Is the growth rate of domestic WAN services slowing down due to the trend of office shrinkage?-IDC Japan

IDC Japan announced the market forecast of domestic WAN (Wide Area Network) service on April 26th. According to this, the WAN service market for domestic corporations (excluding legacy leased lines) in 2025 will be 614 billion yen, and the average annual growth rate from 2020 to 2025 will be 0.6%. For the next five years in the domestic corporate WAN services market, the company expects the growth rate to remain slightly positive, but gradually decline. Market growth factors include the expansion of demand for connections to the public cloud due to the shift of enterprises to the cloud, and the increase in the number of lines and traffic due to the acceleration of DX (digital transformation). As a negative factor, companies that have decided to continue remote work even if the new coronavirus infection (COVID-19) has converged will consolidate or consolidate office spaces in urban areas where real estate prices are high from around 2021. Can be considered. IDC Japan predicts that this will be a factor pushing down the growth rate of the market, centered on the decrease in the use of expensive bandwidth-securing services. The COVID-19 epidemic also affected the 2020 domestic corporate WAN service market. In industries such as the restaurant industry, retail industry, and tourism industry, business closures and the withdrawal / reduction of some bases due to poor business performance occurred, which had a negative impact on the WAN service market. On the other hand, in order to respond to the increase in Internet traffic due to “nesting”, large customers of Ethernet leased lines owned by ISPs (Internet service providers) and content providers demanded speedup, supporting the market. As a result, the market in 2020 maintained positive growth, although it was below the growth rate in 2019, and the impact of COVID-19 was minor as a whole. In addition, there was a phenomenon that the number of first-aid remote work support projects increased rapidly in the first half of 2020, such as the speeding up of the Internet gateway for closed network services due to the increase in remote work and the addition of the number of contract IDs for remote access. .. Yoko Ono, Research Manager of IDC Japan Communications, said, “WAN service customers are demanding a lot of added value such as security and flexibility from WAN. Also, with the establishment of remote work by COVID-19, outside the company. The transition to a zero trust model that treats the company equally is accelerating. WAN service providers provide human support to propose solutions, customize / integrate, and meet the needs of customers for WAN review and security enhancement. We need to strengthen the system. ”