Enterprise Networking Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Equipment (Ethernet Switch, Enterprise Routers, WLAN, Network Security), By Infrastructure Type (In-house, Outsourced), By Region, By Competition, 2018-2028

Market Overview

Global Enterprise Networking Market has valued at USD 412 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 5.8% through 2028. The Global Enterprise Networking Market is undergoing significant transformation and expansion as organizations increasingly rely on advanced networking solutions to power their digital operations. This market encompasses a wide range of products and services, including routers, switches, wireless networks, and software-defined networking (SDN) solutions. One of the key drivers of this market is the growing adoption of cloud-based services and applications, necessitating scalable and agile network infrastructures. Additionally, the proliferation of Internet of Things (IoT) devices and the demand for seamless connectivity further boost the enterprise networking sector. The COVID-19 pandemic has accelerated the need for robust remote work capabilities, driving investments in secure and high-performance networking solutions. Furthermore, the emergence of technologies like 5G and edge computing is poised to reshape enterprise networking, enabling low-latency and high-speed connectivity for critical applications. As businesses seek to enhance productivity, streamline operations, and ensure data security, the Global Enterprise Networking Market is poised for continued growth and innovation, with organizations investing in cutting-edge solutions to meet their evolving networking needs.

Key Market Drivers

Increased Network Efficiency

AI-enabled networking is revolutionizing the global enterprise networking market by optimizing network performance and efficiency. With the help of AI algorithms, network traffic can be analyzed in real-time, patterns can be identified, and network resources can be dynamically allocated to ensure optimal performance. This significantly improves network efficiency and accelerates data transmission, enhancing the overall productivity of enterprises. One of the key benefits of AI-enabled networking is its ability to automate network management tasks. AI algorithms can monitor network performance, detect anomalies, and proactively address potential issues, reducing the manual effort required for network troubleshooting and maintenance. Moreover, AI algorithms can continuously learn from network data and adapt their strategies over time, ensuring that the network remains up-to-date and resilient.

Enhanced Network Security

AI-enabled networking plays a crucial role in enhancing network security for enterprises. By leveraging AI algorithms, organizations can detect and mitigate potential security threats in real-time. AI algorithms can analyze network traffic patterns, identify suspicious activities, and proactively respond to security breaches. This proactive approach helps organizations prevent data breaches, unauthorized access, and other cyber threats. Furthermore, AI-enabled networking can detect anomalies and deviations from normal network behavior, enabling early detection of potential security breaches. By continuously monitoring network traffic and analyzing patterns, AI algorithms can identify and respond to security threats before they cause significant damage. This advanced threat detection capability enhances the overall security posture of enterprises and protects sensitive data from unauthorized access.

Improved Network Reliability

AI-enabled networking improves network reliability by predicting and preventing network failures. AI algorithms can analyze historical network data, identify patterns of failures, and predict potential network outages. This enables organizations to proactively address network issues before they impact business operations. Additionally, AI algorithms can dynamically reroute network traffic in case of failures, ensuring uninterrupted connectivity and minimizing downtime. By leveraging AI-enabled networking, organizations can achieve higher levels of network reliability, reduce the risk of network disruptions, and enhance business continuity.

Intelligent Network Optimization

AI-enabled networking leverages machine learning algorithms to optimize network performance and resource allocation. By analyzing network data, AI algorithms can identify bottlenecks, optimize network configurations, and allocate resources based on demand. This intelligent network optimization improves network efficiency, reduces latency, and enhances the overall user experience. Moreover, AI algorithms can continuously learn from network data and adapt their optimization strategies over time, ensuring that the network remains optimized as traffic patterns evolve. This iterative learning process enables organizations to achieve higher levels of network performance and scalability.

Automation of Network Management

AI-enabled networking automates various aspects of network management, including configuration, monitoring, and troubleshooting. AI algorithms can automatically configure network devices, monitor network performance, and detect potential issues. This automation reduces the manual effort required for network management tasks, allowing IT teams to focus on more strategic initiatives. Furthermore, AI algorithms can proactively identify network issues, generate alerts, and provide recommendations for resolution. This proactive approach to network management improves operational efficiency, reduces downtime, and enhances the overall reliability of the network.

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Key Market Challenges

Lack of Awareness and Understanding

The global enterprise networking market faces a significant challenge in terms of limited awareness and understanding among organizations regarding the importance and advantages of adopting advanced networking solutions. Many businesses, particularly smaller enterprises, may not fully grasp the potential risks and inefficiencies associated with traditional networking methods and the potential for advanced networking technologies to enhance connectivity, security, and overall operational efficiency. This lack of awareness can lead to hesitation in investing in advanced networking solutions, leaving organizations vulnerable to network limitations and suboptimal performance. Addressing this challenge requires comprehensive educational initiatives to highlight the critical role that advanced networking plays in enabling digital transformation, improving collaboration, and supporting business growth. Organizations need to recognize that outdated networking infrastructure can result in connectivity issues, security breaches, and hindered productivity. Real-world examples and case studies showcasing the tangible benefits of advanced networking can help foster a deeper understanding of its significance.

