MPLS-Based Core Network Market in India

MPLS-Based Core Network in India Trends and Forecast

The future of the MPLS-based core network market in India 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 India 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 India

The Indian MPLS-based core network market is undergoing substantial change because of accelerated technological innovation and the growing need for safe and effective networks. As enterprises in all sectors seek improved connectivity solutions, MPLS is the first choice for most. The advent of cloud computing, IoT, and the requirement for high-performance networks are driving the demand for MPLS networks to new levels. These technological advancements are redefining the market and opening up new possibilities for service providers, making way for innovations and better network infrastructures.

• SD-WAN integration: The integration of SD-WAN and MPLS is a dominant trend in India. SD-WAN enables organizations to deal with multiple network connections in a better way, merging the dependability of MPLS with the adaptability of cloud-based solutions. Integration is making businesses reduce operational expenses, increase network quality, and facilitate network flexibility, providing an adaptive solution to suit the evolving needs of contemporary enterprises.
• Cloud adoption and MPLS networks: With increasing cloud adoption in India, companies are looking for secure and high-performance MPLS connections. MPLS networks give secure, high-speed connections among on-premises infrastructure and cloud platforms to enable hybrid IT strategies. They enable enterprises to have assured, low-latency connectivity to cloud applications with data security and privacy.
• Network security focus: As the number of cyberattacks rises, it has become a top priority to secure MPLS networks in India. Companies are emphasizing the use of greater encryption, secure tunneling, and threat detection within their MPLS networks. Stronger security provides protection for sensitive information, especially in industries such as banking, healthcare, and government, where data privacy is a high priority.
• Edge computing and low-latency networks: The growth of edge computing is fueling the demand for low-latency MPLS networks in India. Edge computing minimizes latency by processing data nearer to the source, allowing real-time analytics and quicker decision-making. MPLS networks are being tuned to enable edge computing by offering high-speed, low-latency connections, which are essential for applications such as autonomous vehicles, industrial automation, and IoT.
• High-quality managed services demand: The demand for managed MPLS services is growing in India because companies want to outsource the management of networks. Service providers are offering end-to-end MPLS network management, such as monitoring, troubleshooting, and optimization. This development enables companies to concentrate on core business activities while their networks are managed efficiently and securely, thus enabling them to reduce operational overhead and increase productivity.

These new trends are transforming the MPLS-based core network market in India by improving the flexibility, performance, and security of MPLS networks. The convergence of SD-WAN, cloud adoption, network security, edge computing, and managed services are fueling innovations that enable the digital transformation of enterprises. With the growing need for high-performance, secure, and agile networks, these trends will remain at the center of shaping the future of MPLS networks in India.

Recent Developments in the MPLS-Based Core Network Market in India

Recent trends in the MPLS-based core network space in India indicate the increased demand for flexible, scalable, and secure networking solutions. The rise of digital technologies across industries, coupled with technological advancements, is fueling the demand for sophisticated MPLS networks. Enterprises are seeking solutions that provide high availability, low latency, and security, which are driving meaningful developments in the MPLS space.

• MPLS-based 5G backhaul networks: 5G network deployment in India is a key milestone for the MPLS industry. MPLS is gaining popularity for use in 5G backhaul, which is a secure and stable method to interconnect 5G cell towers with the core. This milestone is critical for the success of 5G service deployment and will aid the development of IoT, autonomous systems, and high-speed mobile applications.
• Growing adoption of hybrid MPLS-cloud solutions: Hybrid MPLS-cloud solutions are gaining traction in India as companies embrace cloud computing for enhanced scalability and cost-effectiveness. This innovation marries the security and reliability of MPLS with the flexibility of cloud computing, allowing companies to easily connect their on-premises infrastructure with cloud platforms while having control over their networks.
• Network function virtualization (NFV) adoption: NFV adoption in India is revolutionizing MPLS networks by making it possible to virtualize network functions. This helps businesses minimize dependence on physical devices and improve the scalability of their networks. NFV enhances the performance and flexibility of MPLS networks by facilitating dynamic provisioning of network services.
• Increasing need for low-latency solutions: There is an increasing need for low-latency solutions in India, particularly with the emergence of real-time applications and services. MPLS networks are being optimized to provide higher speeds and lower latency, which is essential for applications like video conferencing, financial transactions, and IoT. This evolution is improving the performance and user experience of businesses and consumers.
• Emphasis on energy-efficient MPLS solutions: As the focus on sustainability increases, energy-efficient MPLS solutions are picking up in India. Service providers are minimizing the energy usage of their MPLS networks by maximizing infrastructure and the use of green technologies. This trend is enabling companies to reduce operational expenses and achieve their sustainability objectives.

These latest trends in the MPLS-based core network space are fueling innovations and enhancing the capabilities of MPLS networks. The adoption of 5G backhaul, hybrid cloud solutions, NFV, low-latency optimizations, and energy-efficient designs is facilitating Indian businesses in addressing the increased demand for superior and sustainable networking solutions. These trends are defining the future of MPLS networks within the country. This trend is further fueling the growth of the MPLS-based core network market in India.

