Network Optimization Services Market Report 2025

The network optimization services market size has grown rapidly in recent years. It will grow from $7.56 billion in 2024 to $8.56 billion in 2025 at a compound annual growth rate (CAGR) of 13.2%. The growth in the historic period can be attributed to growth in network complexity, rising data traffic volumes, mobile network evolution, demand for faster connectivity, globalization of businesses, customer experience focus.

The network optimization services market size is expected to see rapid growth in the next few years. It will grow to $16.3 billion in 2029 at a compound annual growth rate (CAGR) of 17.5%. The growth in the forecast period can be attributed to cybersecurity landscape evolution, remote work infrastructure optimization, application performance requirements, enhanced quality of service (QoS), regulatory compliance evolution. Major trends in the forecast period include 5g rollout and optimization, edge computing integration, ai-driven network optimization, cloud-native network optimization, SD-wan (software-defined wide area network), network slicing for differentiated services, dynamic network optimization.

The rising number of data centers is anticipated to drive the growth of the network optimization services market in the future. A data center is defined as a facility comprised of networked computers, storage systems, and computational infrastructure designed to gather, analyze, store, and distribute large volumes of data. Network optimization services assist data centers in enhancing network virtualization, balancing traffic, and reducing unnecessary control traffic within the infrastructure. For instance, in January 2022, the Campfil Group, a US-based air filter company, reported that the number of data centers in the US reached 2,751 in 2022. Additionally, there were 484 data centers in Germany, 458 in the UK, 447 in China, and 324 in Canada. Consequently, the growing number of data centers is contributing to the expansion of the network optimization services market.

The ascent of cybersecurity concerns is projected to propel the growth of the network optimization services market moving forward. These concerns encompass the protection of computer systems, networks, and data from theft, unauthorized access, damage, or cyber threats. Network optimization services typically integrate security measures aimed at bolstering network resilience against cyberattacks, thereby enhancing overall network integrity. For instance, in 2022, Packetlabs reported that 79% of financial CISOs acknowledged an annual increase in sophisticated cyberattacks by threat actors. Consequently, the escalating cybersecurity apprehensions are a driving force behind the growth of the network optimization services market.

Advanced technologies are emerging as a significant trend in the network optimization services market. Major players in the market are leveraging these technologies to maintain their competitive edge. For example, in February 2024, Ericsson, a Sweden-based telecommunications equipment and services provider, introduced new Explainable AI (XAI) capabilities within its Cognitive Software portfolio. This initiative is designed to assist communications service providers (CSPs) in enhancing their AI adoption for network design and optimization. With XAI, CSPs benefit from increased transparency regarding AI recommendations, enabling them to understand the root causes of network performance issues and their effects on user experience. This feature aids optimization teams in identifying key contributing factors and suggested actions. The solutions employ AI models trained on extensive global datasets, which can also be retrained locally for rapid deployment. Additionally, an intuitive and adaptable user interface has been launched to further boost CSP productivity.

Major companies in the network optimization services market are concentrating on developing end-to-end network tuning solutions, such as the Open RAN Alliance Radio Access Network Intelligent Controller (RIC), to gain a competitive advantage. The Open RAN Alliance RIC is an advanced network intelligence solution designed to optimize performance and enable differentiated services within Open RAN environments through intelligent, automated network management. For instance, in February 2023, Mavenir Systems, Inc., a US-based telecommunications software company, launched its O-RAN Alliance RIC. This next-generation offering enhances network intelligence for Open RAN by facilitating the creation of differentiated services through open APIs. Mavenir's O-RIC enables intelligent closed-loop end-to-end network tuning, optimizing performance, improving cost efficiency, and enhancing user experience. Additionally, it provides Network Intelligence as a Service (NIaaS), delivering detailed insights into the network and enabling the development of advanced intelligence solutions.

In February 2023, Circet, a US-based network services provider, acquired Further Enterprise Solutions (FES) to expand Circet / KGP Services' wireless capabilities. FES, a US-based provider in RF Engineering & Optimization, Installation & Commissioning, Staff Augmentation, and Decommissioning Services for the wireless communications industry, strengthens Circet's end-to-end wireless services offering.

Major companies operating in the network optimization services market are SolarWinds Corporation, Array Networks Inc., Cisco Systems Inc., Citrix Systems Inc., FatPipe Networks Inc., Huawei Technologies Company Limited, Infovista Ltd., Juniper Networks Inc., NetScout Systems Inc., Nokia Corporation, PC Connection Inc., Riverbed Technology Inc., TEOCO Corporation, Verizon Communications Inc., ZTE Corporation, A10 Networks Inc., Akamai Technologies Inc., Alcatel-Lucent Enterprise SAS, ALE International SA, Ciena Corp., Dell Technologies Inc., Telefonaktiebolaget LM Ericsson, Extreme Networks Inc., F5 Networks Inc., Fortinet Inc., Gigamon Inc., Hewlett Packard Enterprise Co., InfoBlox Inc., Masergy Communications Inc., Palo Alto Networks Inc., Radware Inc., Silver Peak Systems Inc., Vmware Inc., Zscaler Inc.

North America was the largest region in the network optimization services market in 2024. The regions covered in the network optimization services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the network optimization services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Network optimization services encompass a range of technologies, strategies, and best practices aimed at monitoring, maintaining, and enhancing network performance. These services are utilized to improve overall network efficiency and ensure optimal design and performance at the most cost-effective price.

The network optimization services include the primary offerings that revolve around implementation, consulting and support, and ongoing maintenance. Implementation involves a strategic amalgamation of financial resources, technological advancements, and capacity building, fostering inclusive globalization, regional integration, and a conducive national business environment. Deployment options span on-premises setups as well as cloud-based solutions, catering to diverse enterprises ranging from small and medium-sized to large-scale organizations. Applications of these services span various optimization domains such as local network optimization, WAN optimization, RAN optimization, and data center optimization. This versatility extends across multiple industry verticals, encompassing IT and telecom, BFSI, government and defense, transportation and logistics, manufacturing, consumer goods and retail, media and entertainment, energy and utility, healthcare and life sciences, and education.

The network optimization services market research report is one of a series of new reports that provides network optimization services market statistics, including network optimization services industry global market size, regional shares, competitors with a network optimization services market share, detailed network optimization services market segments, market trends and opportunities, and any further data you may need to thrive in the network optimization services industry. This network optimization services 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 optimization services market includes revenues earned by entities by providing QoS prioritization, load balancing, and payload compression techniques for network optimization. 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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