Complexity and Integration Issues

The implementation and management of advanced networking solutions can pose complex challenges for organizations, particularly those with limited IT resources or expertise. Configuring and integrating advanced networking systems effectively with existing infrastructure and applications can be technically demanding. Compatibility issues may arise during integration, leading to delays and suboptimal performance. To address these challenges, it is essential to simplify the deployment and management of advanced networking solutions. User-friendly interfaces and intuitive configuration options should be provided to streamline setup and customization. Additionally, organizations should have access to comprehensive support and guidance, including documentation, tutorials, and technical experts who can assist with integration and troubleshoot any issues. Simplifying these aspects of advanced networking implementation can lead to more efficient processes, improved connectivity, and enhanced network performance.

Security and Privacy Concerns

As organizations increasingly rely on digital technologies and cloud-based services, the global enterprise networking market faces the challenge of addressing security and privacy concerns. With the growing number of cyber threats and data breaches, organizations need to ensure that their networking infrastructure is robust and secure. Advanced networking solutions must incorporate robust security measures, such as encryption, authentication, and intrusion detection systems, to protect sensitive data and prevent unauthorized access. Additionally, organizations need to comply with data privacy regulations and ensure that their networking solutions adhere to industry standards. Addressing these concerns requires continuous investment in research and development to stay ahead of emerging threats and vulnerabilities. Collaboration between networking vendors, security experts, and regulatory bodies is crucial to develop and implement effective security measures that instill confidence in organizations adopting advanced networking solutions.

Scalability and Performance Optimization

As organizations grow and expand their operations, the scalability and performance of their networking infrastructure becomes critical. The global enterprise networking market faces the challenge of providing scalable solutions that can accommodate increasing network traffic and support the seamless integration of new applications and services. Additionally, organizations require networking solutions that can deliver optimal performance, low latency, and high bandwidth to meet the demands of data-intensive applications and real-time communication. Overcoming these challenges requires the development of advanced networking technologies that can scale dynamically, adapt to changing network conditions, and optimize performance. Continuous innovation in areas such as software-defined networking (SDN), network function virtualization (NFV), and edge computing can enable organizations to build agile and high-performing networks that support their evolving business needs.

Key Market Trends

Rise in Demand for Secure and Reliable Enterprise Networking Solutions

The global market for enterprise networking solutions is witnessing a rise in demand for secure and reliable networking solutions. As organizations increasingly rely on digital infrastructure to conduct their operations, the need for robust networking solutions that can ensure seamless connectivity, data transfer, and communication has become paramount. With the proliferation of cyber threats and the growing complexity of networks, organizations are seeking advanced networking solutions that can provide enhanced security features, such as encryption, authentication, and access control, to protect their sensitive data and prevent unauthorized access.

To address this demand, networking solution providers are focusing on developing innovative technologies that can deliver secure and reliable connectivity. These solutions leverage advanced encryption algorithms, secure protocols, and multi-factor authentication mechanisms to safeguard data transmission and ensure the integrity and confidentiality of information. Additionally, they incorporate features like intrusion detection and prevention systems, network segmentation, and virtual private networks (VPNs) to create secure network environments that can withstand cyber attacks and mitigate potential risks.

Shift towards Software-Defined Networking (SDN)

The global enterprise networking market is experiencing a significant shift towards software-defined networking (SDN) solutions. SDN offers a centralized approach to network management, enabling organizations to dynamically control and configure their networks through software-based controllers. This shift is driven by the need for greater agility, scalability, and flexibility in network operations.

SDN solutions provide organizations with the ability to automate network provisioning, optimize traffic flow, and implement policy-based network management. By decoupling the control plane from the data plane, SDN enables organizations to achieve better network visibility, simplify network management tasks, and reduce operational costs. Furthermore, SDN facilitates the integration of virtualization technologies, enabling organizations to create virtual networks that can be easily scaled and customized to meet their specific requirements.

Integration of Artificial Intelligence and Machine Learning

The integration of artificial intelligence (AI) and machine learning (ML) technologies into enterprise networking solutions is a significant trend in the market. AI and ML algorithms can analyze vast amounts of network data, identify patterns, and detect anomalies in real-time, enabling networking solutions to proactively respond to network issues and security threats.

