by Backbone network services form the core infrastructure for internet services across various sectors by facilitating the seamless flow of data traffic between internet service providers, content delivery networks, and large enterprises. These services help maximize network efficiency by providing high-speed and high-capacity networking solutions to enterprises of all sizes. With growing digitization and the advancement of technologies like cloud computing, IoT, big data analytics, and 5G, the demand for robust and agile connectivity backbone has increased substantially in recent years. Backbone networks aid enterprises in establishing connectivity between branch offices, data centers, Wi-Fi hotspots, and other network access points to facilitate real-time access and sharing of data and resources for employees, clients, and customers.
The global Backbone Network Services Market is estimated to be valued at US$ 92.66 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the backbone network services market size is the growing preference for software-defined networking or SDN solutions. Traditional hardware-based networks are gradually giving way to virtualized and software-centric network infrastructure that provides more flexibility, scalability and programmability. SDN architecture separates the control plane from the data plane to enable dynamic, automated and centralized management of network resources. It allows businesses to respond faster to changing market conditions by simplifying network management and bringing more intelligence to the network edge. SDN is finding increasing adoption across data centers and cloud infrastructure to support the surge in data traffic and accommodate advanced technologies. Another notable trend is the emergence of global submarine networking systems. Major providers are making heavy investments in transoceanic fiber optic cabling to boost international connectivity, especially between Asia, Europe and North America. These global undersea networks enhance network diversity and resilience while also enabling higher bandwidth at lower latencies compared to traditional satellite systems.
Porter’s Analysis
Threat of new entrants: The backbone network services market requires large infrastructure investments and established network connectivity, making it difficult for new players to enter.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of many backbone network service providers offering substitutable services.
Bargaining power of suppliers: A few global technology companies dominate the supply of network equipment, giving them significant bargaining power over service providers.
Threat of new substitutes: New network technologies like 5G offer substitutes but also depend on backbone networks for nationwide connectivity.
Competitive rivalry: The market sees intense competition amongst established players to expand coverage and offer new capabilities like cloud connectivity and low-latency services.
Key Takeaways
The global backbone network services market is expected to witness high growth over the forecast period driven by increasing demand for high-bandwidth connectivity globally. The global Backbone Network Services Market is estimated to be valued at US$ 92.66 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030.
Regional analysis: The Asia Pacific region accounts for over 35% market share currently led by China and India. Rapid expansion of telecom infrastructure to support cloud, IoT, and 5G in emerging markets is driving growth. North America holds the second largest share due to significant existing network coverage and ongoing upgrade initiatives by major players.
Key players: Key players operating in the backbone network services are AT&T Inc., Verizon Communications Inc., NTT Communications Corporation, China Telecom Corporation Limited, Deutsche Telekom AG, British Telecommunications plc (BT), Orange S.A., Telefonica S.A., Sprint Corporation (now part of T-Mobile), CenturyLink (now rebranded as Lumen Technologies), Vodafone Group plc, SoftBank Group Corp., Level 3 Communications, Telstra Corporation Limited, Tata Communications Limited. Major players are focusing on deployment of new capabilities like software-defined networks and blockchain-enabled services.
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
