The Network-as-a-Service (Naas) Market size was valued at USD 17.31 billion in 2023 and is expected to grow to USD 143.0 billion by 2031 and grow at a CAGR of 30.2% over the forecast period of 2024-2031.
An increase in investment in innovative technologies is the main growth factor for networks as a service. The way in which organisations manage every aspect of their business is changing as innovation spreads across the enterprise IT landscape. One of the major changes since the Internet's launch has been the rise of cloud computing. In the IT sector, the proliferation of cloud services continues to be a disruptive force. The growth of this sector is expected to be boosted by growing demand for the network as a service in many sectors, including manufacturing, healthcare, media and entertainment, education, BFSI, retail & eCommerce, software and technology etc.
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Key Drivers:
The growing popularity of cloud computing services
Cloud based services are increasingly gaining popularity in many enterprises, as the number of cloud applications increases. Due to rising investments by SMEs, cloud computing adoption is on the rise. By 2023, global IP traffic in cloud data centers was expected to reach approximately 20,407 Exabytes, based on the date of Cisco Systems. Consequently, market growth is expected to be driven by increasing demand for cloud services. Also, the widespread use of cloud infrastructure services, businesses are increasingly turning to cloud-based VPN services.
Adoption of a working model combining both approaches
Restraints:
Lack of standardisation and complex deployment procedures
Problems in providing NaaS services to organizations due to a worldwide shortage of qualified cybersecurity professionals are negatively affecting the market's growth.
Opportunities:
The adoption of a hybrid work model
A significant opportunity for the network as a service market is presented by universal adoption of hybrid working practices. The demand for adaptable, Scalable and Secure Network Solutions has increased as enterprises move to a mix of Remote Work with Inoffice work. By providing robust, cloud-based networking to support seamless connectivity and access to corporate resources from anywhere in the world, NaaS makes it easier for a hybrid work model.
Growing demand for Information technology (IT) and telecommunication sector
Demand for cloud-native solutions based on SDN and NFV to replace the existing networking approach.
Challenges:
Data privacy and security concerns
Loss of WAN connection
The medium sized companies with significant costs in distant, regional campuses and data centre connectivity and security infrastructure, switching to NaaS will be a challenge and time intensive task. Due to the fact that NaaS relies on fast, low latency internet providers, any loss of the WAN connection can seriously hinder or even stop the operation of the business network. As the service is still new, it is not known how much NaaS will cost.
The benefits of NaaS, such as cost efficiency and flexibility, remain significant drivers of this growth. Studies by industry analysts suggest that companies can achieve cost savings of 20-30% on network infrastructure by adopting NaaS, while reports indicate a 40% increase in agility compared to traditional methods. However, challenges persist during slowdowns, with reliability concerns causing a 5% increase in hesitancy towards NaaS adoption. In terms of market segment growth, WANaaS and cloud-based services stand out, with WANaaS estimated to hold a market share of 40% due to widespread use and the growth of SD-WAN technologies, and cloud-based NaaS expected to experience a 25% growth due to the rising popularity of cloud computing. Geographically, North America is speculated to dominate with a 60% market share attributed to its advanced technological infrastructure and the presence of major NaaS players, while the Asia Pacific region is anticipated to exhibit the highest CAGR driven by substantial investments in cloud-based networking and digital transformation initiatives. These estimations, although based on industry trends, emphasize the importance of consulting reliable sources like Gartner or Forrester for the latest and most specific figures regarding the impact of economic slowdowns on the NaaS market.
The Russia-Ukraine crisis has reverberated across various sectors, including the Network as a Service (NaaS) market. While precise data on the direct consequences of this geopolitical turmoil on NaaS remains unavailable as of March 19, 2024, it's essential to grasp the broader context and potential implications. The interplay between economic trends and technological markets profoundly impacts the NaaS landscape, with the ongoing transition to cloud services and heightened demand for efficiency-driving technologies like cloud analytics and edge computing. Geopolitical tensions influence global supply chains, regulatory frameworks, and investment patterns, indirectly affecting NaaS providers. Potential disruptions in the supply chain, regulatory uncertainties, and shifts in investment behaviors pose challenges for NaaS providers, necessitating adaptability and strategic planning. Despite uncertainties, the NaaS market demonstrates resilience amidst turbulent geopolitical environments, underscored by increased demand for innovative solutions and the need for agile responses to evolving market dynamics.
By Type
WANaaS
LANaaS
In 2023, the largest revenue share was held by the WANaaS segment at around 66.3%. In the forecast period, it is expected to grow at a compound annual growth rate of 34.5%.
By Enterprise size
Large Enterprises
SMEs
During the forecast period, it is estimated to grow at a compound annual growth rate of 31.3%. Rapid adoption of cloud services, e.g.PaaS, SaaS and IaaS, is a major reason for this growth. Cloud services for data storage and data centers for workload mobility are being implemented by large enterprises.
