Growth Outlook: Internet Transit Market By Key Players: AT&T, Verizon Communication, BT Global Services 2018-2026

Internet transit can be defined as a solution/service of permitting the network traffic to cross or "transit" a computer network. It is typically used to connect a smaller Internet service provider to the larger Internet. In terms of billing, the transit service is charged per MB per second per month. Customers are often required to opt for a minimum volume of bandwidth and usually for a minimum term of service.

The growing adoption of networking solutions is a major factor that drives the Internet transit market in end-user segments such as high-tech & telecom and education. In these industries, the Internet transit is employed to improve network performance, storage, network collaboration, and network monitoring. In addition, growing preference for enhanced cyber safety and security is anticipated to drive the market in the next few years. One of the major factors promoting growth of the Internet transit market is incorporation of VPN networks by several enterprises in order to attain high performance and cost minimization.

The maturity of the Internet transit market in recent years has also significantly led the enterprises to adopt the internet protocol (IP) management services to control the networks, thereby augmenting the market. Internet transit has the capability of providing scalable bandwidth. It can combine the voice, data, and video from multiple platforms on a single platform; encouraging adoption of various Internet-based services. This leads to market growth. The technology considerably meets the increasing traffic requirements, wherein additional capacity is needed. A major requirement for video conferencing, voice over internet protocol (VoIP), is considered as an opportunity for market growth in the next few years due to its dependency on internet connectivity. However, high installation cost of the Internet transit solutions is a major factor likely to restrain the market in the next few years.

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The global Internet transit market can be segmented in terms of organization size, end-use industry, and geography. In terms of organization size, the market has been categorized into small & medium enterprises (SMEs) and large enterprises. In terms of end-use industry, the global Internet transit market has been divided into IT & Telecom, BFSI, retail, manufacturing, health care, government, transportation, and others.

Based on region, the global Internet transit market has been classified into North America, South America, Europe, Asia Pacific, and Middle East & Africa. North America is anticipated to hold a prominent share in the global market during the forecast period. This dominance is primarily due to presence of several global players in this region, especially the U.S. and Canada. Europe is also estimated to account for a significant market share by the end of the forecast period. Furthermore, Asia Pacific is expected to emerge as a rapidly expanding market for Internet transit from 2018 to 2026. High adoption of Internet-related services and solutions and growing adherence to regulatory compliances are factors driving the Asia Pacific Internet transit market. Developing economies in the Asia Pacific region such as India and China are attracting global players, which is likely to boost the Internet transit market in the region during the forecast period.

Companies are strengthening their position through mergers and acquisitions. They are continuously investing in research and development (R&D) activities to introduce solutions to cater to customers’ changing requirements. Furthermore, providers of Internet transit solutions are planning to invest in advanced technologies such as artificial intelligence (AI) and machine learning in order to provide cost-effective products in the next few years.

Major vendors that offer Internet transit solutions and services across the globe are AT&T Inc., Verizon Communication, Inc., BT Global Services, Orange Business Services, Sprint Corporation, CenturyLink, Inc. and Cisco Systems, Inc.

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