The global service orchestration market size will grow on the backdrop of notable trends for 5G networks across emerging and advanced economies. The need for automated and secure end-to-end management has furthered the demand for service orchestration. Industry players are expected to explore opportunities amidst the thriving potential of 5G. The demand for agility, automation of workload placements, end-to-end network slicing, and service deployment, will boost the industry growth.
Service automation is favored to remove manual tasks for fulfilling, designing, assuring, and ordering services to bolster efficiency. In retrospect, these functional and operational processes were handled by siloed operational and domain-specific support systems. The advent of software-defined networking (SDN) has expedited growth potential. SND orchestration can foster flexibility and program automated behaviors to boost services and applications.
The prevalence of multi-cloud platforms will further propel service orchestration to monitor resources and streamline processes across cloud-based and on-premise platforms. Amidst high traffic volume, expensive network management and soaring competition, service providers have counted on orchestration to minimize the time to deploy and design advanced services.
Cloud Deployment Model
Public Cloud; Private Cloud; Hybrid Cloud
Cloud Service Providers; Telecom Service Providers; Business Service Providers
North America; Europe; Asia Pacific; South America; MEA
In terms of the offering, the service orchestration solutions will witness an appreciable gain in the wake of the rising adoption of cloud platforms. Industry players are also likely to cash in on intent-driven service orchestration and automated design. Moreover, the expanding footfall of IoT across healthcare and telecom sectors will also augur well for the market growth. Some upsides, such as coordinated workflow, network capabilities, and reduced service rollout times, will encourage major companies to expand their penetration.
With respect to the cloud deployment model, the hybrid cloud segment could contribute significantly to the global market. The trend is mainly due to cloud automation tools that have witnessed an increased adoption globally. An increased footfall of hybrid cloud is primarily attributed to reduced costs and increased agility. Cloud orchestration has set the trend to enhance efficiency, manage dependencies across clouds, provide workflow tools and simplify data integration.
Cloud service providers are likely to invest in security to explore opportunities in hybrid cloud and could up their investments in orchestration to mitigate risks. Besides, cloud governance has optimized the upsides of hybrid clouds, such as the integration of process and technology, demand and purchase control, and management of a host of service providers.
Based on end-user, telecom service providers are poised to exhibit profound traction for service orchestration following the surge of cloud as a robust technology model. A notable trend for 5G and UCaaS has furthered the penetration of telecom service orchestration. Moreover, orchestration will be sought for operational and cost upsides. The demand for integrated workflow for holistic management will further expedite the penetration of service orchestration.
At a time when the telecom sector is witnessing an increased impetus for cloud technologies, service orchestration will observe an exponential demand. Prominently, the trend for network slicing to foster the penetration of 5G will remain pivotal in driving the growth. Furthermore, telecom service providers are also anticipated to bank on network automation for operational efficiency. Intent-based service has become vital to prevent human errors and propel network automation.
North America market growth could be pronounced due to the rising footprint of 5G networks across the U.S. and Canada. The development of the 5G network and the cloudification of edge deployments and RAN will bode well for regional growth. Service orchestration is expected to help in the expansion of 5G deployment. Leading companies could bolster their penetration across North America to solidify their market leadership. They are likely to harness 5G edge computing to propel the 5G technology portfolio. For instance, in April 2022, Valmont and Ericsson announced the acquisition of ConcealFab to expedite the high return and growth on invested capital opportunities. It is worth noting that ConcealFab was an early innovator in 5G and Ericsson envisages it as the latest investment in 5G infrastructure.
Well-established and emerging players could expand their footprint with an increased emphasis on product launches, mergers & acquisitions, technological advancements and geographical expansion. Moreover, research and development activities could also surge in the ensuing period. Leading companies, such as IBM, Ericsson, Cisco, Hewlett Packard Enterprise (HPE), NEC Corporation, Netcracker, Huawei Technology Co. Ltd., Valmont and Verizon, among others, are slated to expand their footprint to tap into the global market.
To illustrate, in June 2021, Verizon collaborated with Red Hat and IBM to build and deploy an open hybrid cloud strategy across 5G network core and service orchestration. Meanwhile, in October 2021, Ericsson announced the rollout of the new Cloud Native and Orchestration Center in North America. The company believes it will help develop, design, underpin and implement the life cycle management of cloud-native solutions globally.
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