Enterprise Networking Market: Top Trends Reinforcing the Industry Forecast through 2024
According to a recent study from market research firm Graphical Research, the global enterprise networking market size is poised to expand at a substantial CAGR during the forecast period. The outbreak of the COVID-19 pandemic has been shaping the field of networking in various ways, including the emergence of completely remote offices and the development of advanced software solutions for better communication. Consequently, the demand for networking solutions across enterprises and businesses is slated to spiral throughout the world.
The top seven trends powering the enterprise networking industry outlook are as follows:
Expanding Demand for High-Speed Switches in North America
In terms of product, the North American enterprise networking market outlook has been bifurcated into network security, routers, switches, network management, and wireless. The demand for high-speed ethernet switches has been escalating in recent times in accordance with the growing utilization of network virtualization solutions.
During 2017, the market share from the switching segment accounted for more than 25% of the total regional industry. The forthcoming years are poised for considerable growth as the transformation of the enterprise network needs amid the pandemic has led to a higher preference for high-speed ethernet switches. With the proliferation of the 5G network, the demand will propagate further across the region.
North American Enterprises to Recalibrate their Cloud Strategies
Numerous businesses across the world, including those in North America, have been focusing on the recalibration of their cloud strategies as the workplace scenarios have been transforming due to the pandemic. In this scenario, virtual desktops, collaboration, and mobility are embracing the cloud deployment model for enabling a secure and distributed workforce.
The cloud model is increasingly being leveraged not just as an application destination but as a new enterprise management tool because it offers network insights efficiently. It ensures quick access to the latest features as well. This move toward the cloud deployment model is more than likely to stay afloat in the post-pandemic times.
Introduction of Native Cloud Management Platforms in Canada
By 2024, Canada is likely to emerge as one of the leading regional markets of the North American enterprise networking market. Advancing at a 6% CAGR, the regional segment has been registering a remarkable uptick in the volume of cloud service adoption by enterprises.
With the Canadian government utilizing cloud technology for responding to the growing necessity for IT services, private enterprises are turning to advanced cloud strategies. Numerous industry players have been expanding their product and service offerings. For instance, the cloud-based networking company, Extreme, announced the addition of a native cloud management platform located in Canada during December 2020, ensuring better data privacy and sovereignty for large enterprises.
Alarming Rise in Cyber Threats in the U.S.
The dramatic rise in the volume of cyber threats and cyber-attacks amidst the pandemic has been driving enterprises to adopt advanced networking solutions in the U.S. During 2017, the U.S. represented a staggering 70% of the total North America enterprise networking market share.
Clearly, cyberattacks rank as one of the fastest emerging crimes across the U.S., leading to major business disruptions. Recent surveys reveal that most enterprises are susceptible to data loss due to their poor cybersecurity practices and unprotected data. With growing concerns regarding better protection of data, the prospects for the enterprise networking industry in the U.S have improved.
Growing Adoption Across IT & Telecom in Asia
The Asia Pacific enterprise networking market size is slated to expand rapidly over the forecast years. The sector held a market share of more than 30% during 2017 and might make a significant headway by 2024. By 2024, the overall APAC industry share will have reached $20 billion.
The growth in the need for high bandwidth applications has been encouraging enterprises to switch to advanced enterprise networking solutions for addressing the current bandwidth shortage problems. As smartphones, laptops, and tablets become more commonplace with trends such as BYOD (Bring Your Own Device), the enterprises will see a higher adoption even in post-pandemic times.
Cybercriminals Capitalizing on COVID-19 fear in Japan
In Japan, cybercriminals have been capitalizing on the COVID-19-induced fear for luring victims into sophisticated traps, while hackers have been targeting victims via hoaxes and phishing emails. This will fuel the APAC enterprise networking market forecast.
As Japanese companies have been falling victim to unexpected cyberthreats and cyber-attacks, they have been striving to fortify their cybersecurity. In December 2020, the Japanese Ministry of Trade urged enterprises to exercise enhanced leadership with strengthened internal cybersecurity, as the frequency can worsen with the growth in telework.
Rising IoT devices across the Netherlands
The Netherlands enterprise network market is expected to accrue a considerable revenue by 2024, growing at a 10% CAGR through the analysis timeline. The support from government initiatives has been improving cybersecurity across enterprises.
Issues such as the rising phishing through text messaging, misuse of vulnerabilities in Dutch government’s servers, misuse of the ICT infrastructure, and large-scale distributed denial of service (DDoS) attacks are urgently being addressed by enterprises to avoid losses that can have an impact beyond the financial aspects. The considerable addition of numerous IoT devices to the technological infrastructure in the region, promoted by the deployment of LPWAN technology has also been fostering networking growth.