Network Engineering Services Market Report Scope & Overview:

The Network Engineering Services Market was valued at USD 52.7 Billion in 2023 and is expected to reach USD 118.3 Billion by 2032, growing at a CAGR of 9.41% from 2024-2032.

The Network Engineering Services Market is driven by factors like regional network infrastructure deployment, influenced by the demand for high-speed connectivity and digital transformation. Network design trends showcase the shift from traditional setups to software-defined and cloud-based solutions. Service provider capacity utilization in 2023 highlights how telecom and IT firms optimize network resources to handle increasing data traffic. Lastly, the supply chain and vendor landscape focuses on the contributions of technology providers, system integrators, and component suppliers in maintaining efficient network operations and service delivery.

Market Dynamics

Drivers

• The expansion of 5G networks and the increasing need for high-speed connectivity are driving investments in advanced network engineering solutions.

The network engineering services market is primarily driven by the fast-paced growth of 5G networks and the growing demand for high-speed connectivity in various industries. With organizations and telecom operators pouring money into transitioning their infrastructure to higher data transmission rates, ultra-low latency, and seamless connectivity, Changes in wired and wireless network engineering essentially are the result of digital transformation, however, is imperative, with the rising prevalence of IoT, cloud, and AI-driven applications.

Restraints

• Deploying and maintaining advanced network infrastructure requires significant capital and operational expenditure, limiting adoption among SMEs.

Although network engineering services provide an advantage, they carry high capital expenditure in infrastructure deployment and the cost of maintaining it poses a major restraint. Building out Next Gen networking–5G, fiber-optic networks. Furthermore, the maintenance and upgrade of these solutions and the essential cybersecurity measures they may require incur long-term costs, which are often too much for small and medium-sized enterprises to implement fully.

Opportunities

• SDN and NFV enable automation, scalability, and cost efficiency, creating new opportunities for network engineering service providers.

One of the biggest opportunities in the network engineering services market comes due to the increasing adoption of SDN and NFV. These technologies allow for automation of the network, increased scalability, and cost savings through the use of software-driven networking as a replacement for hardware-based networking. Large enterprises and telecom providers are deploying SDN/NFV to achieve better flexibility, improved network utilization, and enable new applications such as cloud computing and edge computing. On the long-run horizon, enterprises will be trending to more traditional Network Engineering Services as they push to virtualized, programmable networks.

Challenges

• Rising cyber threats and data breaches require advanced security measures, making network protection a key challenge for service providers.

Cybersecurity is among the biggest challenges for the network engineering services market with digital networks having increased widely. With the rise of cyber intrusion experiences, data breaches, and the vulnerability of cloud-based and IoT-connected networks increasing, proper monitoring and defense are needed for these enterprises. Complying with privacy, regulations, and secure communication arises as organizations drive new network architectures. Network engineers need to adopt advanced security frameworks like encryption, zero-trust architecture, and AI-driven threat detection to avoid risk and save critical infrastructure from cyber threats.

Segment Analysis

By Service Type

Network Design dominated the market and accounted for a significant revenue share in 2023, Owing to the rapidly evolving nature of modern networks and the need for customized, scalable, and efficient infrastructure. As 5G, cloud computing, SDN, and NFV become more mainstream, the demand for top-notch design services in researching and enhancing performance and security has reached new heights. AI-based network planning and digital twin technology for predictive analysis are the areas where enterprises and telecom operators are investing most of their time and money.

The Network Deployment segment is expected to witness the fastest CAGR, due to 5G rollout, fiber-optic expansion, and cloud-based network implementations) Across the globe, governments and enterprises have begun rushing investments into faster broadband and next-gen wireless networks to ramp up connectivity. This also drives the deployment demand, especially due to more adoption of smart cities, and industrial, and edge computing. Further, with new network architectures the need for an automated deployment solution, paperless remote provisioning, and AI-driven network management is also increasing.

By Connectivity

The Wired Connectivity segment dominated the market and accounted for the majority of the market share of around 69% in 2023, especially among enterprises, data centers, and telecom infrastructure. Due to its high reliability, low latency, high data transmission speeds, etc., Its growth is further rationalized by the technology boost within fiber-optic networks and high-bandwidth Ethernet solutions. Investments in wired infrastructure are fueled by demand for fixed broadband, enterprise networking, and mission-critical applications.

The Wireless Connectivity segment is expected to register the fastest CAGR, due to the rapid expansion of 5G networks, Wi-Fi 6, and private wireless solutions. Furthermore, the rapid growth of IoT, edge computing, and remote work environments are driving the need for high-speed, low-latency wireless networks. AI-assisted network optimization, satellite internet,  and mmWave technologies are making wireless even better.

