MPLS-Based Core Network in Australia Trends and Forecast
The future of the MPLS-based core network market in Australia looks promising with opportunities in the BFSI, manufacturing, government, healthcare, IT & telecommunication, and retail markets. The global MPLS-based core network market is expected to reach an estimated $74.4 billion by 2031 with a CAGR of 9.8% from 2025 to 2031. The MPLS-based core network market in Australia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are increasing demand for dependable and economical MPLS-based core networks and growing demand from various industries for safe connectivity.
• Lucintel forecasts that, Within the component category, the MPLS-based device segment is expected to witness the highest growth over the forecast period.
• Within the end use category, IT & telecommunication is expected to witness the highest growth over the forecast period.
Emerging Trends in the MPLS-Based Core Network Market in Australia
The Australian MPLS-based core network market is undergoing tremendous development due to the growing demand for faster and more secure data transmission. With organizations increasingly embracing digital transformation, MPLS networks have become essential for organizations and service providers. The market is evolving with emerging trends that improve network performance, security, and scalability. With the rise of cloud computing, IoT, and 5G networks, MPLS networks are adapting to meet the growing needs for high-speed data exchange and enhanced connectivity.
• Interoperability with 5G Networks: The implementation of 5G technology in Australia is driving the need for stronger and more efficient core networks based on MPLS. MPLS is used to provide high-speed and low-latency connectivity required by 5G to ensure seamless and fault-free performance of critical applications such as autonomous transport and remote medical services. Network efficiency is improved, and a perfect connection is enabled for new-age technologies through the interoperability of MPLS with 5G.
• Cloud-Based MPLS Solutions: As the use of cloud services increases, companies are increasingly adopting MPLS for secure, efficient, and reliable connectivity to cloud platforms. MPLS helps build hybrid networks that securely interconnect private infrastructures with cloud-based services. This is changing how companies in Australia optimize their network architecture, making cloud integration smoother and workloads more scalable.
• Rising Adoption of SD-WAN: The integration of MPLS with SD-WAN (Software-Defined Wide Area Network) is a developing trend in Australia. SD-WAN enhances MPLS by providing greater flexibility, quicker deployment, and lower costs while still maintaining the performance and security benefits of MPLS. This integration is enabling organizations to build more responsive and cost-effective networks while enhancing performance and security across geographically dispersed locations.
• Advanced Security Capabilities: As cyber threats have become more complex, Australian enterprises are demanding more secure networks based on MPLS. Stronger security features, such as encryption, advanced threat defense, and traffic monitoring, are now built into MPLS offerings to secure critical data and ensure business continuity. This is particularly important for industries such as finance, healthcare, and government, where data protection is critical.
• Network Management Scalability and Automation: The demand for network management scalability and automation is driving the evolution of core networks based on MPLS. Automation facilitates faster provisioning and monitoring of network services, easing the operational burden for businesses. The ability to scale networks as needed without major hardware upgrades ensures organizations can meet increased demand quickly, especially in industries like telecommunications and cloud services.
These trends are revolutionizing the MPLS-based core network market in Australia, making it more flexible, secure, and compatible with new technologies such as 5G, cloud computing, and SD-WAN. As these trends continue to develop, MPLS will remain a central part of Australia’s networking infrastructure.
Recent Developments in the MPLS-Based Core Network Market in Australia
The Australian MPLS-based core network market is rapidly transforming due to several factors, including rising demand for high-speed connectivity, improved security, and increased use of cloud services and 5G. These trends are reshaping the market and allowing organizations to develop more agile, efficient, and secure networks.
• Deployment of 5G Technologies: The deployment of 5G networks across Australia is fueling the demand for advanced MPLS-based core networks. With 5G’s emphasis on low latency and high-speed connectivity, MPLS is essential for optimizing traffic and ensuring end-to-end data delivery for applications that require real-time communication.
• Cloud-Native MPLS Deployments: Many Australian enterprises are moving toward cloud-native infrastructures, with MPLS-driven networks designed to integrate on-premises setups with cloud deployments. This shift enables better scalability, enhanced reliability, and more secure data communication for companies that use cloud services for operations.
• MPLS and SD-WAN Convergence: The convergence of MPLS and SD-WAN is an important trend in the Australian market, allowing companies to leverage the performance and security of MPLS with the flexibility and cost-effectiveness of SD-WAN. This convergence is creating more dynamic network infrastructures for organizations across various industries.
• More Secure Solutions: Due to rising cyber threats, Australian companies are demanding more secure MPLS solutions. Service providers are incorporating enhanced encryption and monitoring capabilities into MPLS networks to enable secure transmission of sensitive information and ensure compliance with data protection laws, especially in the financial and healthcare industries.
• Network Provisioning Automation: MPLS network management is becoming more automated, reducing costs for Australian businesses while improving operational efficiency. Automation speeds up network provisioning, troubleshooting, and performance monitoring, making it easier for companies to scale their networks as needs increase.
These developments highlight the growing role of MPLS in enabling faster, more secure, and scalable networks in Australia. Integration with emerging technologies like 5G, SD-WAN, and cloud services is enabling Australian businesses to optimize their infrastructure for greater efficiency and innovation.
Strategic Growth Opportunities for MPLS-Based Core Network Market in Australia
Australia’s MPLS-based core network market presents significant strategic opportunities for growth, driven by increasing demand for secure, high-performance, and scalable network solutions. These opportunities span various sectors, from 5G connectivity to cloud networks.
• 5G Network Integration: The ongoing roll-out of 5G networks in Australia offers substantial opportunities for MPLS-based core networks. MPLS provides high-performance, low-latency communication essential for 5G and supports the deployment of advanced services like autonomous vehicles and smart cities.
