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MPLS-based Core Network Market

MPLS-based Core Network Market : Global Industry Analysis 2016 - 2020 and Opportunity Assessment 2021 - 2031

Market Insights on MPLS-based Core Network covering sales outlook, demand forecast & up-to-date key trends

MPLS-based Core Network Market Overview

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 network along with technological advancements.

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.

What is Driving Demand for MPLS-based Core Network?

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.

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What is the impact of COVID-19 Pandemic Outbreak on Growth of MPLS-based Core Network?

The COVID-19 pandemic outbreak has disrupted many industries, including the MPLS-based core network market. The MPLS-based core network is used to manage the security possibilities posed by the rise in remote working environments owing to the COVID-19 outbreak.

Further, lockdown and restrictions have augmented the usage of MPLS-based core networks quite higher than usual. The MPLS-based core network is estimated to grow by 1.4X from 2020-2021 and would see a surge in demand amid the COVID-19 outbreak, as the growing need for secure connectivity becomes the new norm.

US and Canada MPLS-based Core Network Market Outlook

The US is one of the largest markets for MPLS-based core networks globally. The US MPLS-based core network market is set to tread on the historic pattern of bust and boom during the assessment period 2021-2031. 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 US and Canada will be led by the IT and telecom sectors. Furthermore, the widespread investments in cloud services due to 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 U.S. and Canada region.

Nikhil Kaitwade
Principal Consultant
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Europe Demand Outlook for MPLS-based Core Network

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.

Who are the Key Providers of MPLS-based Core Network?

Some of the leading providers of MPLS-based core network include

  • AT&T Communications Inc.
  • Cisco Systems Inc.
  • Century Link Inc.
  • Orange S.A.
  • BT Global Services Ltd.
  • Sprint Nextel Corporation
  • Syringa Networks LLC
  • NTT Communications, and others.

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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Key Segments of MPLS-based Core Network Market

By Component:

  • MPLS-based Devices
  • IP/MPLS Management Software
  • Services

By End-use Industry:

  • Banking, Financial Services, and Insurance (BFSI)
  • Manufacturing
  • Government
  • Healthcare
  • IT and Telecommunications
  • Retail
  • Others

By Region:

  • North America
    • US
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Europe
    • UK
    • France
    • Germany
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • East Asia
    • China
    • Japan
    • South Korea
  • South Asia & Pacific
    • India
    • Thailand
    • Indonesia
    • Malaysia
    • Australia & New Zealand
    • Rest of South Asia & Pacific
  • Middle East & Africa
    • GCC Countries
    • Turkey
    • South Africa
    • Rest of Middle East and Africa 
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MPLS-based Core Network Market