Network Engineering Services Market (By Service Type: Professional Services, Managed Services; By Connection Type: Wired, Wireless; By End-use: Communication Service Providers (CSPs), Enterprises) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033

The global network engineering services market size reached USD 45 billion in 2023 and is predicted to hit around USD 97 billion by 2033, growing at a CAGR of 8% from 2024 to 2033.

Key Takeaways

• North America contributed more than 32% of market share in 2023.
• Asia-Pacific is estimated to expand the fastest CAGR between 2023 and 2032.
• By service type, the professional services segment has held the largest market share of 62% in 2023.
• By service type, the managed services segment is anticipated to grow at a remarkable CAGR of 18.7% between 2024 and 2033.
• By connection type, the wired segment generated over 58% of the market share in 2023.
• By connection type, the wireless segment is expected to expand at the fastest CAGR over the projected period.
• By end-user, the communication service providers segment generated over 66% of the market share in 2023.
• By end-user, the enterprises segment is expected to expand at the fastest CAGR over the projected period.

Network Engineering Services Market in the U.S. 2024 to 2033

The U.S. network engineering services market size was valued at USD 10.08 billion in 2023 and is expected to reach around USD 21.86 billion by 2033, growing at a CAGR of 8.10% from 2024 to 2033.

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North America holds the largest share of 32% in 2023 due to advanced technological adoption, a robust IT infrastructure, and widespread digitization in various industries. The region's proactive approach to incorporating innovations like 5G, IoT, and cloud services fuels the demand for specialized network engineering solutions. Additionally, a high awareness of cyber security and stringent data protection regulations further propels the need for sophisticated network architecture. North America's leadership in these technological aspects positions it as a major contributor to the market's substantial share, driven by continuous advancements and a mature IT landscape.

Asia-Pacific is poised for rapid growth in the network engineering services market due to several factors. The region's burgeoning digital economy, increasing investments in advanced technologies, and a surge in network infrastructure development to support 5G deployments are driving the demand for specialized network engineering expertise. Additionally, a growing number of enterprises and businesses in the region are embracing digital transformation, further fueling the need for robust and scalable network solutions, positioning Asia-Pacific as a key growth hub for network engineering services.

Meanwhile, Europe is experiencing notable growth in the network engineering services market due to several factors. The region is witnessing increased investments in advanced technologies, such as 5G and IoT, leading to a surge in demand for expert network engineering solutions. Additionally, the emphasis on cybersecurity, digital transformation initiatives, and the modernization of network infrastructure contribute to the expanding market. European businesses recognize the importance of robust and secure networks in today's digital landscape, driving the growth of the network engineering services market.

Network Engineering Services Market Overview

Network engineering services involve the design, implementation, and maintenance of computer networks, ensuring efficient and reliable communication between devices. Professionals in this field, known as network engineers, play a crucial role in establishing secure and seamless connections for businesses and organizations. They assess the specific needs of clients, plan network architectures, and deploy the necessary hardware and software components. Network engineers troubleshoot issues, optimize performance, and stay updated on emerging technologies to enhance network functionality. These services are vital for ensuring that information flows smoothly within an organization, supporting various activities such as data sharing, internet access, and collaborative work, ultimately contributing to the overall efficiency and productivity of an enterprise.

Network Engineering Services Market Data and Statistics

• In a 2023 study conducted by HPE Aruba Networking, a research arm of Hewlett Packard Enterprise Development LP, it was found that 44% of the 2,100 surveyed IT leaders primarily view the network as a pivotal tool for driving digital transformation.
• As per information from the U.S. Central Intelligence Agency (CIA) in 2021, the Internet reached 312.8 million people in the United States, boasting a penetration rate of 92%. The market is characterized by fragmentation, with numerous established and smaller companies contributing to its diversity.
• IBM, a U.S.-based tech giant, reported that a considerable number of organizations expedited their investments in digital technologies as a strategic response to the challenges posed by the COVID-19 pandemic.