Strategic Growth Opportunities for MPLS-Based Core Network Market in India

India’s MPLS-based core network market is rich in strategic growth opportunities fueled by growing demand for high-performance, scalable, and secure networks. As Indian companies keep investing in digital technologies like cloud computing, IoT, and 5G, MPLS networks are helping to underpin their connectivity requirements. By spotting growth applications, service providers can prepare themselves to grab new opportunities and reach further.

• Cloud connectivity solutions: With the growth in cloud adoption across India, MPLS networks stand to gain impressive growth prospects. Enterprises need assured and secure links between on-premises installations and cloud settings. MPLS networks can provide the high-bandwidth connectivity essential to facilitate hybrid IT approaches to ensure smooth integration with the cloud.
• IoT and smart cities: India’s increasing IoT ecosystem and smart city projects are fueling demand for MPLS networks. The networks can offer the low-latency, high-bandwidth connectivity necessary for IoT devices and smart city use cases such as traffic control, energy grids, and environment monitoring. This is one of the major growth areas for MPLS service providers.
• Network automation and AI: There is growing demand for network automation in India as companies are looking to streamline network management. By adding artificial intelligence and machine learning capabilities to MPLS networks, service providers can provide automated offerings that improve network performance, lower operational expenses, and make troubleshooting easier for growing the managed services opportunity.
• Business connectivity around the globe: As India emerges as an ever-more significant global business operations hub, businesses need ever more MPLS networks that provide high-performance, secure, and dependable connectivity between various geographies. It is a wonderful opportunity for service providers to provide global MPLS solutions for companies running operations on a multinational level.
• 5G network support: With ongoing deployments of 5G networks across India, major opportunities lie in the use of MPLS networks to meet 5G infrastructure backhaul and connectivity requirements. MPLS networks play a vital role in achieving the low latency and high speeds required by 5G services, with prospects for growth within the 5G environment.

These growth prospects are transforming the MPLS-based core network market in India by opening up new opportunities for service providers. Cloud connectivity, IoT, network automation, global connectivity, and 5G network support are some of the areas where MPLS networks are playing a pivotal role. Through these opportunities, service providers can enhance their market position and address the changing needs of businesses in India.

MPLS-Based Core Network Market in India Driver and Challenges

The market for MPLS-based core networks in India is driven by a number of technological, economic, and regulatory drivers. These drivers are stimulating growth in the market, whereas factors like the high cost of deployment, complexity of networks, and competition from emerging technologies are hampering the growth of the market. These drivers and restraints need to be understood by businesses and service providers who aim to ride out the changing MPLS landscape in India.

The factors responsible for driving the MPLS-based core network market in India include:
• Rising cloud adoption: With the adoption of cloud technologies by businesses in India, there has been a rising demand for secure and high-performance MPLS networks. MPLS networks provide stable connectivity for hybrid cloud strategies, enabling easy integration between on-premises infrastructure and cloud environments.
• Low-latency connectivity demand: Real-time applications such as IoT, video conferencing, and financial services are creating the demand for low-latency MPLS networks in India. Enterprises need high-speed, low-latency connectivity to provide the best performance and user experience.
• Security and privacy issues: As the threat of cyberattacks increases, Indian businesses are looking for secure networking solutions. MPLS networks provide better security features like private data paths and encryption, which make them a desirable option for organizations that value data security.
• Technology advancements: The emergence of SD-WAN, NFV, and 5G technology is fueling the expansion of MPLS networks in India. These technologies enhance network performance, flexibility, and scalability, enabling organizations to address changing connectivity needs.
• Regulatory compliance: Mounting regulatory requirements for data privacy and protection in India are stimulating companies to switch to MPLS networks. The networks offer a secure platform to comply with stricter regulations like the Data Protection Bill.

Challenges in the MPLS-based core network market in India include:
• High deployment cost: The high upfront cost of deploying MPLS networks can be a major deterrent for small and medium enterprises in India. The expense of infrastructure and hardware can restrict adoption.
• Network complexity: MPLS network management can be complicated, especially for organizations that do not have specialized IT staff. The complexity of ensuring optimal performance, security, and troubleshooting can result in higher operational expenses.
• SD-WAN competition: The emergence of SD-WAN technology in India is a threat to the MPLS market. SD-WAN provides a cost-efficient and versatile alternative for MPLS, particularly for companies without the same need for security and performance.

These drivers and challenges are transforming the MPLS-based core network market in India. Though growth is being driven by the rising demand for cloud adoption, low-latency connectivity, and greater security, the high costs, complexity, and competition from SD-WAN are proving to be major challenges. Enterprises and service providers need to overcome these challenges to take advantage of the opportunities offered by the changing MPLS market.

List of MPLS-Based Core Network Market in India 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 India by Segment

The study includes a forecast for the MPLS-based core network market in India by component and end use.

MPLS-Based Core Network Market in India by Component [Analysis by Value from 2019 to 2031]:

• MPLS-Based Devices
• IP/MPLS Management Software
• Services

MPLS-Based Core Network Market in India 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 India

Market Size Estimates: MPLS-based core network in India market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: MPLS-based core network in India market size by component and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different component and end use for the MPLS-based core network in India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the MPLS-based core network in India.
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 India?
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 India?
Answer: The future of the MPLS-based core network market in India looks promising with opportunities in the BFSI, manufacturing, government, healthcare, IT & telecommunication, and retail markets.
Q3. Which MPLS-based core network market in India 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 India 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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