Enterprise Networking Market

[350 Pages Report] The enterprise networking market is projected to grow from USD 115.8 billion in 2024 to USD 175.2 billion by 2029 at a compound annual growth rate (CAGR) of 8.6% from 2024 to 2029. Dynamic enterprise networking has increasingly become susceptible to rapid technological change and changing business requirements. Organizations focus on digital transformation to deliver a more adaptive, secure, and automated business-centric network, which will be achieved through SD-WAN, cloud-first networks, or AI-driven automation. This will require building resilient, massively scalable, and future-reliable networks. The trend is in the direction of developing a green networking world, in which companies need to shift toward virtualization to leave the smallest possible physical hardware footprint on the environment. This shift is driving the trend toward sustainable data centers and more eco-friendly networking and communications behaviors. Enterprises are upgrading to Wi-Fi 6 infrastructure to support bandwidth-hungry applications such as video conferencing, uses of AR/VR, and use cases for IoT. Wi-Fi 7 is, in turn, expected to further advance the performance and capacity of wireless.

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Impact of AI/GEN AI on Enterprise Networking Market

Artificial intelligence (AI) and generative Al have been integrated into enterprise networking, transforming management and optimization activities. AI tools render more efficient networks through predictive analytics by foreseeing problems that might impact operations. Such technologies enhance the performance of networks by providing for intelligent traffic management, enabling automated configuration, and facilitating dynamic load balancing. Generative Al goes beyond that to design network topologies and optimize configurations in real-time, hence reducing human error and hastening decision-making. Apart from that, security measures driven by Al, such as advanced threat detection and response, improve the defense of the network from sophisticated cyber threats. On the whole, the adoption of Al and generative Al in enterprise networking realizes better reliability, improved performance, and higher adaptability while managing complex network environments.

Enterprise Networking Market Dynamics

Driver:  Increasing focus on advanced cybersecurity measures

A security framework that includes zero-trust network models is one of the major advantages of an optimized network. These security protocols will ensure that sensitive data is secured and the organization’s digital assets are safeguarded from unauthorized access within the enterprise. This minimizes the potential risks related to cyber-attacks and ensures compliance with cybersecurity regulations. Basically, firewalls control the incoming and outgoing network traffic based on predetermined rules, thus creating the frontline of defense in matters pertaining to network security. It is through security tools, notably anti-malware software and intrusion detection systems, that checking and responding to the threats relies. They are critical to an enterprise network, particularly concerning continuous monitoring for suspicious activity to ensure compliance with cybersecurity policies. This is why modern enterprises have started moving toward a network architecture that has zero trust networking principles embedded in them. It helps authenticate every device, encrypt and authorize the traffic flow, uniquely isolate every device connection, and dynamically adjust network access as per the security policies elaborated by the corporation through real-time information or updates. Zero-trust essentially means strict access controls, verification of identity, and segmentation of the network to minimize risks. Enterprises have also started measuring potential quantum network threats. In particular, Nokia offers its quantum-safe cryptography network solution using Nokia Quantum-Safe Networks, following a paradigm of multilayered cryptography for quantum-safe security at different layers through a defense-in-depth approach.

Restraint: Managing high costs of WAN links

Traditional WAN links, such as MPLS and leased lines, among others, can be very expensive when connecting offices and other establishments that are geographically widespread. The price will be high with high bandwidths and distances. Most of the time, big establishments call for dedicated circuits to run some critical applications, and this becomes very expensive, especially when such areas are in rural or remote places that have less developed infrastructure. However, a growing company whose bandwidth needs continue to increase will eventually find that such an approach incurs high costs in upgrading WAN links. The cost of the WAN links can act as a limiting factor for an organization’s flexibility in the areas of new applications, new regional growth, or even new technologies that mandate robust and scalable network connectivity. Many enterprises that deploy SD-WAN do so to more efficiently manage WAN link costs. SD-WAN can be used by enterprises to optimize less expensive broadband Internet connections alongside traditional MPLS, thereby allowing a reduction in overall WAN cost without compromising on performance.

