Global Network-as-a-Service (NaaS) Market, By Type (Local Area Network and Wireless Local Area Network, Wide Area Network, Communication and Collaboration, and Network Security), Organization Size (Large Enterprises and Small and Medium-Sized Enterprises), Application (Ucaas/Video Conferencing, Virtual Private Network, Cloud and SaaS Connectivity, Bandwidth on Demand, Multi-Brach Connectivity, Wan Optimization, Secure Web Gateway, Network Access Control, and Other Applications), End User (Banking, Financial Services, and Insurance, Manufacturing, Retail and E-commerce, Software and Technology, Media and Entertainment, Healthcare, Education, Government, and Others End Users) – Industry Trends and Forecast to 2031.
Network-as-a-Service (NaaS) Market Analysis and Size
In the realm of enterprise networking, Network-as-a-Service (NaaS) revolutionizes the way businesses establish and manage their network infrastructure. Offering networking services as a subscription-based model, NaaS eliminates the need for extensive capital investments in physical hardware and simplifies network management tasks. Enterprises can easily scale their network resources up or down based on demand, ensuring optimal performance and cost-efficiency. NaaS empowers organizations to swiftly deploy and configure network services, facilitating seamless connectivity between various branches, remote offices, and distributed workforce.
The global network-as-a-service (NaaS) market size was valued at USD 11.56 billion in 2023 and is projected to reach USD 104.66 billion by 2031, with a CAGR of 31.70% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024-2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Type (Local Area Network and Wireless Local Area Network, Wide Area Network, Communication and Collaboration, and Network Security), Organization Size (Large Enterprises and Small and Medium-Sized Enterprises), Application (Ucaas/Video Conferencing, Virtual Private Network, Cloud and SaaS Connectivity, Bandwidth on Demand, Multi-Brach Connectivity, Wan Optimization, Secure Web Gateway, Network Access Control, and Other Applications), End User (Banking, Financial Services, and Insurance, Manufacturing, Retail and E-commerce, Software and Technology, Media and Entertainment, Healthcare, Education, Government, and Others End Users)
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Countries Covered
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U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America
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Market Players Covered
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Oracle (U.S.), IBM (U.S.), Cisco (U.S.), Telefonaktiebolaget LM Ericsson (Sweden), Verizon (U.S.), Huawei Technologies Co., Ltd. (China), AT&T Intellectual Property. (U.S.), BT (U.K.), Telefónica S.A. (Spain), T-Systems International GmbH. (Germany), NEC Corporation (Japan), NTT Corporation. (Japan), Orange Business Services (France), FUJITSU (Japan), Lumen Technologies. (U.S.), Masergy Communications, Inc. (U.S.), Colt Technology Services Group Limited (U.K.), Telstra (Australia), CommScope, Inc. (U.S.), and Singtel (Singapore)
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Market Opportunities
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Market Definition
Network-as-a-Service (NaaS) is a cloud-based networking model where networking resources are provided to users on-demand as a subscription service. It allows businesses to access and utilize networking services, such as bandwidth, routing, and security, without the need for owning and managing physical network infrastructure, offering flexibility, scalability, and cost-effectiveness.
Network-as-a-Service (NaaS) Market Dynamics
Drivers
- Growing Technological Advancements
Innovations such as software-defined networking (SDN), network function virtualization (NFV), and edge computing enable NaaS providers to offer more agile, scalable, and adaptable services. These advancements empower organizations to leverage cutting-edge networking technologies without the burden of managing complex hardware infrastructure, thereby increasing operational agility and reducing costs. Emerging technologies like artificial intelligence (AI) and machine learning (ML) are being integrated into NaaS offerings to optimize network performance, enhance security, and automate management tasks, further fueling market expansion.
- Increased Scalability Leads
NaaS solutions offer businesses the ability to effortlessly scale their network resources in response to changing demands, ensuring optimal performance and resource utilization. This agility enables organizations to adapt quickly to evolving business needs, whether expanding operations, accommodating seasonal fluctuations, or integrating new technologies. Moreover, NaaS platforms provide the flexibility to customize networking services according to specific requirements, empowering businesses to tailor their infrastructure to meet unique needs without the constraints of traditional hardware-based solutions. This inherent scalability and flexibility inherent in NaaS solutions enhance operational efficiency, drive innovation, and foster business growth in dynamic and competitive environments.
Opportunities
- Enhanced Security Expands Usage of Network-as-a-Service
Network-as-a-service providers furnish advanced security protocols, such as encryption, firewalls, and intrusion detection systems, fortifying network infrastructure against cyber threats. Leveraging NaaS, organizations benefit from centralized security management, ensuring consistent enforcement of policies across their entire network environment. Moreover, NaaS empowers rapid responses to emerging security threats through real-time monitoring and integration of threat intelligence.
- Rising Demand for Network-as-a-Service Driven by Cost Efficiency
Businesses can minimize capital expenditures associated with purchasing and maintaining traditional networking hardware by adopting NaaS solutions. Consumers pay on a subscription basis, reducing upfront costs and allowing for more predictable budgeting. NaaS enables organizations to scale their network resources according to demand, optimizing resource utilization and avoiding overprovisioning. This cost-effective model empowers businesses to allocate their financial resources more strategically, redirecting savings towards innovation and core business activities, thereby driving overall operational efficiency and competitiveness in the market.
