Global Network Engineering Services Market Size, Share, Statistics Analysis Report By Service Type (Network Design, Network Assessment, Network Deployment), By Connectivity Type (Wired, Wireless), By Organization Size (Small and Medium-Sized Enterprises, Large Enterprises), By Industry Vertical (IT and Telecomm, Media and Entertainment, BFSI, Manufacturing, Retail, Healthcare, Government, Education, Other Industry Verticals), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Network Engineering Services Market size is expected to be worth around USD 121.2 Billion By 2033, from USD 51.2 Billion in 2023, growing at a CAGR of 9.00% during the forecast period from 2024 to 2033. In 2023, North America dominated the network engineering services market, accounting for over 35.0% of the global share, generating a revenue of USD 17.9 billion.

Network engineering services encompass the tasks and processes involved in designing, implementing, maintaining, and managing computer networks. These services are crucial for the setup of reliable and efficient communication systems within organizations.

The typical offerings in this field include network assessment, design, configuration, and ongoing support, ensuring that the network meets the specific requirements of a business or institution. As networks grow in complexity with the introduction of new technologies such as cloud computing and IoT, these services become essential to maintaining optimal network performance and security.

Several major factors are fueling the growth of the network engineering services market. The accelerating digital transformation across industries has made strong network infrastructures essential. As businesses increasingly depend on digital processes and cloud-based resources, the need for expert network setup and management continues to rise.

The growing volume of data generated by organizations also drives the demand for advanced network solutions to manage higher traffic and storage requirements. Security is another key factor, as businesses invest in network engineering to protect sensitive data from cyber threats. Moreover, the integration of emerging technologies like artificial intelligence and machine learning into network management is enhancing the complexity and increasing the demand for these services.

The popularity of network engineering services is also on the rise, highlighted by the sector’s resilience during economic downturns. Companies recognize the importance of robust networking not just as a support function, but as a critical component of their core operations. This recognition has helped maintain the sector’s popularity even as businesses in other areas might be scaling back investments.

For instance, A 2023 research study conducted by Hewlett Packard Enterprise’s HPE Aruba Networking revealed that 44% of 2,100 surveyed IT leaders see the network as a key enabler for digital transformation. This highlights the growing recognition of networks as more than just technical infrastructure – they are now strategic tools for achieving business innovation and agility.

Opportunities in the network engineering services market are plentiful. With the advent of advanced technologies such as artificial intelligence, machine learning, and big data analytics, there is a significant need for network transformations that can leverage these technologies. Cybersecurity concerns are driving the demand for enhanced network security and ongoing protection against evolving threats.

Network engineering services are expanding into new industries and smaller businesses, traditionally dominated by large corporations and tech sectors. Educational institutions, healthcare providers, and government bodies are also modernizing their digital infrastructures, broadening the market. This growth diversifies the client base and drives service providers to innovate and offer tailored solutions across various sectors.

Key Takeaways

• The Global Network Engineering Services Market is projected to grow from USD 51.2 billion in 2023 to USD 121.2 billion by 2033, expanding at a CAGR of 9.00% during the forecast period from 2024 to 2033.
• In 2023, the Network Design segment dominated the market, accounting for over 48.5% of the overall share of network engineering services.
• The Wired segment held a leading position in the market in 2023, capturing over 60.1% of the share.
• The Large Enterprises segment was the dominant player in 2023, making up more than 64.9% of the global network engineering services market.
• In 2023, the IT and Telecommunication (Telecomm) segment also held a significant market share, accounting for more than 20.5% of the global network engineering services market.
• North America led the market in 2023, capturing over 35.0% of the global share, with a revenue of USD 17.9 billion.

Service Type Analysis

In 2023, the Network Design segment held a dominant market position, capturing more than a 48.5% share of the overall network engineering services market. This segment leads primarily because network design forms the backbone of network infrastructure, essential for any digital transformation initiative.

Organizations increasingly recognize that a well-designed network is crucial for ensuring operational efficiency and supporting the integration of advanced technologies such as cloud services, IoT, and big data analytics. As such, considerable investments are made in this initial phase of network planning to avoid costly adjustments later and to lay a robust foundation for future scalability and security.