By Vertical
BFSI
Retail
IT & Telecommunication
Manufacturing
Media and Entertainment
Education
Healthcare
Government
Others
The largest revenue share of 25.1% in 2023 was held by IT & telecommunications. In the forecast period, it is expected to show a compounded annual growth rate of 33%. Growth is driven by the increased use of cloud services and IT infrastructure, as well as their adoption. Network infrastructure has a major role to play in IT & telecommunications as it reduces the digital divide by providing fast network services at affordable cost, while addressing bandwidth scarcity concerns.
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By Application
UCaaS/Video Conferencing
Cloud and SaaS Connectivity
Virtualized Private Network (VPN)
Bandwidth on Demand
Multi-Branch Connectivity
WAN Optimization
Secure Web Gateway
Network Access Control
Other Applications
The largest revenue share of more than 24.5% in 2023 was held by the cloud and SaaS connectivity segment. During the forecast period, it is expected to grow at a compounded annual growth rate of 33.9%. The adoption of cloud solutions is being driven by the growing use of technology and consumer inclination towards cloud computing.
The rapid adoption of network solutions as a service, North America leads in revenue share with more than 39.5% for 2023. The presence of a number of important players, such as Palo Alto, Amdocs, Megaport, Akamai and Cisco Systems Inc. which have contributed to the growth in this market is an essential factor. The major companies are investing heavily in research and development of data centres, contributing to the growth by means of network infrastructure. Cloud computing penetration, modern IT infrastructure, and a greater concentration of network virtualization solution manufacturers are projected to increase NaaS adoption in the area.
Asia Pacific is expected to grow at a very high compound annual growth rate of 35.5%. Demand for NaaS is driven by an extensive and diversified customer base in India and China, which has opened up new opportunities.
REGIONAL COVERAGE:
North America
Europe
Asia Pacific
Middle East & Africa
Latin America
The major key players are Cisco Systems, Inc., Juniper Networks, Inc., IBM Corporation, NEC Corporation, VMware Inc., Aryaka Networks, Inc., AT&T, Inc., Alcatel Lucent S.A, Brocade Communication Systems, Inc, Ciena Corporation & Other Players
March 2023: Ondat announced an agreement to be acquired by Akamai Technologies, a provider of cloud-based storage technologies and a Kubernetes native platform to run stateful applications anywhere in the world.
May 2023 Cloudflare Inc. has launched a new managed WAN as a service offering in partnership with Kyndryl, an IT services company. In order to improve the performance and security of users moving towards modern IT technologies, this collaboration has included networking services in conjunction with Magic WAN's Distributed Denial of Service mitigation and connectivity platform.
May 2023, Megaport launched its NaaS platform in collaboration with colocation provider Element Critical. This partnership allows customers to use the company network infrastructure software defined networks and services for connecting their allocated assets, all via one common port which offers more control and cost management capabilities, in order to establish direct connections with multiple data center providers or branch offices.
Report Attributes | Details |
---|---|
Market Size in 2023 | US$ 17.31 Billion |
Market Size by 2031 | US$ 143 Billion |
CAGR | CAGR 30.2% From 2024 to 2031 |
Base Year | 2023 |
Forecast Period | 2024-2031 |
Historical Data | 2020-2022 |
Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
Key Segments | • By Type (WANaaS, LANaaS) • By Enterprise size (Large Enterprises, SMEs) • By Vertical (BFSI, Retail, IT & Telecommunication, Manufacturing, Media and Entertainment, Education, Healthcare, Government, Others) • By Application (UCaaS/Video Conferencing, Cloud and SaaS Connectivity, Virtualized Private Network (VPN), Bandwidth on Demand, Multi-Branch Connectivity, WAN Optimization, Secure Web Gateway, Network Access Control, Other Applications) |
Regional Analysis/Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia, Rest of Latin America) |
Company Profiles | Cisco Systems, Inc., Juniper Networks, Inc., IBM Corporation, NEC Corporation, VMware Inc., Aryaka Networks, Inc., AT&T, Inc., Alcatel Lucent S.A, Brocade Communication Systems, Inc, Ciena Corporation |
Key Drivers | • Accelerated cloud service adoption among major and small businesses. • For mission-critical business applications, high dependability and security are required. |
Market Restraints | • In the NaaS market, there is a lack of uniformity. |
Ans: The Network-as-a-Service (Naas) Market was valued at USD 17.31 billion in 2023.
Ans: - The Network-as-a-Service (Naas) Market is to grow at CAGR of 30.2% ovewr the forecast period 2024-2031
Ans: - The segments covered in the Network-as-a-Service (Naas) Market report for study are on the basis of Type, Deployment Mode, Organization Size, and Verticals.
Ans: - North America dominates the managed network services market and will maintain its dominance throughout the projected period.
Ans: - The primary growth tactics of Network-as-a-Service (Naas) market participants include merger and acquisition, business expansion, and product launch.
