MPLS-Based Core Network Trends and Forecast
The future of the global MPLS-based core network market 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 2030 with a CAGR of 9.8% from 2024 to 2030. 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.
• Lucintel forecasts that MPLS-based device segment is expected to witness the highest growth over the forecast period.
• Through this market, IT & telecommunication is expected to witness the highest growth over the forecast period.
• North America is expected to witness the highest growth over the forecast period due to expanding spending upon cloud services in the region.
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Country Wise Outlook for the MPLS-Based Core Network Market
Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below highlights recent developments by major MPLS-based core network producers in key regions: the USA, China, India, Japan, and Germany.
• United States: In the U.S., significant advancements include the integration of SD-WAN with MPLS networks, offering improved flexibility and cost efficiency. Companies are also focusing on enhanced security features and better support for high-bandwidth applications like IoT and 5G.
• China: China is accelerating its MPLS network upgrades to support its expanding digital infrastructure. Recent developments include the deployment of high-capacity MPLS routers and increased investment in network automation to manage growing data traffic and improve service quality.
• Germany: Germany is enhancing its MPLS networks with advanced analytics and automation tools. This includes the implementation of AI-driven network management systems that optimize performance and detect potential issues before they impact service.
• India: In India, there is a push to modernize MPLS networks to support the growing demand for high-speed internet and reliable connectivity. Recent efforts focus on expanding network coverage and integrating MPLS with emerging technologies like cloud services and AI.
• Japan: Japan is advancing its MPLS network capabilities by focusing on ultra-low latency and high reliability. Recent developments include deploying next-generation MPLS equipment to support high-speed data transfer and real-time applications.
Emerging Trends in the MPLS-Based Core Network Market
The MPLS-based core network market is witnessing several emerging trends that are reshaping the industry by introducing advanced technologies and improving network management.
• Integration with SD-WAN: The integration of MPLS with SD-WAN technologies is a significant trend, providing enhanced flexibility and cost savings. This combination allows for more dynamic and scalable network management, meeting diverse business needs.
• Increased Use of Automation: Network automation is becoming more prevalent, with AI and machine learning tools optimizing MPLS network operations. Automation reduces manual intervention, improves efficiency, and enhances network performance and reliability.
• Enhanced Security Features: There is a growing emphasis on incorporating advanced security features into MPLS networks. This includes encryption and threat detection tools that protect against cyber threats and ensure data integrity.
• Support for 5G and IoT: MPLS networks are being upgraded to support the increasing demands of 5G and IoT applications. This trend involves enhancing network capacity and reducing latency to handle high-bandwidth and real-time data requirements.
• Focus on Network Analytics: Advanced analytics are being integrated into MPLS networks to provide deeper insights into network performance. This trend allows for proactive management, improved troubleshooting, and better capacity planning.
These trends are driving significant changes in the MPLS-based core network market, improving network flexibility, performance, and security, while supporting the evolving needs of modern applications and services.
Recent Developments in the MPLS-Based Core Network Market
Recent developments in the MPLS-based core network market are focused on improving network efficiency and adapting to new technological demands. Key advancements are reshaping the landscape of core network infrastructure.
• SD-WAN Integration: The integration of MPLS with SD-WAN technologies is enhancing network flexibility and reducing costs. This development allows for more efficient management of network traffic and supports a wider range of applications.
• Advanced Automation Tools: Implementation of AI-driven network automation tools is optimizing MPLS network management. These tools enhance performance, reduce manual intervention, and improve overall network reliability.
• Enhanced Security Measures: New MPLS devices are incorporating advanced security features such as end-to-end encryption and real-time threat detection. These measures protect against emerging cyber threats and ensure data security.
• Deployment of High-Capacity Routers: The introduction of high-capacity MPLS routers is supporting the increasing demand for high-speed data transfer. These routers improve network throughput and support high-bandwidth applications.
• Expansion of Network Coverage: Efforts to expand MPLS network coverage are ongoing, especially in emerging markets. This development aims to provide more comprehensive connectivity and support for growing data demands.
These recent developments are advancing the MPLS-based core network market by enhancing network performance, security, and coverage, and supporting the growing demands of modern applications and services.
Strategic Growth Opportunities for MPLS-Based Core Network Market
Strategic growth opportunities in the MPLS-based core network market are emerging across various applications, driven by advancements in technology and increasing demand for efficient network solutions.
• Cloud Integration: Leveraging MPLS networks for cloud integration offers significant growth opportunities. This integration enhances cloud service delivery and improves network performance, supporting the growing adoption of cloud-based applications.
• 5G Network Support: The deployment of MPLS networks to support 5G infrastructure presents a major growth opportunity. MPLS networks can provide the low latency and high bandwidth required for 5G applications, enabling faster and more reliable connectivity.
• IoT Connectivity: Expanding MPLS networks to support IoT devices and applications is a growing opportunity. MPLS can handle the increased data traffic and provide the reliability needed for large-scale IoT deployments.
