threat detection capabilities. Amidst intensifying competition, differentiation based on service quality, industry expertise, and innovation will be critical for sustained success in the network engineering services market.
Network Engineering Services Market Companies
- Cisco Systems, Inc.
- Juniper Networks, Inc.
- Huawei Technologies Co., Ltd.
- Arista Networks, Inc.
- Nokia Corporation
- Hewlett Packard Enterprise (HPE)
- Dell Technologies, Inc.
- Extreme Networks, Inc.
- Ericsson AB
- Broadcom Inc.
- IBM Corporation
- F5 Networks, Inc.
- Palo Alto Networks, Inc.
- Fortinet, Inc.
- Check Point Software Technologies Ltd.
Segments Covered in the Report
By Service Type
- Professional Services
- Managed Services
By Connection Type
- Wired
- Wireless
By End-use
- Communication Service Providers (CSPs)
- Enterprises
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East and Africa
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