Network as a Service Market Growth, Size, Share, Trends, Key Players Analysis, and Forecast till 2031

The Network as a service market size is projected to reach US$ 103.94 billion by 2031 from US$ 11.55 billion in 2023. The market is expected to register a CAGR of 31.6% during 2023–2031. Multi-cloud connectivity and software-defined networking are likely to remain key trends in the market.

Network as a Service Market Analysis

An increasing number of organizations see the network as a Service (NAAS) as a logical alternative for a network under their management due to the cost benefits and flexibility. The advantages network as a service delivers are persuasive regarding agility and value. It’s also paramount to recognize that it represents a step change across process, people, and technology. The extensive construction of novel data center infrastructures globally drives the growth of the network as a service market. Numerous factors drive this expansion, including integrating Big Data analytics, growing use of cloud computing technology for data storage, and virtualization within data centers to enhance workload mobility. These developments have improved resource utilization, lower overall costs, higher availability, and augmented security and reliability for critical business applications. Thus, the network as a service market is growing.

Network as a Service Market Overview

Network as a service is a cloud delivery model that streamlines business operations. It enables flexibility and the ability to transition from capital expenditure (CapEx) to operating expense (OpEx). This allows organizations to realize expected outcomes without the need to own, build, or maintain infrastructure. Network as a service gives businesses more flexibility and the opportunity for improved network performance. Organizations can emphasize cost-effectiveness by paying for the precise networking services requested via on-demand purchases. Network as a service also enables businesses to require more flexibility without redoing their contract or network.

The growth is accredited to the increasing network deployment as a service, as it is low-cost and provides greater scalability. Rising demand for widespread and high-speed network coverage and growing implementation and adoption of the cloud for data storage are significant factors fueling the growth. The rising deployment of public networks as a service in several verticals, such as manufacturing, BFSI, retail, and transportation & logistics, contributes positively to the growth of the web as a service market.

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Network as a Service Market Drivers and Opportunities

Rapid Adoption of Cloud Computing and Network Virtualization to Favor the Market

Data collected on numerous social and digital platforms has significantly increased due to the implementation of cloud computing and network virtualization services. In cloud computing, network as a service provides pluggable, scalable, and API-driven network management that allows clients to construct and operate their networks online. Network and service is a networking framework that extends to network service providers' self-service and on-demand provisioning models of cloud computing. Therefore, expanding cloud computing implementation positively impacts the network as a service market expansion. The industry is increasing at a tremendous growth rate due to technological developments and customers’ inclination in the direction of cloud-managed network services.

Businesses are implementing network services to aid effective resource utilization, minimalize capital investment, improve service quality, and increase uptime. Network as a service allows customers/users to rent networking services from cloud providers. It is a cloud model providing networking services through the internet on a (pay-per-use) subscription model. The growing use of technology and customer preference for remote data access boosts the amplified need for cloud-based solutions. Companies understand the resource and cost savings benefits of migrating to the cloud instead of maintaining on-premise infrastructure, leading to augmented adoption among SMEs and large corporations. During the forecast period, cloud computing and virtualization will lower software setup costs and hardware utilization. Thus, the network as a service market is expected to grow during the forecast period.

SME Market Penetration

For small and medium-sized businesses (SMEs) and startups with low capital resources, the cost of obtaining and maintaining networking infrastructure can be a significant barrier to entry. NaaS overcomes this barrier by transferring responsibility for hardware investments to the service provider. In addition to lowering upfront costs, NaaS reduces continuing operating costs associated with maintaining, updating, and troubleshooting networking infrastructure. Another feature of cost-efficiency is NaaS's subscription-based nature, which gives organizations predictable monthly or annual charges, making budgeting easier and more precise.

Network as a Service Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Network as a service market analysis are type, application, vertical, and enterprise size.

• Based on type, the Network as a service market is divided into WANaaS and LANaaS. The WANaaS segment held a larger market share in 2023.
• By application, the market is segmented into UCaaS/video conferencing, network access control, virtualized private network (VPN), WAN optimization cloud and SaaS connectivity, multi-branch connectivity, bandwidth on demand, secure web gateway, and others.
• By vertical, the market is segmented into BFSI, IT & telecommunication, retail, media and entertainment, manufacturing, healthcare, government, education, and others.
• By enterprise size, the market is segmented into Large Enterprises and SMEs.

Network as a Service Market Share Analysis by Geography

The geographic scope of the Network as a service market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

North America dominated the network as a service market with the principal revenue share in 2022, accredited to the speedy adoption of network-as-a-service solutions. The essential driving factor is the presence of substantial market players such as Amdocs, Palo Alto, Akamai, Megaport, and Cisco Systems Inc., which have boosted the network as a service market growth. Significant companies are investing profoundly in the research and development of network infrastructure, and data centers contribute to market growth. Additionally, the substantial adoption of cloud-based and IoT services drives market growth. Organizations and businesses are changing their conventional network infrastructure to network virtualization solutions, progressive IT infrastructure, and cloud computing services. The telecommunication and cloud providers are implementing cloud platforms to eradicate the compound network setup management. Thus, the market is expected to grow during the forecast period.

Network as a Service Market Regional Insights

The regional trends and factors influencing the Network as a Service Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Network as a Service Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Network as a Service Market Report Scope

Network as a Service Market Players Density: Understanding Its Impact on Business Dynamics

The Network as a Service Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Network as a Service Market are:

1. XAmdocs
2. Palo Alto
3. Megaport
4. Cisco Systems Inc.
5. Cloudflare
6. Akamai

Disclaimer: The companies listed above are not ranked in any particular order.

Network as a Service Market News and Recent Developments

The Network as a service market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Network as a service market are listed below:

• Akamai Technologies announced an agreement to acquire a cloud-based storage technology provider, Ondat, with a Kubernetes-native platform for running stateful applications anywhere at scale. Acquiring Ondat's cloud storage technology and industry-recognized talent will strengthen Akamai's cloud computing offerings. (Source: Akamai Technologies, Newsletter, March 2023)
• Verizon announced the launch of a global network as a service relationship with technology services and consulting firm Wipro Ltd to speed up cloud transformation and enterprises' network modernization. Wipro's network as a service solution, powered by Verizon, includes a variation of pre-configured and proven service chains on a subscription-based model. (Source: Verizon, Newsletter, September 2022)

Network as a Service Market Report Coverage and Deliverables

The “Network as a Service Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Network as a service market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Network as a service market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Network as a service market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Network as a service market
• Detailed company profiles