Network as a Service (NaaS) Market Analysis

Network as a Service Market Analysis

The Bandwidth on Demand (BoD) segment is expected to witness the fastest growth rate of over 30% from 2019 to 2025 due to the massive adoption of business-oriented applications in various sectors such as healthcare, manufacturing, government, and retail. Such applications demand higher levels of connectivity and bandwidth to support business needs. This facilitates the adoption of a NaaS model, which will support the BoD services and allow enterprises to overcome the bandwidth silos and enable bandwidth-intensive applications to meet their needs. For instance, the growing reliance of the healthcare sector on mobile & cloud technology to access the real-time data and support clinical applications is increasing the demand for BoD services. To ensure peak performance, healthcare institutions are availing NaaS offerings to ensure that their systems are up-to-date to avoid any disruption in services.
 

Large enterprises held a major portion of the Network as a Service market share of over 55% in 2018 due to the widespread usage of cloud services such as NaaS and Platform as a Service (PaaS). To manage connectivity among remote enterprise sites and support Bring Your Own Device (BYOD) trend, the large organizations are using virtualization technologies, which enable them to cost-effectively manage their disparate sources. The use of these technologies is expected to accelerate the adoption of Network as a Service as they minimize investment costs and enable enterprises to focus on other business requirements.
 

The IT & telecom vertical held a significant share of around 30% in the Network as a Service market in 2018. The penetration of cloud & networking technologies, which offer customers with on-demand network services and reduce expenditure on IT device procurement and maintenance will fuel the market growth. IT & telecom companies are transforming their legacy enterprise networks using virtualization technologies due to compelling economic benefits. For telecom carriers and network service providers, cloud-enabled virtualization platforms enable faster provisioning of network services and also enable them to meet the challenges related to bandwidth shortage.
 

North America held a dominant share of over 40% in 2018 and is expected to dominate the Network as a Service market by 2025. The penetration of cloud computing, advanced IT infrastructure, and higher concentration of the network virtualization solution vendors are expected to drive the NaaS adoption in the region. The growing demand for high-performance computing infrastructure has increased the need for virtualized computing environments. The technology companies and the telecom service providers are embracing cloud platforms to reduce labor costs. This will foster the deployment of NaaS, eliminating the need to maintain their complex network setup.