Network Transformation Market Report 2026

The network transformation market size has grown exponentially in recent years. It will grow from $138.55 billion in 2025 to $213.89 billion in 2026 at a compound annual growth rate (CAGR) of 54.4%. The growth in the historic period can be attributed to initial deployment in telecommunications, adoption by large enterprises, integration in government networks, use in BFSI and energy sectors, application in IT and retail.

The network transformation market size is expected to see exponential growth in the next few years. It will grow to $1.18 trillion in 2030 at a compound annual growth rate (CAGR) of 53.3%. The growth in the forecast period can be attributed to early adoption of network automation, growth of 5G network infrastructure, expansion of cloud-based RAN solutions, increased investment in AI-powered orchestration tools, implementation in virtualized network functions. Major trends in the forecast period include deployment of sdn and nfv solutions, deployment of 5g networks and c-ran, integration of AI-powered network automation, implementation of edge computing solutions, network analytics and orchestration.

The expansion of 5G is expected to drive the growth of the network transformation market going forward. 5G, or fifth-generation wireless technology, is the newest mobile network standard, providing ultra-fast data speeds, low latency, and extensive connectivity. The growth of 5G is primarily fueled by the rapid development of network infrastructure, including the installation of additional 5G towers and small cells, which supports wider coverage and faster global adoption. Network transformation accelerates 5G implementation by upgrading infrastructure with software-defined, automated, and cloud-ready networks that deliver high-speed, low-latency connectivity. For example, in May 2025, Ericsson, a Sweden-based telecommunications company, reported that by the end of 2024, global 5G population coverage had reached 55% and was projected to rise to approximately 85% by 2030. Therefore, the expansion of 5G is driving the growth of the network transformation market.

Major companies in the network transformation market are concentrating on developing advanced solutions, such as modular, scalable data centers, to offer flexible and efficient data center solutions in infrastructure-limited environments. These modular, scalable data centers are adaptable and expandable facilities designed to efficiently accommodate computing resources within self-contained units that can be easily added or removed to meet changing demands and optimize resource utilization. For example, in February 2023, Amazon Web Services (AWS), a US-based cloud computing company, announced the availability of the AWS Modular Data Center (MDC) to the U.S. Department of Defense (DoD). This solution features a self-contained, environmentally controlled unit capable of hosting AWS Outposts or Snow Family devices, facilitating scalable deployments and proactive management in areas with limited infrastructure. Its importance lies in enabling U.S. Department of Defense agencies to operate low-latency applications for military operations and crisis response while also simplifying data center management and enhancing access to familiar AWS services in edge environments.

In September 2023, Cisco Systems, Inc., a U.S.-based provider of networking hardware, software, and service assurance solutions, purchased Accedian Networks Inc. for an undisclosed amount. Through this acquisition, Cisco sought to strengthen its network transformation portfolio by incorporating Accedian’s advanced performance analytics and monitoring technologies to provide end-to-end visibility and assurance across cloud, 5G, and enterprise networks. Accedian Networks Inc. is a Canada-based provider of network performance monitoring, analytics, and end-user experience solutions.

Major companies operating in the network transformation market are International Business Machines Corporation, Fujitsu Ltd., Dell EMC, Ciena Corporation, Hewlett Packard Enterprise Company, Cisco Systems Inc., Juniper Networks Inc., Huawei Technologies Co. Ltd., NEC Corporation, Intel Corporation, Nokia Corporation, Telefonaktiebolaget LM Ericsson, Samsung Group, VMware Inc., Aryaka Networks Inc., Citrix Systems Inc., CenturyLink, Silver Peak Systems Inc., ZTE Corporation, ALE International SAS, BT Group plc, Cato Networks, Colt Technology Services Group Limited, Comarch SA, Coriant GmbH, CSG International, ECI Telecom, Infosys Limited, Fortinet Inc., Broadcom Inc., AT&T Inc., Accenture plc.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the network transformation market by increasing costs of imported network hardware, 5G equipment, and cloud infrastructure components. Telecom operators, IT, BFSI, energy, and government sectors in North America, Europe, and Asia-Pacific are most affected. However, tariffs are driving local manufacturing, encouraging adoption of virtualized and software-defined network solutions, and boosting R&D in automated and AI-enabled network management.

The network transformation market research report is one of a series of new reports that provides network transformation market statistics, including Network transformation industry global market size, regional shares, competitors with a network transformation market share, detailed network transformation market segments, market trends and opportunities, and any further data you may need to thrive in the network transformation industry. This network transformation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Network transformation involves the process of updating the fundamental network infrastructure. It is a systematic approach to reenvisioning the entire network, encompassing elements such as the cloud, WAN, branches, data centers, remote user connections, and the architecture of network security.

Key solutions integral to network transformation encompass network automation, 5G networks, SDN & NFV, and C-RAN. Network automation pertains to the automation of configuring, managing, testing, installing, and administering both physical and virtual network equipment. These solutions cater to a diverse range of enterprises, including small and medium-sized enterprises, as well as large enterprises in sectors such as BFSI, energy and utilities, government, IT and Telecom, manufacturing, and retail.North America was the largest region in the network transformation market in 2025 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the network transformation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the network transformation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The network transformation market includes revenues earned by entities by providing various solutions and services to enhance the newtowk architecture such as system integration, staging, and deployment, VNF migration, network designing, component development, and product & engineering solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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