By Enterprise Size

The Large Enterprises segment dominated the market and accounted for a significant revenue share in 2023, owing to large network infrastructure, high data traffic, and the presence of complex IT environments. These organizations are pouring money into 5G, cloud networking, SDN, and cybersecurity to continue operations while being composed and scalable. This trend is further bolstered by the accelerated adoption of AI-driven network automation, hybrid cloud solutions, and IoT connectivity and management solutions.

SME segment is anticipated to represent the fastest growing CAGR during the forecast period because cloud-based networking solutions are cost-effective and the rising adoption of SD-WANs as well as the high dependency on managed network services. With the increasing need for wireless solutions, work-from-home settings, and cybersecurity upgrades, SMEs are now motivating themselves to build scalable network architecture. Subscription-based and pay-as-you-go network services, recently on the rise, lower the barrier of entry for advanced networking for small businesses.

By Industry

IT & Telecommunication segment dominated the market and accounted for a significant revenue share in 2023, owing to continuous growth in 5G networks, fiber-optic deployments, and cloud-based infrastructure in all major industries. Telecom enterprises are significantly investing in SD-WAN, NFV & AI-driven network automation to improve connectivity performance. Growth is also boosted by high-speed internet demand, data centers, and IoT integration. Focus on the High-Performance Network with Optimization: The digital transformation increases the high-performance network with performance, scalability, and cloud integration are indispensable until the market followers never exceed its leadership.

The BFSI sector is anticipated to register the fastest CAGR since there is a rise in the adoption of secure and high-speed networks due to the penetration of digital banking, fintech, and cloud-based financial services. With the rapid adoption of AI-driven fraud detection, blockchain-based transactions, and mobile banking solutions, the demand for advanced network engineering services are also seen rising; providing a seamless mechanism through which seamless and secure operations can be facilitated.

Regional Analysis

North America holds the largest share of the Network Engineering Services Market with more than 36% in 2023. Due to advanced telecom infrastructure, high adoption of 5G technologies, & key technology providers. Enterprises across the region are now focusing on modernizing their networks leading to high investment in cloud computing along with SDN and cybersecurity solutions. Also, growth in the Internet of Things and edge computing and the increase in adoption of AI-driven network automation contribute to market growth. Also contributing to demand is the push by governments for better rural broadband access and smart city initiatives.

Asia-Pacific is expected to have the fastest CAGR owing to swift digital transformation, upcoming 5G expansions, and increasing enterprise cloud adoption. High investments in fiber-optic networks, smart infrastructure, and industrial-level automation in countries like China, India, and Japan are creating demand for network engineering services. Market growth is also augmented by the increasing popularity of e-commerce, financial technology, and Internet of Things-based applications. Infrastructure development is being expedited by government-led initiatives for digital connectivity, smart cities, and cross-border trade digitization.

Key Players

The major key players along with their products are

• Cisco Systems, Inc. – Cisco DNA Center

• Huawei Technologies Co., Ltd. – iMaster NCE

• Juniper Networks, Inc. – Junos OS

• Nokia Corporation – Nokia Network Services Platform (NSP)

• Ericsson – Ericsson Managed Services

• IBM Corporation – IBM Cloud Pak for Network Automation

• Hewlett Packard Enterprise (HPE) – Aruba ESP (Edge Services Platform)

• Dell Technologies – Dell EMC PowerSwitch

• VMware, Inc. – VMware NSX

• NEC Corporation – NEC SDN Solutions

• Fujitsu Limited – Fujitsu Network Orchestrator

• ZTE Corporation – ZTE UniSeer Network Intelligence Platform

• Ciena Corporation – Ciena Blue Planet

• Extreme Networks, Inc. – ExtremeCloud IQ

• Arista Networks, Inc. – Arista EOS (Extensible Operating System)

Recent Developments

• In July 2024, HPE announced plans to finance its $14 billion acquisition of Juniper Networks through a combination of term loans and a seven-part bond deal, aiming to enhance its networking business. 

• In October 2024, MTM Engineering expanded its global footprint by acquiring three companies: CET Connect, ATSS Ventures, and TA Ronan, increasing its workforce to 1,000 employees and revenues to €100 million. 

• In August 2024, TPG Telecom sold its government and enterprise fixed and fiber assets to Vocus for $5.25 billion, enabling TPG to focus on the consumer market and Vocus to enhance its network infrastructure.