Service Provider Network Infrastructure

Global Service Provider Network Infrastructure Market to Reach US$179.9 Billion by 2030

The global market for Service Provider Network Infrastructure estimated at US$152.4 Billion in the year 2024, is expected to reach US$179.9 Billion by 2030, growing at a CAGR of 2.8% over the analysis period 2024-2030. Routers & Switches, one of the segments analyzed in the report, is expected to record a 2.9% CAGR and reach US$76.7 Billion by the end of the analysis period. Growth in the Carrier IP Telephony segment is estimated at 1.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$41.5 Billion While China is Forecast to Grow at 5.3% CAGR

The Service Provider Network Infrastructure market in the U.S. is estimated at US$41.5 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$35.0 Billion by the year 2030 trailing a CAGR of 5.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.1% and 2.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.6% CAGR.

Global Service Provider Network Infrastructure Market – Key Trends & Drivers Summarized

Is the Rise of Data-Driven Ecosystems Transforming Network Infrastructure Expectations?

The exponential growth in global data consumption, cloud computing, video streaming, and IoT deployments is radically transforming the demands placed on service provider network infrastructure. Traditional telco networks, once designed primarily for voice and SMS, are being reimagined to support high-speed, low-latency, and ultra-reliable connectivity across increasingly diverse use cases. This transformation is being led by Tier 1 and Tier 2 service providers upgrading their core, edge, and access networks to keep pace with bandwidth-heavy applications and real-time digital services. The rollout of 5G has added a new layer of urgency, requiring dense network architectures, advanced backhaul capabilities, and virtualized infrastructure capable of supporting network slicing, MEC (multi-access edge computing), and URLLC (ultra-reliable low latency communication). Moreover, the convergence of IT and telecom networks is pushing providers to adopt cloud-native principles, enabling infrastructure to become more agile, programmable, and service-oriented. This shift is driving investments in SDN (Software-Defined Networking), NFV (Network Function Virtualization), and AI-powered automation tools that optimize traffic, reduce operational complexity, and improve service quality in real time.

Can Open Standards and Disaggregation Disrupt Traditional Vendor Lock-Ins?

A major paradigm shift in the service provider network infrastructure space is the move toward open, disaggregated, and vendor-neutral network architectures. Operators are increasingly challenging the dominance of closed, proprietary systems that limit flexibility and inflate costs. In their place, open networking initiatives like Open RAN (O-RAN), TIP (Telecom Infra Project), and ONAP (Open Network Automation Platform) are gaining momentum. These standards encourage interoperability between hardware and software from multiple vendors, allowing operators to mix and match best-of-breed solutions across the RAN, transport, and core layers of the network. Disaggregated models, where control and forwarding functions are separated, are enabling CSPs (Communication Service Providers) to deploy white-box hardware with open-source or commercial software, significantly lowering CapEx and OpEx. At the same time, cloud hyperscalers are entering the telecom infrastructure domain, offering edge computing, virtualized packet cores, and orchestration platforms that are challenging the traditional telco equipment model. These changes are forcing legacy vendors to pivot toward software-defined, modular offerings, while empowering service providers to gain greater control over their network evolution, feature deployment, and vendor strategies.

Is Edge Computing and 5G Creating a New Playbook for Network Investment?

The shift toward distributed computing and the proliferation of edge-based applications are redefining how and where network investments are made. With latency-sensitive services such as autonomous vehicles, industrial automation, smart cities, and augmented reality becoming increasingly mainstream, service providers are being compelled to build out edge nodes and low-latency transport networks. The convergence of 5G with edge computing has created new architectural challenges that require dynamic, location-aware traffic routing and intelligent resource orchestration across core, metro, and edge layers. Furthermore, spectrum availability and regulatory frameworks are shaping regional deployment strategies, driving investments in small cells, mmWave infrastructure, and indoor coverage enhancement solutions. Virtualization of the RAN (vRAN) and the core (vCore) is also gaining traction, enabling elastic scaling of network functions and faster deployment of new services. Network slicing capabilities are especially crucial, allowing providers to create multiple logical networks over a single physical infrastructure to serve diverse verticals—from healthcare and finance to manufacturing and entertainment. These trends are not just reshaping technical architectures but are also redefining CAPEX allocation, monetization models, and long-term network strategy across the telecom ecosystem.

What’s Driving the Rapid Growth in the Service Provider Network Infrastructure Market?

The growth in the service provider network infrastructure market is driven by several factors directly related to technological evolution, service delivery models, and user behavior. First, the global surge in data consumption—fueled by mobile video, cloud services, gaming, and digital transformation—requires robust, scalable infrastructure upgrades across fixed and wireless networks. Second, the commercial deployment of 5G is catalyzing large-scale investments in RAN densification, transport upgrades, and core virtualization to support ultra-fast, low-latency communications. Third, the increasing demand for edge computing and localized processing is prompting CSPs to expand their infrastructure footprints closer to end users and critical endpoints. Fourth, the adoption of cloud-native network functions (CNFs) and containerized applications is driving the need for agile, programmable infrastructure that supports automation and continuous delivery. Fifth, the competitive pressure to deliver differentiated services—such as private 5G, IoT connectivity, and network-as-a-service (NaaS)—is forcing providers to modernize their networks with AI-driven orchestration and service assurance tools. Sixth, the transition from monolithic systems to disaggregated, open, and interoperable components is enabling cost efficiency and innovation. Finally, growing regulatory pressure to expand digital access, particularly in underserved and rural regions, is spurring public and private investment in last-mile and backbone network development. Collectively, these forces are not only accelerating infrastructure modernization but also reshaping the strategic priorities of service providers worldwide.

SCOPE OF STUDY:

The report analyzes the Service Provider Network Infrastructure market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Technology (Routers & Switches, Carrier IP Telephony, Broadband Access & Optical Transport, Microwave transmission & Mobile Backhaul, Wireless Packet Core); End-Use (Healthcare, Retail & eCommerce, BFSI, Government & Defense, IT & Telecommunications, Manufacturing, Others)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• ADTRAN, Inc.
• Alcatel-Lucent Enterprise
• Amazon Web Services (AWS)
• Arista Networks, Inc.
• Aruba Networks (HPE)
• AT&T Inc.
• Avaya Inc.
• Broadcom Inc.
• Ciena Corporation
• Cisco Systems, Inc.
• CommScope Holding Company, Inc.
• Dell Technologies Inc.
• Ericsson AB
• Fujitsu Ltd.
• Google Cloud
• H3C Technologies Co., Ltd.
• Hewlett Packard Enterprise (HPE)
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Infinera Corporation
• Juniper Networks, Inc.
• Kyndryl Holdings, Inc.
• Microsoft Corporation
• NEC Corporation
• Nokia Corporation
• Oracle Corporation
• Samsung Electronics Co., Ltd.
• Verizon Communications Inc.
• VMware, Inc.
• ZTE Corporation

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