TABLE OF CONTENTS
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Industry Flowchart
3. Research Methodology
4. Market Dynamics
4.1 Drivers
4.2 Restraints
4.3 Opportunities
4.4 Challenges
5. Impact Analysis
5.1 Impact of Russia-Ukraine Crisis
5.2 Impact of Economic Slowdown on Major Countries
5.2.1 Introduction
5.2.2 United States
5.2.3 Canada
5.2.4 Germany
5.2.5 France
5.2.6 UK
5.2.7 China
5.2.8 Japan
5.2.9 South Korea
5.2.10 India
6. Value Chain Analysis
7. Porter’s 5 Forces Model
8. Pest Analysis
9. Network-as-a-Service (Naas) Market Segmentation, By Type
9.1 Introduction
9.2 Trend Analysis
9.3 WANaaS
9.4 LANaaS
10. Network-as-a-Service (Naas) Market Segmentation, By Enterprise size
10.1 Introduction
10.2 Trend Analysis
10.3 Large Enterprises
10.4 SMEs
11. Network-as-a-Service (Naas) Market Segmentation, By Vertical
11.1 Introduction
11.2 Trend Analysis
11.3 BFSI
11.4 Retail
11.5 IT & Telecommunication
11.6 Manufacturing
11.7 Media and Entertainment
11.8 Education
11.9 Healthcare
11.10 Government
11.11 Others
12. Network-as-a-Service (Naas) Market Segmentation, By Application
12.1 Introduction
12.2 Trend Analysis
12.3 UCaaS/Video Conferencing
12.4 Cloud and SaaS Connectivity
12.5 Virtualized Private Network (VPN)
12.6 Bandwidth on Demand
12.7 Multi-Branch Connectivity
12.8 WAN Optimization
12.9 Secure Web Gateway
12.10 Network Access Control
12.11 Other Applications
13. Regional Analysis
13.1 Introduction
13.2 North America
13.2.1 USA
13.2.2 Canada
13.2.3 Mexico
13.3 Europe
13.3.1 Eastern Europe
13.3.1.1 Poland
13.3.1.2 Romania
13.3.1.3 Hungary
13.3.1.4 Turkey
13.3.1.5 Rest of Eastern Europe
13.3.2 Western Europe
13.3.2.1 Germany
13.3.2.2 France
13.3.2.3 UK
13.3.2.4 Italy
13.3.2.5 Spain
13.3.2.6 Netherlands
13.3.2.7 Switzerland
13.3.2.8 Austria
13.3.2.9 Rest of Western Europe
13.4 Asia-Pacific
13.4.1 China
13.4.2 India
13.4.3 Japan
13.4.4 South Korea
13.4.5 Vietnam
13.4.6 Singapore
13.4.7 Australia
13.4.8 Rest of Asia Pacific
13.5 The Middle East & Africa
13.5.1 Middle East
13.5.1.1 UAE
13.5.1.2 Egypt
13.5.1.3 Saudi Arabia
13.5.1.4 Qatar
13.5.1.5 Rest of the Middle East
13.5.2 Africa
13.5.2.1 Nigeria
13.5.2.2 South Africa
13.5.2.3 Rest of Africa
13.6 Latin America
13.6.1 Brazil
12.6.2 Argentina
13.6.3 Colombia
13.6.4 Rest of Latin America
14. Company Profiles
14.1 Cisco Systems, Inc.
14.1.1 Company Overview
14.1.2 Financial
14.1.3 Products/ Services Offered
14.1.4 SWOT Analysis
14.1.5 The SNS View
14.2 Juniper Networks, Inc.
14.2.1 Company Overview
14.2.2 Financial
14.2.3 Products/ Services Offered
14.2.4 SWOT Analysis
14.2.5 The SNS View
14.3 IBM Corporation
14.3.1 Company Overview
14.3.2 Financial
14.3.3 Products/ Services Offered
14.3.4 SWOT Analysis
14.3.5 The SNS View
14.4 NEC Corporation
14.4.1 Company Overview
14.4.2 Financial
14.4.3 Products/ Services Offered
14.4.4 SWOT Analysis
14.4.5 The SNS View
14.5 VMware Inc.
14.5.1 Company Overview
14.5.2 Financial
14.5.3 Products/ Services Offered
14.5.4 SWOT Analysis
14.5.5 The SNS View
14.6 Aryaka Networks, Inc.
14.6.1 Company Overview
14.6.2 Financial
14.6.3 Products/ Services Offered
14.6.4 SWOT Analysis
14.6.5 The SNS View
14.7 AT&T, Inc.
14.7.1 Company Overview
14.7.2 Financial
14.7.3 Products/ Services Offered
14.7.4 SWOT Analysis
14.7.5 The SNS View
14.8 Alcatel Lucent S.A
14.8.1 Company Overview
14.8.2 Financial
14.8.3 Products/ Services Offered
14.8.4 SWOT Analysis
14.8.5 The SNS View
14.9 Brocade Communication Systems, Inc
14.9.1 Company Overview
14.9.2 Financial
14.9.3 Products/ Services Offered
14.9.4 SWOT Analysis
14.9.5 The SNS View
14.10 Ciena Corporation
14.10.1 Company Overview
14.10.2 Financial
14.10.3 Products/ Services Offered
14.10.4 SWOT Analysis
14.10.5 The SNS View
15. Competitive Landscape
15.1 Competitive Benchmarking
15.2 Market Share Analysis
15.3 Recent Developments
15.3.1 Industry News
15.3.2 Company News
15.3.3 Mergers & Acquisitions
16. Use Case and Best Practices
17. Conclusion
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