Security, Automation, AI, and Managed Services are the Key to Network Services Success
26-May-2025
Global
Market Outlook
KB68-01-00-00-00
TE_2025_33511
The network services industry is experiencing significant shifts driven by advancements in Software Defined Networking (SDN), Secure Access Secure Edge (SASE), and managed security services, which are expected to sustain double-digit revenue growth and counterbalance declines in traditional transport services. Artificial Intelligence (AI) is playing a pivotal role in developing new services for network operators, enhancing connectivity offerings, and supporting revenue growth by generating increased traffic. Despite the rise in overall traffic, revenue is declining due to price compression, prompting operators to explore additional service opportunities.
As enterprises advance in their digital transformation journeys, network operators are adapting their services to meet evolving needs. The complexity of managing software-defined wide area network (SD-WAN) and SASE solutions is driving operators towards managed services, providing the necessary expertise and resources for enterprises to focus on core operations. The "as a service" model remains the preferred consumption method for many businesses, leading the industry to offer self-service transaction systems, streamlined sales processes, and integrated automation, security, and AI. These evolving models complement traditional approaches, fostering seamless collaboration between clients and engagement teams on unified platforms.
Author: Stephen Thomas
Strategic Imperatives
Top 10 Growth Opportunities
Growth Opportunity 1: Generative AI and AI Create Opportunities
Growth Opportunity 2: SD-WAN Continues to Record Double Digit Growth
Growth Opportunity 3: Expanding Dedicated Internet Services
Growth Opportunity 4: Wavelength Services Drive the Cloud
Growth Opportunity 5: NaaS Continues to Evolve
Growth Opportunity 6: Managed Services Simplify Network Complexity
Growth Opportunity 7: Complement SD-WAN in a Multi-cloud World with CASB
Growth Opportunity 8: Networks with Quantum Safe Capabilities
Growth Opportunity 9: LAN, Wi-Fi and Private 5G
Growth Opportunity 10: More M&A on the Way
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As enterprises advance in their digital transformation journeys, network operators are adapting their services to meet evolving needs. The complexity of managing software-defined wide area network (SD-WAN) and SASE solutions is driving operators towards managed services, providing the necessary expertise and resources for enterprises to focus on core operations. The "as a service" model remains the preferred consumption method for many businesses, leading the industry to offer self-service transaction systems, streamlined sales processes, and integrated automation, security, and AI. These evolving models complement traditional approaches, fostering seamless collaboration between clients and engagement teams on unified platforms.
Author: Stephen Thomas
| Deliverable Type | Market Outlook |
|---|---|
| Industries | Telecom |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Network services growth |
| Keyword 2 | 5G service trends |
| Keyword 3 | SD-WAN market |
| Podcast | No |
| Predecessor | KA06-01-00-00-00 |
| WIP Number | KB68-01-00-00-00 |
Top 10 Growth Opportunities in Network Services 2025
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