Next-generation networks (NGN) should prove profitable for partners in the coming years as the global market is expected to reach nearly $33 billion by 2023.
That’s according to a new report by MarketsandMarkets, which expects a compound annual growth rate (CAGR) of 7 percent. The market is valued at nearly $22 billion this year.
Demand for high-speed services, an increase in public-private partnerships for NGN developments and low operational costs are among the driving factors for market growth, according to the report.
Telecommunications companies are increasingly adopting NGN to meet the growing requirements for high-speed data services. The exponential growth in IP and mobile data traffic has been the major reason for the increasing adoption of NGN in this industry.
As the number of smartphone and tablet users increases daily, demand for high-speed data services grows significantly. Also, the rising trend of VoIP prompts telecommunications companies to provide services pertaining to the quality, as well as the quantity of data. Many companies in this industry proactively provide NGN products and services, and are likely to transform traditional network to high-speed packet-based NGN.
The major hardware devices required for NGN include routers, switches and gateways. To upgrade traditional networks to NGN, the hardware needs to be replaced with advanced capabilities including big-data handling, compatibility with software interfaces, and support of legacy networks. The growth for hardware is primarily attributed to the rise in data traffic in networks and the increase in virtualization and technological advancement to reduce opex. Moreover, technological advancements and growing IoT and cloud-based services are expected to create opportunities for the NGN market.
Asia Pacific (APAC) is expected to hold the major market share through 2023. The growth is attributed to increasing network upgrade activities in that part of the world and growing public-private partnerships to offer high-speed data connectivity. APAC includes the highest number of mobile subscribers, and the number is expected to grow at a faster rate in the coming years.