Intent-based Networking (IBN) Market Size By Component (Software, Networking Hardware [Routers, Switches, Firewall], Service [Professional Services, Managed Services]), By Deployment Model (On-premise, Cloud), By Application (BFSI, Healthcare,, Defense, IT & Telecom, Manufacturing), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Spain, Netherlands, China, India, Japan, Australia, South Korea, Southeast Asia, Brazil, Mexico, Argentina, South Africa, Israel, GCC), Growth Potential, Competitive Market Share & Forecast, 2019 - 2025
Intent-based networking market is expected to hold the market value of over USD 4 billion by 2025. The market growth is attributed to the growing adoption of virtualization and Software-defined Networking (SDN) for centralized network management and provisioning. The surging demand for reducing network downtime by configuring network components automatically as per the business intent will lead to consistent market growth over the forecast period. Furthermore, IBN helps in improving network visibility, automation, and analytics, which assist in continuous compliance and faster threat detection & containment. Continuous technological advancement in IBN solutions due to the adoption of machine learning algorithms that help in network optimization will also accelerate the demand for IBN solutions.
Increasing internet penetration worldwide accelerates the demand for simplifying the complexity of huge networks through IBN. This further leads to the adoption of specialized wireless networking devices such as routers, switches, and firewalls. For instance, according to the International Telecommunication Union (ITU), more than 51.2% of the total world’s population was using internet at the end of December 2018. The growing adoption of IBN firewalls due to the increasing number of cyberthreats in organizations will further surge market growth. For instance, according to the Ponemon Institute’s Cost of a Data Breach 2018 study report for IBM, the total cost of the average data breach to companies worldwide was USD 3.86 million in 2018; hence, enterprises are adopting IBN to avoid such expensive data breaches.
The IBN software segment is expected to dominate the market with a share of over 60% by 2025 due to the increasing demand for IBN software for network automation and orchestration. IBN software assists enterprises to automatically & easily integrate IT services and deploy new applications according to priority. The development of advanced IBN software based on Artificial Intelligence (AI), machine learning, cognitive computing, and deep analytics leads to the growth of this segment.
The router segment is expected to witness a significant growth rate of over 35% in the IBN market from 2019 to 2025 due to the rising demand for devices, which can be easily configured and reduce network complexity. The IBN market players are involved in introducing modern upgraded routers to support intent-based networking applications and reduce configuration expenses. For instance, in January 2019, Cisco introduced industrial integrated service routers powered by the modern operating system IOS XE to support IBN across its branch, campus, and WAN.
The professional services segment is expected to hold a significant share above 60% of intent-based networking market in 2025 due to the increasing demand for professional services in enterprises to effectively deploy IBN solutions. This service also guides enterprises to achieve their business objectives by enhancing their network architecture and helping IT professionals to implement the necessary changes required as per the market demand.
The on-premise deployment segment held a significant share of above 75% in 2018 due to huge investments in legacy hardware equipment implemented in the enterprise environment. On-premise deployment helps organizations to enhance their network security and have more control in creating and handling their network infrastructure. The growing adoption of on-premise IBN in small and local enterprises to enhance data security is avoiding data breaches, further surging this segment growth.
The BFSI application segment is expected to exhibit a growth rate of 30% over the forecast timeline due to the continuously increasing demand for effective network security management. Companies operating in the BFSI sector are inclined toward digital transformations and network expansion for enhancing their customer experience. The adoption of IBN is increasing in BFSI to efficiently manage enlarged networks as per network policies. The BFSI sector players are focusing on network simplifications and enhancing their branch connection security by adopting SD-WAN technology. For instance, in June 2018, Indonesia-based social insurance company PT Jasa Raharja announced that it is using Riverbed’s SD-WAN solution to simplify network management of its 860 insurance locations nationwide.
The Asia Pacific intent-based networking market is projected to grow at the fastest CAGR over the forecast timespan due to growing digitalization in this region, enabling enterprises to adopt new network technologies. The enterprises in the region are deploying NFV technology for achieving elastic scaling of capacity and rapidly & flexible deployment of applications and services. The integration of NFV technology makes the network infrastructure complex. IBN technology helps in reducing complexities in network infrastructure by real-time modifying, re-routing, and re-configuring virtual services on demand. The IBN market players operating in Asian countries including India, China, and Malaysia are focusing on new product development and upgrading their existing products to cater to a huge customer base. For instance, in March 2018, Huawei introduced an intent-driven CloudCampus solution and new programmable switches that help enterprises to build future-proof wired & wireless networks, which will enhance user experience, accelerate service provisioning, and improve Operations and Maintenance (O&M) & converged access.
Companies operating in the intent-based networking market are focusing on new product developments and partnerships to expand their geographic presence and hold their position in the competitive market. For instance, in June 2019, Cisco introduced the latest networking solutions purpose-built to perform in harsh environmental conditions while enabling intent-based networking capabilities. The solutions include catalyst heavy-duty switches and access points, which are capable of withstanding extended exposure to water, dust, and other extreme environmental conditions. In July 2017, the company entered into a distribution agreement with Tokyo Electron Device (TED) to meet the rapidly growing demand for intent-based networking. The company is laying more emphasis on partnering with leading system integrators, distributors, and solution providers to address the needs of enterprises. In March 2019, Avi Networks announced that it has expanded its geographic presence in India, Australia, and the Netherlands to support R&D facilities globally via its strategic partnerships.
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