The global multi-protocol labeled switching, internet protocol, virtual private network services (MPLS IP VPN) market size was USD 54.09 Billion in 2022 and is likely to reach USD 109.94 Billion by 2031 , expanding at a CAGR of 8.2% during 2023–2031.The growth of the market is attributed to the benefits offered such as cost maximization and performance maximization.
MPLS IP VPN service is a virtual private network (VPN) for safely connecting two or more locations over the public internet or private MPLS VPN network.
Market Trends, Drivers, Restraints, and Opportunities:
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Decreasing preference towards ATM and frame relay is estimated to expand the MPLS IP VPN service market during the forecast period.
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Organizations migrating from rural regions have implemented layer 2 and layer 3 MPLS IP VPN services, which in turn, helps to increase the revenue.
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MPLS IP VPN services support enterprises in organizing applications such as creation of disaster recovery infrastructure, Voice over Internet Protocol (VoIP) by class of service (CoS), and simplifying network management.
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The capability to offer accessible bandwidth and convergence of data, video, and voice from several platforms on a single platform is projected to encourage the integration of MPLS IP VPN services.
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Ability to support multipoint full-mesh connectivity is anticipated to fulfill consumer’s requirements.
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MPLS IP VPN service is well-equipped to detect security issues, when data is transferred to cloud by enterprises.
Scope of the Report:
The report on the MPLS IP VPN service market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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MPLS IP VPN Service Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Services (Layer 2 and Layer 3), Applications (Audio Conferencing, Video Conferencing, and Automated Machines), and Regions
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Sprint, BT, Verizon Business, AT&T, Telefónica, Global Crossing, Telstra International, Reliance Globalcom, and Orange Business Services
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Market Segment Insights:
The layer 3 segment is expected to expand at rapid pace during the forecast period
Based on services, the global MPLS IP VPN service market is bifurcated into layer 2 and layer 3. Layer 3 VPNs (L3VPN) are global and available with majority services providers; hence enterprises can implement a global network easily. Moreover, various equipment vendors offer equipment such as firewall, Integrated Access Devices (IADs), and VPN dialers, which assists enterprises in building layer 3 MPLS IP VPN service.
Organizations generally opting for L2VPN service have less than 20 corporate locations, which require a bandwidth of less than 10 Mbps. The IT department of such organizations opts to outsource their routing decisions and networking.
The Layer 2 VPN (L2VPN) service is expected to fulfill the demand for enhanced security, which is required in several applications such as government agencies, defense, and banks. Several carriers such as BT and AT&T have deployed L2VPN solutions, whereas some regional service providers have improved their offerings. Organizations generally opting for L2VPN service have less than 20 corporate locations, which require a bandwidth of more than 10 Mbps. The departments of such organizations wish to maintain steady control of their networking.
The video conferencing segment is expected to expand at a substantial CAGR during the forecast period
On the basis of applications, the global MPLS IP VPN service market is segregated as audio conferencing, video conferencing, and automated machines. Growth of video conferencing segment is attributed to high quality of service (QoS) provided by MPLS. Networks need high quality of service to run apps such as VoIP for video conferencing to prevent latency and other irregularities.
MPLS IP VPN service provides major bandwidth between the user’s site and the service providers’ network to satisfy the requirements of VoIP. Audio conferencing is anticipated to expand at a rapid pace during the forecast period. Rising number of small and medium businesses (SMBs) using LTE and broadband wireless access are expected to boost the market.
IT managers in organizations usually make decisions concerning the deployment of software and hardware VPNs. In comparison to their counterparts, hardware VPNs offer improved security to enterprises. Software VPNs share a server with other operating applications and systems, which increases their chances to be hacked.
The market in North America held a major share of the total revenue in 2018
In terms of regions, the global MPLS IP VPN service market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The US-based providers Sprint, Verizon Business, AT&T, and Global Crossing have huge national networks, with MPLS PoPs in numerous major Canadian and US cities coupled with second-tier US markets.
There has been a major influx of international carriers in the MPLS IP VPN services market including Reliance Globalcom, BT, Orange Business Services, Telefonica, and Telstra International in North America during the past few years to help their present MNC clients in the region.
The market in Asia Pacific is characterized by large number of service providers rolling out MPLS IP VPN services. Telstra and Tata Communication are major MPLS IP VPN service providers in the region.
Segments
The global MPLS IP VPN service market has been segmented on the basis of
Services
Applications
- Audio Conferencing
- Video Conferencing
- Automated Machines
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Sprint
- BT
- Verizon Business
- AT&T
- Telefónica
- Global Crossing
- Telstra International
- Reliance Globalcom
- Orange Business Services
Competitive Landscape
Key players in the global MPLS IP VPN service market include Sprint, BT, Verizon Business, AT&T, Telefónica, Global Crossing, Telstra International, Reliance Globalcom, and Orange Business Services. Usually, major operators have network sites in a single geographical region. They created network to network interface (NNI) relations with local operators in India, China, and the US to spread service availability.
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