The network management system market is projected to grow at a CAGR of 12.33% to reach US$13.296 billion by 2026, from US$5.829 billion in 2019, according to Research and Markets.
A network management system refers to the set of applications that authorize network administrations to run the independent components of a network inside a larger network management framework. These applications can be used to monitor the software and hardware components of a network. Network management systems perform central reporting to a system administrator by recording data from the remote points of a network. These applications allow users to monitor and manage their business operations using a central computer.
The rapidly growing infrastructure globally is accounting for the growth of the network management system market during the forecast period. The heavy investments made in the research and development of network infrastructure by key players in the communication and technology industry sector are one of the prime reasons for the growth of network management system solutions in the global market.
The increasing demand from companies and enterprises to enhance their Quality of Service (QoS) and Quality of Experience (QoE) is boosting the market growth and surging the demand for network management system solutions among various industrial verticals. In the year 2020, Broadband Inc. had announced the launch of DX NetOps which is powered by Broadband Silicon the industry’s leading high scale operations monitoring, AI-driven analytic solution which allows network operating teams to safely deliver application experiences over SD-WAN technologies that are built on Silver Peak, VMware, and 128 Technology. The use of network management system solutions in performance monitoring to monitor the functionality of network elements has been a prime reason for the adoption of network management system solutions in the global market.
By component, the network management system market is segmented into solutions and services among which the services segment is expected to show substantial growth owing to the large-scale adoption of network management system solutions across service providers and enterprises leading to the surging demand of integration and deployment, consulting services, maintenance, support, and training services. By deployment model, the network management system is segmented into cloud and on-premise.
By enterprise size, biometrics as a service is segmented into large, small, and medium enterprises. The large enterprise is expected to show prominent growth owing to the high scale adoption and demand of network management systems in larger enterprises.
By end-user, the network management systems market is segmented into BFSI, communication and technology, manufacturing, government, retail, transportation and logistics, and others. The communication and technology segment is anticipated to show promising growth owing to the heavy adoption of network management system solutions by cloud and telecom service providers to optimize, analyze and manage the whole network infrastructure. Advanced network management system solutions can assist network management features and better network capacity planning and also provide security against DDoS attacks and malware.
Geographically, the North America region is anticipated to show substantial growth in the network management system market owing to the widespread adoption of network management system solutions and rapidly growing infrastructure helping them to facilitate advanced network management and virtualize their IT infrastructure.
Global growth of network infrastructure
One of the major reasons for the growth of network management systems is the global growth of network infrastructure. As network management is an important prospect of businesses and plays a vital role in business operations and managing network infrastructure is a prime aspect of digital business with enterprises and organizations making heavy investments in modern network infrastructure technologies such as IP networks, Network Functions Virtualization (NFV), SDN, cloud services and many more to streamline their business operations. The adoption of cloud infrastructure across the globe in recent years and the growing network infrastructure is driving the growth of the network management system market in the forecast period.
Limited awareness of network management system solutions and the availability of free management tools is hindering the market growth
A major restraint in the growing network management system market is the lack of awareness of network management system solutions and the availability of free management tools. The availability of free network management tools which offer applications identical to those offered by licensed network management systems acts as a major hindrance to the market growth of network management systems during the forecast period. Also, the lack of awareness among enterprises and companies regarding the benefits of network management system solutions is limiting the demand and growth of network management systems in the market.
Impact of COVID-19 on the network management system market
The COVID-19 impact on the network management system market has been positive owing to the exchange of volumes of data over data networks amid the course of the pandemic and the adoption of work from home practices. The deployment of wireless networking in recent years has further boosted the market growth of the network management system market. The work from home initiatives has led to companies being highly dependent on networking systems to control customer queries has led to the surging adoption of network management systems across various industry verticals. Several enterprises and companies running in the network management system services are taking strategic initiatives to provide customers with the best network services as they are entirely dependent on networks during the pandemic.