How Is Network Optimization Demand Boosting Network Telemetry Market Growth?
A number of factors, such as the growing network traffic, escalating digitalization rate, mounting demand for the optimization of the networking infrastructure, and rising incidence of network attacks and security breaches will contribute to the network telemetry market growth during the forecast period (2021–203. According to P&S Intelligence, the market generated $300 million in 2020. Moreover, the rising advancements in the internet of things (IoT) and artificial intelligence (AI) domains will support the market growth across the world.
The soaring number of network attacks and security breaches, owing to the rising penetration of the internet, is one of the key growth drivers for the market. Cyberattacks on businesses result in huge data and financial losses. Cybercriminals are hacking and stealing data from multiple sources in the workplace, such as IoT- and AI-enabled devices, which are associated with a centralized network. Besides, the accelerating digitization rate in business organizations drives the global demand for network telemetry solutions, as the key factor allowing cybercriminals to prosper is the rising internet access.
Another growth driver for the network telemetry market is the burgeoning demand for the optimization of the networking infrastructure, owing to the increasing internet traffic and surging need to solve downtime issues. For example, when real-time data is transmitted to multiple locations through network devices, the server becomes unavailable for some time, thereby resulting in downtimes. To overcome this challenge, end users are focusing on the optimization of the infrastructure, which can be achieved by deploying network telemetry solutions.
The end user segment of the network telemetry market is classified into cloud service providers, managed service providers, telecom service providers, and others. Among these, the telecom service providers category generated the highest revenue in 2020, and it is also expected to exhibit the fastest growth during the forecast period. This can be primarily owed to the surging use of network telemetry services and solutions by telecom companies, such as Telefonica UK Limited, to manage, analyze, and optimize their network communication technology.
At present, players in the network telemetry market, such as Arista Networks Inc., Barefoot Networks Inc., Netronome Systems Inc., VOLANSYS Technologies Pvt. Ltd., Cisco Systems Inc., Pluribus Networks Inc., Solarflare Communications Inc., Marvell Semiconductor Inc., Juniper Networks Inc., and Mellanox Technologies Ltd., are entering into partnerships to consolidate their position. For instance, in October 2019, Juniper Networks Inc. signed a partnership agreement with Telefonica UK Ltd. to develop Fusion Network, a cloud-based automated and secured network infrastructure.
Geographically, North America accounted for the largest share in the network telemetry market in 2020 due to the presence of numerous players, such as Arista Networks Inc., Pluribus Networks Inc., and Juniper Networks Inc. Additionally, the early adoption of advanced technologies, such as AI and IoT, and strong competition within every end-use industry in the U.S. and Canada are expected to contribute to the market growth. Further, in order to launch 5G services, telecom companies here will need to optimize their networks with this new technology.
Therefore, the increasing number of network attacks and security breaches and escalating demand for network optimization are expected to drive the demand for network telemetry solutions.
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