Restraints/Challenges
- High Integration Complexity limits the Adoption of Network-as-a-Service
Adopting NaaS solutions often requires seamless integration with existing IT infrastructure, which can be challenging and time-consuming. Organizations may encounter compatibility issues between NaaS platforms and legacy systems, necessitating extensive modifications or customizations. The complexity of integration processes can lead to delays in deployment and incur additional costs for businesses. Moreover, ensuring interoperability between diverse networking components and third-party applications may require specialized expertise, further complicating the integration process and inhibiting widespread adoption of NaaS solutions.
- Growing Regulatory Compliance Hampers the Growth of Network-as-a-Service
Organizations, especially those in highly regulated industries such as finance and healthcare, face stringent data protection laws and industry-specific regulations. Ensuring that NaaS solutions adhere to these compliance requirements can be challenging, particularly concerning data privacy, security, and residency. The complexity of regulatory landscapes across different regions and jurisdictions further complicates compliance efforts, potentially limiting the adoption of NaaS among enterprises subject to strict regulatory oversight.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Recent Developments
- In 2022, Orange Business Services launched Manage-Watch, a comprehensive network supervision solution aimed at ensuring end-to-end monitoring. It prioritizes security, user experience, and performance across various network components, including edge, equipment, and applications, catering to diverse consumer needs
- In 2022, Cisco expanded its collaboration with General Dynamics Information Technology to offer Cisco Private 5G services tailored for government entities. This collaboration delivers intuitive private 5G solutions specifically designed for IoT and edge applications within governmental environments, enhancing connectivity and operational efficiency
- In 2022, Telstra and Prysmian Group collaborated on a groundbreaking project to develop an advanced inter-capital fiber network. Spanning multiple years, this initiative involves the deployment of up to 20,000 route kilometers of new fiber-optic terrestrial cable, significantly improving inter-capital connectivity and reinforcing regional capacity for enhanced communication and data transmission
Network-as-a-Service (NaaS) Market Scope
The market is segmented on the basis of component, type, organization size, application, and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Type
- Local Area Network and Wireless Local Area Network
- Wide Area Network
- Communication and Collaboration
- Network Security
Organization Size
- Large Enterprises
- Small and Medium-Sized Enterprises
Application
- Ucaas/Video Conferencing
- Virtual Private Network
- Cloud and SaaS Connectivity
- Bandwidth on Demand
- Multi-Brach Connectivity
- Wan Optimization
- Secure Web Gateway
- Network Access Control
- Other Applications
End User
- Banking
- Financial Services
- Insurance
- Manufacturing
- Retail and E-commerce
- Software and Technology
- Media and Entertainment
- Healthcare
- Education
- Government
- Others End Users
Network-as-a-Service (NaaS) Market Region Analysis/Insights
The market is analysed and market size insights and trends are provided by country, type, organization size, application, and end user as referenced above.
The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.
Asia-Pacific is expected to grow in the market due to robust development activities in burgeoning economies such as India and China. As these countries continue to expand their infrastructures, there's a growing need for networking solutions that are not only flexible but also scalable to accommodate their evolving requirements. This demand for adaptable networking infrastructure is expected to drive significant growth opportunities in the region's networking sector.
North America is expected to dominate, primarily fueled by extensive research and development endeavors. The region's commitment to technological progress, especially in expanding networks, positions it at the forefront in terms of revenue and market share. With a strong emphasis on innovation and infrastructure expansion, North America remains a pivotal hub driving the evolution and adoption of NaaS solutions, solidifying its dominance in the global market.
Europe is expected to experience in the market due to a concerted effort to digitize mining industries, supported by favorable government policies. The region's commitment to implementing digital mining technologies results in significant advancements, positioning Europe as a leader in the sector. This success underscores the pivotal role of collaboration between industry and government in driving innovation and sustainability in mining practices.
The country section of the global sales force automation software market report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as consumption volumes, production sites and volumes, import export analysis, price trend analysis, cost of raw materials, down-stream and upstream value chain analysis are some of the major pointers used to forecast the market scenario for individual countries. Also, presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Network-as-a-Service (NaaS) Market Share Analysis
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.
Some of the major players operating in the market are:
- Oracle (U.S.)
- IBM (U.S.)
- Cisco (U.S.)
- Telefonaktiebolaget LM Ericsson (Sweden)
- Verizon (U.S.)
- Huawei Technologies Co., Ltd. (China)
- AT&T Intellectual Property. (U.S.)
- BT (U.K.)
- Telefónica S.A. (Spain)
- T-Systems International GmbH. (Germany)
- NEC Corporation (Japan)
- NTT Corporation. (Japan)
- Orange Business Services (France)
- FUJITSU (Japan)
- Lumen Technologies. (U.S.)
- Masergy Communications, Inc. (U.S.)
- Colt Technology Services Group Limited (U.K.)
- Telstra (Australia)
- CommScope, Inc. (U.S.)
- Singtel (Singapore)
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