Service Provider Network Infrastructure Market Report 2025

The service provider network infrastructure market size has grown strongly in recent years. It will grow from $189.28 billion in 2024 to $203.69 billion in 2025 at a compound annual growth rate (CAGR) of 7.6%. The growth during the historic period was driven by the expanding use of cloud services, the rising demand for high-speed connectivity, the broader rollout of 4G/5G networks, the growing emphasis on network security, and increasing investments in digital infrastructure.

The service provider network infrastructure market size is expected to see strong growth in the next few years. It will grow to $269.52 billion in 2029 at a compound annual growth rate (CAGR) of 7.3%. The forecast period’s growth is expected to be driven by the increasing adoption of network-as-a-service (NaaS), the rising demand for software-defined networking (SDN), the expanding deployment of edge computing, the growing reliance on AI-powered network management, and greater investments in 5G and next-generation infrastructure. Key trends anticipated during this period include advancements in AI and machine learning for network optimization, innovations in software-defined wide area networks (SD-WAN), the integration of cloud-native network functions, the development of automated network management solutions, and progress in high-speed optical and fiber technologies.

The growing number of internet users is expected to accelerate the expansion of the service provider network infrastructure market. Internet users are individuals who regularly access the internet for purposes such as browsing, communication, social networking, online services, and information retrieval. The increase in internet users is largely attributed to the rising adoption of smartphones and mobile devices, which offer convenient, affordable, and continuous access to online platforms and information. Service provider network infrastructure supports these users by providing reliable, high-speed, and scalable connectivity, enabling seamless access to digital content, communication, and online services. For example, in November 2024, the International Telecommunication Union, a Switzerland-based agency, reported that approximately 5.5 billion people were online, representing an increase of 227 million compared to 2023. Thus, the surge in internet users is fueling the growth of the service provider network infrastructure market.

Leading companies in the service provider network infrastructure market are prioritizing advanced innovations, such as network management systems, to improve operational efficiency, ensure uninterrupted uptime, and deliver scalable, secure, and automated solutions tailored to the changing needs of enterprises and service providers. Network management systems are software and tools designed to monitor, control, and optimize the performance, security, and reliability of network infrastructure. For example, in June 2025, Opengear Inc., a US-based networking and IT infrastructure provider, introduced its Integrated Support Platform to boost the reliability of critical network systems. This platform is built to guarantee continuous infrastructure availability, enabling enterprises and service providers to maintain uninterrupted connectivity. By combining monitoring, management, and automated support tools, it streamlines operations and minimizes downtime. Offering centralized visibility and proactive issue resolution, it allows organizations to achieve high-performance service delivery. This launch highlights Opengear’s commitment to strengthening network resilience and operational efficiency within the evolving service provider network infrastructure market.

In February 2025, Accenture PLC, an Ireland-based professional services firm, acquired IQT Group for an undisclosed sum. This acquisition is intended to enhance Accenture’s expertise in cloud, data, and AI services while accelerating innovation and value creation for clients across major industries. IQT Group, a US-based company, provides network infrastructure services with a focus on designing and managing infrastructure for telecommunications and multi-utility sectors.

Major players in the service provider network infrastructure market are Dell Technologies Inc., Huawei Technologies Co. Ltd., Cisco Systems Inc., Broadcom Inc., Hewlett Packard Enterprise Company, Telefonaktiebolaget LM Ericsson, Nokia Corporation, ZTE Corporation, Corning Incorporated, Arista Networks Inc., CommScope Holding Company Inc., Ciena Corporation, Fujitsu Network Communications Inc., Extreme Networks Inc., ADTRAN Networks SE, Calix Inc., Viavi Solutions Inc., Ribbon Communications Inc., Aviat Networks Inc., RailTel Corporation of India Ltd.

North America was the largest region in the service provider network infrastructure market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in service provider network infrastructure report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the service provider network infrastructure market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

Service provider network infrastructure refers to the combined hardware, software, and networking solutions that allow service providers to deliver secure, high-speed connectivity and communication services. It includes routers, switches, optical networks, data centers, and management systems that ensure efficient support for broadband, cloud, and enterprise services.

The core types of service provider network infrastructure include packet optical transport, internet protocol and multi-protocol label switching networks, software-defined networking (SDN), network function virtualization (NFV), and cellular backhaul. Packet optical transport is a network technology that merges packet switching with optical transport to transmit large amounts of data effectively over high-speed fiber-optic networks. The technologies applied in this space include broadband access and optical transport, carrier IP telephony, microwave transmission and mobile backhaul, routers and switches, and wireless packet core, serving different enterprise sizes such as large organizations and small to medium-sized businesses. These infrastructures are used across applications such as enterprise networking, cloud computing, video delivery, mobile backhaul, and fixed broadband access, supporting key industries such as banking, financial services and insurance (BFSI), government and defense, healthcare, IT and telecommunications, manufacturing, retail, e-commerce, and others.

The service provider network infrastructure market research report is one of a series of new reports that provides service provider network infrastructure market statistics, including the service provider network infrastructure industry global market size, regional shares, competitors with the service provider network infrastructure market share, detailed service provider network infrastructure market segments, market trends, and opportunities, and any further data you may need to thrive in the service provider network infrastructure industry. This service provider network infrastructure 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.

The service provider network infrastructure market consists of revenues earned by entities by providing services such as network integration and consulting services, network analytics and performance optimization, and private network solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The service provider network infrastructure market includes sales of content delivery and caching devices, optical and carrier Ethernet accessories. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

This product will be delivered within 3-5 business days.