Network As A Service Market Size (2024 - 2029)

Network as a Service Market Analysis

The Network As A Service Market size is estimated at USD 25.67 billion in 2024, and is expected to reach USD 103.19 billion by 2029, growing at a CAGR of 32.09% during the forecast period (2024-2029).

Network-as-a-Service (NaaS) offers organizations and companies greater flexibility and even performance gains in their network infrastructure. With on-demand purchasing, firms can be more cost-conscious and pay only for the necessary networking services. Network-as-a-Service (NaaS) can also enable organizations that need greater flexibility in provisioning without having to rearchitect networks or redo contracts from the ground up.

• The broad construction of new data center infrastructures worldwide drives the growth of the Network-as-a-Service (NaaS) market. Several main drivers drive this expansion, including the increasing use of cloud computing for data storage, the incorporation of big data analytics, and virtualization within that center to improve workload mobility. These advancements have resulted in better resource utilization, higher availability, lower total costs, and increased reliability and security for critical corporate applications.
• Furthermore, the increasing need for subscription-based and pay-per-use business models in network virtualization, cloud computing, and software-defined networking (SDN) is significantly impacting the market trajectory. The growing use of cloud services, which cater to the demands of large and small organizations, plays a significant role in shaping the industry landscape.
• NaaS gives businesses more flexibility and the opportunity for improved network performance. Organizations can emphasize cost-effectiveness by paying for the precise networking services requested via on-demand purchases. NaaS also enables businesses that need more provisioning flexibility without redoing their network or contract.
• Network-as-a-Service (NaaS) offers significant advantages; it is important to acknowledge certain obstacles and potential reliability issues that could hinder its growth in the foreseeable future. Opting for a third-party network infrastructure provider to host critical corporate infrastructure requires faith in the supplier's long-term stability. Businesses may face the challenge of replacing essential infrastructure if the provider fails to remain competitive.
• Since the outbreak of the COVID-19 pandemic, the demand for cloud-based solutions has seen significant growth owing to remote working models being adopted by enterprises; however, various industries such as retail, manufacturing, and BFSI have seen a considerable revenue slump. With the growing remote working model, companies are increasing investments in cloud-based analytics and assurance, edge computing, and AI-powered networking technologies, which are expected to boost the NaaS market.
• According to a survey by Aruba of 2,400 IT decision-makers, in response to the pandemic, 38% of IT leaders plan to increase their investment in cloud-based networking and 35% in AI-based networking as they seek more agile, automated infrastructures for hybrid work environments. Network-as-a-Service’s adoption is expected to accelerate by 38% within the next two years as businesses adapt to the post-pandemic environment.

Network as a Service Industry Segmentation

Network-as-a-Service (NaaS) is the sale of network services by third parties to clients who do not want to construct their own networking infrastructure. NaaS solutions package networking resources, services, and applications as products that several customers or users can buy, usually for a contracted and defined period.

The Network-as-a-Service market is segmented by type (LAN-as-a-service and WAN-as-a-service), application (cloud-based services [vCPE], bandwidth on-demand [BoD], integrated network security-as-a-service, wide area network [WAN], and virtual private network [VPN]), industry vertical (healthcare, BFSI, retail and e-commerce, IT and telecom, manufacturing, transportation and logistics, and public sector), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.