Backbone network services provide high-speed data transmission and connectivity between different networks across large geographical areas. They enable uninterrupted data, voice and video communication through transmission networks comprising undersea cables, satellites etc. With increasing digitalization and growing reliance on internet for various services, there is significant demand for robust and reliable connectivity.
The global Backbone Network Services Market is estimated to be valued at US$ 106.75 Mn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing demand for enhanced connectivity across various sectors such as telecom, banking, healthcare etc. is a major trend fueling the growth of the backbone network services market. Due to increasing reliance on digital technologies and internet-based services, industries require stronger and faster network infrastructure to support mission critical applications and digital transformations. Backbone network services help provide seamless connectivity andbandwidth that can handle data-intensive applications. This rising need for robust connectivity is driving investments in upgrading network infrastructure and adoption of advanced backbone network services.
Strength: Backbone network services provide essential connectivity infrastructure for telecommunication. It has high reliability and connectivity across wide geographical areas.
Weakness: Setting up and maintaining backbone network infrastructure requires huge capital investments and operational costs. The technology also needs frequent upgrades.
Opportunity: Rising demand for high-speed internet and transition to 5G networks provide opportunities for network expansion and upgrades. Growth of IoT and interconnect devices increase the need for high-bandwidth connectivity.
Threats: Stiff competition from regional and local service providers poses pricing pressure. Shifting trends towards Over-The-Top services threaten traditional telecom revenue streams.
Global Backbone Network Services Market Size is expected to witness high growth. The global Backbone Network Services Market is estimated to be valued at US$ 106.75 Mn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2031.
Regional networks across North America, Europe and Asia Pacific dominate the market currently. North America region accounts for more than 35% market share led by U.S with extensive backbone networks established by major carriers. Asia Pacific region is expected to grow at the fastest pace during the forecast period supported by rollout of 5G networks and expanding internet penetration in developing countries.
Key players operating in the Backbone Network Services are AT&T Inc., Verizon Communications Inc., NTT Communications Corporation, Tata Communications Limited, Telefonica SA, BT Group, Orange SA, Lumen Technologies, CenturyLink Inc. Among these, AT&T and Verizon jointly capture over 40% of the global backbone network traffic. Emerging operators like Tata Communications and NTT Communications are investing heavily in international bandwidth capacity and global coverage to compete with major carriers.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it