Expected to grow at a CAGR of 7% by 2020, the network infrastructure services market is witnessing significant demand from the telecommunications, pharmaceuticals, consulting and analytics industries. These industries are looking for networks that are highly simplified in terms of operation, are faster, and have minimal to no congestion points. According to analysts at Technavio, service providers have adopted cloud-based platforms in order to create highly customized products for their customers.
The emergence of the Internet of Things (IoT) has boosted the demand for highly improved network infrastructure that is high on performance and low on maintenance. Apart from IoT, the market is also witnessing an increase in the use of wireless transmission, i.e. carrier Wi-Fi, DAS, and C-RAN. With a shift from traditional infrastructure towards next-generation infrastructure services, there has been an increase in the number of vendors in the network infrastructure services market. There has also been a growing demand for integrated services, resulting in the emergence of network infrastructure in a bundled form. In this way, all of the supply chain complexities and maintenance issues are eliminated, which are inherent when engaging with multiple suppliers.
Some other major drivers of the global network infrastructure services market, as identified by industry analysts at Technavio, include:
Virtualization technology
Virtualization technology not only drives the network infrastructure services market, but has also driven the market for IaaS (infrastructure as a service) network infrastructure. With the rise of virtualization technology, there has been an increase in the creation of data center architecture resources, which is driving the demand for network infrastructure.
Popularity of cloud networking
It is a known fact that a many companies are now adopting cloud-based servers / cloud networking in order to store data. This has resulted in the need for converged infrastructure that optimizes network performance. As networking layers have become a critical part of converged systems, the demand for infrastructure like fabric interconnects, switches and network backplanes has also increased.
High demand for internet-enabled devices
The use of internet-enabled devices has become commonplace in almost all organizations and households. These devices are used for conducting financial transactions as well as for entertainment purposes. Most activities involve the use of credit / debit cards or online bank transfers. This has led directly to the increased use of broadband and internet data services, thereby triggering the need for the establishment of high-end infrastructure.
In spite of constraints such as increased installation charges, lack of standardization and high infrastructure provisioning times, networking infrastructure services have become basic requirements for daily activities across the globe.
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