Next Generation Networking Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 - 2034
The Global Next-Generation Networking Market was valued at USD 32.5 billion in 2024 and is projected to grow at a CAGR of 7.9% between 2025 and 2034. The market is witnessing a rapid transformation driven by the increasing reliance on cloud computing, cloud storage services, and the expansion of digital infrastructures worldwide. As businesses migrate their operations and data to the cloud, the need for advanced networking solutions that offer seamless connectivity, high bandwidth, and low latency is becoming more critical than ever. The growing adoption of artificial intelligence (AI), the Internet of Things (IoT), and 5G networks further fuels the demand as companies seek cutting-edge technologies to enhance operational efficiency and real-time data processing.
The shift toward software-defined networking (SDN) and network function virtualization (NFV) is reshaping the market landscape, enabling organizations to achieve greater flexibility, automation, and cost efficiency in managing their networks. Cybersecurity threats and regulatory compliance requirements are also pushing enterprises to upgrade their networking frameworks with robust security measures, ensuring data integrity and resilience. Additionally, the proliferation of smart cities, autonomous vehicles, and edge computing solutions is amplifying the demand for next-generation networking systems that can support complex, data-intensive applications.
The market is segmented into hardware, software, and services, with hardware accounting for the largest share. In 2024, the hardware segment held a 40% market share and is expected to reach USD 25 billion by 2034. Essential networking components such as routers, switches, servers, and network processors play a pivotal role in enabling high-performance infrastructure, particularly with the deployment of 5G, SDN, and NFV technologies. Businesses are prioritizing investments in scalable, high-speed networking equipment to meet evolving demands in cloud computing, enterprise data centers, and telecommunication networks.
Enterprise size also plays a significant role in market dynamics, with large enterprises leading adoption. In 2024, large enterprises dominated the next-generation networking market with a 71% share, leveraging their financial capabilities to implement advanced, secure networking solutions. These organizations rely on high-performance networks to support large-scale operations, workforce collaboration, and data-driven decision-making. Meanwhile, small and medium-sized enterprises (SME) are gradually increasing their investments in next-generation networking technologies, recognizing the need for scalable, cost-effective solutions to stay competitive.
North America held a 34% share of the global next-generation networking market in 2024, with the United States contributing USD 5.6 billion to the regional valuation. The presence of major telecom players, coupled with aggressive investments in 5G deployment and digital transformation initiatives, has positioned the region as a frontrunner in network innovation. The increasing demand for high-speed, low-latency connectivity across industries, including healthcare, finance, and manufacturing, continues to drive market growth. With a strong focus on next-gen wireless infrastructure and emerging networking technologies, North America is set to remain a key player in shaping the future of global networking solutions.
The shift toward software-defined networking (SDN) and network function virtualization (NFV) is reshaping the market landscape, enabling organizations to achieve greater flexibility, automation, and cost efficiency in managing their networks. Cybersecurity threats and regulatory compliance requirements are also pushing enterprises to upgrade their networking frameworks with robust security measures, ensuring data integrity and resilience. Additionally, the proliferation of smart cities, autonomous vehicles, and edge computing solutions is amplifying the demand for next-generation networking systems that can support complex, data-intensive applications.
The market is segmented into hardware, software, and services, with hardware accounting for the largest share. In 2024, the hardware segment held a 40% market share and is expected to reach USD 25 billion by 2034. Essential networking components such as routers, switches, servers, and network processors play a pivotal role in enabling high-performance infrastructure, particularly with the deployment of 5G, SDN, and NFV technologies. Businesses are prioritizing investments in scalable, high-speed networking equipment to meet evolving demands in cloud computing, enterprise data centers, and telecommunication networks.
Enterprise size also plays a significant role in market dynamics, with large enterprises leading adoption. In 2024, large enterprises dominated the next-generation networking market with a 71% share, leveraging their financial capabilities to implement advanced, secure networking solutions. These organizations rely on high-performance networks to support large-scale operations, workforce collaboration, and data-driven decision-making. Meanwhile, small and medium-sized enterprises (SME) are gradually increasing their investments in next-generation networking technologies, recognizing the need for scalable, cost-effective solutions to stay competitive.
North America held a 34% share of the global next-generation networking market in 2024, with the United States contributing USD 5.6 billion to the regional valuation. The presence of major telecom players, coupled with aggressive investments in 5G deployment and digital transformation initiatives, has positioned the region as a frontrunner in network innovation. The increasing demand for high-speed, low-latency connectivity across industries, including healthcare, finance, and manufacturing, continues to drive market growth. With a strong focus on next-gen wireless infrastructure and emerging networking technologies, North America is set to remain a key player in shaping the future of global networking solutions.
CHAPTER 1 METHODOLOGY & SCOPE
1.1 Research design
1.1.1 Research approach
1.1.2 Data collection methods
1.2 Base estimates & calculations
1.2.1 Base year calculation
1.2.2 Key trends for market estimation
1.3 Forecast model
1.4 Primary research and validation
1.4.1 Primary sources
1.4.2 Data mining sources
1.5 Market scope & definition
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry 360° synopsis, 2021 - 2034
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem analysis
3.2 Supplier landscape
3.2.1 Network infrastructure providers
3.2.2 Telecommunication service providers
3.2.3 Network technology and solutions vendors
3.2.4 End use
3.3 Profit margin analysis
3.4 Technology & innovation landscape
3.5 Patent analysis
3.6 Cost breakdown analysis
3.7 Key news & initiatives
3.8 Use cases
3.9 Regulatory landscape
3.10 Impact forces
3.10.1 Growth drivers
3.10.1.1 Adoption of cloud computing and storage
3.10.1.2 Demand for low latency and real-time applications
3.10.1.3 Rise of the Internet of Things (IoT)
3.10.1.4 Growing 5G adoption
3.10.1.5 Increased cost efficiency and scalability
3.10.2 Industry pitfalls & challenges
3.10.2.1 High infrastructure costs
3.10.2.2 Security and privacy concerns
3.11 Growth potential analysis
3.12 Porter’s analysis
3.13 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2024
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix
CHAPTER 5 MARKET ESTIMATES & FORECAST, BY COMPONENT, 2021 - 2034 ($BN)
5.1 Key trends
5.2 Hardware
5.2.1 Routers
5.2.2 Switches
5.2.3 Firewalls
5.2.4 Servers
5.2.5 Others
5.3 Software
5.3.1 Network management systems
5.3.2 Network security software
5.3.3 SDN controllers
5.3.4 Network virtualization
5.3.5 Others
5.4 Services
5.4.1 Professional services
5.4.2 Managed services
CHAPTER 6 MARKET ESTIMATES & FORECAST, BY TECHNOLOGY, 2021 - 2034 ($BN)
6.1 Key trends
6.2 SDN
6.3 NFV
6.4 5G networks
6.5 Edge computing
6.6 Others
CHAPTER 7 MARKET ESTIMATES & FORECAST, BY ENTERPRISE SIZE, 2021 - 2034 ($BN)
7.1 Key trends
7.2 SME
7.3 Large enterprises
CHAPTER 8 MARKET ESTIMATES & FORECAST, BY DEPLOYMENT, 2021 - 2034 ($BN)
8.1 Key trends
8.2 On-premises
8.3 Cloud-based
8.4 Hybrid
CHAPTER 9 MARKET ESTIMATES & FORECAST, BY END USE, 2021 - 2034 ($BN)
9.1 Key trends
9.2 Telecommunication
9.3 Healthcare
9.4 Government
9.5 Automotive
9.6 Manufacturing
9.7 Others
CHAPTER 10 MARKET ESTIMATES & FORECAST, BY REGION, 2021 - 2034 ($BN)