The growing complexity of network requirements, driven by business digital expansion, has boosted the demand for Network Design services. As more devices and services become interconnected, companies seek customized solutions to manage high data volumes, ensure security, and maintain seamless connectivity, fueling the need for expert network design tailored to their needs.

Furthermore, regulatory requirements and data protection laws are becoming stricter, compelling companies to prioritize the design of networks that comply with these standards from the outset. Compliance has become a significant consideration, as failure to meet legal standards can result in substantial penalties and loss of reputation.

Connectivity Type Analysis

In 2023, the Wired segment held a dominant position in the network engineering services market, capturing more than a 60.1% share. This prominence is largely due to the reliability and security that wired connections offer.

Organizations, especially those dealing with sensitive information such as financial institutions and government agencies, prefer wired networks because they are less susceptible to external interference and cyber threats compared to wireless solutions. The inherent stability of wired connections ensures minimal downtime and robust performance, critical factors for operations that depend on continuous, uninterrupted network access.

Wired networks also provide higher data transfer speeds, which is a decisive factor for businesses handling large volumes of data. With the increasing reliance on big data analytics and real-time data processing, the demand for high-speed connections has surged.

Another reason for the preference for wired network engineering services is the scalability and control it offers. Organizations can easily expand their network with additional physical connections without significantly impacting the existing network’s performance.

Organization Size Analysis

In 2023, the Large Enterprises segment held a dominant market position, capturing more than 64.9% of the global network engineering services market. This segment’s growth can be attributed to the increasing complexity of network infrastructure and the high demand for robust, scalable, and secure network solutions.

Large enterprises typically operate in multiple geographies and require sophisticated network setups to support their operations. With large-scale IT infrastructure, they are more inclined to invest in comprehensive network engineering services to ensure reliability, security, and high performance across their vast operations.

Large enterprises dominate this segment due to their capacity to invest in long-term network solutions. Their need for services that support data-intensive applications, critical operations, and high traffic volumes is amplified by the growing reliance on cloud computing, IoT, and AI, driving demand for specialized network services.

Large enterprises also benefit from economies of scale, which allow them to negotiate better pricing for network engineering services, giving them a competitive advantage in the market. The complexity of managing multiple business units and integrating advanced technologies across regions also requires dedicated teams of network professionals, further expanding the scope for network engineering services within large organizations.

Industry Vertical Analysis

In 2023, the IT and Telecommunication (Telecomm) segment held a dominant market position, capturing more than 20.5% of the global network engineering services market. This segment’s leadership is primarily driven by the growing need for advanced network solutions to support the continuous expansion of digital services.

The IT and Telecomm industry is at the forefront of technology innovation, with increasing demand for high-speed internet, cloud computing, and data centers, all of which require robust and scalable network engineering services. As a result, the sector consistently invests in cutting-edge infrastructure, making it a major contributor to the market.

The increasing shift toward 5G networks and the proliferation of IoT (Internet of Things) devices in the IT and telecomm space are also major drivers behind the demand for specialized network engineering services. These technologies require efficient, high-performance networks capable of managing large volumes of data with low latency.

Network engineering services are essential for ensuring seamless connectivity, optimizing performance, and mitigating security risks. As telecommunication companies roll out 5G networks worldwide, the need for advanced network design, implementation, and maintenance becomes even more critical, further strengthening the segment’s market share.

Key Market Segments

By Service Type

• Network Design
• Network Assessment
• Network Deployment

By Connectivity Type

• Wired
• Wireless

By Organization Size

• Small and Medium-Sized Enterprises
• Large Enterprises

By Industry Vertical

• IT and Telecomm
• Media and Entertainment
• BFSI
• Manufacturing
• Retail
• Healthcare
• Government
• Education
• Other Industry Verticals

Driver

Growing Demand for 5G Connectivity

The expansion of 5G networks is a significant driver in the growth of network engineering services. As businesses, governments, and industries transition to 5G, the need for robust, high-speed, and reliable network infrastructures has surged. Network engineering companies are capitalizing on this demand, offering solutions that enable seamless integration of 5G technology into existing systems.

With 5G promising faster speeds, lower latency, and greater capacity, industries such as healthcare, manufacturing, and entertainment are eager to upgrade their networks to support these advancements. This increased demand for network upgrades requires skilled network engineers to design, implement, and maintain 5G infrastructure, creating a sustainable business opportunity.

