Farmington, May 10, 2023 (GLOBE NEWSWIRE) -- The Global Networking Service Market Was Valued At $6.67 billion In 2022 And Is Expected To Expand $64.91 billion By 2030 at a CAGR Of 32.9% From 2022 To 2030. Key factors driving the growth of this market include the rising popularity of cloud computing, the rising need for network virtualization and cloud computing are becoming more widely used.
Adoption of network virtualization and cloud computing services has significantly increased the amount of data gathered on digital and social platforms. In the context of cloud computing, network-as-a-service (NaaS) offers scalable, pluggable, and API-driven network management that enables clients to operate and construct networks online. As the number of cloud-based business applications grows, the popularity of cloud-based services increases.
Request Sample Copy of Report “Networking Service Market Size, Share & Trends Estimation Report By Type Outlook (WANaaS, LANaaS) By Organization (Large Enterprises, SMEs) By Application Outlook (UCaaS/Video Conferencing, Cloud and SaaS Connectivity, Virtualized Private Network (VPN), Bandwidth on Demand, Multi-Branch Connectivity, WAN Optimization) By Industry Vertical (BFSI, Retail, IT & Telecommunication, Manufacturing, Media and Entertainment, Education, Healthcare, Government, Others) By Region, And Segment Forecasts, 2023 - 2030” , published by Contrive Datum Insights.
Segmentation Overview:
Type Outlook:
In 2021, the WANaaS segment accounted for approximately 65% of total revenue. It is expected to have the highest CAGR over the period of forecast, at 33.6%. It is a wide area network (WAN) model that is intended to replace hardware-based legacy WAN. It uses challenging connectivity protocols such as multiprotocol label switching (MLPS). Due to its cloud-based delivery, WANaaS supplants physical appliances. Verticals can configure WAN using only a basic Internet connection and software. WANaaS is a specialized managed service ideal for large to mid-sized businesses because it enables rapid deployments, enhances user productivity and experience, and reduces costs.
A CAGR of 31.6% is anticipated for LANaaS over the forecast period. LANaaS is a networking business model that integrates LAN with constantly evolving enterprise/business requirements. It provides a scalable infrastructure at reduced hardware costs without the need for complex processes, multi-vendor support, comprehensive monitoring, and Ethernet and Wi-Fi support for multiple locations. Through zero-touch application deployment, LANaaS simplifies and secures the local network, enhances the user experience, and ensures optimal wired and wireless connections.
Organization Size Outlook:
With a revenue share of more than 52.0% in 2021, the segment of large enterprises dominated the overall market. It is anticipated to grow at a CAGR of 31.3% during the period of forecast. The growth is attributed to the rapid adoption of cloud services such as PaaS, SaaS, PaaS, and IaaS. Large organizations are adopting cloud services and data centers for data storage and mobile workloads, respectively. The growing demand for a subscription-based business model in cloud computing, NFV, and SDN has also accelerated the adoption of NaaS by large organizations.
Small and medium-sized businesses are projected to grow at a CAGR of 34.5% over the forecast period. NaaS enables SMBs to manage their networks, security systems, and personnel. Small- and medium-sized businesses prioritize digital transformation in order to attain dependable, quick, and secure networks and eliminate on-premises hardware connectivity appliances. Because NaaS improves the quality of services (QoS) and ensures network security, SMEs are more likely to adopt it. In addition, emerging technologies such as SDN, IoT, and cloud-based services are in higher demand due to the emergence of cost-effective cloud services and the as-a-service model.
Application Outlook:
In 2021, the cloud and SaaS connectivity segment accounted for over 24% of total revenue. It is expected to grow at a CAGR of 33.6% over the period of the forecast. The adoption of cloud-based solutions is driven by the increasing use of technology and the cloud's popularity among consumers. For Verticals, cloud-based services and solutions enable remote data access. It enhances productivity while enabling scalability, migration, mobility, and data recovery. As a result, cloud-based solutions are widely adopted.
Bandwidth on Demand (BoD) is anticipated to increase at a CAGR of 34.6% during the forecast period. Bandwidth on Demand provides the necessary bandwidth to enhance the user experience, simplifies the interface for requesting services, and enables the application developer to integrate QoS resources. It increases agility with automated provisioning and optimized network capacity planning. It offers competitive services over an optimized and scalable transport software-defined network, in addition to reducing the complexity and cost of network operations. The Board of Directors adheres to service-level agreements, identifies and resolves issues, maintains procedures, and expedites network configuration.
By Industry Vertical:
Information technology (IT) and communications contributed 24.0% of total revenue in 2021. It is anticipated that its CAGR during the forecast period will be 33.1%. The expansion is the result of increasing use cases and the adoption of cloud services and IT infrastructure. Network infrastructure plays a crucial role in the IT & telecommunications industry because it reduces the digital divide by delivering quick network services and addressing issues of affordable bandwidth scarcity. During the forecast period, it is anticipated that the manufacturing sector will grow at a substantial CAGR of 34.9%. In order to maximize their benefits and focus on their core activities rather than their complex networking infrastructure, manufacturers are deploying NaaS solutions in order to expand their market share. In this market, the demand for dependable and secure networking solutions is driving the adoption of NaaS.
The shared active and passive infrastructure allows for profitable network expansion and rapid Internet access. Network-as-a-service (NaaS) solutions are essential components of the 5G network, and widespread adoption of the NaaS platform is anticipated in the telecommunications industry.
Regional Analysis:
The report projects revenue growth at the global, regional, and national levels from 2017 to 2030 and analyzes recent industry trends within each subsegment.
Due to the rapid adoption of network-as-a-service solutions, North America will account for over 38.0% of total revenue in 2021. Primary market growth driver is the presence of key players such as Palo Alto, Amdocs, Megaport, Akamai, and Cisco Systems Inc. Significant corporations are making substantial investments in data center research and development, with network infrastructure contributing to this expansion.
Europe is an additional significant market for networking services, with the United Kingdom, Germany, and France driving regional expansion. It is anticipated that the growing popularity of cloud computing and the demand for more secure networking solutions will propel the expansion of the European market.
China and India's increasing adoption of networking technologies are anticipated to drive the fastest growth in the networking services market in Asia-Pacific. The expansion of the region's e-commerce sector is anticipated to increase demand for networking services.
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Scope of Report:
| Report Attributes | Details |
| Growth Rate | CAGR of 32.9% from 2023 to 2030. |
| Revenue Forecast by 2030 | $64.91 billion |
| By Type |
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| By Organization Size |
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| By Application |
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| By Industries |
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| By Companies |
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| Regions and Countries Covered |
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| Base Year | 2022 |
| Historical Year | 2017 to 2022 |
| Forecast Year | 2023 to 2030 |
Market Dynamics:
Restraining Factors:
• Lack of standardization, as well as data privacy and security concerns
During the forecast period, the lack of standardization in the network-as-a-service (NaaS) industry, poor equipment design, and high assembly costs are expected to hinder market growth. Moreover, concerns regarding data privacy and security are anticipated to hinder the growth of the network-as-a-service (NaaS) market during the forecast period.
• Difficulty of Guaranteeing Correct Compliance
Concerning the provision of NaaS services to customers, the greatest obstacle on the market is the difficulty of ensuring proper compliance. Implementing appropriate security and governance policies is crucial for businesses to reach their goals. To facilitate the development of NaaS solutions, cloud providers must meet stringent scalability requirements regarding storage, computing, and network resource sharing in order to meet specific requirements such as increased security, business restructuring, mergers, and consolidations. There may come a time when it is challenging for vendors to maintain and secure their technology while also adhering to certain regulations and standards. Noncompliance with regulations and standards by suppliers has a direct effect on the services they provide to customers, creating significant financial and business risks for customers and their business processes. NaaS service providers provide customers with total transparency. They emphasize and deliver programs and services by adhering to standards and best practices for service delivery. As technology advances, it is difficult for vendors to keep up with evolving technologies and government regulations. This is a substantial barrier for suppliers and customers in this market.
Opportunity Analysis:
• Adoption of business models based on services
The global pandemic has compelled businesses to adopt remote working facilities. Companies relocated employees to remote locations and implemented work-from-home policies within a few days to a week. As the impact of COVID-19 on businesses grows, the number of remote workers increases daily. Permanent work-from-home policies have been implemented by some companies for their employees. As a result, businesses are adopting service-based models for networking, computing, and storage. Across all industries, cloud adoption has exploded during the pandemic. Most businesses have adopted as-a-service and subscription-based web service business models. Consequently, the NaaS market is in high demand in the business sector. NaaS provides numerous benefits, including cost reduction, proactive maintenance, enhanced security, increased uptime, enhanced service quality, increased performance and productivity, optimized systems, and acquired knowledge. The expansion of remote workforce strategies will continue at an exponential rate.
• Increasing the adoption of network-as-a-service (NaaS) in the information technology (IT) and telecommunications industries
The market is anticipated to be dominated by the expanding use of cloud computing services in the IT and telecommunications industries during the forecast period. Alongside cloud computing services, cloud-based networking services, which provide end users with on-demand access to network resources, are gaining popularity. During the forecast period, the adoption of cloud technologies and networking by IT and telecom end users accelerates. During the predicted time frame, applications ranging from email checking to the management of massive amounts of company data in the cloud will generate numerous growth opportunities.
Key Segments Covered:
Top Market Players:
- Cisco Systems
- Fujitsu
- Vodafone
- Verizon
- Ruckus Wireless
- Aruba
- Mojo Networks
- Purple
- Others
By Type:
- WANaaS
- LANaaS
By Organization Size:
- Large Enterprises
- SMEs
By Application:
- UCaaS/Video Conferencing
- Cloud and SaaS Connectivity
- Virtualized Private Network (VPN)
- Bandwidth on Demand
- Multi-Branch Connectivity
- WAN Optimization
By Industry Vertical:
- BFSI
- Retail
- IT & Telecommunication
- Manufacturing
- Media and Entertainment
- Education
- Healthcare
- Government
- Others
Regions and Countries Covered
- North America: (US, Canada, Mexico, Rest of North America)
- Europe: (Germany, France, Italy, Spain, UK, Nordic Countries, Benelux Union, Rest of Europe)
- Asia-Pacific: (Japan, China, India, Australia, South Korea, Southeast Asia, Rest of Asia-Pacific)
- The Middle East & Africa: (Saudi Arabia, UAE, Egypt, South Africa, Rest of the Middle East & Africa)
- Latin America: (Brazil, Argentina, Rest of Latin America)
- Rest Of the World
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