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High infrastructure cost is restraining the growth of the next-generation network market

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Tom C

The next-generation network market is expected to grow from USD 21.86 billion in 2018 to USD 32.81 billion by 2023, at a CAGR of 7.0% from 2018 to 2023.

The growth of this market can be attributed to the increase in public–private partnerships for next-generation network developments, demand for high-speed services, and low operational cost. Demand for faster connectivity, high-speed data transfer, and high responsive network is growing continuously. All these demands are well addressed with the help of next-generation network infrastructure. The continuous development of cellular network has enabled users to experience faster data rates with low latency. Demand for high-speed data services is primarily driven by the growing use of services and applications by both consumer electronic devices and business usage.

In addition, the rise in the number of smartphone users and an increase in the average data volume per subscription require a high-speed network with high bandwidth capable of handling huge data traffic. Next-generation network technology is capable of offering sufficient bandwidth to support the increasing data traffic.

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The next-generation network market has been segmented on the basis of offering into hardware, software, and services. The software held the highest growth rate; whereas hardware held the major share of the NGN market during 2018–2023. Software focuses on making the network responsive and flexible in terms of scaling up according to the network requirement. It allows network operators to make changes quickly in their network through a centralized control system according to the rate at which data traffic increases or decreases.

Based on end user, the market has been segmented into telecom service provider, internet service provider, and government. The NGN market for internet service providers is expected to grow at the highest CAGR from 2018 to 2023 owing to increasing demand for high-speed data services and digitalization.

The next-generation network market is segmented on the basis of application into internet video, IPTV & VOD, web data, file sharing, and gaming. Emerging video-streaming services on TV and other entertainment devices is expected to drive heavy data consumption in the internet video application.

APAC led the overall next-generation network market and accounted for the largest market share, followed by North America. The NGN market in APAC is expected to grow rapidly during the forecast period. Countries in APAC undertake aggressive initiatives to transform their traditional network infrastructure to advanced NGN; as a result, the NGN market in APAC is expected to grow at the highest rate. The NGN would play an integral role in advanced technologies such as the Internet of Things (IoT) and machine-to-machine communication (M2M), and other sectors such as smart cities, as well as in industrial automation. This offers huge potential for next-generation network connectivity and related infrastructure to provide faster communication and simultaneous connection among different devices.

High infrastructure cost is restraining the growth of the next-generation network market. The NGN infrastructure is expected to change the concurrent ways of communication. next-generation network exhibits advanced features as compared with the previous generation. The NGN infrastructure is in its nascent stage, and many companies and government bodies are taking active participation in terms of investments and R&D activities of this technology. Heavy investments are necessary to upgrade the existing network to NGN.

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Cisco (US), Huawei (China), ZTE (China), Ericsson (Sweden), Nokia (Finland), Juniper Network (US), NEC Corporation (Japan), Samsung Electronics (South Korea), IBM (US), Ciena Corporation (US), Hewlett Packard Enterprise (US), AT&T (US), ADTRAN (US), TELES (Germany), KPN International (Netherlands), Infradata (Netherlands), PortaOne (Canada), TelcoBridges (Canada), CommVerge Solutions (Hong Kong), and Extreme Networks (US) are among the major players in the next-generation network market.

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