Growth Factors

• The growing consumption of data-intensive applications, streaming services, and cloud computing has led to an increased demand for higher bandwidth. Network engineering services are essential for expanding and optimizing network capacity to accommodate this surge in data traffic.
• The global deployment of 5G networks is a significant driver for the network engineering services market. As telecom operators and businesses invest in 5G infrastructure, network engineers are crucial for planning, implementing, and managing the next-generation networks.
• The proliferation of IoT devices across various industries necessitates robust and scalable networks. Network engineering services support the design and implementation of networks capable of handling the increasing volume of data generated by IoT devices.
• With the rise in cyber threats and data breaches, organizations prioritize network security. Network engineering services play a key role in implementing and managing security measures, including firewalls, intrusion detection systems, and encryption protocols.
• The shift towards remote work and digital transformation initiatives has heightened the importance of resilient and secure networks. Network engineering services are instrumental in adapting and optimizing networks to support remote collaboration and the integration of digital technologies.
• The trend towards edge computing, where data processing occurs closer to the source, requires a distributed and efficient network infrastructure. Network engineering services are critical for designing and maintaining networks that can support the distributed nature of edge computing architectures.

Network Engineering Services Market Scope

Network Engineering Services Market Dynamics

Driver: Increasing demand for network security

The escalating threat landscape in the digital realm has propelled a surge in demand for network security, contributing significantly to the increased market demand for network engineering services. As businesses and organizations confront ever-evolving cyber threats, the role of network engineering becomes pivotal in fortifying digital infrastructures. Network engineering services are crucial for implementing robust security measures, including firewalls, intrusion detection systems, and encryption protocols, safeguarding sensitive data and ensuring the integrity of network operations. With cyber attacks becoming more sophisticated, organizations seek expertise to design and manage secure networks.

Network engineering services not only address current security challenges but also adapt and evolve to meet the dynamic nature of cyber threats. This heightened focus on network security as a priority investment area has elevated the importance of skilled network engineers, driving the market demand for their services to create and maintain resilient, secure, and future-ready network architectures.

Restraint: Shortage of skilled professionals

The shortage of skilled professionals poses a significant restraint on the market demand for network engineering services. As the demand for advanced networking solutions continues to rise, there is a notable gap in the availability of qualified and experienced network engineers. This scarcity can lead to challenges in meeting the growing needs of businesses seeking to enhance their digital infrastructure. The shortage not only results in increased competition for skilled professionals but also has the potential to cause delays in the implementation of network engineering projects.

Organizations may face difficulties in finding experts capable of navigating the complexities of emerging technologies, impacting their ability to deploy and manage sophisticated network architectures. Addressing the shortage requires a concerted effort in training and education to build a more robust workforce, enabling businesses to fully leverage the benefits of network engineering services for improved connectivity, security, and overall operational efficiency.

Opportunity: Digital transformation initiatives

Digital transformation initiatives are creating significant opportunities in the network engineering services market by driving the need for modernized and adaptive network infrastructures. As businesses embrace digital transformation, they seek to integrate emerging technologies like cloud computing, artificial intelligence, and the Internet of Things (IoT) into their operations. Network engineering services play a crucial role in this process, offering expertise in designing and implementing networks that can seamlessly accommodate these advanced technologies.

Moreover, as organizations digitize their processes and services, the demand for secure, scalable, and high-performance networks intensifies. Network engineering services enable businesses to navigate the complexities of digital transformation by providing tailored solutions that enhance connectivity, data transfer speeds, and overall network efficiency. This trend not only fosters innovation but also positions network engineering as a fundamental component in ensuring the success of digital initiatives across various industries.

Service Type Insights

The professional services segment held the highest market share of 62% in 2023. In the network engineering services market, the professional services segment encompasses specialized expertise provided by skilled professionals. This includes network design, implementation, optimization, and troubleshooting. Trends in this segment reflect a growing demand for tailored solutions, with an emphasis on cybersecurity, cloud integration, and advanced technologies like 5G and IoT. Network engineers offering professional services are instrumental in assisting businesses with the strategic planning and execution of robust, secure, and efficient network architectures, aligning with evolving technological landscapes and organizational needs.

The managed services segment is anticipated to witness rapid growth at a significant CAGR of 18.7% during the projected period. In the network engineering services market, the managed services segment refers to the outsourcing of network management tasks to a specialized provider. This includes monitoring, maintenance, and optimization of network infrastructure. A notable trend in this segment is the increasing adoption of managed services by businesses looking to streamline their operations. Companies are leveraging managed services to offload the complexity of network management, ensuring enhanced reliability, security, and performance, while focusing on their core business activities. This trend reflects a growing recognition of the value and efficiency offered by outsourced network management solutions.

