NETWORK OPTIMIZATION SERVICES MARKET ESTIMATED TO EXPAND AT A ROBUST CAGR (2020-2027)
Updated: May 24, 2022
MIT TECHNOLOGY REVIEW
The global network optimization services market size was valued at $3,040 million in 2020, and is projected to reach $9,784 million by 2028, registering a CAGR of 16.1% from 2021 to 2028. Network optimization encompasses the complete set of technologies and strategies for a business to deploy to improve its network domain functionality. Network and network domain refer to an organization’s set of hardware devices, plus the software and supportive technology allowing those devices to connect and communicate with one another.
The COVID-19 pandemic has bought a colossal positive impact on the global network optimization services market, which is expected to grow post the pandemic. This is attributed to the fact that with the COVID-19 pandemic on the rise, policymakers, government agencies, and various other institutions across the world had to rely on AI systems, Big Data analytics, and data analysis software to forecast and monitor the virus's spread in real-time as well as classify COVID-19 treatment drugs. In addition, many businesses had to switch to remote working and work from home modes during the COVID-19 pandemic which is expected to impact positively on the market growth.
One of the primary goals of network optimization services is to provide the best possible network experience for users. Network performance optimization is vital as our interconnected real-time world is fully dependent on the available, secure, and reliable transfer of data. With every year that passes, there are more and more demands that are being placed on networks. Network optimization services is critical for the end-user experience, cutting down business costs, and improving employee productivity. For instance, when the network has latency, a website or online application can take longer amount of time to load. In other instances, delay, jitter, or packet loss can impact technologies such as databases or VoIP. Poor bandwidth allocation can also have an impact on employee productivity and end-user experience.
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The optimization of the network is a key factor that is expected to contribute to the effective and efficient management of information systems. Technology plays a very important role in the world and continues to evolve at an exponential rate. End-users from various industries produce large amount of data for successful operations, which resulted in the consumption of huge amount of network bandwidth. Companies are focusing on operational efficiency and safe & secure operations for data transfer and reception, for which a pre analysis is conducted to understand the behavior of network to deliver cost-effective operations. Increase in the number of production facilities is expected to improve the control of the establishment of network and information technology solutions & services. These factors drive the growth of the network optimization services market.
The report focuses on the growth prospects, restraints, and network optimization services market opportunity. The study provides Porter’s five forces analysis of the network optimization services industry to understand impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers.
The network optimization services market is segmented into service, application, organization size, and industry vertical. Based on service, the market is divided into implementation, consulting, and support & maintenance. Based on application, the market is fragmented into local network optimization, WAN optimization, RAN optimization, and data center optimization. Based on organization size, the market is bifurcated into small & medium enterprise and large enterprise. Based on industry vertical, network optimization services market is classified into banking, financial services, & insurance, telecom, government and defense, transportation and logistics, travel and tourism, manufacturing, consumer goods and retail, media and entertainment, energy and utility, healthcare and life sciences, education, and information technology (IT).
COVID-19 Impact Analysis
The widespread COVID-19 pandemic has a significant favorable influence toward the growth of the global network optimization services industry, which is predicted to rise following the COVID-19 pandemic. This is attributed to the fact that due to rapid spread of coronavirus around the world, many organizations were forced to transition toward working remotely, and work from home modes were popularized during the COVID-19 pandemic. Therefore, organizations had to employ best measures to ensure the performance and security of their network infrastructure coupled with increase in the number of network threats during the pandemic.
Top impacting factors
Advancement in network infrastructure coupled with demand for VoIP services across enterprises is one of the major factors primarily driving the market during the forecast period. Furthermore, rapid growth in IP and Ethernet services is also driving the market growth. However, lack of awareness of benefits of network optimization is mainly creating a staggering effect on the network optimization services market growth. Furthermore, significant leap in RAN and WAN optimization technology is estimated to create a lucrative opportunity during the network optimization services market forecast period.
Advancements in network infrastructure
Along with the growing number of connected devices in the industry, there are huge amounts of data transfer on the network. Using this data helps companies to optimize costs, improve service quality, and increase revenue. Implementing network technologies will increase the company's capabilities and reduce cybersecurity threats. Some of the technologies that are reconstructions or a new version of the previous technology require constant monitoring of network performance. To increase labor productivity, it is necessary to introduce automation and flexible production technologies into the production processes of the end-user industry in the network. In addition, asset retention is expected to help reduce the cost of scheduled repairs, lessen operating costs, and eliminate network malfunctions.
Demand for VoIP services across enterprises
Voice-over-Internet Protocol (VoIP) services for developing reliable communications are accessible to end users. A number of concepts, such as broadband access, telephony, IP telephony, telephone, high-speed, and internet wake-up services, were associated with VoIP service. Voice-over-Internet Protocol (VoIP) services use IP technologies to transfer calls to a compatible local area network. With the growing demand for VoIP services requiring a huge amount of high-speed Internet connectivity, companies that have a significant impact on demand are optimizing their network precisely to improve operational efficiency. Thorough VoIP services, one can easily convert one’s voice to a digital signal that travels over the internet. Both large and small companies have quickly moved to cloud-based VoIP services due to the growth of hybrid, cloud-based communications and the cost-effectiveness of VoIP services. The growing technological progress in the mobile industry and the development of network infrastructure are the main factors influencing the demand for VoIP services. Some players choose to send their voice over an IP service that is used for fast internet connection. These are special VoIP services that can be easily and directly connected to an IP network using technologies such as Wi-Fi or Ethernet. Such factors are driving the growth of the network optimization services market.