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The network as a service market size is forecast to increase by USD 37.51 billion at a CAGR of 27.17% between 2023 and 2028. Market growth hinges on several factors, notably the escalating enterprise adoption of cloud services such as cloud infrastructure. This trend is propelled by the inherent reliability and security that cloud platforms offer for critical business applications. Additionally, there is a growing necessity for expansive and high-speed network coverage to meet the demands of modern digital ecosystems. As businesses increasingly rely on cloud-based solutions for their operations, the market is expanding rapidly. These factors underscore the pivotal role of cloud storage services in reshaping contemporary business landscapes, offering scalability, security, and efficiency to enterprises across various industries.
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The IT and Telecom segment is estimated to witness significant growth during the forecast period. Factors such as the proliferation of business services, the demand for improved customer experience, and the need for regulatory compliance requirements are increasing the adoption of network-as-a-service solutions by IT and telecom companies. Telecommunications companies are seeing a significant increase in data volumes due to the increased adoption of cloud computing and increased use of smartphones and IoT-based connected devices.
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The IT and Telecom segment was valued at USD 2.0 billion in 2018. Companies use network-as-a-service solutions to leverage data for churn forecasting, prospect segmentation, revenue forecasting, fraud detection and prevention, and pricing suggestions. Thus, companies can deliver a high level of service to more informed and demanding customers. Such factors are boosting the market growth.
North America is estimated to contribute 34% to the growth of the global market during the forecast period. North America has a highly developed telecommunication infrastructure, further driving the demand for network as a service. The region is home to some of the largest technology companies in the world, including Cisco Systems Inc and International Business Machines Corp, which are major players in the market.
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The increasing demand for network management solutions that can support the digital transformation initiatives of organizations is propelling market growth. Companies invest heavily in digital technologies to improve business operations and deliver better customer experiences. Network as a service solution plays a crucial role in enabling the seamless integration of these technologies into the existing IT infrastructure. Thus, the expanding IT infrastructure will positively impact the growth of the regional network as a service market during the forecast period.
The market transforms IT sectors by offering WAN connections through the Public Cloud, enhancing connectivity for industrial and commercial operations. NaaS supports Internet of Things (IoT), addressing evolving connectivity needs in the IT sector. As businesses embrace NaaS solutions, scalability and efficiency in network management become crucial for optimizing operations and driving digital transformation. The market is driven by providers like Verizon, Lumen, and Comcast Business, offering solutions for the hybrid working model. It supports enterprise IT needs with project management and organizational resources. NaaS facilitates remote monitoring and enhances project operations in various sectors including engineering and construction. Providers like SingTel Cloud offer NaaS in IT and other service sectors through a subscription model. It optimizes IT operations through operational automation while managing cost structure and mitigating operational risks.
The market is on the rise due to the growing adoption of cloud services by businesses. This is driven by increased technology use and a rising preference for cloud-based solutions, which offer easy remote data access. Enterprises, both large and small, are indeed recognizing the cost-saving benefits of transitioning their data to the cloud instead of maintaining on-premise infrastructure. This transition often involves operational automation to streamline processes, optimize cost structures, and allocate organizational resources more efficiently, leading to improved project operations.
In 2022, over 60% of corporate data was already in the cloud, and this trend is expected to continue as companies prioritize security, reliability, and business agility. Key sectors like banking are expected to increasingly embrace cloud-based services, boosting the NaaS market's growth in the forecast period.
Increasing inclination toward cloud technology is the primary trend in the market growth. Increasing investments and vendor collaborations in cloud computing, software-defined networking (SDN), and network virtualization by major vendors are driving the growth of the market. For instance, in March 2021, SDx Networks and Masergy Communications Inc. came into a partnership to launch the next generation of ICT-managed service providers in Australia. This partnership offers cloud networking in Asia Pacific, New Zealand, and Australia. Large corporations and SMEs are progressively adopting cloud-based services as they are more cost-effective than keeping an on-premises data center and a costly IT resource to manage the whole network of an organization. Businesses need networks that can access their applications, infrastructure, and other IT resources when they need them.