Connection Type Insights

The wired segment has held a 58% market share in 2023. In the network engineering services market, the wired segment refers to connectivity solutions that utilize physical cables for data transmission. This includes Ethernet cables, fiber optics, and other wired technologies. The wired segment is witnessing a continued demand for robust and reliable connections, especially in critical applications where stability is paramount. As industries prioritize low latency and high bandwidth, wired connections remain a staple in network engineering services, ensuring consistent and secure data transfer, particularly in environments where wireless connectivity may face limitations or interference.

The wireless segment is anticipated to witness rapid growth over the projected period. The wireless segment in the network engineering services market pertains to the design, implementation, and optimization of wireless networks. This includes Wi-Fi, cellular, and other wireless technologies. A notable trend in this segment is the increasing demand for robust wireless infrastructure to support the proliferation of mobile devices, IoT, and the transition to 5G. Network engineering services focused on the wireless domain are crucial for creating efficient, high-performance wireless networks that meet the demands of today's connected and mobile-centric environments.

End-use Insights

The communication service providers segment held 66% market share in 2023. The communication service providers (CSPs) segment in the network engineering services market refers to companies offering telecommunication services. This includes mobile and fixed-line operators, internet service providers, and other communication service providers. A notable trend in this segment involves CSPs increasingly investing in network engineering services to enhance their infrastructure, optimize network performance, and prepare for the integration of advanced technologies like 5G. The goal is to ensure reliable and high-quality communication services, meeting the evolving demands of a digitally connected world.

The enterprises segment is anticipated to witness rapid growth over the projected period. In the network engineering services market, the "enterprises" segment refers to businesses and organizations across various industries that leverage network services for their operational needs. A key trend in this segment involves enterprises increasingly adopting advanced network solutions to support digital transformation, enhance cybersecurity, and facilitate seamless connectivity. As these enterprises prioritize efficient and secure network infrastructures, the demand for network engineering services continues to grow, providing tailored solutions to meet the evolving connectivity and security requirements of modern businesses.

Recent Developments

• In July 2022, Mphasis allocated ₹21 crore to support fundamental and applied research in quantum technologies at IIT Madras. The collaboration involves a Memorandum of Understanding (MoU) between Indian Institute of Technology Madras and Mphasis, with the goal of establishing a hub for quantum science and technology. The partnership aims to foster high-quality graduates by encouraging research in both fundamental and applied aspects of quantum technologies.
• In August 2022, SkyMax and Ericsson formalized a partnership through a Memorandum of Understanding (MoU) to develop an advanced 5G broadband network and digital services delivery platform across Sub-Saharan Africa (SSA).
• In August 2022, TCS achieved the Compliance and Privacy distinction in the AWS Security Competency, setting it apart as an AWS Partner specializing in consulting services tailored for large global enterprises. These services aid in the adoption, development, and deployment of security measures in AWS environments, enhancing overall security posture.
• In August 2022, Ericsson unveiled a groundbreaking triple-band, tri-sector radio (Radio 6646) capable of performing the functions of nine radios. This innovation significantly reduces energy consumption by 40% compared to triple-band single-sector radios and decreases weight by 60%, incorporating aluminum for a more environmentally friendly solution.
• In September 2022, Juniper Networks introduced Apstra Freeform, an expansion of its multivendor data center automation and assurance platform. This capability empowers Juniper’s enterprise, service provider, and cloud provider customers to efficiently manage and automate their data center operations, irrespective of topology and protocols used.

Network Engineering Services Market Companies

• Cisco Systems, Inc.
• Juniper Networks, Inc.
• Huawei Technologies Co., Ltd.
• Arista Networks, Inc.
• Nokia Corporation
• Hewlett Packard Enterprise (HPE)
• Dell Technologies, Inc.
• Extreme Networks, Inc.
• Ericsson AB
• Broadcom Inc.
• IBM Corporation
• F5 Networks, Inc.
• Palo Alto Networks, Inc.
• Fortinet, Inc.
• Check Point Software Technologies Ltd.

Segments Covered in the Report

By Service Type

• Professional Services
• Managed Services

By Connection Type

• Wired
• Wireless

By End-use

• Communication Service Providers (CSPs)
• Enterprises

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa