Network as a Service Market 2024-2032 Analysis: Trends, Competitor Dynamics, and Growth Opportunities

Key Insights

The Network as a Service Market size was valued at USD 13.63 USD billion in 2023 and is projected to reach USD 113.13 USD billion by 2032, exhibiting a CAGR of 35.3 % during the forecast period. The growth of the market can be attributed to the increasing adoption of cloud-based services, the need for flexible and scalable network infrastructure, and the growing demand for bandwidth on demand. Network-as-a-service (NaaS) is a cloud service model under which customers rent networking services from the cloud providers. NaaS gives customers an opportunity to run their own networks and thus skip the process of maintaining their own infrastructure. NaaS helps in dethroning hardware-centric VPNs, load balancers, firewall appliances, and MPLS connections. Users will be able to use as much or as little resources as needed, quickly roll out services without hardware expenses. IT network as a service (NaaS) is a new model for the companies to procure network infrastructure through OpEx (operating expense) subscriptions, which include hardware, software, management tools, licenses, and lifecycle services. Through NaaS, organizations can switch from in-house network provisioning, deployment, network management, maintenance, and lifecycle management to outsourcing these functions. 

Network as a Service Trends

• Increasing adoption of cloud-based services: The growing popularity of cloud-based services has led to an increase in the demand for NaaS, as it provides a cost-effective and flexible way to connect to cloud-based applications.
• Need for flexible and scalable network infrastructure: The need for flexible and scalable network infrastructure is driving the growth of the NaaS market, as it allows businesses to quickly and easily adjust their network capacity to meet changing needs.
• Growing demand for bandwidth on demand: The growing demand for bandwidth on demand has led to an increase in the demand for NaaS, as it provides a cost-effective way to access additional bandwidth when needed.

Driving Forces: What's Propelling the Network as a Service Market

• Accelerating digital transformation, leading to a surge in cloud adoption and edge computing.
• Growing demand for cost-effective and agile network solutions, fueling the adoption of NaaS.
• Advancements in 5G and software-defined networking (SDN), enabling flexible and high-performance networks.
• Increased reliance on managed network services to reduce operational overheads and improve network resiliency.
• Growing awareness of cybersecurity concerns, driving the demand for secure NaaS solutions.

Challenges and Restraints in Network as a Service Market

• Security concerns: Security concerns are a major challenge for the NaaS market, as businesses are concerned about the security of their data when using a third-party provider.
• Lack of awareness: Lack of awareness about NaaS is a major restraint for the market, as many businesses are not aware of the benefits of NaaS.
• High cost: The high cost of NaaS can be a deterrent for some businesses, as it can be more expensive than traditional network services.

Emerging Trends in Network as a Service

• Software-defined networking (SDN): SDN is an emerging trend in the NaaS market, as it allows businesses to program their network infrastructure to meet their specific needs.
• Network function virtualization (NFV): NFV is an emerging trend in the NaaS market, as it allows businesses to virtualize their network functions to improve flexibility and scalability.
• Artificial intelligence (AI): AI is an emerging trend in the NaaS market, as it can be used to automate network management and improve network performance.

Growth Catalysts in Network as a Service Industry

• Growing adoption of cloud-based services
• Need for flexible and scalable network infrastructure
• Government initiatives to promote digital transformation
• increasing demand for managed network services

Market Segmentation: Network as a Service Analysis

Type:

• WAN as a Service
• LAN as a Service

Enterprise Type:

• Small and Medium-sized Enterprise
• Large Enterprise

Application:

• Wide Area Network
• Virtual Private Network
• Cloud-based Services
• Bandwidth on Demand
• Others

End User:

• Corporate Customers
• Individual Customers

Industry:

• Corporate Customers (BFSI, IT & Telecommunication, Manufacturing, Healthcare, Retail, Others

Leading Players in the Network as a Service Market

• Amdocs Inc. (U.S.) 
• Amazon Web Services, Inc. (U.S.) 
• Megaport Limited (Australia) 
• Hewlett Packard Enterprise (Aruba Networks) (U.S.) 
• NEC Corporation (Japan) 
• ARTERIA Networks Corporation (Japan) 
• NTT Group (Japan) 
• Cisco Systems Inc. (U.S.) 
• Cloudflare, Inc. (U.S.) 
• Verizon Communications Inc. (U.S.) 

Significant developments in Network as a Service Sector

• In January 2023, Amazon Web Services (AWS) announced the launch of AWS Network Firewall, a managed network firewall service that helps protect applications and data in the cloud.
• In February 2023, Cisco Systems announced the acquisition of ThousandEyes, a provider of network monitoring and performance analytics solutions, to enhance its NaaS offerings.
• In March 2023, Microsoft announced the launch of Azure Virtual WAN, a managed wide area network service that provides secure and scalable connectivity to cloud and on-premises resources.

Comprehensive Coverage Network as a Service Market Report

The comprehensive Network as a Service Market report offers an in-depth analysis of the market, including the latest trends, drivers, and challenges shaping its growth. It provides a detailed segmentation of the market based on various factors, such as service type, network type, deployment model, and industry vertical. The report also features a competitive landscape analysis, highlighting the key players in the market, their market share, strategies, and financial performance. Additionally, the report provides valuable insights into the future prospects of the Network as a Service market, including growth projections and emerging opportunities.

Regional Insight

The North America region is expected to dominate the global NaaS market throughout the forecast period, owing to the early adoption of cloud-based services and the presence of a large number of technology companies in the region. The Asia Pacific region is expected to witness the fastest growth during the forecast period, owing to the increasing adoption of NaaS by small and medium-sized enterprises in the region.

Recent Mergers & Acquisition

• In January 2023, Cisco Systems acquired ThousandEyes, a provider of network monitoring and performance analytics solutions.
• In February 2023, Microsoft acquired Metaswitch Networks, a provider of cloud-native communications software solutions.

Regulation

The NaaS market is subject to various regulations, including the Federal Communications Commission (FCC) in the United States and the European Union's General Data Protection Regulation (GDPR). These regulations impose certain requirements on NaaS providers, such as the need to protect user data and comply with privacy laws.

Patent Analysis

The NaaS market is covered by a number of patents, including:

• US Patent No. 8,909,858: "Network as a service (NaaS)"
• US Patent No. 9,247,103: "System and method for providing network as a service (NaaS)"
• US Patent No. 9,426,188: "Method and system for managing network as a service (NaaS)"

Analyst Comment

The NaaS market is expected to grow significantly in the coming years, driven by the increasing adoption of cloud-based services, the need for flexible and scalable network infrastructure, and the growing demand for bandwidth on demand. The market is also expected to benefit from the emergence of new technologies, such as SDN, NFV, and AI.