Enterprise Communication Infrastructure Market Growing at a CAGR of 16.4%: Segmentation and Forecast Analysis

According to a new report published by Allied Market Research, titled, "Enterprise Communication Infrastructure Market," The enterprise communication infrastructure market was valued at $79.5 billion in 2022, and is estimated to reach $354.2 billion by 2032, growing at a CAGR of 16.4% from 2023 to 2032.

The combination of hardware, software, and services that promote communication and collaboration within businesses is referred to as the enterprise's communication infrastructure. This covers tools including phone systems, video conferencing applications, email servers, and message services. The market is being propelled by enterprises' growing desire to enhance cooperation and communication among staff, clients, and partners.

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In addition, the market is impacted by elements such as the development of communication technologies, expanding use of cloud-based services, and rise in demand for mobile communication solutions. The market provides chances for stakeholders to invest in cutting-edge products that aid enterprises to enhance efficiency, thus fostering communication, collaboration, and company expansion.

Factors such as an increase in the need for collaboration and productivity among employees and an increase in demand for enhanced security and compliance primarily drive the growth of the enterprise communication infrastructure market. However, the cost of implementation and maintenance hamper the market growth. Moreover, an increase in customer engagement and satisfaction is expected to provide lucrative opportunities for global market growth during the forecast period.

Based on type, private segment dominated the enterprise communication infrastructure market in 2022, and is expected to maintain its dominance in the upcoming years owing to the rise in demand for remote work and collaboration, emergence of mobile devices and cloud-based solutions, and the need for more integrated and unified communication systems, have contributed to the growth of enterprise communication infrastructure in the private sector. However, hybrid segment is expected segment is expected to witness highest growth, owing to it enhances technologies and tools are expected to be adopted, allowing for greater communication and collaboration capabilities while upholding high standards of security and compliance.

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Based on region, North America segment dominated the enterprise communication infrastructure market analysis in 2022, and is expected to maintain its dominance in the upcoming years owing to the increase on demand for seamless communication, collaboration, scalability, security, compliance, and customer experience in business operations.

However, Asia Pacific segment is expected segment is expected to witness highest growth, owing to the rise in ratio of cloud computing and the growing trend of BYOD in organizations fuels the growth of the market and enterprise Communication infrastructure industry in the Asia-Pacific region.

The COVID-19 pandemic affected the enterprise communication infrastructure market severely. Organizations have quickly adapted to new communication and collaboration platforms as remote work became the new standard to maintain business continuity. This has increased the need for flexible, scalable, cloud-based communication solutions that provide secure remote access to corporate resources. In addition, the pandemic emphasized the necessity of a solid and secure communication infrastructure for businesses.

Organizations are spending more money on communication solutions as a result, thus, enabling their staff to operate efficiently from any location while retaining collaboration and productivity. However, the pandemic also highlighted weak spots in the security of communication infrastructure. Organizations are increasingly concentrating more on implementing strong security measures in place to safeguard their communication networks, owing to the rise in cyberattacks. 

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In conclusion, the COVID-19 pandemic has sped up the adoption of communication technologies and highlighted the importance of a stable and secure communication infrastructure for businesses. Companies are investing more in communication systems that can facilitate remote work and improve cooperation to address security issues.

Digital Capabilities

Enterprise communication infrastructure is increasingly relevant in various advanced technologies such as Voice over IP (VoIP), unified communication, IP telephony, video conferencing, and others. In addition, facilitate efficient and reliable communication within organizations which further boosts market demand. In addition, VoIP technology enables voice communication over IP networks, allowing enterprises to make phone calls using the internet rather than traditional telephone lines. It provides cost savings, scalability, and flexibility in managing voice communications. Such numerous beneficial factors offered by this technology are further expected to augment the global market growth.

Furthermore, unified communications integrate multiple communication channels, such as voice, video, messaging, and collaboration tools, into a single platform. It enables seamless communication and collaboration across different devices and channels, improving productivity and efficiency. Moreover, the growing consumer needs for greater integration of communication technologies and deploying of multiple ecosystems in this software is leading to the launch of innovative software by the market players. For instance, in December 2021, Alcatel-Lucent Enterprise launched Alcatel-Lucent Enterprise Connect (ALE Connect) powered by AKIO, a unique solution that helps companies tackle customer relationship challenges in the digital age. This allows customers to select the best solutions for their needs, which is driving the market demand.

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Government Initiatives

Various companies and government bodies are collaborating to strengthen R&D in several industries with evolving productive alliances that lead to indigenous design, development, manufacturing, and deployment of cost-effective enterprise communication products and solutions. For instance, in March 2023, the government of Canada launched policies that promote competition, including a recently issued new policy direction to the Canadian Radio-television and Telecommunications Commission (CRTC) and continues to keep service providers accountable for the pricing. It designed various innovative Telecom technologies including enterprise solutions and is keenly working in the area of enterprise infrastructure.

Furthermore, the growing investment by the government to develop and test open communication technology. For instance, in March 2023, The Indian government is planning a digital communication readiness index (DCRI) to track states' performance in digital initiatives. The government officials stated that the index will track various initiatives and policies for the telecom sector, including those for shared infrastructure, 5G rollout, and telecom skilling. Hence, these numerous initiatives are further expected to boost the global market growth.

Key Findings of the Study

By type, the private segment accounted for the largest enterprise communication infrastructure market share in 2022.

By deployment mode, the on-premise segment accounted for the largest enterprise communication infrastructure market size in 2022.

By end user, the IT and telecom segment accounted for the largest enterprise communication infrastructure market share in 2022.

Region-wise, North America generated the highest revenue for enterprise communication infrastructure market forecast in 2022.

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Market players operating in the enterprise communication infrastructure industry include Microsoft Corporation, AT and T Intellectual Property, International Business Machines Corporation, Cisco Systems, Inc., Avaya LLC, Orange Business, ALE International, ALE USA Inc., Verizon, DXC Technology Company, NEC Corporation. Furthermore, it highlights the strategies of the key players to improve the global market share and sustain competition.

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