• Network Virtualization: The adoption of network virtualization technologies within MPLS networks offers growth potential. Virtualization enhances network flexibility, scalability, and resource utilization, meeting the needs of dynamic and growing networks.
• Enhanced Security Solutions: Investing in advanced security solutions for MPLS networks provides growth opportunities. Enhanced security features protect against cyber threats and ensure data integrity, which is crucial for sensitive and mission-critical applications.
These strategic growth opportunities are shaping the MPLS-based core network market by expanding its capabilities, supporting new technologies, and enhancing network performance and security.
MPLS-Based Core Network Market Driver and Challenges
The MPLS-based core network market is influenced by various drivers and challenges that affect its growth and development. These factors include technological advancements, market demands, and regulatory issues.
The factors responsible for driving the MPLS-based core network market include:
• Technological Advancements: Innovations in MPLS technology, such as integration with SD-WAN and automation, are driving market growth by improving network performance and management.
• Increasing Data Demands: The growing demand for high-speed data and reliable connectivity is fueling the expansion and upgrade of MPLS networks to meet these needs.
• Cloud and 5G Integration: The need to support cloud services and 5G networks is driving investment in MPLS infrastructure, enhancing network capabilities and performance.
• Network Efficiency: The push for more efficient network management and cost reduction is promoting the adoption of advanced MPLS technologies and solutions.
• Regulatory Support: Favorable regulatory environments and standards are facilitating the development and deployment of MPLS networks.
Challenges in the MPLS-based core network market include:
• High Implementation Costs: The cost of deploying and upgrading MPLS networks can be a barrier, especially for smaller organizations and emerging markets.
• Complex Integration: Integrating MPLS with new technologies and existing systems can be complex and challenging, affecting deployment timelines and costs.
• Security Concerns: Ensuring robust security within MPLS networks is critical, as vulnerabilities can pose risks to data integrity and network performance.
• Market Competition: Intense competition among MPLS vendors can impact pricing and market share, requiring continuous innovation and differentiation.
• Regulatory Compliance: Navigating regulatory requirements and ensuring compliance can be challenging, particularly in regions with stringent standards.
These drivers and challenges are shaping the MPLS-based core network market by influencing technological development, market dynamics, and investment decisions, ultimately impacting the growth and adoption of MPLS solutions.
List of MPLS-Based Core Network 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 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-
• AT&T Communications
• Cisco Systems
• Century Link
• Orange
• BT Global Services
• Sprint Nextel Corporation
• Syringa Networks
MPLS-Based Core Network by Segment
The study includes a forecast for the global MPLS-based core network by component, end use, and region.
MPLS-Based Core Network Market by Component [Analysis by Value from 2018 to 2030]:
• MPLS-Based Devices
• IP/MPLS Management Software
• Services
MPLS-Based Core Network Market by End Use [Analysis by Value from 2018 to 2030]:
• BFSI
• Manufacturing
• Government
• Healthcare
• IT & Telecommunications
• Retail
• Others
MPLS-Based Core Network Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
MPLS-Based Core Network Market Insights
• Lucintel forecasts that MPLS-based device segment is expected to witness the highest growth over the forecast period.
• Through this market, IT & telecommunication is expected to witness the highest growth over the forecast period.
• North America is expected to witness the highest growth over the forecast period due to expanding spending upon cloud services in the region.
Features of the Global MPLS-Based Core Network Market
Market Size Estimates: MPLS-based core network market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: MPLS-based core network market size by component, end use, and region in terms of value ($B).
Regional Analysis: MPLS-based core network market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different components, end uses, and regions for the MPLS-based core network market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the MPLS-based core network market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the MPLS-based core network market size?
Answer: The global MPLS-based core network market is expected to reach an estimated $74.4 billion by 2030.
Q2. What is the growth forecast for MPLS-based core network market?
Answer: The global MPLS-based core network market is expected to grow with a CAGR of 9.8% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the MPLS-based core network market?
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.
Q4. What are the major segments for MPLS-based core network market?
Answer: The future of the MPLS-based core network market looks promising with opportunities in the BFSI, manufacturing, government, healthcare, IT & telecommunication, and retail markets.
Q5. Who are the key MPLS-based core network market companies?
Answer: Some of the key MPLS-based core network companies are as follows:
• AT&T Communications
• Cisco Systems
• Century Link
• Orange
• BT Global Services
• Sprint Nextel Corporation
• Syringa Networks
Q6. Which MPLS-based core network market 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.
Q7. In MPLS-based core network market, which region is expected to be the largest in next 5 years?
Answer: North America is expected to witness the highest growth over the forecast period due to expanding spending upon cloud services in the region.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the MPLS-based core network market by component (MPLS-based devices, IP/MPLS management software, and services), end use (BFSI, manufacturing, government, healthcare, IT & telecommunications, retail, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. 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.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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