Network Engineering Services Market Forecasts to 2030 - Global Analysis By Service Type (Managed Services, Professional Services and Other Service Types), Transmission Mode, Organization Size, Deployment Mode, End User and By Geography

According to Stratistics MRC, the Global Network Engineering Services Market is accounted for $57.8 billion in 2024 and is expected to reach $110.0 billion by 2030 growing at a CAGR of 11.3% during the forecast period. Network engineering services encompass the planning, implementation, and management of computer networks, ensuring connectivity and performance for data, voice, video, and wireless communications. These services are critical for organizations as they provide the infrastructure necessary for seamless IT operations. Network engineers, often regarded as network architects, are responsible for designing network configurations, troubleshooting issues, and enhancing security measures.

According to 2023 research by Hewlett Packard Enterprise Development LP's HPE Aruba Networking, 44% of the surveyed 2,100 IT leaders primarily consider the network as a tool for digital transformation.

Market Dynamics:

Driver:

Growing demand for automated network design

The demand for automated network design in the market is rapidly increasing due to the growing complexity of network infrastructures and the need for efficient management. As businesses embrace digital transformation, technologies such as IoT, cloud computing, and edge computing necessitate scalable and robust network solutions. This shift towards automation is crucial for organizations seeking to optimize their network capabilities while ensuring security and reliability in an ever-evolving technological landscape.

Restraint:

Complexity of modern network infrastructure

The complexity of modern network infrastructure negatively impacts the market by increasing management challenges and operational costs. As networks become more intricate, integrating diverse technologies and protocols complicates configuration and maintenance, leading to higher resource demands. Consequently, organizations may face prolonged downtimes and inefficient troubleshooting, ultimately affecting their performance and reliability in an increasingly digital landscape.

Opportunity:

Rising adoption of cloud computing services

The rising adoption of cloud computing services is significantly impacting the market, as organizations increasingly migrate their data and workloads to cloud infrastructures. This transition allows for enhanced scalability, enabling network engineers to adjust resources based on demand, thus optimizing performance and reducing capital expenditures associated with traditional hardware. Additionally, cloud computing facilitates global service delivery, further driving the demand for specialized network engineering services.

Threat:

Increase in cyber threats

The increase in cyber threats significantly hampers the market by escalating security concerns and operational complexities. As organizations face sophisticated attacks such as ransomware, phishing, and data breaches, the demand for robust security measures intensifies. Consequently, the heightened focus on cybersecurity diverts resources and attention from other critical network functions, potentially leading to vulnerabilities and increased costs associated with implementing and maintaining secure network infrastructures.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the market by accelerating the demand for remote work and cloud-based solutions. Lockdowns and social distancing measures heightened the need for robust, scalable network infrastructure to support increased remote operations and secure communications. Additionally, the pandemic disrupted global supply chains and project timelines, creating challenges in service delivery and project implementation, but also spurred innovation and digital transformation.

The managed services segment is expected to be the largest during the forecast period

The managed services is expected to be the largest during the forecast period. Managed services providers offer comprehensive solutions for monitoring, maintenance, and optimization of network infrastructure. Businesses are recognizing the value of leveraging managed services to streamline operations, enhance reliability, security, and performance, while focusing on their core activities. This trend reflects the growing complexity of network infrastructure and the need for specialized expertise to manage it effectively.

The manufacturing segment is expected to have the highest CAGR during the forecast period

The manufacturing segment is expected to have the highest CAGR during the forecast period. Network engineers play a crucial role in designing and maintaining these advanced systems, ensuring seamless connectivity and data flow. The integration of 5G technology further enhances the capabilities of manufacturing networks, enabling real-time monitoring and improved operational efficiency. As the manufacturing sector continues to digitize, the need for specialized network engineering services will continue to rise, driving market expansion.

Region with largest share:

North America is projected to hold the largest market share during the forecast period. The region's early adoption of innovative solutions, such as cloud computing and IoT, enhances the demand for specialized network services. Major players are investing in 5G technology and network optimization to meet evolving needs. The market is characterized by competitive dynamics, with a focus on innovative solutions and enhanced service delivery across various industries.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period due to increased digitalization, the rise of 5G technology, and the growing demand for cloud services. Rapid urbanization and technological advancements are driving investments in network infrastructure and cybersecurity. As businesses and governments invest heavily in modernizing their network infrastructure to support digital initiatives, there is a growing emphasis on network optimization, managed services, and cybersecurity solutions.

Key players in the market

Some of the key players in Network Engineering Services market include Cisco Systems, Inc., Hewlett Packard Enterprise (HPE), Ericsson, Nokia Corporation, Huawei Technologies Co., Ltd., Dell Technologies, IBM Corporation, Fujitsu Limited, Verizon Communications Inc., AT&T Inc., Tata Consultancy Services (TCS), Wipro Limited, Infosys Limited, Tech Mahindra Limited, Accenture plc, Capgemini SE, Cognizant Technology Solutions and HCL Technologies.

Key Developments:

In August 2024, Bounteous x Accolite, a global digital transformation services consultancy, has signed an agreement to utilize Nokia's Network as Code platform with developer portal, with the aim of creating new use cases in areas like health care and gaming that harness 5G network capabilities.

In May 2024, CGI and Nokia Corporation have signed an agreement that deepens their strategic partnership, combining leading-edge 5G private wireless networking technology with CGI business services and solutions. This will enable the accelerated delivery and efficient operation of industry leading digital solutions for connected, real-time, data-driven business operations.

Service Types Covered:

• Managed Services
• Professional Services
• Other Service Types

Transmission Modes Covered:

• Wired
• Wireless

Organization Sizes Covered:

• Small and Medium Enterprises (SMEs)
• Large Enterprises

Deployment Modes Covered:

• On-Premises
• Cloud-Based

End Users Covered:

• IT and Telecommunications
• Healthcare
• Government and Public Sector
• Manufacturing
• Retail
• Energy and Utilities
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances