Network as a Service Market Overview by 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.
Strategic Insights
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 Report Scope
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
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Application, Vertical, Enterprise Size, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
North America dominated the Network as a service market in 2023.
The rapid adoption of cloud computing network virtualization and remote work norms are expected to drive the Network as a Service market.
Multi-cloud connectivity and software-defined networking are likely to remain key trends in the market.
XAmdocs, Palo Alto, Megaport, Cisco Systems Inc., Cloudflare, Akamai, AT&T Inc., DXC Technology Company, Verizon Communications Inc., Synnex Corporation, Hewlett Packard Enterprise Co., NEC Corporation, IBM Corporation, Juniper, Aryaka, Perimeter 81, Cloudflare, Prisma Cloud, Arista, Alcatel-Lucent, CBTS are among the leading payers operating in the Network as a service market.
The Network as a service market size is projected to reach US$ 103.94 billion by 2031
The Network as a service market is expected to register a CAGR of 31.6% during 2023–2031
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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