Network and Software Infrastructure Market Report 2026

The network and software infrastructure market size has grown strongly in recent years. It will grow from $15.04 billion in 2025 to $16.24 billion in 2026 at a compound annual growth rate (CAGR) of 8%. The growth in the historic period can be attributed to expansion of urban broadband and fiber networks, rise of early iot sensor deployments in cities, government smart city mission investments, 4g network rollout enabling connectivity, increasing data center infrastructure buildout.

The network and software infrastructure market size is expected to see strong growth in the next few years. It will grow to $22.28 billion by 2030 at a compound annual growth rate (CAGR) of 8.2%. The growth in the forecast period can be attributed to 5g standalone and future 6g adoption in cities, edge computing proliferation across urban infrastructure, autonomous mobility integration requirements, real time city analytics and automation demand, cyber resilience and secure infrastructure modernization. Major trends in the forecast period include edge-native distributed computing architectures for urban infrastructure, software defined networking enabled city scale traffic orchestration, interoperable urban data exchange platforms for multi-agency coordination, zero trust network architecture adoption for smart city systems, hybrid cloud edge integration for real time municipal service delivery.

The rising mobile data traffic is anticipated to drive the growth of the network and software infrastructure market in the coming years. Mobile data traffic refers to the volume of data transmitted and received over mobile networks through wireless communication services such as internet browsing, streaming, and application usage on mobile devices. The increase in mobile data traffic is primarily driven by the widespread adoption of high-bandwidth applications such as video streaming and cloud-based services, which significantly raise data consumption on mobile networks. Network and software infrastructure are utilized to manage growing mobile data traffic by optimizing connectivity, scaling capacity, routing data efficiently, and maintaining reliable high-speed network performance. For example, in November 2025, according to Ericsson AB, a Sweden-based telecommunications and networking technology company, the proportion of mobile data traffic carried over 5G networks is projected to rise from 34% at the end of 2024 to 43% by the end of 2025 and further increase to 83% by 2031, reflecting accelerating 5G adoption and global network migration. Therefore, the rising mobile data traffic is fueling the growth of the network and software infrastructure market.

Key companies operating in the network and software infrastructure market are focusing on developing technological advancements such as AI-driven edge computing and distributed infrastructure platforms to enhance real-time data processing, reduce latency, and enable intelligent workload management across enterprise environments. AI-driven edge computing and distributed infrastructure platforms refer to systems that use artificial intelligence to manage, process, and analyze data across decentralized edge devices and distributed networks closer to the data source for faster, efficient, and real-time operations. For example, in November 2025, Cisco Systems, a US-based networking hardware, cybersecurity, and enterprise software infrastructure company, launched the Cisco Unified Edge. This platform enables enterprises to run AI workloads locally at the edge in environments such as factories, retail stores, and healthcare facilities, reducing dependency on centralized data centers and improving real-time decision-making capabilities. It enhances network efficiency by processing data closer to its source, supports AI-driven applications with lower latency, and strengthens distributed software infrastructure for modern enterprise operations.

In March 2024, Cisco Systems, a US-based company specializing in networking hardware, cybersecurity, and enterprise software infrastructure, completed the acquisition of Splunk Inc. for approximately $28 billion. Through this acquisition, Cisco Systems intends to combine Splunk’s data analytics, observability, and security capabilities with its own networking and cybersecurity portfolio to establish a unified, AI-powered digital infrastructure platform that improves visibility, threat detection, and operational resilience across enterprise IT environments. Splunk Inc. is a US-based software company that delivers network and software infrastructure solutions through a data analytics and observability platform.

Major companies operating in the network and software infrastructure market are Amazon.com Inc., Google LLC, Microsoft Corporation, Huawei Technologies Co. Ltd., Siemens AG, International Business Machines Corporation, Cisco Systems Inc., Telefónica S.A., Schneider Electric SE, Honeywell International Inc., Telefonaktiebolaget LM Ericsson, Nokia Corporation, Fujitsu Limited, NEC Corporation, ZTE Corporation, Equinix Inc., Arista Networks Inc., Fortinet Inc., Ciena Corporation, Extreme Networks Inc., Lantronix Inc., Sasken Technologies Limited, Actelis Networks Inc.

North America was the largest region in the network and software infrastructure market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the network and software infrastructure 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 and software infrastructure market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The network and software infrastructure (NSI) market consists of revenues earned by entities by providing services such as network design and management, system integration, software development, installation and setup, maintenance and support, cloud and edge computing deployment, and cybersecurity management. The market value includes the value of related goods sold by the service provider or included within the service offering. The network and software infrastructure (NSI) market also includes sales of servers and storage equipment, switching and routing equipment, network security appliances, and data center networking equipment. 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.

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