As such, the adoption of virtual frameworks for sharing resources is widespread. Organizations use networks as service components to transform physical network elements into sharable virtual resources for their data center connectivity needs. Most companies are looking to centralize operations and combine data from different locations in multi-tenant facilities. As a result, organizations are moving to cloud-based platforms for their operations. Hence, the increasing trend toward cloud technology will have a positive impact on the growth of the market during the forecast period.
The rising complexity of modern networks is a major challenge to the growth of the market. As networks grow larger, more diverse, and more distributed, they become more difficult to manage and monitor. This calls for more advanced network service solutions that provide greater network visibility and control. Modern networks generate vast amounts of data, including network traffic, device configurations, and performance metrics. Network as a Service must be able to process and analyze this data to identify problems and ensure optimal network performance. With the advent of IoT, there are many devices and endpoints to manage your network.
These devices have different configurations, protocols, and security requirements, making network management more complicated. This creates a constantly changing network topology that requires continuous monitoring and management, which makes it challenging to manage the networks. Cloud-based infrastructure is becoming more common and can be more difficult to manage than traditional on-premises infrastructure. Network as a service must be able to monitor and manage cloud-based resources and on-premises resources. Thus, the increasing complexity of modern networks may restrain the growth of the market during the forecast period.
The Network as a Service Market is fragmented in nature. Some significant players include Akamai Technologies Inc., AppsFlyer Ltd., Cisco Systems Inc., DATADOME group, Forter Ltd.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including Human Security Inc., Imperva Inc., InfiSecure Technologies Inc., Intechnica Ltd., Kasada Pty Ltd., Microsoft Corp., Nokia Corp., Oracle Corp., Pixalate Europe Ltd., Reblaze Technologies Ltd., Shape Software Inc., Six Dee Netad Solutions Pvt. Ltd., Stealth Network Services, Telstra Ltd., The Drupal Association, Variti International GmbH, and VMware Inc.
The Network as a Service market research and growth report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The Network as a Service market is shaped by regulatory compliances and business objectives, catering to WAN connections and data-center connectivity. It emphasizes network security infrastructure for public, private, and hybrid cloud environments, including Wi-Fi integration. NaaS offers a perspective that benefits small vendors and supports services like SaaS PPM and business process management. It includes application lifecycle management and ensures secure VPN and firewall services. NaaS also encompasses SD-Branch and SD-WAN for efficient cloud-based networking. However, challenges such as a lack of standardization and complex deployment procedures persist, necessitating API-based operation and hybrid cloud distribution. The market requires skilled cybersecurity professionals to manage operations effectively. The market is pivotal in modern IT sectors, offering WAN connections through Public and Private Cloud deployments.
In addition, talent Works' workforce happiness index survey highlights the importance of NaaS in enhancing operational efficiency via wireless communication, benefiting industrial, commercial operations, and logistics. NaaS integrates machine-to-machine communication and supports IoT deployments in the utilities, hospitality, and transportation sectors. It caters to the Telecommunications Cloud with IT Optimization through flexible product features. As businesses increasingly adopt NaaS solutions, scalability and cost-effectiveness become paramount, driving innovation in service delivery models and network management. This dynamic market addresses evolving connectivity needs, empowering enterprises to streamline operations and leverage advanced networking capabilities for sustained growth and competitiveness in a digital-first environment.
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Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 27.17% |
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Market growth 2024-2028 |
USD 37.51 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
20.99 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 34% |
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Key countries |
US, China, UK, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Akamai Technologies Inc., AppsFlyer Ltd., Cisco Systems Inc., DATADOME group, Forter Ltd., Human Security Inc., Imperva Inc., InfiSecure Technologies Inc., Intechnica Ltd., Kasada Pty Ltd., Microsoft Corp., Nokia Corp., Oracle Corp., Pixalate Europe Ltd., Reblaze Technologies Ltd., Shape Software Inc., Six Dee Netad Solutions Pvt. Ltd., Stealth Network Services, Telstra Corp. Ltd., The Drupal Association, Variti International GmbH, and VMware Inc. |
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Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period.
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this Network as a Service market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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