Network Equipment Market (By Component: Hardware, Software; By Connectivity: 2G/3G, 4G LTE; By Network Type; By End-user) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global network equipment market size was estimated at USD 147.34 billion in 2023 and is expected to surpass around USD 212.91 billion by 2033, poised to grow at a CAGR of 3.75% from 2024 to 2033. The network equipment market stands at the forefront of technological innovation, serving as the backbone of modern communication infrastructure.

Key Pointers

• Asia Pacific led the market with the largest market share of 37% in 2023.
• Europe is expected to grow at a CAGR of 4.19% from 2024 to 2033.
• By Component, the hardware segment registered the maximum market share of 59% in 2023.
• By Component, the software segment is anticipated to witness significant growth at a CAGR of 3.94% from 2024 to 2033.
• By Connectivity, the 4G LTE segment held the largest revenue share of 74% in 2023.
• By Connectivity, the 5G segment is anticipated to grow at the fastest CAGR of 22.36% from 2024 to 2033.
• By Network Type, the public segment held the largest revenue share of 69% in 2023.
• By Network Type, the private network is anticipated to grow at the fastest CAGR of 4.54% from 2024 to 2033.
• By End-user, the telecom operators segment generated the maximum market share of 63% in 2023.

Network Equipment Market Growth Factors 

The growth of the network equipment market is propelled by the technological advancements, such as the adoption of 5G technology and software-defined networking (SDN), drive the demand for more efficient and high-speed networking solutions. Additionally, the proliferation of Internet of Things (IoT) devices and the increasing need for connectivity across various sectors fuel the market growth. Moreover, the rise in demand for cloud-based networking solutions and the emphasis on cybersecurity measures further stimulate market expansion. As organizations continue to prioritize digital transformation initiatives and rely on interconnected networks for their operations, the network equipment market is poised for sustained growth in the foreseeable future.

Report Scope of the Network Equipment Market

Network Equipment Market Trends:

• Rapid Technological Advancements: Ongoing innovations like 5G technology, software-defined networking (SDN), and Internet of Things (IoT) integration are reshaping the industry landscape, facilitating higher speeds, lower latency, and improved network management capabilities.
• Shift Towards Virtualization: Increasing adoption of virtualization technologies such as virtualized network functions (VNFs) and network virtualization platforms, offering scalability, flexibility, and cost-efficiency by reducing hardware dependencies.
• Emphasis on Security: With the growing threat of cyber-attacks and data breaches, robust cybersecurity measures such as encryption, authentication, and intrusion detection/prevention systems are becoming imperative to safeguard network integrity and protect sensitive information.
• Demand for Cloud-Based Solutions: Rising demand for cloud computing services is driving the deployment of cloud-managed networking platforms, offering centralized management, scalability, and accessibility to streamline operations and adapt to dynamic business requirements.

Component Insights

The hardware segment dominated the market in 2023 with a share of more than 59% of the global revenue. The segment's growth can be attributed to the increasing deployment of network hardware and core equipment across several use cases. These use cases include enterprises, remote surgeries, industrial robotics, autonomous vehicles, wireless cameras, and smart cities. Moreover, emerging radio access network (RAN) services, core network services, and fixed access hardware components are also driving the hardware segment growth. The network hardware market growth depends on the adoption of network equipment and cables by small businesses, consumer premise equipment, and home applications.

The software segment is anticipated to witness significant growth at a CAGR of 3.94% over the forecast period. The software segment includes the aggregate revenue generated from implementing on-premises and cloud-based software solutions for the RAN, core network, and fixed access. The segment covers infrastructure software (including the network infrastructure management software), operations support system (OSS)/business support system (BSS), and other software (including application software).

Connectivity Insights

The 4G LTE segment dominated the market in 2023 with a share of more than 74% of the global revenue. The Voice over Long-term Evolution (VoLTE) technology uses 4G LTE networks to transmit data and route voice traffic. In addition, 4G enables faster access to applications and content, lower latency, and the latest converging services based on multimedia subsystems with unified network protocols and architectures.

