The point-to-point protocol (PPP) was initially developed as an encapsulation protocol to transport IP traffic over point-to-point link. It was developed by the Internet Engineering Task Force (IETF). It was used further to transmit data containing more than one network protocol over the same point-to-point link in a standard format. The method that PPP uses to carry network traffic is to open a link with a short exchange of frames. Point-to-point protocol is known as the common type of WAN connection. A point-to-point connection has to be installed by a provider and made available to the customer in order to be used for communication purposes. Point-to-point connections are used to connect LANs to service provider WANs, and to connect LAN segments within an organization network.
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Currently, there are millions of Internet users who need to connect their home computers to the server of an Internet service provider. Therefore, usage of point-to-point proves favorable solution for residential users. The point-to-point protocol provides mechanisms for transmitting data over synchronous connections, ISDN, ACC and L2TP calls, and groups of TDM slots. Additionally, the point-to-point protocol is used for multiple solutions such as establishing a standard for assigning and managing IP addresses, asynchronous and bit-oriented synchronous encapsulation, network protocol multiplexing, link configuration, link quality testing, error detection, and option negotiation for added networking capabilities.
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Significant increase in adoption of Internet broadband services across regions is one of the key drivers of the global point-to-point protocol market. Businesses as well as national economies are increasingly dependent on broadband Internet for their well-organized and effective functioning. However, governments across the globe are actively engaged in stimulating investments in broadband infrastructures and usage of broadband services. Moreover, adoption of broadband helps small firms to access distant markets and improve competitiveness in the domestic market. Furthermore, demand for WAN services for enterprises, governments, or organizations that conduct business from multiple sites has been increasing.
There has also been a significant adoption of software-defined wide area networking (SD-WAN), as companies seek to modernize their WAN infrastructures and evolve toward more cloud-based applications. Moreover, point-to-point topology can provide services with limited cost and also with high resiliency, as various organizations experience severe interruptions, which typically lead to loss of data. The point-to-point protocol market experiences threat from the MPLS market due to the benefits of deploying MPLS in the network in order to run MPLS applications. The market presents significant opportunity for the IT industry due to the ever-increasing transmission of data from source to destination.
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The global point-to-point protocol market can be segmented based on component, services, application, enterprise, industry, and region. In terms of component, the point-to-point protocol market can be classified into physical, HDLC, link control protocol, and network control protocol. Based on services, the global point-to-point protocol market can be bifurcated into managed services and professional services.