Restraint

Rising Cybersecurity Concerns

As networks grow more complex and interconnected, the risk of cyberattacks becomes a major restraint on network engineering services. The increase in cyber threats such as hacking, ransomware, and data breaches creates a significant challenge for organizations, as the cost of a breach can be devastating both financially and reputationally.

Network engineers must implement strict security measures to protect sensitive data and ensure that networks remain resilient against attacks. However, these security measures can often be expensive, time-consuming, and require ongoing updates and monitoring. As cyber threats continue to evolve, network engineering firms must invest in the latest security technologies and stay ahead of emerging risks.

Opportunity

Cloud Networking Solutions

With more businesses migrating to cloud environments, there is a growing opportunity for network engineering services to facilitate the transition and optimization of cloud-based infrastructure. Companies increasingly rely on hybrid or multi-cloud environments to store and process data, host applications, and scale operations efficiently.

Network engineers are in high demand to build cloud networks that are flexible, scalable, and secure. This opportunity is further amplified by the rise in remote work and the need for reliable virtual private networks (VPNs) to ensure seamless and secure connections. Engineers can leverage their expertise in cloud computing to design, implement, and maintain cloud networking solutions that help businesses stay competitive and agile.

Challenge

Rapid Technological Advancements

One of the key challenges faced by network engineering services is keeping up with rapid technological advancements. The field of network engineering is constantly evolving, with new protocols, hardware, software, and standards emerging regularly. These advancements often require network engineers to continuously update their skills and adapt to new technologies.

This rapid pace of change can strain resources and may create gaps in knowledge or experience among existing staff. Companies offering network engineering services must invest in continuous training and certifications to ensure that their engineers remain competitive and up-to-date. Failing to keep up with technological changes may result in falling behind competitors, poor service delivery, and even security vulnerabilities.

Emerging Trends

Network engineering has always been a dynamic field, constantly evolving to meet the demands of a digital world. One of the most prominent emerging trends is the rise of Software-Defined Networking (SDN), which offers greater flexibility and automation in managing networks. SDN allows for centralized control of network traffic, which can optimize performance, reduce downtime, and simplify network management.

Another key trend is Network Automation. Automation tools are being integrated to reduce the manual intervention required for network operations. From network provisioning to monitoring, automation can streamline tasks, improve efficiency, and lower operational costs.

The 5G roll-out is another significant trend that is reshaping network engineering. The faster speeds, lower latency, and higher capacity of 5G networks are enabling new applications in areas like smart cities, autonomous vehicles, and remote healthcare. This requires engineers to rethink the architecture of networks to support these new, high-bandwidth applications.

Business Benefits

Network engineering services bring numerous benefits to businesses, helping them stay competitive and operate more efficiently in today’s fast-paced digital world.  Improved network performance is a direct result of expert network engineering. A well-designed and maintained network ensures faster data transmission, minimal downtime and reliability.

Another major benefit is cost efficiency. While initial investments in network infrastructure and engineering services may seem high, the long-term cost savings are significant. Automation tools, for instance, reduce the need for manual labor, enabling businesses to save on staffing and operational costs.

Scalability is also a major advantage. As businesses grow, their network requirements evolve. Network engineering services ensure that businesses can expand their networks without compromising on performance or security. This flexibility is essential for supporting new applications, devices, or services.

Regional Analysis

In 2023, North America held a dominant market position in the network engineering services market, capturing more than 35.0% of the global share, with a revenue of USD 17.9 billion. The region’s leadership can be attributed to several factors, primarily the high demand for advanced network solutions driven by the ongoing digital transformation of businesses across industries.

The United States, in particular, remains a global leader in technology innovation, with companies constantly upgrading their network infrastructures to support emerging technologies such as artificial intelligence, 5G, and IoT. These advancements require sophisticated network designs, deployments, and continuous optimization, driving the demand for network engineering services.

North America’s strong foothold is fueled by the growing number of tech companies and startups, particularly in sectors like cloud computing, finance, healthcare, and e-commerce. These industries rely heavily on seamless, secure, and scalable network infrastructures, which boosts the need for professional network engineering services.

