Network Transformation Market Report 2025

This Network Transformation report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The network transformation market size has grown exponentially in recent years. It will grow from $90.73 billion in 2024 to $139.37 billion in 2025 at a compound annual growth rate (CAGR) of 53.6%. The growth in the historic period can be attributed to legacy infrastructure, bandwidth demand, security concerns, cost reduction, cost reduction.

The network transformation market size is expected to see exponential growth in the next few years. It will grow to $789.96 billion in 2029 at a compound annual growth rate (CAGR) of 54.3%. The growth in the forecast period can be attributed to remote workforce, supply chain resilience, network automation, digital transformation, competitive pressure. Major trends in the forecast period include edge computing, artificial intelligence (ai) and machine learning, 6g and beyond, cloud adoption, internet of things (iot).

The growth of the network transformation market is anticipated to be propelled by the increasing adoption of the bring your own device (BYOD) policy in companies. The BYOD policy involves employees connecting to the organization's network using their personal devices such as smartphones, tablets, computers, and laptops to access the necessary resources for their tasks. Network transformation plays a crucial role in reshaping network architecture to accommodate changes in the network infrastructure based on the devices used by employees. Cisco reports that 89% of IT departments enable BYOD in some form, and 69% of IT leaders express positivity towards BYOD. Hence, the rising adoption of BYOD policies in companies is expected to be a driving force for the network transformation market.

The network transformation market is poised for growth, driven by the increased demand for smartphones. Smartphones, which integrate mobile phone functionalities with those of a computer, play a crucial role in network transformation for tasks such as network optimization, monitoring, slicing, and mobile edge computing. Uswitch Limited reports a 3.8% increase in mobile connections in the UK, reaching 71.8 million in February 2023. Additionally, it is anticipated that 95% of the 68.3 million UK population will own a smartphone by 2025. Therefore, the growing demand for smartphones is expected to be a significant factor propelling the growth of the network transformation market.

Major companies in the network transformation market are concentrating on developing advanced solutions, such as modular, scalable data centers, to offer flexible and efficient data center solutions in infrastructure-limited environments. These modular, scalable data centers are adaptable and expandable facilities designed to efficiently accommodate computing resources within self-contained units that can be easily added or removed to meet changing demands and optimize resource utilization. For example, in February 2023, Amazon Web Services (AWS), a US-based cloud computing company, announced the availability of the AWS Modular Data Center (MDC) to the U.S. Department of Defense (DoD). This solution features a self-contained, environmentally controlled unit capable of hosting AWS Outposts or Snow Family devices, facilitating scalable deployments and proactive management in areas with limited infrastructure. Its importance lies in enabling U.S. Department of Defense agencies to operate low-latency applications for military operations and crisis response while also simplifying data center management and enhancing access to familiar AWS services in edge environments.

Major companies in the network transformation market are creating innovative network transformation solutions to address the increasing demand for network modernization. Innovative network transformation solutions involve creative and forward-thinking strategies aimed at enhancing and modernizing communication and data networks, often leveraging advanced technologies and methodologies to boost performance, efficiency, and functionality. For instance, in August 2023, HPE Aruba Networking, a US-based security and networking company, launched behavioral analytics-based network detection and response (NDR) capabilities. This innovation enhances security by employing AI to monitor and identify unusual activities, particularly in vulnerable IoT devices, while extending Zero Trust Network Access (ZTNA) to campus-based local area networks to ensure consistent enforcement of access control policies. This development improves threat detection and response, streamlines security management across different environments, and addresses the rising security challenges presented by unsecured IoT devices, ultimately strengthening the overall security posture of organizations.

In January 2022, NEC Corporation acquired Blue Danube Systems, expanding NEC's customer service expertise and assets in North America. This acquisition broadens the scope of NEC's Open RAN solutions, which include end-to-end Open 5G solutions and system integration skills. Blue Danube Systems, a US-based company, specializes in creating wireless technologies for mobile networks and other applications, introducing 5G beamforming to enhance network capacity and end-user experiences.

Major companies operating in the network transformation market include International Business Machines Corporation, Fujitsu Ltd., Dell EMC, Ciena Corporation, Hewlett Packard Enterprise Company, Cisco Systems Inc., Juniper Networks Inc., Huawei Technologies Co. Ltd., NEC Corporation, Intel Corporation, Nokia Corporation, Telefonaktiebolaget LM Ericsson, Samsung Group, VMware Inc., Aryaka Networks Inc., Citrix Systems Inc., CenturyLink, Silver Peak Systems Inc., ZTE Corporation, ALE International SAS, BT Group plc, Cato Networks, Colt Technology Services Group Limited, Comarch SA, Coriant GmbH, CSG International, ECI Telecom, Infosys Limited, Fortinet Inc., Broadcom Inc., AT&T Inc., Accenture plc.

North America was the largest region in the network transformation market in 2024 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the network transformation market share report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the network transformation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

Network transformation involves the process of updating the fundamental network infrastructure. It is a systematic approach to reenvisioning the entire network, encompassing elements such as the cloud, WAN, branches, data centers, remote user connections, and the architecture of network security.

Key solutions integral to network transformation encompass network automation, 5G networks, SDN & NFV, and C-RAN. Network automation pertains to the automation of configuring, managing, testing, installing, and administering both physical and virtual network equipment. These solutions cater to a diverse range of enterprises, including small and medium-sized enterprises, as well as large enterprises in sectors such as BFSI, energy and utilities, government, IT and Telecom, manufacturing, and retail.

The network transformation market research report is one of a series of new reports that provides network transformation market statistics, including Network transformation industry global market size, regional shares, competitors with a network transformation market share, detailed network transformation market segments, market trends and opportunities, and any further data you may need to thrive in the network transformation industry. This network transformation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The network transformation market includes revenues earned by entities by providing various solutions and services to enhance the newtowk architecture such as system integration, staging, and deployment, VNF migration, network designing, component development, and product & engineering solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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