Service Orchestration Market

2016-2020 Service Orchestration Industry Outlook Compared to 2021-2031 Forecast

Growing need to manage complex IT infrastructure in organizations, along with demand for advanced data scaling solutions are key trends anticipated to drive sales of service orchestration solutions in the forthcoming years.

Owing to these factors, demand for service orchestration solutions is projected to rise at 26.3% CAGR between 2021 and 2031, in comparison to the 24.5% CAGR registered during 2016-2020.     

Service orchestration software enables IT departments to streamline processes, monitor resources, and consolidate discrete tasks into end-to-end processes from a single point of control.

Rapidly evolving IT industry and increased complexity of connected devices are propelling demand for service orchestration. Automation and orchestration can make complex business processes run smoothly, whether data Is stored on-premises or in the cloud.  

Service orchestration software are designed to unify management of disparate processes and systems across on-premises and cloud-based environments. Enterprises are continuously facing several challenges associated with the IT infrastructure including integration and compatibility issues, skyrocketing IT budget and increasingly complex infrastructure. To address these challenges, organizations have started focusing more on the adoption of service orchestration software to streamline all their business processes.

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How is Growing Demand for Wireless Systems Influencing Service Orchestration Sales?

Businesses and organizations are currently operating in highly complex network infrastructures. As tides of data continue to rise, businesses must transform through virtualization and automation to optimize cost and scale of experiences that they want to create. Businesses must also manage mobile devices, apps, and a variety of voice and collaboration tools so that their teams can connect across geographies, platforms, and devices.

Moreover, a significant increase in the number of smartphone-using population around the world will encourage consumers to adopt 5G-enabled services. 5G-enabled services include autonomous driving, ultra-HD video, augmented reality, virtual reality, and artificial intelligence. Emergence of advanced technologies, such as augmented reality, Internet of Things (IoT), autonomous vehicles, and various others is expected to boost demand for service orchestration in the forthcoming years

Furthermore, the wireless market has experienced remarkable growth and development in past few years owing to the introduction of wireless mobile phone systems. A consistent rise in the number of subscribers and new application areas of wireless technologies is creating potential growth opportunities for the service orchestration market.

What Is the Impact of COVID-19 Crisis on Service Orchestration Market?

The COVID-19 pandemic has had a significant impact on the global economy. Due to restricted connectivity during the lockdown, supply-chains, exchange and transfer of essential goods and services and distribution of various commodities have all been affected.

The spread of COVID-19 pandemic gripped the world in the beginning of of 2020. Majority of the population is staying at home with lockdown restrictions and to avoid infection in the past few months. The pandemic has adversely affected many countries worldwide, resulting in a  negative impact on the global economy.

The COVID-19 pandemic has changed the way businesses operate, and organizations/enterprises are compelled to adopt new practices to simplify network complexities and facilitate security as most employees are working remotely.

Country-wise Insights

How Big is the Opportunity for Service Orchestration Adoption in the U.S.?

North America is predicted to remain one of the most attractive markets during the forecast period, according to FMI. The U.S. is projected to dominate the North America market, accounting for over 88.9% of the North America market through 2031.  

Growth of the service orchestration market in the U.S. can be attributed to increasing investments in cloud-based solutions, presence of a large number of players, and early adoption of new and emerging technologies.

The U.S. is an extremely open market for digital transformation. Digital transformation in the country is creating lucrative opportunities for players operating in the services and the trend is expected to continue over the forecast period.

Why is Demand for Service Orchestration Increasing in the U.K.?   

Sales of service orchestration solutions in the U.K. are expected grow at a stupendous 30.2% CAGR by 2031.  

Increasing adoption of cloud orchestration solutions, rising popularity of the Internet of Things (IoT) technology, and surge in demand for low-cost IT infrastructure are key factors augmenting growth of the service orchestration market in the U.K.

Businesses in the U.S., especially financial service providers, content and digital media, healthcare and life sciences are expanding their digital infrastructure. This is expected to continue spurring demand for service orchestration solution in the U.K. through 2031.

How Will the Service Orchestration Market Expand Across China?

Demand for service orchestration in China is projected to increase at an impressive 25.7% CAGR during the forecast period.

In 2031, China will account for nearly 60% of sales in East Asia. Increasing government investments in the country’s telecom sector are broadening the scope for service orchestration.

5G technology has significant potential to transform the telecom industry and improve customer experience. Considering this, various telecom enterprises in China have started upgrading their current network infrastructure to LTE and 5G networks to offer high-speed connectivity.

Besides this, companies in China are also adopting artificial intelligence (AI) and machine learning (ML) technologies to manage, optimize and maintain telecom infrastructure and to improve customer operations. Ongoing investments in the telecommunication infrastructure in China will continue spurring demand for service orchestration solutions in the forthcoming years.

Category-wise Insights

Why is Demand for Cloud-based Services Continuously Rising?

