According to Future Market Insights, the global MPLS-based core network market was estimated to reach a valuation of US$ 41.2 billion in the year 2022. With a robust CAGR of 10.1% from 2023 to 2033, this market is anticipated to reach US$ 45.36 billion by 2023 and US$ 118.73 billion by 2033.
| Data Point | Key Statistics |
|---|---|
| Expected Market Value of MPLS-based Core Network in 2023 | US$ 45.36 billion |
| Expected Market Value of MPLS-based Core Network in 2033 | US$ 118.73 billion |
| Growth Rate of the MPLS-based Core Network Market (2023 to 2033) | 10.1% CAGR |
Scalability, speed, greater bandwidth usage, lessened network congestion, and an improved end-user experience are all advantages of an MPLS-based core network. While an MPLS-based core network does not in and of itself support encryption, it is a virtual private network and as such is isolated from the open Internet. The MPLS-based core network is therefore regarded as a safe transport method. Additionally, it is not susceptible to denial-of-service assaults, which could harm networks that only use IP. Thus, here come the MPLS-based core networks to protect the various systems.
Over the next few years, demand is anticipated to rise for controlled MPLS-based core networks that can deliver outstanding quality of service to prevent packet loss. Several factors, including the expanding demand for a dependable and affordable MPLS-based core network, enhanced network utilization, the expansion of the core network service provider landscape, increasing availability of affordable MPLS-based core networks, and technological advancements, are expected to contribute to the market's significant growth from 2023 to 2033.
When an organization has numerous distant branch locations spread out across the nation or the globe that require access to any data center or apps at the organization's headquarters or even another branch location, they frequently use this technology. In comparison to conventional IP routing, MPLS offers superior speed and capacity and enhances customer service. However, it is expensive, challenging to transport internationally, and lacking in flexibility to be carrier autonomous.
Mobile carriers may be able to offer network visibility to their customers while also providing them with the same operational as well as technical advantages thanks to growth in the creation of mobile backhaul wireless networks across different businesses. The MPLS-based core network technology is anticipated to expand significantly, providing mobile service providers and bulk carriers with more chances to improve backhaul infrastructure.
One of the key reasons driving demand for MPLS-based core networks across areas is the rising need for safe connectivity for a variety of end-users including BFSI, IT & telecommunications, healthcare, along with others for data administration. It provides several features, including scalable, adaptable, and safe network access. The popularity of the MPLS-based core network infrastructure is fueled by the dependability of such features.
A few of the point-to-person locations that MPLS will still connect include large local workplaces, retail locations with enhanced point-of-sale systems, local manufacturing sites, and various data centers. Real-time apps like telepresence benefit greatly from MPLS. Additionally, as Verizon (a provider of MPLS notes, SD-WAN can truly help one make the most of the MPLS connection. Since SD-WAN promises to intricately route network data most effectively to satisfy your quality of service criteria for different applications, it can undoubtedly use the MPLS connection to achieve this. Thus, observing such varied benefits of the MPLS-based core network market, new avenues are anticipated to open up in the coming years.
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Increasing demand for managed MPLS-based core networks that can provide excellent quality of service to avoid packet loss is expected to propel demand over the coming years.
The market is projected to witness significant growth due to several factors such as the growing need for reliable and cost-effective MPLS-based core network, improved network utilization, increasing core network providers landscape, and rising availability of cost-effective MPLS-based core networks along with technological advancements.
The MPLS-based core network market was valued at nearly US$ 40 Bn in 2020 and is expected to grow at a CAGR of 10% during the forecast period 2021-2031.
Growth in developments of mobile backhaul networks across various enterprises can enable mobile operators to provide network visibility to their clients while also bringing them the same operational and engineering benefits. Significant growth in the MPLS-based core network technology is expected to lead to greater opportunities for the mobile service providers and wholesale operators to enhance backhaul infrastructure.
There is an increasing demand for secure connectivity for various end-users such as IT & telecommunications, BFSI, healthcare, and others for data management, which is one of the major factors fueling demand for MPLS-based core networks across regions. It offers various features such as secure, flexible, and scalable network connectivity. The reliability of such features drives the demand for the MPLS-based core network technology.
Principal Consultant
The USA is one of the largest markets for MPLS-based core networks globally. The USA MPLS-based core network market is set to tread on the historic pattern of bust and boom during the assessment period 2023 to 2033. Demand is likely to remain muted in the next couple of years, as several end-use industries make a gradual recovery.
Demand for MPLS-based core networks in the USA and Canada will be led by the IT and telecom sectors. Furthermore, the widespread investments in cloud services due to the superior advantages of IaaS, SaaS, and PaaS and to maintain their delivery with a hybrid solution, in turn, is fueling the growth of the MPLS-based core network in the USA and Canada region.
The adoption of MPLS network components is expected to rise considerably across small- and medium-sized businesses in Germany, the UK, France, Spain and Eastern European countries as well. Demand for MPLS-based core network technologies is increasing due to the increasing focus on cloud computing and expanding secure networking among enterprises across Europe.
Some of the key players such as Deutsche Telekom AG, Cisco Systems Inc., Nokia, Orange S.A., and others are focused on securing and offering advanced solutions for IP MPLS core networks, that have the potential to enhancing customer experience, while increasing their profitability in European countries. Europe is identified as the second-leading market, a position it is likely to hold on to through the forecast period.
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Some of the leading providers of MPLS-based core network include
The MPLS-based core network provider’s major strategy involves expansion through the collaboration of assets, business, technologies, and products that allow them for business expansion and gain significant market shares. For instance, in September 2020, AT&T partnered with DriveNets, to utilize DriveNets Network Cloud for deploying their next gen IP/MPLS core routing solution in the US.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
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MPLS-based Core Network Market
