MPLS-Based Core Network in Malaysia Trends and Forecast
The future of the MPLS-based core network market in Malaysia 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 Malaysia 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 Malaysia
The Malaysia MPLS-based core network market is changing at a fast pace because of technological innovation, growing demand for secure connectivity, and the country’s drive for digital transformation. With the growth of cloud computing, the emergence of 5G technology, and an enhanced dependence on digital services, MPLS networks are becoming increasingly important to enable modern infrastructure. These new trends capture the ongoing necessity for companies to maximize network performance, enhance security, and maintain reliability against changing market forces.
• SD-WAN and MPLS integration: The combination of SD-WAN (Software-Defined Wide Area Network) with MPLS networks is picking up in Malaysia. SD-WAN offers more flexibility and cost savings, while MPLS still offers secure and reliable connectivity. This hybrid model allows companies to maximize network performance and control data traffic better, offering both agility and security.
• Hybrid Networks and Cloud Connectivity: The increasing use of cloud services in Malaysia is fueling the demand for cloud connectivity based on MPLS. MPLS networks allow companies to connect securely and reliably to cloud environments, supporting hybrid cloud initiatives. By integrating MPLS with public as well as private clouds, companies can gain improved performance and scalability while ensuring security.
• Network Automation Focus: Automation is increasingly gaining prominence in the core network market of Malaysia based on MPLS. With companies looking to simplify operations and minimize network management expenses, traffic routing, monitoring, and performance optimization automation tools are being embraced. This minimizes the possibility of human errors and maximizes operational efficiency, particularly in the handling of complex, large networks.
• Data Privacy and Cybersecurity Issues: With the increased incidence of cyberattacks, Malaysian businesses are concentrating on the security advantages of MPLS networks. MPLS provides private, dedicated connections that provide data privacy and minimize exposure to cyber threats. With businesses going digital, the demand for high-performance, secure networks that safeguard sensitive information is leading to growing MPLS usage.
• 5G Technology Adoption: The implementation of 5G technology in Malaysia is also bringing new requirements for MPLS networks. 5G necessitates high-speed, low-latency connectivity to support applications such as IoT, smart cities, and autonomous transport. MPLS will be of paramount importance to provide 5G backhaul with the kind of reliable, low-latency connections required to offer these future-generation services.
These new trends are transforming the MPLS-based core network market in Malaysia. The convergence of SD-WAN with MPLS, cloud connectivity requirements, network automation pressure, cybersecurity issues, and 5G adoption are propelling the development of MPLS networks in Malaysia. These trends are helping businesses transform their infrastructure, become more efficient, and provide secure, reliable connectivity as they move through the digital transformation journey.
Recent Developments in the MPLS-Based Core Network Market in Malaysia
The Malaysian market for MPLS-based core networks is experiencing several significant developments. These are fueled by fast-moving technological changes, increased dependence on digital infrastructure, and a developing need for stronger and more secure networks. As the country joins the digital journey, these transitions are likely to enhance the general performance, stability, and security of MPLS networks, positioning them even further at the core of business activity.
• Integration in the Cloud: More Malaysian companies are using cloud-based systems, and MPLS networks are at the heart of providing secure, reliable access to these systems. MPLS provides companies with access to hybrid cloud systems through high-performance, low-latency networks that respond to increasing cloud service demand. This integration is vital in allowing companies to gain access to cloud applications without jeopardizing security.
• 5G Network Expansion: With the implementation of 5G technology in Malaysia, there is increasing demand for MPLS networks to carry the high-speed backhaul of 5G. 5G use cases like IoT, smart cities, and autonomous driving need low-latency, high-capacity networks. MPLS networks are optimized to fulfill such needs and are critical to achieving the successful rollout of 5G.
• Greater Network Automation Focus: Demand for automated network management products is on the rise as companies in Malaysia attempt to lower operation costs and optimize network efficiency. Solutions for automation are being implemented into MPLS networks, enabling companies to monitor, manage, and optimize network performance more effectively without manual intervention.
• Government Assistance to Digital Transformation: The digital transformation efforts initiated by the Malaysian government are having a positive impact on the MPLS market. Through investment in the upgrading of telecommunications infrastructure and the encouragement of digital services, the government is creating an ecosystem that spurs the implementation of sophisticated network solutions such as MPLS.
• Cybersecurity Improvements: With escalating cybersecurity issues, companies in Malaysia are increasingly relying on MPLS networks to secure their communication. MPLS provides private, encrypted routes that shield sensitive information, particularly for industries such as finance and healthcare that deal with confidential data. This is propelling the adoption of MPLS networks even more to improve security and guarantee compliance with regulations.
Latest trends in the Malaysian MPLS-based core network market, such as cloud integration, 5G growth, network automation, government backing for digital transformation, and advanced cybersecurity measures, are transforming the marketplace. These trends allow companies to optimize their networks, enhance performance, and protect key data as they forge ahead with digital transformation.
Strategic Growth Opportunities for MPLS-Based Core Network Market in Malaysia
Malaysia’s MPLS-based core network market offers many opportunities for growth. With more companies relying on digital infrastructure, there is a growing demand for secure, high-speed networks that can enable cloud computing, 5G, and automation. Leveraging the major areas of growth, companies can enhance their network capabilities and increase their digital transformation strategies.
