Network as a service market to hit $81.82 bn by 2030

The global network as a service market size is anticipated to reach USD 81.82 billion by 2030, registering a CAGR of 32.9% in the forecast period, according to a new report by Grand View Research, Inc. Network-as-a-Service (NaaS) allows users/customers to rent networking services from cloud providers. It is a cloud model providing networking services through the internet on a (pay-per-use) subscription model. Networking services are offered by network service providers and cloud providers for networking and network security resources such as VPN, WAN, and firewall.

It enables customers to manage and operate on their network without the need to maintain network infrastructure and optimize resource allocations and computing resources as a single unified module. It delivers network services in a subscription-based business model to deliver enterprise-wide area network (WAN) services. It comprises integrated hardware, software, licenses, and managed services. NaaS allows businesses and organizations with subscription hardware, managed services, and full/true.

Key industry insights & findings from the report:

• The market is expected to witness a CAGR of 32.9% in the forecast period owing to the rising adoption of network-as-a-service and cloud-based network infrastructure. Moreover, trends such as the growing adoption of cloud platforms, ongoing technological advancements, and increasing adoption of BYOD technology in several organizations are propelling the growth.
• Based on type, the WANaaS segment accounted for the largest revenue share of over 65.0% in 2021. Cloud-based wide area network (WAN) model is designed to replace legacy WAN, which relied on hardware. It utilizes connectivity protocols such as multiprotocol label switching (MLPS), which are difficult to manage. WANaaS is a specialized managed service suitable for large to mid-size enterprises as it enables rapid deployments, optimizes user productivity and experience, and reduces costs.
• Based on enterprise size, the large enterprise’s segment dominated the market in 2021 and is expected to witness a significant CAGR of 31.3% over the forecast period owing to the implementation of cloud services by large enterprises for data storage and data centers for workload mobility and benefits of NaaS for such as low latency, higher speed, increased network capacity, and device density.
• Based on application, the cloud and SaaS connectivity segment dominated the market in 2021 and is expected to witness a significant CAGR of 33.6% over the forecast period. The growing use of technology and consumer propensity toward the cloud propel the adoption of cloud-based solutions.
• Based on vertical, information technology (IT) & telecommunication dominated with a revenue share of 24.1% in 2021. It is expected to grow at a CAGR of 33.1% throughout the forecast period. The growth of this segment is attributed to increasing use-cases and the adoption of cloud services and IT infrastructure.
• North America dominated with the largest revenue share of more than 38.6% in 2021, owing to the presence of significant players such as Palo Alto, Amdocs, Megaport, Akamai, and Cisco Systems Inc. Additionally, businesses and organizations are refining their traditional network infrastructure to advanced IT infrastructure, network virtualization solutions, and cloud computing services.

Network as a service market growth & trends
NaaS is a framework that leverages open application programming interface (APIs), network transformation, service lifecycle automation, and model-driven abstraction. With NaaS, users can streamline new services, automate the order-to-service process, and technology introduction. Additionally, it eliminates manual intervention from the service fulfillment process, improves customer experience by providing error-free service activation, and reduces time to remediate issues.

The market is projected to witness significant growth attributed to the rising deployment of Network-as-a-service, as it is low cost and provides greater scalability. Additionally, growing demand for widespread and high-speed network coverage and increasing adoption and implementation of the cloud for data storage are some of the factors fueling the growth of the market. The rising deployment of public NaaS in several verticals such as BFSI, manufacturing, retail, manufacturing, and transportation & logistics, among others, are contributing positively to the NaaS market growth.

Network-as-a-service enables incessant delivery of features, new fixes, and capabilities, automates multiple processes, optimizes for maximum performance, and orchestrates. It provides security policy enforcement and network monitoring, applications and underlying infrastructure modeling, and firewall and packet capabilities inspection. Additionally, it offers AI-driven capabilities and the ability to proactively route the application traffic to address issues and improve user experience.

NaaS provides businesses and organizations with low latency connectivity, global coverage, and negligible packet loss enabled by a global point of presence (POP) backbone while connecting to platform-as-a-service, software-as-a-service, infrastructure-as-a-service applications, or branch offices. These services can be deployed, ordered, and co-managed. It ranges from network access solutions and managed services, including unified communication services on virtualized customer premise equipment (vCPE) or public cloud.

The report covers the competitive analysis of the top fifteen market players which includes Palo Alto, Amdocs, Megaport, Akamai, Cisco Systems Inc., and Cloudflare. The players are adopting several key strategies and developments such as product launches, partnerships and collaborations, and mergers and acquisitions to obtain a significant share. For instance, in May 2022, Orange Business Services launched the service manage-watch, a supervision solution for applications and network services. It ensures end-to-end monitoring, optimal performance of security at the edge, equipment, user experience, and application to meet consumers’ requirements.

CT Bureau