Opportunity: Implementation of zero trust security architecture

The zero-trust approach improves security by verifying the identity and integrity of users, devices, and applications to ensure that no entity is trusted by default inside or outside a network. This approach, supported by strong authentication methods, network segmentation, prevention of lateral movement, Layer 7 threat prevention, and granular policy simplification, is what safeguards and enables modern environments and digital transformation. Most zero-trust solutions are already integrated with AI/ML for threat detection and response and to perform rapid and more accurate identification of probable security breaches. This, in turn, reduces the chances of data loss and also minimizes the chances of downtown. Technologies like SASE combine networking and security services into a single cloud-delivered platform that provides secure, quick access to applications and data independent of location.

Challenge : Complex network environments

The more devices added to the enterprise network, the more complex the networks become. Adding more devices means added network traffic, IP addresses, and additional connectivity that has to be managed and operated from multiple locations, using multiple data centers and cloud environments. Such complex network environments may create sprawling systems that make troubleshooting and diagnosing network issues very tough and time-consuming. Another important factor is network monitoring and management, which is a very critical factor in maintaining the smooth running of a company’s network infrastructure. This will require organizations to invest in quality, up-to-date network monitoring tools and experts to bring out the best performance of the network. These tools are rather expensive and sometimes may be unaffordable for companies with low resources.

Enterprise Networking Market Ecosystem

Prominent players in this market include well-established, financially stable enterprise networking providers of solutions and services, as well as regulatory bodies. These companies have been operating in the market for several years and possess a diversified product portfolio and state-of-the-art technologies. Prominent companies in this market include Cisco Systems (US), HPE (US), Juniper Networks (US), Fortinet (US), and so on.

“By offering, software segment to witness fastest growth rate during forecast period”

With evolving technologies, new trends and developments continue to come up, contributing to the growth in demand for networking software. Open-source SDN controllers, such as OpenDaylight and ONOS, see broad usage and stimulate innovation and interoperability between different vendors’ hardware. This puts more demand on 5G and the IoT, which shifts more data processing to the network edge. Sophisticated edge networking software will be required to maintain low latency with high bandwidth demands. A major trend in integration with AI at the edge will be real-time analytics and decision-making closer to the source of data. Zero trust, given rising cyber threats, is now the standard of security wherein trust is never presumed, and every request for access is properly verified. As strategies related to multi-clouds are part of an enterprise, networking software assures seamless connectivity and security across line heterogeneous cloud environments, bringing an opportunity that will contribute to the growth in demand for networking software.

“By deployment mode, telco/MSP service segment to hold largest market size during forecast period”

MSPs monitor and manage a myriad of services, most of which are based on information technology, such as network management, cybersecurity, and cloud computing, among others. Due to a lack of prowess in these fields or the inability to afford related operational expenses, many businesses outsource such tasks to MSPs. Of current significance, MSPs are engaged in providing Network-as-a-Service, where enterprises only consume networking services and elude the need to acquire and manage infrastructure of their own. This trend is facilitating businesses to scale up their networking resources as required, bringing down costs and staying focused on the core business areas without headaches from managing complex networks. MSPs are rapidly adopting Software-Defined Wide Area Networking and Secure Access Service Edge solutions to deliver network connectivity to distributed enterprises, hybrid work environments, and other locations.

“Asia Pacific to register fastest growth rate during forecast period”

Enterprises across the Asia Pacific region are rapidly moving to the cloud and are adopting multi-cloud strategies to leverage the strengths of multiple cloud providers without getting locked into any one vendor. This further accelerates cloud adoption, particularly in countries with strict laws around data sovereignty. Many countries in the Asia Pacific region are in the race toward digital transformation and Industry 4.0 initiatives that bring digital technologies into manufacturing, supply chain, and other mission-critical business operations. This raises the demand for more robust, scalable networking solutions, considering the increasing adoption of the IoT and big data analytics. Next-generation data centers are witnessing huge investments in the Asia Pacific region as a means of holding immense demand for cloud services, big data analytics, and digital transformation.

