The Global Telecom Network Infrastructure market is projected to grow significantly, from 211,100.5 Million in 2025 to 354,995.6 Million by 2035 an it is reflecting a strong CAGR of 6.3%.
Telecom relies on many third party vendor based network infrastructure, software and managed services analytics through the network. With telecom networks growing more complicated, effectively managing third party third party risk is essential for maintaining service reliability, data security as well as regulatory compliance. Consequently, with the growing dependency on outsourcing for mission-critical network capabilities, comprehensive third-party risk management demands increased focus.
Globally, telecom operators have to comply with myriad data privacy laws, telecom regulations, and cybersecurity mandates. Regulations like GDPR in Europe, CCPA in California, and telecom-specific security recommendations strongly recommend that thorough risk assessments are required prior to onboarding any third-party vendor. Automated compliance management solutions allow telecom companies to manage the risks posed by their vendors by conducting due diligence and a permanent process to introduce and review changes when regulations change.
As telecom companies move towards 5G and cloud computing and shift the way they build out their networks towards software defined networking (SDN), the companies have become more reliant on third-party service providers.
Because vendors are often integral to the development of network infrastructure, and the provisioning of cloud-based solutions and IT services, it is important to have solutions that can monitor performance of vendors, security risks, and compliance adherence. An interconnected telecom ecosystem: Seamless risk mitigation to prevent disruption and/or data breaches.
The rising cyber threats in telecom networks, it is very risky as hackers generally attack supply chains, third-party vendors, and network service providers. This has resulted in an increasing demand for real-time risk assessment, continuous monitoring, and AI-driven security analytics, enabling telecom companies to assess and patch vulnerabilities ahead of time, before they impact operations.
The North American market dominates due to strict telecom regulations and stringent focus on cybersecurity. Another factor that sends organizations running to adopt third-party risk management is the presence of major telecom infrastructure providers.
Similarly, Asia-Pacific nations such as India and Australia are also experiencing rapid evolution in risk management solutions due to telecom network expansion, enhanced outsourcing, and greater regulatory scrutiny. With telecom networks exploring and launching worldwide, the market is expected to continue growing.
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| Company | Nokia and AT&T |
|---|---|
| Contract/Development Details | Signed a multi-year expansion agreement to upgrade AT&T's voice carriage and 5G network automation in the USA, enabling new 5G functionalities, AI, and machine learning capabilities for voice services. |
| Date | February 2025 |
| Contract Value (USD Million) | USD 3,400 |
| Renewal Period | Multi-year |
| Company | Nokia and Deutsche Telekom |
|---|---|
| Contract/Development Details | Secured a contract to deploy a mobile network using Open Radio Access Network (ORAN) technology across more than 3,000 sites in Germany, replacing existing equipment from Huawei. |
| Date | November 2024 |
| Contract Value (USD Million) | USD 2,432 |
| Renewal Period | Multi-year |
| Company | Bharti Airtel and Ericsson |
|---|---|
| Contract/Development Details | Entered a multi-billion dollar agreement to enhance 4G and 5G coverage in India, deploying centralized radio access network (RAN) and Open RAN-ready solutions. |
| Date | December 2024 |
| Contract Value (USD Million) | USD 6,423 |
| Renewal Period | Multi-year |
Increasing investments in 5G infrastructure drive telecom network upgrades
World-wide telecom sector is undergoing a transformation with major money activity in 5G infrastructure and network evolution, making it a perfect match for growth propulsion. 5Gs critical role in economic development and technological innovation has not escaped the attention of Governments worldwide. For example, based on estimates, the 5G economy will add USD 1.4 trillion to USD 1.7 trillion to America’s GDP by 2030, creating around 3.8 to 4.6 million jobs in the same period.
Such expected growth has emphasized the need for strong 5G infrastructure investments. On the other hand, China also has impressive achievements with 5G base stations, which had exceeded 2.3 million by the end of 2022 and demonstrated the country's efforts in fast-tracking 5G installations. They will not only be made in urban centers; we will also target rural and underserved areas to bridge the digital divide.
Adoption of SDN and NFV reduces costs and improves scalability
As networks become more complex, the telecommunications industry is adopting Software-Defined Networking (SDN) and Network Functions Virtualization (NFV) to improve operational efficiency and scalability. RFC 7929 defines how to delegate an administrative validation Key Management Order (KMO) to a new Key Management Entity (KME). SDN and NFV can help telecom operators in reducing the capital expenditure incurred in setting up hardware-centric networks and also reduce operational costs through automated network management.
This change helps with deploying new services quickly, and enhances the ability to scale network resources according to varying demand. For example, the COVID-19 pandemic has made remote work and online activities become commonplace; enterprise networks need to keep pace with traffic growth, and it would be easier to adapt to changes with SDN and NFV. On top of that, these technologies allow for the convergence of the emerging services of edge computing and network slicing, which would be essential to enable the nailing of diverse 5G applications.
Integration of satellite connectivity for remote and rural areas
The penetration and growth of telecom and telecommunication satellite system and broadband internet satellite are very desirable, as it combines both satellite connectivity into existing infrastructure. In these regions, traditional terrestrial networks can often suffer from economic and logistical challenges, resulting in digital divides. Recent advances in satellite technology, particularly Low Earth Orbit (LEO) satellites, have made high-speed, low-latency internet services now capable of reaching underserved communities.
Satellite communications, for example, have already begun deploying gigabit-capable speeds at a price point that is competitive with terrestrial providers across the United Kingdom through various initiatives.
Touted as a first-of-a-kind solution, the Nomadic Multi-orbit User Terminal Demonstrator would be a portable capable of receiving signals from multiple LEO and geostationary orbit (GEO) satellites to provide a carrier-grade broadband service. In Australia, the government is also investigating the capability of combining satellite technologies to deliver mobile voice and SMS services across Australia, particularly during disasters.
Increasing cyberattacks on telecom networks raise security concerns
Telecom network infrastructure is being targeted more and more by cyberattacks, with potentially devastating impacts to global communications. As networks evolve with the introduction of 5G, Internet of Things (IoT), and cloud integration, the attack surface expands and telecom operators become more susceptible to sophisticated cyber-attacks.
"Cybercriminals are leveraging gaps in network protocols, cloud-based services, and connected devices to bring down operations, steal sensitive information, or execute large scale DDoS attacks. Telecom networks provide the physical infrastructure for essential services such as emergency services, financial systems, and government communications. A single breach can cause widespread disruptions, impacting millions of users and leading to economic loss.
As state-sponsored cyber warfare rises, telecom networks have become prime targets for the espionage, and sabotage. Nation-state actors and cybercriminal organizations target the networks to intercept communications, alter data traffic, or implant malware that can disrupt the integrity of the network.
| Market Shift | 2020 to 2024 |
|---|---|
| Regulatory Landscape | Governments mandated stricter cybersecurity protocols for critical network infrastructure. |
| 5G & Connectivity Evolution | Deployment of 5G infrastructure accelerated globally. |
| Edge Computing Integration | Edge computing adoption grew to reduce latency in data processing. |
| Sustainability & Energy Efficiency | Initiatives focused on reducing power consumption in data centers. |
| Market Growth Drivers | Rising cloud adoption and increasing remote work fueled demand. |
| Market Shift | 2025 to 2035 |
|---|---|
| Regulatory Landscape | AI-driven regulatory compliance frameworks ensure autonomous network security monitoring. |
| 5G & Connectivity Evolution | Emergence of 6G networks revolutionizes real-time data transfer and automation. |
| Edge Computing Integration | AI-powered edge networks enable ultra-low latency applications in industrial automation and healthcare. |
| Sustainability & Energy Efficiency | Quantum networking enables near-zero energy loss in data transmission. |
| Market Growth Drivers | Smart city expansions and hyper-connected IoT ecosystems drive long-term market growth. |
Tier 1 vendor are market leaders in telecom network infrastructure with their global reach, large product portfolio, and mature technology. At its heart are dozens of companies, such as telecom equipment vendors and services providers, which provide unified telecom infrastructure, core network equipment or end-to-end radio access networks (RAN) or optical transport or cloud-based network management systems.
They have solid relationships with large telecom providers and governmental organizations that allow them to win contracts for large masses. Their financial robustness enables them to invest heavily in research and development, which results in consistent innovation around 5G, cloud-native automation, and software-defined networking (SDN). These vendors also play an important role in global telecom standards and regulations, leading to a high level of deployment of their technologies.
Tier 2 vendors have a solid regional footprint and focus in one or more area of telecom network infrastructure. While their global presence may not reach the scale of the Tier 1 vendors, their influence on particular technology segments like small cell rollout, private 5G networks, and software-oriented infrastructure is far-reaching.
Many of these companies work with telecom carriers to deliver customized solutions to meet regional demand. Other Tier 2 vendors target specific geographic markets, and others are focused on new technologies like Open RAN to help telecom operators diversify their supply chain. Vendors that compete with Tier 1 players on niche offerings usually offer low-cost, flexible solutions.
Tier 3 vendors are generally smaller companies that concentrate on local or specific telecom infrastructure solutions. Typically, these companies build network parts, software programs, or integration services that help complement the services of bigger suppliers.
They act as a catalyst for innovation, leading the way in emerging technologies such as IoT connectivity, network security, and edge computing, creating huge value. Tier 3 vendors often serve particular industry verticals or regional telecom operators that need tailored networking infrastructure solutions. Although they have difficulties to achieve economies of scale on their own, they can grow their market share through partnerships with larger vendors or telecom operators.
The section highlights the CAGRs of countries experiencing growth in the Telecom Network Infrastructure market, along with the latest advancements contributing to overall market development. Based on current estimates China, India and USA are expected to see steady growth during the forecast period.
| Countries | CAGR from 2025 to 2035 |
|---|---|
| India | 9.8% |
| China | 8.4% |
| Germany | 5.6% |
| Japan | 6.5% |
| United States | 7.1% |
India has seen record-breaking growth in mobile data consumption, fueled by affordable data plans, increased smartphone penetration, and digital transformation initiatives. The rapid growth of video streaming, online gaming, and web-based applications has put unprecedented stress on existing telecom networks, leading operators to scale out and upgrade their backbone. In response, telecom companies are quickly rolling out more spectrum, growing fiber-optic networks, and improving 4G and 5G coverage to accommodate the massive number of users.
In India, government initiatives like Digital India and BharatNet are speeding up the network expansion across rural and semi-urban populations. Apart from this, as the government drives towards better internet connectivity and bringing down the digital gap by implementing more internet linking programs, data consumption is only going to increase.
Also, the continuous deployment of 5G services is likely to improve the network performance, and provide faster speeds offering lower latency to both consumer and enterprise customers. India is anticipated to see substantial growth at a CAGR 9.8% from 2025 to 2035 in the Telecom Network Infrastructure market.
Private 5G networks are gaining traction in the United States, providing enterprises with more control, security, and efficiency over their connectivity needs. Private networks, unlike public 5G networks, give individual users exclusive access to bandwidth and low-latency communication, which are ideal for sectors such as manufacturing, logistics, and health care. To improve operational efficiencies, faster automation and real-time data processing many organizations are leveraging private 5G solutions.
The USA government has already begun facilitating the deployment of private 5G networks with allocated spectrum as well as policy backing. All types of businesses, from smart factories to airports to hospitals, are deploying private 5G networks to streamline their operations. Private networks are also anticipated to facilitate improvements across the various sectors for autonomous vehicles, robotics, and industrial internet of things applications. USA Telecom Network Infrastructure market is anticipated to grow at a CAGR 7.1% during this period.
Telecommunications network modernization has become a critical component of China’s digital transformation strategy. The government has also been investing heavily in 5G infrastructure, the expansion of fiber-optic networks, and smart city projects. In October 2023, the 5G network was underpinned by new developments, which drive connectivity, assist industrial automation and promote innovation in sectors. In turn, China has created the world’s largest 5G network, providing widespread coverage in urban and rural areas.
There was coverage of projects backed by the government that sped up the deployment of next-generation telecom technology such as AI network management and edge computing. Not just for consumer connectivity but also for forming industrial applications like smart manufacturing, autonomous transport, and AI-powered analytics.
With ongoing support from policymakers, telecom operators are expanding their infrastructure to satisfy the demand for high-speed, low-latency communication. Telecom Network Infrastructure market in China accounts for 43.4% of global market share and continues to grow at a high CAGR between 2025 and 2035.
The section provides detailed insights into key segments of the Telecom Network Infrastructure market. The Service Type category includes Network Services and Engineering, Integration and Testing Services.
End User such as Telecom Operators, Communication Service Providers, Network Equipment Providers, Hyperscalers and OTT, Large Enterprises (Corporates), Content Delivery Networks, Government and Others). Network Services are growing quickly. The Communication Service Providers hold largest market share in Telecom Network Infrastructure.
The growing dependency on digital interaction, cloud computing, and mobile connectivity have particularly increased the demand for network services in the telecom infrastructure vertical. Business, government and consumer demands for seamless, high-speed connectivity are sending telecom operators scrambling to expand and upgrade their network services.
Couple that with the increasing demand for data consumption, video streaming, and Internet of Things (IoT) applications which has subsequently increased the demand for a strong network infrastructure to support both scalability and security. Consequently, the demand for network services such as managed services, network optimization, and cloud-based solutions is growing exponentially.
Key market stakeholders are government authorities across the world, which are driving the growth in services provided on networks. Many countries are launching initiatives to improve their broadband connectivity and digital infrastructure. For example, we are now funding fiber-optic deployment projects through government programs to help achieve more internet penetration in areas that have been previously underserved.
Government policies play a critical role in the 5G deployment journey, as telecom operators across big economies are being incentivized with grants and other support to hasten up the rolloutes of 5G network services.
As enterprises are moving operations to the cloud and adopting remote work models, the need for stable and high-capacity network services is increasing. Network Services are anticipated to see substantial growth at a CAGR 6.7% from 2025 to 2035 in the Telecom Network Infrastructure market.
| Segment | CAGR (2025 to 2035) |
|---|---|
| Network Services (Service Type) | 6.7% |
CSPs continue as the leading players in telecom infrastructure, claiming a large market share through widespread network coverage, diverse services, and technical innovations. These telecommunications companies handle massive telecom infrastructure that serve consumer and corporate users in mobile connection, broadband, and cloud services. These can include aspects like 5G, software-defined networking (SDN), and fiber optic networks.
Government policy and funding programs have supported CSP expansion and network augmentation. Governments are also offering financial support for 5G deployment and broadband expansion to rural areas. For example, a number of national digital infrastructure programs have invested billions of dollars in making sure that networks reach isolated populations (both urban and rural) with high-speed Internet access.
These are critical investments, which CSPs need to make to solidify their grip on the market and scale their services and deliver innovative solutions. Communication Service Providers is projected to dominate the Telecom Network Infrastructure market, capturing a substantial share of 30.2% in 2024.
| Segment | Value Share (2025) |
|---|---|
| Communication Service Providers (End User) | 30.2% |
The telecom network infrastructure industry faced intense competition with continuous technological developments and changing consumer demands. In 5G, fiber optics, and cloud-based networking, innovation, scalability, and cost-efficiency are key focus areas for companies to differentiate offerings.
Expanding market presence and technology via strategic partnerships, mergers, and acquisitions Heightening government regulations and cybersecurity threats create complexities, leading enterprises to upgrade their security and compliance infrastructure.
The Global Telecom Network Infrastructure industry is projected to witness CAGR of 6.3% between 2025 and 2035.
The Global Telecom Network Infrastructure industry stood at USD 211,100.5 million in 2025.
The Global Telecom Network Infrastructure industry is anticipated to reach USD 354,995.6 million by 2035 end.
South Asia & Pacific is set to record the highest CAGR of 8.1% in the assessment period.
The key players operating in the Global Telecom Network Infrastructure Industry Huawei Technologies Co., Ltd., Nokia Corporation, Ericsson, Cisco Systems, Inc., ZTE Corporation, Samsung Electronics Co., Ltd., NEC Corporation, Juniper Networks, Inc., Fujitsu Limited, Ciena Corporation.
In terms of Service Type, the segment is divided into Network Services and Engineering, Integration and Testing Services.
In terms of end user, the segment is segregated into Telecom Operators, Communication Service Providers, Network Equipment Providers, Hyperscaler and OTT, Large Enterprises (Corporates), Content Delivery Networks, Government and Others.
A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East and Africa (MEA), and Europe.
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