May 22, 2024
Backbone network services market
Ict

The Backbone Network Services Market is driven by Increasing Demand for High-Speed Internet Connectivity

Backbone network services play a vital role in connecting different parts of the world through telecommunication networks so that users can access voice, video and data services seamlessly. The emergence of technologies like 5G, cloud computing and Internet of Things (IoT) have significantly increased the data traffic and dependency on high speed internet. Backbone network services help providers in deploying reliable networks that can support this massive data load with minimum latency and maximum throughput. Service providers are focusing on upgrading their backbone infrastructure to fiber optic cables that can support data transmission needs of the future.

The global Backbone Network Services Market is estimated to be valued at US$ 106.75 Mn  in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The key trends in the backbone network services market include increased investments by telecom operators in upgrading legacy networks to software defined networks (SDN). SDN technology helps in streamlining network management and enables automation of different network tasks. It also offers scaling of network resources on demand which is critical given the surge in network traffic volumes. Another trend gaining traction is the rollout of fifth generation or 5G networking technology. 5G networks require modernized and upgraded transport infrastructure to support capabilities like low latency, resource pooling and network programmability. Backbone network operators are embracing network function virtualization and edge computing to enable a robust and agile network architecture for 5G. Adoption of technologies like 200G and 400G wavelengths is also increasing to boost network capacity and cater to exponential data demands.

Porter’s Analysis

Threat of new entrants: Low barriers to entry due to low initial investment requirements. However, well established players dominate the market.

Bargaining power of buyers: Buyers have high bargaining power due to presence of multiple providers and price sensitivity.

Bargaining power of suppliers: Suppliers have low bargaining power due to availability of substitutes and less differentiation in products.

Threat of new substitutes: Threat of substitution is low as backbone networks provide unique value in connectivity and bandwidth.

Competitive rivalry: Intense competition among existing players to gain market share.

Key Takeaways

The Global Backbone Network Services Market Size is expected to witness high growth. The global Backbone Network Services Market is estimated to be valued at US$ 106.75 Mn  in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2031.

Regional analysis comprised Regional analysis comprised North America dominates the market currently due to high investments in connectivity infrastructure by providers. Asia Pacific is expected to grow at the fastest pace during the forecast period owing to the rising demand for high speed internet among businesses and individuals in emerging economies of the region.

Key players related content comprises Key players operating in the Backbone Network Services market are AT&T Inc., Verizon Communications Inc. and NTT Communications Corporation. AT&T Inc. leads the market owing to its expansive network and partnerships.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it