PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1757792
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1757792
Global MPLS-based Core Networks Market to Reach US$68.5 Billion by 2030
The global market for MPLS-based Core Networks estimated at US$41.2 Billion in the year 2024, is expected to reach US$68.5 Billion by 2030, growing at a CAGR of 8.8% over the analysis period 2024-2030. MPLS-based Devices, one of the segments analyzed in the report, is expected to record a 8.3% CAGR and reach US$38.8 Billion by the end of the analysis period. Growth in the IP / MPLS Management Software segment is estimated at 10.2% CAGR over the analysis period.
The U.S. Market is Estimated at US$11.2 Billion While China is Forecast to Grow at 13.6% CAGR
The MPLS-based Core Networks market in the U.S. is estimated at US$11.2 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$14.9 Billion by the year 2030 trailing a CAGR of 13.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.5% and 8.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.9% CAGR.
Global MPLS-Based Core Networks Market - Key Trends & Drivers Summarized
Why Are MPLS-Based Core Networks Still Relevant in Today’s Evolving Telecom Infrastructure?
Multiprotocol Label Switching (MPLS) remains a foundational technology in global core networks, despite the growing popularity of SD-WAN and internet-based routing. MPLS enables efficient, high-performance data forwarding by using label-switching rather than traditional IP routing, offering deterministic paths, low latency, and robust quality of service (QoS). It is extensively deployed by telecom carriers and enterprises to support mission-critical applications that require predictable performance-such as VoIP, video conferencing, and data center interconnects.
Core networks based on MPLS continue to dominate due to their ability to handle large-scale, multi-service traffic across geographically distributed networks. Their scalability, traffic engineering capabilities, and security make them ideal for tier-1 ISPs, mobile backhaul, and enterprise VPN deployments. As enterprises adopt hybrid cloud and multi-site configurations, MPLS is often retained for core connectivity, ensuring uptime, congestion control, and SLA adherence.
What Enhancements Are Making MPLS Networks More Agile and Compatible with Next-Gen Services?
MPLS networks are evolving through the integration of newer protocols such as Segment Routing (SR-MPLS), MPLS-TP (Transport Profile), and SDN orchestration. These enhancements allow for better programmability, faster path restoration, and simplified network management. With SR-MPLS, service providers can dynamically define forwarding paths based on application performance requirements-enabling more responsive and cost-efficient routing.
Operators are also integrating MPLS cores with Network Functions Virtualization (NFV) and cloud-native orchestration platforms to automate provisioning and improve resource utilization. MPLS-aware routers are becoming more power-efficient and software-definable, allowing core networks to support increasingly diverse workloads without compromising speed or reliability. As the line between transport and service layers blurs, MPLS remains an enabler of integrated service architectures.
Which Use Cases and Regions Are Maintaining Demand for MPLS Core Infrastructures?
High-density metropolitan regions, national broadband networks, and cross-border telecom routes remain strongholds for MPLS deployment. Enterprise applications-particularly in finance, healthcare, government, and manufacturing-continue to rely on MPLS for private WANs, offering deterministic latency and guaranteed throughput. Telecom operators use MPLS cores to connect access networks, data centers, and cloud gateways, enabling seamless service delivery.
Emerging economies with growing internet penetration and enterprise digitization are upgrading core infrastructure with MPLS to support growing traffic volumes and differentiated services. In areas where fiber is still being rolled out, MPLS-based routing helps manage limited bandwidth more efficiently while preserving critical service performance. Hybrid network topologies combining MPLS with SD-WAN overlays are also rising, particularly in Asia-Pacific, the Middle East, and Latin America.
The Growth in the MPLS-Based Core Networks Market Is Driven by Several Factors…
The growth in the MPLS-based core networks market is driven by several factors including continued demand for carrier-grade performance, growth in mission-critical enterprise connectivity, and the modernization of backbone networks in developing regions. Integration with segment routing, SDN, and automation platforms is extending MPLS’s value in next-generation transport architectures. The proliferation of latency-sensitive services, increasing enterprise cloud adoption, and demand for ultra-reliable VPN services are reinforcing the role of MPLS in the global core. While alternative technologies gain traction at the edge, MPLS continues to provide the backbone reliability essential for high-throughput, multi-service network operations.
SCOPE OF STUDY:
The report analyzes the MPLS-based Core Networks market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Component (MPLS-based Devices, IP / MPLS Management Software, Services); End-Use (BFSI, Manufacturing, Government, Healthcare, IT & Telecommunications, Retail, Other End-Uses)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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