Network-as-a-service Market Expected to Reach $72.2 Billion by 2031—Allied Market Research

Network-as-a-service, is a cloud service model that allows users to operate networking services from cloud providers instead of building up their network. Network-as-a service eliminates the need for owning or building its networking infrastructure in order to achieve the outcomes. Network-as-a-service carries software-defined networking (SDN), transport, programmable networking, and API-based operation to WAN services, multi-cloud, hybrid cloud, Private Network Interconnect, and Internet Exchanges. Furthermore, growth in demand for low-cost IT infrastructure and faster data accessibility, increasing number of small & medium businesses, and rapid growth of cloud technology are the key factors that drive of the growth of the global network-as-a-service market. Additionally, growth in cloud adoption among SMEs boost the adoption of network-as-a-service market. However, security concerns over private cloud deployment are expected to hinder the growth of the market.

Depending on the enterprise size, the large enterprise segment dominated the network-as-a-service market share in 2021 and is expected to continue this trend during the forecast period, owing to increase in the embracing the IT infrastructure due to rise in complexity in the business operations and need of more visibility, manageability and flexibility, that leads to high competition across industries. However, the SMEs segment is expected to witness the highest growth in the upcoming years, owing to the increase in investments by the market players to develop network-as-a-service for SMEs.

Region-wise, the network-as-a-service market forecast North America to dominate the market in 2021 and is expected to retain its position, owing to the widespread deployment of management systems to monitor attacks on mission-critical communication networks aiding the growth of the network-as-a-service market. However, Asia Pacific is expected to witness significant growth during the forecast period, owing to surge in networks generates the demand for network services, enabling telecom operators to track and control the networks. Moreover, rapid technological advancements, digitization of economies, and government initiatives increased expandable income among the region's middle-income population are the key factor that propel the growth of Asia-Pacific region.

The COVID-19 outbreak has high impact on the growth of network-as-a-service market, as increasing number of smartphone users, growing adoption of connected devices, and surging e-commerce sector provide lucrative opportunities for the growth of the network-as-a-service market. COVID has caused crises in social, economic, and energy areas and medical life worldwide throughout 2020. This crisis had many direct and indirect effects on all areas of society. In the meantime, the digital and artificial intelligence industry can be used as a professional assistant to manage and control the outbreak of the virus. In post-pandemic circumstances, enterprises strived to minimize operational and running costs around all the business functions to recover the losses incurred in COVID times.

The gradual shift from conventional business practices to online platforms resulted in establishing enterprise network services and solutions for efficient centralized management. Therefore, the IT sector played a pivotal role in supporting digital infrastructure. The global demand for NaaS has surged due to work from home during the pandemic. The augmented demand has contributed considerably to the development of cloud networking services leading to increased NaaS market growth during the pandemic. Moreover, licensing and software management components of enterprise networking drive the market growth via subscription.

KEY FINDINGS OF THE STUDY

• By type, the WAN-as-a-service segment accounted for the largest network-as-a-service market share in 2021.
• On the basis of enterprise size, the large enterprise segment generated the highest revenue for network-as-a-service market size in 2021.
• By application, the WAN optimization segment accounts for the largest network-as-a-service market share in 2021.
• On the basis of industry vertical, the IT and telecom segment generated the highest revenue in 2021.
• Region-wise, North America generated the highest revenue in 2021.

The key players profiled in the network-as-a-service market analysis are China Mobile, Cloudflare, Inc, GTT Communications Inc., KDDI Corporation, NTT communications, Tata Communications Ltd, Telefonica, Verizon Communications Inc., Vodafone Group plc, and Wipro Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the network-as-a-service industry.