Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for Network as a Service is growing due to security issues. NaaS is a straightforward and efficient network service paradigm enabling companies to manage their network infrastructure easily. Businesses benefit from having dependable and powerful network infrastructure management security. Network providers (NaaS) provide a wide range of network security services, such as secure web gateway, secure DHCP/IPAM/DDI/Domain Name System (DNS)/DDI/DDI, DDoS protection, and zero-trust network access.
The epidemic has forced businesses to implement remote work options for their employees and migrate workloads to the cloud. As a result, the need for network security has skyrocketed in order to protect networks from online attacks. With TLS protocols like IPSec, SSL, and Wireguard, traffic is routed through a tunnel with strong encryption as part of NaaS's comprehensive network infrastructure protection.
Large, small, and medium-sized businesses increasingly demonstrate a significant need in the NaaS market for networking technology to support remote workers. The industry's growing economic market potential is due to the shift towards subscription-based payment methods, on-demand network services, and cheaper capital expenditure. Using the internet, the network as a service (NaaS) is delivered through the cloud-based business model. Wide Area Networking (WAN), Virtual Private Networks (VPN), Bandwidth on Demand (BoD), custom routing, content monitoring and filtering, multicast protocols, security services, and other applications are just a few of the additional and versatile services that NaaS provides.
Some end-user industry companies are also implementing networks as a service to automate their business operations in the healthcare, manufacturing, and retail sectors. For instance, In February 2021, The long-standing strategic partnership between Verizon Business and Cisco System, Inc. has expanded to provide three SD-WAN-managed service choices. Corporate firms benefit from this growth by gaining a worldwide footprint, access to fresh ideas and expertise, and a cutting-edge management and policy administration strategy to enhance organizational results. Thus, driving the Network as a Service market revenue.
Based on type, the Network as a Service market segmentation includes LAN and WAN. The WAN segment dominated the market, accounting for 65% of market revenue. It is a wide area network (WAN) paradigm built on the cloud intended to replace historical WAN, which depends on the hardware. It uses complicated-to-manage communication technologies like multiprotocol label switching (MLPS). As WANaaS is provided over the cloud, physical equipment is replaced. With just a program and a basic internet connection, The Verticals can configure WAN. Large to mid-size businesses can benefit from WANaaS since it allows quick deployments, improves user productivity and experience, and lowers expenses.
Based on Service, the Network as a Service market segmentation includes WAN Connection, Data Centers, and BOD. The WAN Connection category generated the most income. Due to the acceptance of deployment and integration types across industrial verticals, the information middle networking solution will perform well at some point.
Based on components, the Network as a Service market segmentation includes infrastructure and technology services. The infrastructure segment held the majority share in 2022, contributing around ~67% concerning the Network as a Service market revenue. Network service providers and cloud providers offer networking services for networking and network security resources like VPN, WAN, and firewall. Customers may manage and use their Network without having to maintain network infrastructure, and it optimizes resource allocation and computing resources as a single, integrated module.
End User have bifurcated the Network as a Service market data into IT & Telecommunication, BFSI, and Healthcare. The IT & Telecommunication segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2023-2030. Increased use cases, cloud services, and IT infrastructure are all credited with the rise. In IT and telecommunications, network infrastructure is crucial because it reduces the digital divide by providing rapid network services and finding cost-effective solutions to bandwidth shortage issues. The shared active and passive infrastructure makes high-speed internet access possible, enabling networks to grow commercially. The 5G network's key building blocks are network-as-a-service solutions, and the NaaS platform is expected to be widely adopted by the telecommunications industry..
Figure 1: Network as a Service Market, by End User, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Network as a Service market area will dominate this market; The United States is a developed country with a strong propensity for adopting and implementing cutting-edge technology, developing network automation, and increasing the use of cloud-based services, all of which have a positive impact on the Network as a Service (NaaS) industry. As providers release hybrid products that incorporate software, cloud intelligence, and the flexibility to control on-premises hardware, most IT teams will probably embrace NaaS more frequently over the next five or so years. The need for improved network services is rising due to the significant expansion of connected and mobile devices. The area had the greatest uptake of linked devices since the United States consistently led the world in adopting new technologies.
Further, the major countries studied in the market report are The U.S., France, the UK, Italy, China, Japan, India, Spain, Canada, Australia, German, South Korea, and Brazil.
Figure 2: NETWORK AS A SERVICE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Network as a Service market accounts for the second-largest market share because of adoption procedures, growing awareness, and worries about network service. Further, The greatest market share for Germany Network as a Service, and the UK Network as a Service market was the fastest-growing market in the European region.
From 2023 to 2032, the fastest CAGR is anticipated in the Asia-Pacific Network as a Service Market. The rise is due to the region's start-ups' use of cloud services, including SaaS, PaaS, and NaaS, as well as the rising penetration of cloud computing services. A large and diverse client base in India and China fuels demand and produces new NaaS prospects. Moreover, China's Network as a Service market held the largest market share, and the Indian Network as a Service market was the fastest-growing market in the Asia-Pacific region.
