The Network as a Service (NaaS) market was valued at USD 6.07 billion in 2019 and is expected to reach USD 46.69 billion by 2025, at a CAGR of 40.5% over the forecast period 2020 - 2025. Network as a Service (NaaS) is a model used to bring the network service virtually which can be either through 'pay as you' service or subscription model. The rising adoption and implementation of the cloud for data storage and introduction of Big Data analytics is backing and contributing to the growth of the Network as a Service market. In addition to that, the rapid growth and evolution in IoT technologies also support the growth and development of Network as a Service market.
- Mounting requirement for subscription (pay per use) business model, vast growth and development in network virtualization, cloud computing, software-defined networking (SDN), rising need for global connectivity and intensifying awareness about the economic benefits of (NaaS) are some of the drivers which in turn endowed the growth and evolution of this market.
- Decreased costs with pooled wide area network (WAN) is expected to deliver growth opportunity for the network as a service (NaaS) market. Amongst all network as a service technology, network virtual function is expected to grow at a fast pace because of its advanced approach of releasing the data from a control plane, instead of conventionally distributed control planes.
- The WAN application segment is projected to hold the principal market size during the forecast period with the wide-spread adoption and acceptance of the WAN solutions across organizations in any industry or business verticals. WAN connectivity can be established to permit users to access private or public gateways based on the customer's requirements.
Scope of the Report
Network as a Service (NaaS) is the sale of network services from third parties to clients that don't want to construct their own networking infrastructure. Network as a Service (NaaS) packages networking resources, services, and applications as a product that can be bought for a number of customers or users, usually for a contracted and defined period of time.
Key Market Trends
WAN Application Segment to Hold a Major Size during the Forecast Period
- The WAN application segment is anticipated to hold the biggest market size with the wide-spread adoption of the WAN solutions across organizations in various industry verticals. It provides a communication network through many resources, including mobiles, computers, remote offices, and data centers. WAN connectivity can be established to allow users to access private or public gateways based on the customer's requirements.
- Service providers are antagonistically and aggressively building out and selling managed WAN offerings nowadays. Working swiftly to stay ahead of emerging "build it yourself" substitutes, providers are carving out their share of the WAN pie. If a service provider is already managing and handling the network, they're well placed to plan, deploy and maintain an innovative, turnkey WAN solution for businesses as well.
- Though the changes seen within the WAN space are very related to those present in other managed service provider markets - one can either outsource, insource, or out-task. Irrespective of how the WAN is deployed and managed, every business still requires the capacity to access granular visibility into all regions of the network to enhance, maintain and troubleshoot increasingly multifaceted environments.
North America Occupies the Largest Market Size during the Forecast Period
- Inclining towards the implementation and acceptance of advanced technology, strong research, and development in the telecom industry, the surge in the number of cloud-based services and other factors are driving the Network as a Service (NaaS) market in North America. This region is expected to hold the largest market share during the forecast period.
- North America is anticipated to drive the network as a service market due to substantial research and development in technology related to network expansion, and technological maturity of data center and network infrastructure in the region.
- North America, the support and cradle of technological innovation, remains an indispensable and essential market and home to nearly half of the world's major companies. Furthermore, the huge size and growth of the private and business sectors in the region are likely to boost the market.
The network as a service market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability.
- January 2019 - IBM partnered with Juniper Networks to manage Juniper Network's prevailing infrastructures, which include help desks, data centers, and data and voice networks. As per this trust, IBM would combine its services platform with Watson to manage Juniper Network's infrastructure.
- April 2018 - Verizon launched its Virtual Network Services (VNS) solution bundles to simplify business' goal toward virtualization. The bundles would deliver end-to-end orchestration and closed-loop service assurance for enterprise customers to permit SDN solutions.
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