• Cloud Networking Solutions: With more Australian businesses migrating to the cloud, there is a growing need for secure and reliable MPLS connections to these services. MPLS solutions can facilitate hybrid networks that combine on-premises and cloud infrastructures, offering businesses greater flexibility and scalability.
• SD-WAN Adoption: The integration of SD-WAN with MPLS represents one of the most significant growth opportunities in Australia. By deploying this combination, businesses can establish responsive, secure, and affordable networks, taking advantage of both MPLS performance and SD-WAN flexibility. This makes it an appealing option for firms seeking to maximize their wide-area networks.
• Edge Computing: As edge computing gains traction, Australian companies are looking for ways to interconnect devices and data sources at the network edge. MPLS can support these applications by providing secure and reliable connectivity to edge devices, enabling real-time data processing and improving performance for latency-sensitive applications.
• Network-as-a-Service (NaaS): The growing trend toward NaaS models in Australia creates an opportunity for MPLS-based networks to be offered as a service. By providing elastic, on-demand connectivity, companies can eliminate the cost of maintaining their infrastructure while benefiting from the performance and security advantages of MPLS.
These strategic growth opportunities emphasize the increasing role of MPLS in Australia’s evolving networking landscape. With 5G, SD-WAN, cloud services, and edge computing being adopted across industries, MPLS will continue to be at the center of enabling next-generation network technologies.
MPLS-Based Core Network Market in Australia Driver and Challenges
The Australian MPLS-based core network market is influenced by various technological, economic, and regulatory factors. These drivers and challenges are key to the market’s development and the widespread adoption of MPLS across multiple industries.
The factors responsible for driving the MPLS-based core network market in Australia include:
• High-Speed Connectivity Demand: The increasing demand for faster and more reliable connectivity is one of the key drivers for MPLS networks in Australia. MPLS supports high-bandwidth applications, including video conferencing, cloud computing, and IoT, all of which are becoming highly sought after by businesses and industries.
• Development of 5G Networks: The deployment of 5G networks is fueling the adoption of MPLS-based core networks. MPLS enables low-latency and high-speed data transfer for 5G applications and enhances industries like autonomous vehicles, smart cities, and telemedicine in remote locations.
• Cloud Service Adoption: As more Australian businesses migrate to the cloud, MPLS networks are becoming a necessity for connecting on-premises infrastructure to cloud platforms. MPLS offers secure, reliable, and scalable connections, which are essential for companies aiming to optimize their cloud operations.
• SD-WAN and MPLS Convergence: The rise of SD-WAN technology is encouraging companies to deploy hybrid networks that combine the advantages of MPLS with SD-WAN. This convergence provides more flexible and cost-effective network management while preserving MPLS’s performance and security benefits.
• Growing Cybersecurity Threats: As cybersecurity threats grow, companies increasingly rely on MPLS networks to provide secure communication paths. MPLS offers advanced security features, such as encryption and traffic monitoring, which ensure the protection of sensitive data.
Challenges in the MPLS-based core network market in Australia include:
• High Implementation Costs of MPLS: The initial setup and ongoing maintenance costs of MPLS networks can pose a significant challenge for companies. Although MPLS offers high performance and security, the infrastructure requirements and operational expenses can be prohibitive for small and medium-sized enterprises.
• Alternative Technologies Competition: MPLS faces competition from alternative network technologies, such as SD-WAN and Internet-based VPNs, which are lower in cost and more flexible. As companies seek cheaper and more agile solutions, MPLS may face pressure from these alternatives.
• Advanced Network Management: MPLS networks can be complex to manage, requiring specialized expertise and resources for configuration and troubleshooting. This complexity may hinder companies, especially those with limited IT resources, from implementing MPLS solutions.
The key drivers of high-speed connectivity demand, 5G, cloud services, SD-WAN integration, and cybersecurity are shaping the MPLS-based core network market in Australia. However, challenges such as high implementation costs, competition from alternative technologies, and the complexity of network management must be addressed to sustain growth and adoption in the Australian market.
List of MPLS-Based Core Network Market in Australia Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, MPLS-based core network companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the MPLS-based core network companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
MPLS-Based Core Network Market in Australia by Segment
The study includes a forecast for the MPLS-based core network market in Australia by component and end use.
MPLS-Based Core Network Market in Australia by Component [Analysis by Value from 2019 to 2031]:
• MPLS-Based Devices
• IP/MPLS Management Software
• Services
MPLS-Based Core Network Market in Australia by End Use [Analysis by Value from 2019 to 2031]:
• BFSI
• Manufacturing
• Government
• Healthcare
• IT & Telecommunications
• Retail
• Others
Features of the MPLS-Based Core Network Market in Australia
Market Size Estimates: MPLS-based core network in Australia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: MPLS-based core network in Australia market size by component and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different component and end use for the MPLS-based core network in Australia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the MPLS-based core network in Australia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the MPLS-based core network market in Australia?
Answer: The major drivers for this market are increasing demand for dependable and economical MPLS-based core network and growing demand from various industries for safe connectivity.
Q2. What are the major segments for MPLS-based core network market in Australia?
Answer: The future of the MPLS-based core network market in Australia looks promising with opportunities in the BFSI, manufacturing, government, healthcare, IT & telecommunication, and retail markets.
Q3. Which MPLS-based core network market in Australia segment will be the largest in future?
Answer: Lucintel forecasts that MPLS-based device segment is expected to witness the highest growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the MPLS-based core network market in Australia by component (MPLS-based devices, IP/MPLS management software, and services), and end use (BFSI, manufacturing, government, healthcare, IT & telecommunications, retail, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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