PUBLISHER: The Business Research Company | PRODUCT CODE: 2066301
PUBLISHER: The Business Research Company | PRODUCT CODE: 2066301
Internet Protocol (IP) or Multiprotocol Label Switching (MPLS) is a networking approach that combines IP routing with MPLS-based forwarding to deliver efficient, scalable, and high-performance data transfer across enterprise and service provider networks. It supports traffic engineering, quality of service (QoS), and secure virtual private network (VPN) functions, enabling optimized bandwidth use, reduced latency, and dependable communication across distributed network environments.
The key product types of internet protocol (IP) or multiprotocol label switching (MPLS) include routers, switches, network management software, and others. A router is a networking hardware device that connects multiple networks and routes data between them, ensuring that information reaches the correct destination, typically across the internet. The various service types include layer 2 VPN (L2VPN), layer 3 VPN (L3VPN), traffic engineering and QoS, and managed MPLS services, which are deployed through on-premises and cloud-integrated or hybrid models. Primary applications include enterprise WAN connectivity, cloud and data center interconnect, mobile backhaul and 5G transport, and secure distributed networking, serving telecom and service providers, enterprises, and government and public sector end users.
Tariffs are influencing the IP and MPLS sector by driving up costs of networking infrastructure such as routers, switches, and optical equipment, which in turn impacts overall deployment budgets for enterprises and service providers. The effect is especially pronounced in Asia-Pacific and North America, where telecom supply chains depend heavily on cross-border equipment flows. Core segments like routers and network management systems are experiencing pricing pressure, which is slowing uptake in price-sensitive regions. On the positive side, tariffs are promoting localized production and greater supply chain diversification, resulting in higher investment in domestic manufacturing and the development of more cost-effective networking technologies.
The internet protocol (IP) or multiprotocol label switching (mpls) market research report is one of a series of new reports from The Business Research Company that provides internet protocol (IP) or multiprotocol label switching (mpls) market statistics, including internet protocol (IP) or multiprotocol label switching (mpls) industry global market size, regional shares, competitors with a internet protocol (IP) or multiprotocol label switching (mpls) market share, detailed internet protocol (IP) or multiprotocol label switching (mpls) market segments, market trends and opportunities, and any further data you may need to thrive in the internet protocol (IP) or multiprotocol label switching (mpls) industry. This internet protocol (IP) or multiprotocol label switching (mpls) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The internet protocol (IP) or multiprotocol label switching (mpls) market size has grown strongly in recent years. It will grow from $37.05 billion in 2025 to $39.52 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to increasing enterprise WAN expansion, growing demand for secure data transmission, rise in telecom network modernization, expansion of broadband and internet penetration, adoption of MPLS for traffic prioritization.
The internet protocol (IP) or multiprotocol label switching (mpls) market size is expected to see strong growth in the next few years. It will grow to $51.62 billion by 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to growing 5G transport network requirements, rising demand for cloud interconnectivity solutions, increasing adoption of software-defined networking (SDN), expansion of data center interconnect infrastructure, growing need for scalable and flexible network architectures. Major trends in the forecast period include growing adoption of MPLS-based VPNs for secure enterprise connectivity, increasing demand for low latency and high reliability WAN infrastructure, rising deployment of hybrid networking models integrating IP and MPLS, expanding use of traffic engineering for bandwidth optimization, growing reliance on network management software for performance monitoring and automation.
The growing demand for high-speed networks is anticipated to drive the expansion of the IP/MPLS market in the coming years. High-speed networks refer to advanced communication infrastructures that deliver large volumes of data at faster transmission rates, enabling seamless connectivity, low latency, and efficient handling of bandwidth-intensive applications such as video streaming, cloud computing, and real-time analytics. The growth in high-speed networks is driven by increasing demand for ultra-low latency and faster data transmission, enabling real-time applications such as cloud computing, video streaming, and AI workloads. IP/MPLS supports the demand for high-speed networks by enabling efficient data routing, traffic engineering, and quality of service (QoS) management, ensuring optimized bandwidth utilization and reliable delivery of high-priority data across complex network infrastructures. For example, in September 2023, according to the Office of Communications, a UK-based government agency, in 2023, the median UK broadband download speed reached 69.4 Mbps, up from about 59 Mbps the previous year, representing a solid 17% year-over-year increase. Upload speeds saw an even larger improvement, reaching 18.4 Mbps. Therefore, the growing demand for high-speed networks is fueling the growth of the IP/MPLS market.
Leading companies operating in the IP/MPLS market are focusing on developing innovative solutions, such as next-generation IP/MPLS routers, to enhance scalability, improve efficiency, and support high-speed, next-generation networks. Next-generation IP/MPLS routers are advanced devices that enable high-speed, scalable, and efficient data routing for modern networks. For example, in October 2023, HFCL Limited, an India-based telecommunications equipment and technology company, launched its IP/MPLS router portfolio at the India Mobile Congress 2023. The router portfolio was designed to support telecom operators and enterprises in building scalable and high-performance transport networks capable of handling growing data traffic. These routers support multiple capacity configurations ranging from 64 Gbps to 800 Gbps, enabling deployment across aggregation and access layers of telecom infrastructure. The solution also provides features such as Quality of Service (QoS) prioritization, robust security mechanisms, and compact industrial-grade hardware, allowing deployment in space-constrained or harsh environments while maintaining high network reliability. The platform is particularly suited for 5G backhaul networks, fiber broadband infrastructure, and enterprise connectivity, enabling telecom providers to deliver faster and more efficient digital services.
In March 2025, Nokia Corporation, a Finland-based company that provides network infrastructure and telecommunications solutions, entered into a partnership with Vodafone Idea Limited to upgrade and expand its IP backhaul network for enhanced 4G and 5G services in India. As part of this partnership, Nokia Corporation will implement its advanced IP/MPLS solutions, including the 7750 SR and 7250 IXR series, to modernize Vodafone Idea Limited's transport network across core, aggregation, and access layers, enabling a scalable, high-capacity, and future-ready network infrastructure. Vodafone Idea Limited is an India-based telecommunications service provider delivering voice and data services and focused on building strong digital connectivity infrastructure to support increasing data demand and next-generation technologies.
Major companies operating in the internet protocol (IP) or multiprotocol label switching (mpls) market are Verizon Communications Inc., AT&T Inc., Deutsche Telekom AG, Huawei Technologies Co. Ltd., China Telecom Corporation Limited, Cisco Systems Inc., Orange S.A., Vodafone Group Plc, NTT Communications Corporation, BT Group plc, Fujitsu Limited, Ericsson AB, NEC Corporation, Nokia Corporation, ZTE Corporation, Lumen Technologies Inc., Arista Networks Inc., Ciena Corporation, Ribbon Communications Inc., Ekinops S.A., Arrcus Inc.
North America was the largest region in the internet protocol (IP) or multiprotocol label switching (MPLS) market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the internet protocol (IP) or multiprotocol label switching (mpls) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the internet protocol (IP) or multiprotocol label switching (mpls) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The internet protocol (IP) or multiprotocol label switching (MPLS) market consists of revenues earned by entities by providing services such as network design and implementation, traffic engineering, VPN provisioning, network monitoring, and maintenance and support. The market value includes the value of related goods sold by the service provider or included within the service offering. The internet protocol/multiprotocol label switching (IP/MPLS) market also includes sales of routers, switches, MPLS-enabled hardware, network management software, and related networking components. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Internet Protocol (IP) Or Multiprotocol Label Switching (MPLS) Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses internet protocol (ip) or multiprotocol label switching (mpls) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for internet protocol (ip) or multiprotocol label switching (mpls) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The internet protocol (ip) or multiprotocol label switching (mpls) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Added Benefits available all on all list-price licence purchases, to be claimed at time of purchase. Customisations within report scope and limited to 20% of content and consultant support time limited to 8 hours.