The outbreak of COVID-19 pandemic continues to persist, as a result of which enterprises are now focussing on remote accessibility and connectivity features for business continuity. Driven by these factors, the enterprise networking spending in Asia-Pacific is expected to grow at a compound annual growth rate (CAGR) of 3.6% between 2019 and 2024 to reach USD 129bn in 2024, according to GlobalData.
The growth in enterprise networking spending will be primarily driven by increased spending by the enterprises on fiber optic and Ethernet MAN/WAN technologies. Together, these leading product areas are forecast to account for 46.5% of the overall enterprise networking market revenue in 2024.
Kaipa Shashank, Senior Analyst at GlobalData, says: ?Fiber optic will continue to account for a major revenue share of 32.8% in the overall enterprise networking market in Asia-Pacific in 2024. This growth will be driven by a strong demand for Internet across various sectors to support the organizations cloud-first policy, backed by increasing deployments of broadband network architectures such as fiber-to-the-home (FTTH) and fiber-to-the-building (FTTB) to meet the enterprises? appetite for high-speed broadband connectivity.?
Ethernet MAN/WAN Services segment will be followed by fiber optic with a market share of 13.7% in 2024 and a CAGR of 5.0% during the forecast period.
The dependence of the enterprises on wires and cables for connectivity amidst the rising demand for blazing Internet speeds due to the ongoing trend of remote work amidst COVID-19 scenario will remain the prime factor for the growth of the segment.
Software-defined wide area network (SD-WAN) will witness the highest growth rate of 8.3%, driven by the imminent need for AI-driven SD-WAN technology. This will allow easing the burden on remote workforce and allow managing remote enterprise networks with complete visibility.
Shashank concludes: ?Advancements in telecommunications network infrastructure have further driven the demand for high-speed data networks with larger bandwidth capacity and low network complexity amidst the pandemic. The digital initiatives undertaken by the governments of India, China and Japan have further contributed to the growth of enterprise networking technologies in the Asia-Pacific region.?