• Cloud Connectivity Solutions: Increasing demand for cloud computing is providing MPLS service providers with opportunities to provide cloud-based connectivity solutions. Malaysian businesses are looking for low-latency, secure, and reliable connections to cloud services. MPLS networks offer the best infrastructure to facilitate smooth, high-performance access to the cloud.
• 5G Backhaul Services: With Malaysia introducing 5G technology, the MPLS network has a strong potential to carry the high-speed backhaul equipment needed for 5G. The low latency and high capacity of MPLS are necessary in order to maintain that 5G applications, including IoT and smart cities, operate optimally.
• Network Automation Services: Automation is emerging as an important trend in the Malaysian MPLS market, and companies are looking for solutions that help streamline network management. By providing automation tools that simplify traffic management, provisioning, and monitoring, MPLS service providers can cater to the increasing demand for easy network operation.
• Growth Through Cybersecurity: Increasing demand for secure networks is fueling growth in the MPLS market. MPLS networks provide private, dedicated links that assist in securing data and defending against cyberattacks. Service providers can capitalize on this opportunity by highlighting the security advantage of MPLS in industries where high data protection is necessary.
• MPLS Network Managed Services: With companies wanting to maximize the management of the network, the demand for managed MPLS is on the rise. By providing end-to-end MPLS management such as traffic optimization, monitoring, and problem-solving, network service providers enable companies to optimize network performance as well as lessen operational overhead.
Strategic growth prospects in the Malaysia MPLS-based core network market include 5G backhaul services, cloud connectivity solutions, network automation, cybersecurity-driven growth, and managed services. These prospects enable businesses to optimize their networks, improve performance, and address the requirements of digital transformation, keeping them competitive in an increasingly changing technology environment.
MPLS-Based Core Network Market in Malaysia Driver and Challenges
The MPLS-based core network market in Malaysia is shaped by a mix of technological, economic, and regulatory factors. Important drivers such as the growth in cloud computing, deployment of 5G networks, and cybersecurity are driving demand for MPLS solutions. However, obstacles such as high expense, rivalry from newer technologies, and the intricacy of managing networks are impacting the market growth pattern.
The factors responsible for driving the MPLS-based core network market in Malaysia include:
• Cloud Adoption: With increased business migration to the cloud in Malaysia, secure, dependable connectivity is becoming increasingly necessary. MPLS networks offer the kind of performance and security needed to enable smooth integration with the cloud, and hence a demand for the same.
• 5G Growth: The coming of 5G technology in Malaysia opens doors to new growth prospects for MPLS networks in the ability to carry the high-speed backhaul for 5G applications. MPLS will be critical in ensuring the low-latency and high-capacity requirements of 5G.
• Security Issues: As threats online get more complex, companies are opting more and more for MPLS networks because of their security features. MPLS provides secure, encrypted channels that shield confidential data, making it a preferable solution for industries handling sensitive data.
• Government Digital Transformation Programs: The Malaysian government is investing in digital infrastructure, which is facilitating the uptake of new network technologies such as MPLS. These programs are creating a conducive environment for MPLS solutions.
• Network Performance and Reliability Requirements: Companies need high-performance networks to enable their digital activities, and MPLS delivers the reliability, security, and low latency required to fulfill these requirements, leading to additional adoption.
Challenges in the MPLS-based core network market in Malaysia include:
• High Implementation Cost: The initial cost of implementing MPLS networks may prove to be a major hindrance for small and medium enterprises in Malaysia. The high cost of infrastructure and management may discourage certain businesses from using MPLS solutions.
• Complexity of the Network: MPLS networks may be difficult to design and manage, and specialized skills and resources may be needed. The complexity of MPLS management and configurations can be challenging for companies that do not have specialized IT staff.
• SD-WAN Competition: SD-WAN technology is being developed as a more agile and less expensive substitute for MPLS, especially for companies that need more agility and cost savings. This competition may affect MPLS market growth in Malaysia.
The major forces driving MPLS adoption in Malaysia are growing cloud adoption, the deployment of 5G, cybersecurity threats, government initiatives, and the necessity for secure networks. But with high costs, network complexity, and competition from SD-WAN, growth might be hampered. These elements will be pivotal to unlocking the full potential of the MPLS market in Malaysia.
List of MPLS-Based Core Network Market in Malaysia 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 Malaysia by Segment
The study includes a forecast for the MPLS-based core network market in Malaysia by component and end use.
MPLS-Based Core Network Market in Malaysia by Component [Analysis by Value from 2019 to 2031]:
• MPLS-Based Devices
• IP/MPLS Management Software
• Services
MPLS-Based Core Network Market in Malaysia 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 Malaysia
Market Size Estimates: MPLS-based core network in Malaysia 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 Malaysia 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 Malaysia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the MPLS-based core network in Malaysia.
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 Malaysia?
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 Malaysia?
Answer: The future of the MPLS-based core network market in Malaysia looks promising with opportunities in the BFSI, manufacturing, government, healthcare, IT & telecommunication, and retail markets.
Q3. Which MPLS-based core network market in Malaysia 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 Malaysia 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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