Need for Next-generation-Ready Network Equipment for 5G Networks to Fuel Growth of Core Network Telecom Solutions Market
Rising spending on 5G infrastructure deployment owing to a shift in customer preference toward next-generation technologies and smartphone devices is one of the key factors driving telecom industry. Other potential factors driving market growth include an increase in mobile subscribers, a surge in demand for high-speed data connectivity, and an increase in demand for value-added managed services. Furthermore, the global communication network has undoubtedly been one of the most prominent areas for continued technological advancements over the last few decades. For instance, smartphones will be used by 78.05 % of the world's population by the end of 2020. Since many people own multiple smartphones, the actual number of smartphone subscriptions far outnumbers the number of smartphone users. The core network telecom solutions market is gaining traction as a result of its cloud-native and service-based architecture, which will improve product modularity with a focus on low latency, URLLC, eMBB, and mMTC offerings.
Rapid increase in the volume of data carried by cellular networks has been driven primarily by consumer demand for video and a shift in business practises toward the use of cloud services. Core network telecom solution vendors have significant growth opportunities. The commercialisation of 5G services in enterprises, such as private 5G, as well as the global availability of unlicensed and shared spectrum, are expected to shape the future of the core network telecom solutions market. The IoT adoption and continuous advancements in Machine-to-Machine (M2M) communication networks are transforming various industries by connecting all types of devices, appliances, systems, and services. IoT is one of many use cases that 5G core-enabled 5G would enable, allowing communication between large numbers of sensors and connected devices. IoT application requirements can be divided into two categories: high-power, low-latency applications (such as mobile video surveillance), and low-power, low-latency, and long-range IoT applications (smart cities, and smart factories). These factors altogether drive the growth of global core network telecom solutions market.
Increasing Popularity of 4G/LTE Technology to Drive Growth of Core Network Telecom Solutions Market
The 4G/LTE technology is expected to dominate the market over the forecast period, owing to the increasing popularity of LTE networks. With its ability to meet the criteria of 3GPP standards, the LTE network is gaining popularity. It offers scalable bandwidth for greater frequency allocation flexibility. This technology is designed for slow mobile speeds, but it can handle high data rates. Wireless 4G LTE infrastructure has a three-layer network structure in which components perform a set of structured missions that are independent but cooperate with other LTE network layers.
Increasing Investments in 5G Network and Rising Government Initiatives on Digital Integration in Asia Pacific to Drive Growth Core Network Telecom Solutions Market
Asia Pacific accounted for the largest share and is expected to grow significantly. The region is expected to attract more than half of all new mobile subscribers by 2028. The regional market is primarily driven by e-commerce, and retailer platform investments, smartphone proliferation, and investments in 5G networks. Rising government initiatives on digital integration via Information Communication Technologies (ICT) are expected to drive market growth in APAC. For instance, the Indian government spent more than USD 600 million developing 100 smart city projects, with IoT playing a critical role in those cities qualifying as ‘smart cities.' Furthermore, China, Japan, and India have emerged as major contributors to regional market expansion. According to International Telecommunication Union (ITU) statistics, China, and India had the most internet users in the world in 2020, with over 854 million and 560 million users, respectively.
North America accounted for a sizeable revenue share due to high consumer spending on mobile phones and early adoption of digitised technologies. The current 5G launch in the United States is expected to drive the growth of core network telecom solutions market. More than 20% of communication connections worldwide are expected to include 5G networks by 2028, with a strong presence in North America.
Global Core Network Telecom Solutions Market: Competitive Landscape
In February 2021, AT&T Inc. and Verizon Communications spent approximately USD 70 billion on 5G spectrum to improve network connectivity for their customers. Several other telecom operators, including China Mobile Ltd., KT Corporation, BT Group plc (EE), and Vodafone Group plc, are also heavily investing in the acquisition of millimetre wave (mmWave) spectrum in order to provide enhanced bandwidth connectivity for business and consumer applications. On the other hand, in April 2020, T-Mobile US, Inc. purchased Sprint Corporation, a telecommunications company based in the United States. The strategic merger aimed to build a strong 5G network infrastructure in the United States and capture the maximum market share in both rural and urban areas. Over the next three years, the merger will invest nearly USD 40 billion in its business, network, and other areas.
A few of the players in the core network telecom solutions market include Altiostar Networks, Inc., Altran Technologies, SA, Check Point Software Technologies Ltd., Ciena Corporation, Cisco Systems, Inc., CommScope, Inc., NEC Corporation, Nokia Corporation, Inc, Palo Alto Networks, Inc., Qualcomm Technologies, Inc., Samsung Electronics Co., Ltd., Fortinet, Inc., Fujitsu Ltd., Huawei Technologies Co., Ltd., Juniper Networks, Inc., Sierra Wireless, Inc., SonicWall Inc., Sprint Corporation, Telefonaktiebolaget LM Ericsson, and ZTE Corporation.
Global Core Network Telecom Solutions Market is Segmented as Below:
By Connectivity Technology
By End User
Key Elements Included In The Study: Global Core Network Telecom Solutions Market
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