Market Players:

The major players in the enterprise networking market are Cisco Systems (US), Broadcom (US), Hewlett Packard Enterprise (US), Juniper Networks (US), Extreme Networks, Inc. (US), Huawei (China),Fortinet (US), Cloudflare, Inc. (US), Alcatel-Lucent Enterprise (France), Arista Networks (US), Riverbed Technology (US), Check Point Software Technologies Ltd. (Israel), SolarWinds Corporation (US), F5 Networks (US), Palo Alto Networks (US), Pica8 (US), Versa Networks (US), Aryaka Networks Inc. (US), A10 Networks, Inc. (US), Cato Networks Ltd. (Israel), Cambium Networks (US), Megaport (Australia), flexiWAN (Israel), Peplink (US), Lavelle Networks (India), and Bigleaf Networks (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their enterprise networking market footprint.

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Scope of the Report

This research report categorizes the Enterprise Networking market to forecast revenues and analyze trends in each of the following submarkets:

Based on Offering:

• Networking Devices
  • Routers
  • Switches
    • Switches By Type
      • Fixed Swicthes
        • Managed Switches
        • Unmanged Switches
        • Power over Ethernet (PoE)  Switches
      • Modular Switches
    •  Switches By Speed
      • >1 GBPS to <=10 GBPS
      • >10 GBPS to <=40 GBPS
      • > 40 GBPS to <=100 GBPS
      • >100 GBPS to <=400 GBPS
      • 400 GBPS and above
  • Access Points
  • Gateways
  • Firewalls
  • Other Networking Devices
• Networking Software
  • Network Management And Monitoring
  • Network Security
  • Network Virtualization
  • Network Automation
  • Other Networking Software
• Services
  • Professional Services
    • Consulting
    • Deployment & Integration
    • Support & Maintenance
  • Managed Network Services

Based on Connection Type

• Wired
• Wireless

Based on Deployment Mode

• Do-It-Yourself (DIY)
• Managed SD-WAN (Telco OR MSP)
• SD-WAN as a Service (Cloud-Based)

Based on Network

• Branch Network
• Remote Network
• Campus Networks
• Data Center Network

Based on Technology

• Software-Defined Networking (SDN)
• Network Function Virtualization (NFV)
• Software-Defined Wide Area Network (SD-WAN)
• Secure Access Service Edge (SASE)
• Wi-Fi
• Intent-based Networking (IBN)
• Other Technologies (Cloud Networking, AI Networking, And Edge Computing)

Based on End-User

• Service Providers
  • Cloud Service Providers
  • Telecom Service Providers
• Enterprises
  • Banking, Financial Services, and Insurance
  • IT & ITeS
  • Manufacturing 
  • Healthcare & Life Sciences
  • Retail & eCommerce
  • Transportation & Logistics
  • Government
  • Media & Entertainment
  • Education
  • Other Enterprises (Energy & Utilities and Travel & Hospitality) 

By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • France
  • Italy
  • Spain
  • Nordic Countries
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia & New Zealand
  • Southeast Asia
  • Rest of Asia Pacific
• Middle East & Africa
  • Middle East
    • Kingdom of Saudi Arabia (KSA)
    • United Arab Emirates (UAE)
    • Kuwait
    • Bahrain
    • Rest of Middle East
    • Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In April 2024, Fortinet announced the latest version of its FortiOS operating system and other major enhancements to its cybersecurity platform, the Fortinet Security Fabric. The latest OS updates seamlessly converge networking and security, and Security Fabric updates deliver new generative AI, data protection, managed services, and unified agent features.
• In February 2024, Broadcom’s subsidiary, VMware, announced product innovations across its 5G, SD-WAN, SASE, and Edge Compute, which collectively comprise the Software-Defined Edge portfolio. These innovations will enable CSPs to modernize their networks and create new monetizable services.
• In January 2024, Cisco Systems collaborated with Kyndryl on a development process to build scalable security offerings. The new security edge service, combined with Kyndryl and Cisco’s available SD-WAN services, will enable enterprises to build a foundation to transition into SASE architecture.

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