Prominent industry participants are spending a lot of money on R&D to broaden their product offerings, which will spur further expansion of the Network as a Service market. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to broaden their worldwide reach. For the Network as a service industry to expand and prosper in a market that is becoming more difficult and competitive, it must offer reasonably priced goods.
One of the key business strategies manufacturers use in the worldwide Network as a Service industry to assist customers and expand the market sector is local manufacturing to reduce operating costs. Some of the biggest medical benefits in recent years have come from the Network as a service industry. Major players in the Network as a Service market, including VMware Inc, Telstra, and others, are attempting to increase market demand by investing in research and development operations.
With headquarters in Palo Alto, California, VMware, Inc. is an cloud computing and virtualization technology business. The x86 architecture was virtualized for the first time by a commercially successful firm, VMware. VMware's desktop software supports Microsoft Windows, Linux, and macOS. In August 2022, According to a press release from VMware Inc., the business has made advancements in its growing networking and security systems that will make it easier for clients to adopt the cloud operating model.
An Australian corporation called Telstra Group Ltd develops and manages telecommunications networks and distributes voice, mobile, internet access, pay television, and other goods and services. In May 2022, Telstra partnered with Prysmian Group to create the first cutting-edge inter-capital fiber network. As part of the multi-year national fiber network project, Telstra will construct a new, "state-of-the-art," intercity dual fiber channel that may add up to 20,000 route kilometers of additional fiber-optic terrestrial cable, increasing capacity for regional areas as well as inter-capital travel.
Brocade Communications Systems Inc.
Alcatel Lucent
Ciena Corporation
IBM Corp.
Juniper Networks
Aryaka Networks Inc.
AT&T
Akamai Technologies announced on March 2023 that it will acquire Ondat, a provider of cloud-based storage technology with a Kubernetes-native system for scaling stateful applications globally. This will boost what Akamai has in terms of cloud computing through the purchase of Ondat’s cloud storage technology and well-known industry experts.
The Fujitsu SD-WAN-as-a-Service for service providers to offer their enterprise clients was introduced by Fujitsu Network Communications, Inc. in January 2022. This is inclusive of Fujitsu Managed Network Service, SDN/NFV Consulting Service combined with Silver Peak Unity EdgeConnectSP SD-WAN system. Instead of developing and rolling out their plans over months, the solution allows service providers to just sell SD-WAN-as-a-Service to their enterprise customers using this Fujitsu tool now. As such, they can now focus on customer acquisition and revenue generation, leveraging this disruptive tech.
Kyndryl—a player in IT infrastructure services—and Cisco entered into a partnership in June 2022 to help businesses become data-driven organizations driven by Cisco technologies and Kyndryl-managed services. Kyndryl and Cisco collaborate in using cloud computing modalities that provide simplified hybrid IT management through increased visibility, manageability as well as flexibility while transforming businesses. Additionally, as per the Kyndryl and Cisco partnership, other private cloud services are emerging alongside network & edge computing solutions complemented by software-defined networking (SDN) solutions plus multiple-network wide area network (WAN) options secured with next-generation security features.
Verizon launched in September 2022 a global Network-as-a-Service (NaaS) alliance with Wipro Ltd., a tech service provider plus consultant, which accelerates business network modernization and move to the cloud. Underpinned by Verizon technology offering from Wipro is its own Network-as-a-Service (NaaS), which comprises many pre-configured proven service chains based on subscription for individual consumers’ network consumption infrastructure when required.
LAN
WAN
WAN Connection
Data Center
BOD
Infrastructure
Technology Service
IT & Telecommunication
BFSI
Healthcare
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 6.0 billion |
| Market Size 2023 | USD 7.464 billion |
| Market Size 2032 | USD 42.8 billion |
| Compound Annual Growth Rate (CAGR) | 16.26% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Service, Component, End User and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Alcatel Lucent (U.S.), Brocade Communications Systems Inc. (U.S.), Ciena Corporation (U.S), Cisco Systems (U.S.), IBM Corp. (U.S.), Juniper Networks (U.S.), NEC Corp. (Japan), VMware (U.S.), Aryaka Networks Inc. (U.S.), AT&T (U.S.) |
| Key Market Opportunities | Rising use of Networking Technologies by SMEs & Large-Scale Organizations |
| Key Market Dynamics | Increase in use of cloud technology |
Network as a Service Market Highlights:
Frequently Asked Questions (FAQ) :
The Network as a Service market size was valued at USD 6.0 Billion in 2022.
The market is projected to grow at a CAGR of 16.26% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are Alcatel Lucent (U.S.), Brocade Communications Systems Inc. (U.S.), Ciena Corporation (U.S), Cisco Systems (U.S.), IBM Corp. (U.S.).
The WAN category dominated the market in 2022.
The IT & Telecommunication had the largest share in the market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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