Largest 5,000 Enterprises to Increase WAN Spending 44% by 2026
The wide-area networking (WAN) market received a massive boost during the pandemic when enterprises had to pivot quickly to support remote work for workers ordered to work from home, and research by telecommunications market research and consulting firm Telegeography is making strong predictions. WAN growth will continue until at least 2026.
According to Telegeography’s five-year market forecast WAN Market Size ReportThe global WAN market will grow by around 44% — from $59bn in 2021 to $85bn in 2026 — for the largest 5,000 companies worldwide.
at the same time, As firms evolve from legacy networking topologies and on-premise datacenters are phased out The market revenue contribution from multi-protocol label switching (MPLS) is forecast to decline by 55% over five years.
Telegeography’s research also reveals that access lines connecting MPLS and MPLS ports account for 60% worldwide Revenue for the largest multinationals in 2021, but this is forecast to decline to 27% by 2026. As MPLS is replaced by lower-cost Dedicated Internet Access (DIA), WAN revenues will likely continue to grow as enterprises select larger ports. Size and add Software-Defined Wide Area Network (SD-WAN) Overlay service.
“As enterprises continue on the path to digital transformation and cloud services become the norm, we see MPLS as the centerpiece of the WAN diminish. So far, we’ve found DIA to be the most common choice for enterprises, as they still want carrier-grade SLAs. [service-level agreements] and service reliability,” said Greg Bryan, senior manager of enterprise research at Telegeography.
“This may change over the next five years if substantial fiber-based broadband plans emerge, but as things stand, it looks very likely that DIA will replace many MPLS ports and become the main revenue source.”
Looking regionally, the analyst observed that East Asia will grow from 41% to 46% of the WAN market in 2026, driven mostly by China. Prices in China and East Asia will be greatly affected by the shift to DIA, which has a higher price than other geographies.
In contrast, the Middle East and North Africa will shrink from 9% to 6.5% of the market, while most other regions will remain unchanged. China, the US and India are forecast to remain in the top three countries by WAN revenue over the next five years, but other countries will change their relative influence on the global total.
“Our 2021 research shows that East Asia dominates the global market and this only increases in our latest forecast model. China is a huge market where many enterprises must have operations despite sky-high prices combined with a lack of competition — often with significant bandwidth,” added Brian.
“As products move away from MPLS and toward DIA, the different pricing dynamics of those services — especially how they price higher bandwidth — impacts revenues. Among the leading countries, China will grow the most, but only at 3%.”
Originally published at https://creationplus-bd.net on November 10, 2022.