10.1 Key trends
10.2 North America
10.2.1 U.S.
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 France
10.3.4 Italy
10.3.5 Spain
10.3.6 Russia
10.3.7 Nordics
10.4 Asia Pacific
10.4.1 China
10.4.2 India
10.4.3 Japan
10.4.4 Australia
10.4.5 South Korea
10.4.6 Southeast Asia
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.5.3 Argentina
10.6 MEA
10.6.1 UAE
10.6.2 South Africa
10.6.3 Saudi Arabia
CHAPTER 11 COMPANY PROFILES
11.1 A10 Networks
11.2 Adtran
11.3 AT&T
11.4 Check Point Software Technologies
11.5 Ciena Corporation
11.6 Cisco
11.7 Commverge Solutions
11.8 Ericsson
11.9 Forcepoint
11.10 Fortinet
11.11 Huawei
11.12 IBM
11.13 Juniper Networks
11.14 Keysight Technologies
11.15 NEC
11.16 Nokia
11.17 Samsung
11.18 TelcoBridges
11.19 VMware (Broadcom)
11.20 ZTE
1.1 Research design
1.1.1 Research approach
1.1.2 Data collection methods
1.2 Base estimates & calculations
1.2.1 Base year calculation
1.2.2 Key trends for market estimation
1.3 Forecast model
1.4 Primary research and validation
1.4.1 Primary sources
1.4.2 Data mining sources
1.5 Market scope & definition
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry 360° synopsis, 2021 - 2034
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem analysis
3.2 Supplier landscape
3.2.1 Network infrastructure providers
3.2.2 Telecommunication service providers
3.2.3 Network technology and solutions vendors
3.2.4 End use
3.3 Profit margin analysis
3.4 Technology & innovation landscape
3.5 Patent analysis
3.6 Cost breakdown analysis
3.7 Key news & initiatives
3.8 Use cases
3.9 Regulatory landscape
3.10 Impact forces
3.10.1 Growth drivers
3.10.1.1 Adoption of cloud computing and storage
3.10.1.2 Demand for low latency and real-time applications
3.10.1.3 Rise of the Internet of Things (IoT)
3.10.1.4 Growing 5G adoption
3.10.1.5 Increased cost efficiency and scalability
3.10.2 Industry pitfalls & challenges
3.10.2.1 High infrastructure costs
3.10.2.2 Security and privacy concerns
3.11 Growth potential analysis
3.12 Porter’s analysis
3.13 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2024
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix
CHAPTER 5 MARKET ESTIMATES & FORECAST, BY COMPONENT, 2021 - 2034 ($BN)
5.1 Key trends
5.2 Hardware
5.2.1 Routers
5.2.2 Switches
5.2.3 Firewalls
5.2.4 Servers
5.2.5 Others
5.3 Software
5.3.1 Network management systems
5.3.2 Network security software
5.3.3 SDN controllers
5.3.4 Network virtualization
5.3.5 Others
5.4 Services
5.4.1 Professional services
5.4.2 Managed services
CHAPTER 6 MARKET ESTIMATES & FORECAST, BY TECHNOLOGY, 2021 - 2034 ($BN)
6.1 Key trends
6.2 SDN
6.3 NFV
6.4 5G networks
6.5 Edge computing
6.6 Others
CHAPTER 7 MARKET ESTIMATES & FORECAST, BY ENTERPRISE SIZE, 2021 - 2034 ($BN)
7.1 Key trends
7.2 SME
7.3 Large enterprises
CHAPTER 8 MARKET ESTIMATES & FORECAST, BY DEPLOYMENT, 2021 - 2034 ($BN)
8.1 Key trends
8.2 On-premises
8.3 Cloud-based
8.4 Hybrid
CHAPTER 9 MARKET ESTIMATES & FORECAST, BY END USE, 2021 - 2034 ($BN)
9.1 Key trends
9.2 Telecommunication
9.3 Healthcare
9.4 Government
9.5 Automotive
9.6 Manufacturing
9.7 Others
CHAPTER 10 MARKET ESTIMATES & FORECAST, BY REGION, 2021 - 2034 ($BN)
10.1 Key trends
10.2 North America
10.2.1 U.S.
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 France
10.3.4 Italy
10.3.5 Spain
10.3.6 Russia
10.3.7 Nordics
10.4 Asia Pacific
10.4.1 China
10.4.2 India
10.4.3 Japan
10.4.4 Australia
10.4.5 South Korea
10.4.6 Southeast Asia
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.5.3 Argentina
10.6 MEA
10.6.1 UAE
10.6.2 South Africa
10.6.3 Saudi Arabia
CHAPTER 11 COMPANY PROFILES
11.1 A10 Networks
11.2 Adtran
11.3 AT&T
11.4 Check Point Software Technologies
11.5 Ciena Corporation
11.6 Cisco
11.7 Commverge Solutions
11.8 Ericsson
11.9 Forcepoint
11.10 Fortinet
11.11 Huawei
11.12 IBM
11.13 Juniper Networks
11.14 Keysight Technologies
11.15 NEC
11.16 Nokia
11.17 Samsung
11.18 TelcoBridges
11.19 VMware (Broadcom)
11.20 ZTE