The 5G segment is anticipated to grow at the fastest CAGR of 22.36% over the forecast period. The improved efficiency and higher performance offered by 5G can empower exceptional user experiences and interfaces, creating several innovative use cases for industry verticals such as automotive, retail, and education. Such enhancements are being pursued by various industry verticals to gain a competitive edge and are expected to drive the growth of the segment.

Network Type Insights

In terms of network type, the public segment dominated the market in 2023 with a share of approximately 69% of the global revenue. The segment's growth can be attributed to upcoming smart city projects worldwide. In May 2020, Hong Kong announced a subsidy plan to encourage early deployment of 5G across the Hong Kong region. Such initiatives are expected to fuel the demand for public networks, thereby contributing to market growth.

The private network is anticipated to grow at the fastest CAGR of 4.54% over the projected period. A private network has settings configured within the network routers and access points to restrict access to devices outside the network. Network equipment deployed within a private network infrastructure also comprises physical and virtual devices, such as access points, bridges, hubs, modems, gateways, routers, and switches. The growing adoption of enhanced security for the network enables the adoption of private network equipment by enterprises.

End-user Insights

The telecom operators segment dominated the market in 2023 with a share of over 63% of the global revenue. Telecom operators deploy network equipment and infrastructure to deliver telecommunication services, such as telephone services, data communication, and computer networking, based on various communication technologies, including microwaves. To cater to the high demand from this source, prominent network equipment providers are providing telecom operators with specialized networking services that utilize private networks incorporating LTE and 5G connectivity. Such factors are also driving the segment growth.

The enterprise segment is anticipated to grow at a promising CAGR of 4.27% over the forecast period. Enterprise network equipment includes routers, switches, cloud management networking devices, and network security devices. Network switches, gateways, routers, hubs, and modems may also be included according to the changing end-user requirements. Network equipment providers also offer enterprise-level networking equipment to ensure the safety of network functions. The enterprises demand high security of the networks, enabling private network equipment adoption.

Regional Insights

Asia Pacific dominated the network equipment market in 2023 with a share of over 37% of the global revenue. The region's growth is attributed to the high penetration of next-generation network equipment and infrastructure owing to the region's tendency to adopt new technology. In April 2023, during the Huawei Global Analyst Summit (HAS) 2023, Huawei Technologies Co., Ltd. announced that it would investigate uplink spectrum reconstruction, ultra-high bandwidth, green air interfaces, ELAA-MM, and native intelligence to assist operators in building '1+1+N' 5.5G and upgrading network capabilities. Such developments across the region are expected to maintain the dominance of the Asia Pacific region.

Europe is expected to grow at a CAGR of 4.19% over the forecast period. The growth of the regional market can be attributed to the rising collaborations, partnerships, smart city infrastructure spending, and new product launches from leading companies such as Telefonaktiebolaget LM Ericsson and Nokia Corporations. The high penetration of equipment is also driving market growth in the Europe region. Moreover, the production and development of networking parts and components across Europe also fuels market growth.

Network Equipment Market Key Companies

• Telefonaktiebolaget LM Ericsson
• Nokia Corporation
• Samsung Electronics Co., Ltd.
• ZTE Corporation
• Juniper Networks, Inc.
• Huawei Technologies Co., Ltd.
• Cisco Systems, Inc.
• Hewlett Packard Enterprise Development LP
• Broadcom
• ALE International (Alcatel-Lucent)

Network Equipment Market Segmentations:

By Component 

• Hardware
  • RAN
  • Core Network
  • Fixed Access
  • Others
• Software
  • Infrastructure Software
  • OSS/BSS
  • Others
• Services
  • Professional Services
    • Advisory/Consulting
    • Design / Optimization
    • Tools & Automation
    • Security
  • Deployment Services
    • Testing
    • Installation
    • Integration
  • Managed Services
    • Network Performance & Management
    • App / Data Management
    • RAN Operation Support
    • Core Operation Support
    • Security
    • Training

By Connectivity 

• 2G/3G
• 4G LTE
• 5G

By Network Type 

• Public Network
• Private Network

By End-user 

• Telecom Operators
• Enterprises
  • Public Safety
  • Healthcare
  • Retail and e-Commerce
  • Banking, Financial Services, & Insurance
  • Government & Defense
  • Manufacturing
  • Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• MEA