The cloud-based service segment is expected to grow at a prolific 25.8% CAGR between 2021 and 2031. Cloud service automation helps enterprises to accelerate deployment of application-based services among traditional IT infrastructures and cloud delivery platforms.

It helps to manage complete usage of cloud services and lifecycle of deployment. Cloud-based services provide automation of IT processes which help to maintain consistency in resource management.

Increasing demand for cloud-based solutions in SMEs and large enterprises is expected to boost sales of cloud-based services in the forthcoming years.

Adoption of Service Orchestration in Large Enterprises to Gain Momentum

The large enterprises segment is expected to account for a dominant share of over 57.5% of the total service orchestration market in 2021. Service orchestration helps to unlock complex hybrid IT infrastructures. Complex IT structures are majorly adopted by large organizations. It helps IT departments to monitor resources, consolidate discrete tasks, and manage processes into end-to-end processes from a specific point of control.

Owing to increasing complexity of IT environments and rapid developments in the ICT sector, demand for service orchestration is expected to rise over the assessment period. In addition to this, large enterprises use service orchestration software to unify management of disparate systems and processes among on-premises and cloud-based environments.

Rising adoption of cloud-based services by large enterprises is estimated to augment growth of the service orchestration market through 2031.      

Why is IT & Telecom Segment Considered the Most Lucrative Segment for Service Orchestration?  

Sales of service orchestration in the IT and Telecom segment are expected to grow at a 29.9% CAGR, and the segment is projected to account for over 20% of the total market share in 2031.

Governments and public organizations in various countries are investing in the telecom sector to provide better connectivity to customers. The introduction of 5G network is also broadening the scope of service orchestration in the IT & telecom sector.

Investments in the telecommunication sector can potentially boost economic growth and create employment. Furthermore, various telecom enterprises around the globe have started upgrading their current network infrastructure to LTE advanced and 5G networks and services with high-speed connectivity. This will continue providing tailwinds to service orchestration sales in the IT and telecom sector over the forecast period.

Competitive Landscape

Companies operating in the service orchestration market are aiming at product innovation and strategic partnerships with other manufacturers to expand their product portfolios and gain a competitive edge in the market. For instance:

• In November 2020, Ericsson and Telstra entered in a partnership to develop an enterprise edge cloud solution. This solution would be a platform for innovation, delivery and customer self-care for new services and applications for agriculture, manufacturing, smart cities, and enterprise branch connectivity services.

• In August 2019, SES, a pioneer in cloud-based network automation and service orchestration, has announced that they have created an open, standard-based network automation and service orchestration platform built on Open Network Automation Platform (ONAP) and powered by Amdocs’ network functions virtualization (NFV) technology.

Manufacturers are also focusing on mergers & acquisitions to expand their global presence. For instance:

• In July 2020, Customer engagement company Freshworks acquired Flint, an IT orchestration and cloud management platform based in India. The acquisition helped Freshworks to strengthen its Freshservice IT support service by bringing a number of new automation tools to it.

Scope of Report

Key Questions Answered in the Report

• What is the current service orchestration market value?

  The global service orchestration market is forecast to reach a valuation of US$ 4 Bn in 2021.

• At what rate did the service orchestration market grow between 2016 and 2020?

  The service orchestration market expanded at an impressive 24.5% CAGR between 2016 and 2020.

• What are the key trends driving service orchestration sales?

  Rising demand for cloud-based services, along with increasing adoption of automation services among large enterprises and SMEs are some key trends driving sales of service orchestration solutions.

• Who are the leading players in the global service orchestration market?

  Leading companies offering service orchestration are Cisco Systems, Juniper Networks, HPE and IBM Corporation.

• What will be the demand outlook for service orchestration market in North America?

  North America is predicted to remain one of the most attractive markets during the forecast period. U.S. is expected to account for close to 88.9% of the North America market through 2031.

• What is the market share of leading players operating in the service orchestration market?

  Top 5 players in the global service orchestration market are projected to hold over 15% of the total market share.

• Which are the top 5 countries driving service orchestration demand?

  The U.S., India, the U.K., China, and Germany are top 5 countries driving demand for service orchestration solutions and services.

• What are the key market statistics in South Korea and Japan?

  The service orchestration industry in Japan and South Korea was valued at US$ 207.2 Mn and US$ 75.1 Mn in 2020, respectively, and is projected to register impressive CAGR between 2021 and 2031.

Service Orchestration Market by Category

By Solution:

• Service Orchestration Platform
  • Cloud-based
  • On-Premises
• Services
  • Professional Services
    • Consulting & Advisory
    • Integration & Deployment
    • Support & Maintenance
  • Managed Services

By Enterprise Size:

• Small and Mid-Sized Enterprises (SMEs)
• Large Enterprises

By Industry:

• BFSI
• Retail & CPG
• Healthcare
• Government
• Travel & Hospitality
• IT & Telecom
• Manufacturing
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East and Africa (MEA)