By leveraging AI and ML capabilities, networking solution providers can enhance network performance, optimize resource allocation, and improve network troubleshooting and fault detection. These technologies enable intelligent network automation, predictive analytics, and self-healing capabilities, allowing organizations to achieve higher levels of network efficiency, reliability, and resilience.

Furthermore, AI and ML can be utilized to enhance network security by detecting and mitigating potential threats, such as DDoS attacks, malware infections, and unauthorized access attempts. By continuously analyzing network traffic and behavior, AI-enabled networking solutions can identify suspicious activities, generate alerts, and take proactive measures to prevent security breaches.

Segmental Insights

Equipment Insights

The ethernet switch segment led the market with the highest revenue share of over 37% in 2022 and is anticipated to hold the maximum share throughout the forecast period. Ethernet switches connect devices by relaying Ethernet frames between devices connected to the switches. Increasing demand for high-speed Ethernet switches is expected to open up new growth prospects for market participants in the coming years. Government attempts to speed up digital transformation have also increased demand for switches, routers, and wireless LAN networks, which is expected to propel market expansion in the future.

The WLAN segment is estimated to grow significantly over the forecast period. The increasing density effect in the enterprise area of the users and the equipment is magnified by the extended usage of the over-IP audio and video applications on mobile equipment. One for wireless localization - for the companies that allow access to resources and applications only if the user is present in a strict and limited perimeter of the collaborative work solutions with the large volume of file sharing, etc. The mentioned types of applications require more extensive bandwidths, resulting in the congestion of the WLAN networks, which decreases the level of performance. This standard also supports bandwidth-related telepresence applications such as web conferencing and video. Enterprises are ripe for the deployment of 802.11ac, which is expected to increase demand for the new WLAN equipment.

Infrastructure Type Insights

The outsourced segment alone held the largest revenue share of over 68% in 2022. The rising demand for corporate networking outsourcing is driven by enterprises' need to cut costs, improve performance, get access to knowledge, focus on core competencies, and maintain business continuity while taking advantage of the latest technology and industry trends. Furthermore, outsourcing can help organizations focus on their core competencies by allowing them to offload the management and maintenance of their networks to external providers. It frees internal resources to focus on strategic initiatives that drive business growth and innovation.

The in-house segment is predicted to foresee significant growth in the forecast years. In-house networking product production can save on management costs associated with outsourcing. There is complete control over the product output when in-house manufacturing is used. Moreover, production spikes can be planned with enough labor and equipment to meet demand. The quality of in-house networking products can be better controlled, and quality control is critical for businesses, which leads to the growing use of the in-house segment.

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Regional Insights

Asia Pacific dominated the market in 2022, accounting for over 38% of global revenue. The significant transition across many regional nations and their propensity to use cloud services is a factor in the region's growth. Additional evidence of a growing demand for top-notch precision equipment in this area comes from the continually expanding manufacturing activity. However, the Asia-Pacific market is also growing due to the region's strong IT sector and enormous demand for advanced technology, particularly in China and India.

MEA is anticipated to register a significant CAGR from 2023 to 2030. The growth is due to the telecom sector's development and industrial re-focusing to generate new economic development. Routers are expected to witness slow adoption owing to the capability of advanced ethernet switches to operate more routing protocols. It has enabled enterprises to consider switches over routers.

Recent Developments

• In December 2022, ALE International collaborated with Auroz, the distributor that offers systems integrators and technology resellers solutions and services. Through this new agreement, Auroz will provide services to ALE's channel partners throughout Australia and the whole ALE portfolio of communication, networking, and cloud solutions.
• In March 2023, Wipro Limited, an Indian multinational corporation, announced the release of its 5G Def-i platform. The new platform combines applications, networks, and cloud services to enable enterprises to connect systems and assets quickly and seamlessly on 5G networks.

Key Market Players

• A10 Networks Alation Inc.
• ALE International
• Broadcom Inc.
• Cisco Systems, Inc.
• Dell Inc.
• Hewlett Packard Enterprise Development LP
• Huawei Technologies Co., Ltd.
• Juniper Networks
• Riverbed Technology, Inc.
• ZTE Corporation

Report Scope:

In this report, the Global Enterprise Networking Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Enterprise Networking Market, By Equipment:

o   Ethernet Switch

o   Enterprise Routers

o   WLAN

o   Network Security

• Enterprise Networking Market, By Infrastructure Type:

o   In-house

o   Outsourced  

• Enterprise Networking Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

§  Belgium

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

§  Indonesia

§  Vietnam

o   South America

§  Brazil

§  Argentina

§  Colombia

§  Chile

§  Peru

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

§  Israel

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Enterprise Networking Market.

Available Customizations:

Global Enterprise Networking market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).