The region also benefits from a high level of investment in infrastructure development, with both public and private sectors investing heavily in expanding and upgrading network systems. With the continued rollout of 5G networks, North American countries are prioritizing investments in next-generation network solutions, driving the demand for design, assessment, and deployment services.

Furthermore, government initiatives aimed at enhancing digital connectivity in both urban and rural areas have spurred growth in the network services sector. The push for improved internet infrastructure and secure communication channels, especially in sectors such as healthcare and education, has also contributed to North America’s dominant position.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Player Analysis

The network engineering services market is highly competitive, with several leading players that have established themselves as key contributors to the growth and innovation in this space.

Cisco Systems, Inc. is a global leader in network technology and services, with a strong presence in the network engineering services market. Known for its high-quality hardware and software solutions, Cisco provides everything from network architecture design to security, cloud solutions, and network optimization.

Huawei Technologies Co., Ltd. is another significant player in the network engineering services market, particularly in the Asia-Pacific region and emerging markets. The company is known for its comprehensive portfolio of telecom equipment and services, offering end-to-end solutions that include network planning, deployment, and maintenance.

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a leading player in the telecommunications network services industry, offering network design, deployment, and optimization services to telecom operators worldwide. With a long-standing reputation for quality and innovation, Ericsson provides essential services for the implementation and management of advanced 4G and 5G networks.

Top Key Players in the Market

• Cisco Systems, Inc.
• Huawei Technologies Co., Ltd.
• Telefonaktiebolaget LM Ericsson
• Juniper Networks, Inc.
• Hewlett Packard Enterprise (HPE)
• Tata Consultancy Services Limited
• Infosys Limited
• Wipro Limited
• Konica Minolta, Inc.
• Cyient
• Other Key Players

Top Opportunities Awaiting for Players

The Network Engineering Services market has been experiencing rapid growth. From telecommunications to healthcare, education, and beyond, businesses are investing heavily in network infrastructure to meet evolving technological needs.

• 5G Deployment and Expansion: The roll-out of 5G networks is a significant opportunity for network engineering services. As businesses and governments focus on expanding 5G infrastructure, there’s a growing need for expertise in network design, optimization, and deployment. This transition requires a highly skilled workforce to support the complex technical demands of 5G, including low-latency connectivity, high bandwidth, and network slicing.
• Cloud Integration and Management: As more companies migrate to the cloud, the need for network engineers who can design and manage hybrid and multi-cloud environments is increasing. Network engineering services play a critical role in ensuring these complex cloud infrastructures run smoothly. Services that support secure, fast, and reliable cloud networks are in high demand, with a focus on seamless integration with on-premise systems and security measures.
• Network Automation and AI Integration: AI and machine learning are transforming how networks are managed. The adoption of network automation solutions that use AI to predict traffic loads, monitor performance, and resolve issues proactively presents a huge opportunity. Network engineers skilled in automation tools and artificial intelligence are highly sought after to help businesses improve efficiency and reduce downtime.
• Managed Network Services: As more businesses move to a model that outsources IT functions, demand for managed network services is on the rise. This includes remote monitoring, troubleshooting, and optimizing network performance. Offering end-to-end solutions, from network planning to 24/7 support, is a key area where network engineering firms can tap into consistent demand.
• Small and Medium Business (SMB) Solutions: While large enterprises have been early adopters of advanced networking services, small and medium-sized businesses (SMBs) represent a significant growth opportunity. These businesses are seeking affordable yet reliable network solutions to support remote work, cloud computing, and digital transformation. Network engineering services providers can offer tailored solutions for SMBs to enhance productivity while keeping costs low.

Recent Developments

• In January 2024, Juniper Networks has introduced the industry’s first AI-native networking platform, designed to enhance user experiences while reducing operational costs. This groundbreaking solution aims to revolutionize networking with its advanced AI capabilities.
• In May 2024, Arrow Electronics is enhancing its commitment to customers seeking to fast-track their embedded applications with AI and machine learning by launching Arrow Edge AI engineering services. These services encompass a wide range of support, including expert engineering consultancy, technical training and design services.
• In July 2024, HCLTech, a global leader in technology solutions, has unveiled the opening of its new global delivery center in Patna. This state-of-the-art facility will specialize in providing IT and engineering services tailored to the needs of Hi-Tech and Semiconductor industries.

Report Scope