Enterprise Networking Market Size & Share 2018 - 2024
Market Size by Component (Product [Switches, Network Security{Firewall, Intrusion Prevention, Anti-virus/Anti-malware, Secure Web Gateway (SWG), Mobile Device Security}, Wireless, Routers, Network Management], Service [Training & Consulting, Integration & Maintenance, Managed Service]), by Deployment Model (On-premise, Cloud), by Application (BFSI, Healthcare, IT & Telecom, Manufacturing, Retail, Government & Public Sector, Energy & Utility), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast.
Report ID: GMI2978
|
Published Date: December 2018
|
Report Format: PDF
Download Free PDF
Authors:
Suraj Gujar, Ankita Chavan
Enterprise Networking Market Size
Enterprise Networking Market size estimated at over USD 62 billion in 2017, growing at a CAGR of 6% from 2018 to 2024.
The demand for enterprise networking market is expected to accelerate over the forecast timeline as enterprise networks are the backbones of all communications, improving data management. As organizations are rapidly embracing networking technologies, such as Software-Defined Networking (SDN), network virtualization, and cloud computing, the demand for these solutions will increase to ensure effective management of fixed & wireless devices and their security. The increasing proliferation of connected devices and the rising cyberattacks on networks are also driving the demand for robust network security solutions, enabling secure real-time communication. To ensure higher levels of network security, enterprises are adopting network security solutions including firewalls, intrusion detection systems, and anti-malware. The rise in smartphone adoption, the BYOD trend, and various government initiatives to speed up the digital transformation have accelerated the need for wired and wireless networking devices including switches, wireless routers, and secure web gateways.
Enterprise Networking Market Analysis
The product segment is expected to grow at a CAGR of above 2% over the forecast timeline due to a surge in the demand for networking products including switches, routers, and network management & security hardware components. In this segment, the switch segment is expected to hold a major market share of over 25% by 2024 as they are widely used to connect devices and networks, resulting in a single network of shared resources. Organizations are increasingly using managed network switches as they enable higher network flexibility and offer security to support greater network control.
The services segment is projected to have an accelerated growth rate of over 5% from 2018 to 2024 due to the growing need for services such as training & consulting, integration & maintenance, and managed services. The integration & maintenance services segment will hold a major portion of the market share as these services help service providers and enterprise customers to update, consolidate, and build dynamic networks for cloud NFV environments. As enterprise networks are becoming more complex, the need for system integration services will fuel interoperability in multi-vendor and multi-network environments.
The on-premise deployment model held a major portion of the enterprise networking market share in 2017 and is projected to dominate the market by 2024 with a share of over 65%. To effectively deploy network monitoring & management solutions, enterprises are adopting the on-premise deployment approach, providing better control over network resources and better security. Enterprises prefer keeping their data local to avoid cyber-attacks and data theft, supporting the adoption of on-premise network solutions.
The BFSI application segment is estimated to hold a market share of above 15% by 2024 due to the growing adoption of digital platforms and the rising number of hyper-connected networks. As the sector is witnessing a rapid transformation due to the increasing popularity of cloud computing and network virtualization technologies, the demand for network management & monitoring solutions has increased significantly to keep a track on data and device security. Banks and financial institutions are hence trying to implement cyber-security policies, making an appropriate network security approach to challenge cyber threats.
The Asia Pacific enterprise networking market is expected to grow at a CAGR of over 8% from 2017 to 2024 due to the increasing number of small-scale businesses embracing digital platforms, cloud computing, BYOD, and other networking technologies. For instance, in October 2017, China Unicom extended its partnership with Alibaba in cloud computing services in China. The adoption of cloud computing platforms has also enabled disparate network architectures that add on to the operational burden on enterprises. This will facilitate the need for network management solutions to improve network agility and flexibility. The growing adoption of digital technology by SME has also surged the demand for network security solutions to detect and prevent cyber threats. They are implementing measures, such as address system security flaws, in a timely manner by installing security devices to secure system connections.
Enterprise Networking Market Share
Some of the companies present in the market are involved in strategic partnerships to deliver new solutions to grab a major portion of the market share. In February 2017, Cisco and Ericsson extended their relationship to offer new NFV and cloud-based security services to service providers. It enabled their business customers to detect, protect, and respond faster to cyberattacks.
The companies are also involved in making continuous innovations in their existing offerings to deliver new & improved storage and networking solutions. This enables them to serve a much broader customer base. For instance, in April 2017, Broadcom introduced a new 100G ethernet multi-host controller to accelerate NFV, machine learning, and enterprise & cloud storage. The new BCM57454 NetXtreme E-Series combines a high bandwidth ethernet controller with hardware acceleration engines to improve network performance.
Some of the major companies operating in the enterprise networking market are
Industry Background
The adoption of digital technologies has compelled organizations to keep pace with the changing business needs. Without an adaptable infrastructure, they are not able to manage their large and complex networks. This facilitated the adoption of enterprise networking solutions to realize the value of investments in networking systems and IT infrastructure. The proliferation of cloud computing and network virtualization technologies will also fuel the demand for such solutions to effectively manage heterogeneous enterprise networks.
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →