MPLS-Based Core Network in Saudi Arabia Trends and Forecast
The future of the MPLS-based core network market in Saudi Arabia looks promising with opportunities in the BFSI, manufacturing, government, healthcare, IT & telecommunication, and retail markets. The global MPLS-based core network market is expected to reach an estimated $74.4 billion by 2031 with a CAGR of 9.8% from 2025 to 2031. The MPLS-based core network market in Saudi Arabia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are increasing demand for dependable and economical MPLS-based core networks and growing demand from various industries for safe connectivity.
• Lucintel forecasts that, Within the component category, the MPLS-based device segment is expected to witness the highest growth over the forecast period.
• Within the end use category, IT & telecommunication is expected to witness the highest growth over the forecast period.
Emerging Trends in the MPLS-Based Core Network Market in Saudi Arabia
Saudi Arabia is experiencing a digital transformation with major investments in state-of-the-art infrastructure to align with its Vision 2030 objectives. The MPLS-based core network market in Saudi Arabia is experiencing substantial growth, driven by increased demand for high-speed, reliable, and secure communication networks. As companies and government agencies move to digital spaces, MPLS is at the center of providing uninterrupted connectivity, cloud deployment, and IoT integration. The following are the upcoming trends transforming the MPLS-based core network market in Saudi Arabia.
• Cloud Adoption and Hybrid Cloud Integration: With cloud computing gaining traction across various sectors in Saudi Arabia, companies are increasingly using MPLS for efficient hybrid cloud integration. MPLS provides high-performance, secure connectivity between on-premises systems and cloud infrastructure. Integration using MPLS guarantees data security, optimal performance, and scalability, supporting cloud service migration.
• 5G and IoT Scaling: With Saudi Arabia leading the way in 5G rollouts, MPLS networks are optimized to support the large amounts of data traffic generated by 5G and IoT devices. MPLS provides low-latency, high-bandwidth links essential for 5G use cases such as autonomous driving, smart cities, and industrial automation.
• Integration of SD-WAN and MPLS: The growing use of SD-WAN technology is driving the integration of MPLS and SD-WAN in the corporate networks of Saudi Arabia. The hybrid solution offers organizations greater agility, cost savings, and better traffic control, with MPLS providing secure, high-priority routing for critical applications.
• Government Initiatives and Investments in Digital Infrastructure: Saudi Arabia’s Vision 2030 emphasizes major investments in digital infrastructure, such as data centers, broadband, and next-generation network technologies. These investments are driving the deployment of MPLS networks to address the increasing demand for high-speed, secure, and reliable connectivity across industries.
• Data Privacy and Network Security Emphasis: With ongoing cyber threats, Saudi Arabian organizations are focusing on safeguarding sensitive data. MPLS ensures secure private networks, allowing businesses to protect their data and meet stringent data privacy laws, which boosts trust and confidence in digital transformation.
These trends are transforming the core network market of Saudi Arabia for MPLS, as cloud connectivity, 5G growth, SD-WAN adoption, government investments in digital infrastructure, and priorities for network security drive the transition of the telecommunications and technology landscape. As corporate and government users shift toward fully connected and secure digital ecosystems, MPLS remains a key facilitator for Saudi Arabia’s digital future.
Recent Developments in the MPLS-Based Core Network Market in Saudi Arabia
The MPLS-based core network market in Saudi Arabia is growing rapidly, fueled by technological innovation and government support. With the nation progressing through its Vision 2030 digitalization strategy, investments in telecom services and infrastructure are creating an environment for a more connected, secure, and efficient digital ecosystem. The developments below are leading this dynamic market.
• Government Investments in Digital Infrastructure: Saudi Arabia’s Vision 2030 emphasizes the creation of sophisticated digital infrastructure, such as the growth of data centers, broadband, and 5G networks. This is fueling the expansion of MPLS networks, which offer secure and stable connectivity for businesses and government institutions.
• 5G Rollout and MPLS Backhaul: The rollout of 5G technology in Saudi Arabia has generated a huge demand for MPLS networks to carry backhaul traffic. MPLS ensures secure and efficient data transfer for 5G applications, such as autonomous vehicles, smart cities, and IoT devices.
• Hybrid Cloud Adoption Growth: The increasing adoption of hybrid cloud infrastructure in Saudi Arabia across industries is fueling the need for MPLS-based solutions. MPLS provides hassle-free, secure interconnections between on-premises infrastructure and public or private cloud platforms, with high performance and scalability.
• Transformation to SD-WAN: Organizations in Saudi Arabia are increasingly leveraging SD-WAN due to its adaptability and cost savings. MPLS is being combined with SD-WAN technology to create the best of both worlds—high-priority, secure routing for mission-critical traffic and cost savings through dynamic, broadband-based SD-WAN.
• Greater Emphasis on Cybersecurity: With rising cyber threats worldwide, Saudi enterprises are strengthening their MPLS networks with advanced security capabilities such as encryption, intrusion detection, and traffic monitoring. This greater emphasis on network security ensures that sensitive data remains protected, and compliance with regulations is maintained.
These trends underscore the growing role of MPLS in Saudi Arabia’s digital transformation, fueled by government investment in infrastructure, 5G rollout, hybrid cloud adoption, SD-WAN integration, and greater emphasis on cybersecurity. These trends are creating a stronger and more secure MPLS-based core network market in Saudi Arabia.
Strategic Growth Opportunities for MPLS-Based Core Network Market in Saudi Arabia
Saudi Arabia’s expanding digital ecosystem offers numerous strategic growth prospects in the MPLS-based core network market, particularly as enterprises and government agencies adopt new technologies like 5G, cloud computing, and IoT. The following are major growth prospects for MPLS in Saudi Arabia across different applications.
• Cloud Connectivity: As cloud computing gains wider acceptance, Saudi Arabian businesses need high-performance and secure MPLS connections for hybrid cloud integration. MPLS provides secure and reliable data transfer between on-premises infrastructure and cloud platforms, giving businesses the scalability and flexibility they require for digital transformation.
• 5G Backhaul: The rollout of 5G networks in Saudi Arabia creates valuable opportunities for MPLS to establish backhaul options. MPLS meets the high-bandwidth, low-latency requirements of 5G applications by enabling the smooth transmission of large volumes of data, necessary for technologies such as smart cities and IoT.
• IoT Solutions: The growing adoption of IoT in industries such as manufacturing, healthcare, and logistics is increasing the need for low-latency, reliable connectivity. MPLS networks are equipped to handle the enormous data volumes produced by connected devices, providing efficient and secure communication for IoT-based applications.
• Network Security Services: With a growing emphasis on cybersecurity, the demand for MPLS solutions with enhanced security capabilities is on the rise. MPLS networks offer private, secure routing, shielding sensitive information from cyberattacks. This offers opportunities for companies to use MPLS to address data privacy regulations and achieve compliance.
• SD-WAN and MPLS Integration: Integrating MPLS with SD-WAN presents a unique opportunity for companies to leverage flexibility without losing the security and reliability of MPLS. The integration of SD-WAN’s flexibility and cost-effectiveness with MPLS’s performance will enable companies to optimize their networks and reduce costs.
The growth opportunities in Saudi Arabia’s core network market, based on MPLS, such as cloud connectivity, 5G backhaul, IoT solutions, improved security services, and SD-WAN integration, are driving technological and telecommunications innovation and investment. These opportunities are helping businesses create more scalable, secure, and agile infrastructures for their networks.
MPLS-Based Core Network Market in Saudi Arabia Driver and Challenges
The Saudi Arabian MPLS-based core network market is driven by various key factors and challenges. Key drivers include technological innovation, government policies, and increasing demand for secure, dependable connectivity. Challenges include cost, complexity, and competition from alternative networking technologies. The following are the drivers and challenges affecting the MPLS market in Saudi Arabia.
The factors responsible for driving the MPLS-based core network market in Saudi Arabia include:
• Government Digital Transformation Plans: Saudi Arabia’s Vision 2030 fosters widespread investment in digital infrastructure such as broadband and 5G networks. The government’s initiatives are driving demand for high-performance MPLS networks to support the country’s digital transformation.
• 5G Deployment: The deployment of 5G in Saudi Arabia is a major contributor to MPLS growth. The high-bandwidth, low-latency demands of 5G applications require MPLS networks for secure and efficient backhaul, making MPLS a major enabler for 5G technologies.
• Cloud Adoption: The growing migration to cloud computing is fueling the demand for MPLS networks to provide secure and uninterrupted connectivity between on-premises infrastructure and cloud services. This trend is generating demand for high-performance MPLS solutions.
• IoT Expansion: The increasing use of IoT across healthcare, logistics, and manufacturing in Saudi Arabia is driving the need for dependable and secure MPLS connections to handle the large data streams produced by IoT devices.
• Security in Cyber Space: Due to increasing concerns about data security, Saudi companies are implementing MPLS to provide secure, private routing and meet stringent data protection laws. The need for greater security is driving growth within the MPLS market.
Challenges in the MPLS-based core network market in Saudi Arabia include:
• Steep Implementation Fees: It is expensive to install and maintain MPLS networks, especially for smaller organizations. This presents a barrier to widespread adoption, particularly among companies seeking more cost-effective alternatives.
• Technical Complexity of the Network: Specialized knowledge is required to manage MPLS networks, and the technical nature of maintaining them can be challenging for businesses without in-house IT personnel.
• Competition from SD-WAN: With the advent of SD-WAN technology, which is more affordable and flexible, MPLS faces competition. An increasing number of businesses are opting for SD-WAN as a more cost-effective alternative to legacy MPLS networks.
Government initiatives, 5G rollout, cloud adoption, IoT expansion, and cybersecurity requirements are driving the demand for MPLS-based core networks in Saudi Arabia. However, challenges such as high costs, technical complexity, and competition from SD-WAN must be overcome to facilitate MPLS growth and adoption.
List of MPLS-Based Core Network Market in Saudi Arabia Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, MPLS-based core network companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the MPLS-based core network companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
MPLS-Based Core Network Market in Saudi Arabia by Segment
The study includes a forecast for the MPLS-based core network market in Saudi Arabia by component and end use.
MPLS-Based Core Network Market in Saudi Arabia by Component [Analysis by Value from 2019 to 2031]:
• MPLS-Based Devices
• IP/MPLS Management Software
• Services
MPLS-Based Core Network Market in Saudi Arabia by End Use [Analysis by Value from 2019 to 2031]:
• BFSI
• Manufacturing
• Government
• Healthcare
• IT & Telecommunications
• Retail
• Others
Features of the MPLS-Based Core Network Market in Saudi Arabia
Market Size Estimates: MPLS-based core network in Saudi Arabia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: MPLS-based core network in Saudi Arabia market size by component and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different component and end use for the MPLS-based core network in Saudi Arabia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the MPLS-based core network in Saudi Arabia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the MPLS-based core network market in Saudi Arabia?
Answer: The major drivers for this market are increasing demand for dependable and economical MPLS-based core network and growing demand from various industries for safe connectivity.
Q2. What are the major segments for MPLS-based core network market in Saudi Arabia?
Answer: The future of the MPLS-based core network market in Saudi Arabia looks promising with opportunities in the BFSI, manufacturing, government, healthcare, IT & telecommunication, and retail markets.
Q3. Which MPLS-based core network market in Saudi Arabia segment will be the largest in future?
Answer: Lucintel forecasts that MPLS-based device segment is expected to witness the highest growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the MPLS-based core network market in Saudi Arabia by component (MPLS-based devices, IP/MPLS management software, and services), and end use (BFSI, manufacturing, government, healthcare, IT & telecommunications, retail, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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