Network Management System Market - By Component (Solutions, Services), By Deployment (On-Premises, Cloud), By Enterprise (Large Enterprises, SMEs), By Industry Vertical & Forecast, 2023 – 2032

Network Management System Market Size

Network Management System Market size was valued at USD 8.7 billion in 2022 and will grow at a CAGR of over 9% from 2023 to 2032. Driven by the accelerating need for remote network management across enterprises, the industry is set to exhibit significant growth between 2023 and 2032.
 

The trend of remote work and the need for managing geographically dispersed networks has surged, driving the demand for NMS solutions that offer remote management capabilities. Quoting an instance, in 2022, Cisco announced deploying its Network Assurance Engine (NAE) solution to help a large financial services company to improve its remote network management capabilities. The NAE solution uses AI and machine learning to automate network monitoring and troubleshooting tasks, which helps to free up IT staff to focus on other priorities. The integration of AI and ML in NMS platforms allows for intelligent automation, faster issue resolution, and proactive network management, creating a favorable growth outlook for the network management system industry.
 

The escalating rollout of 5G networks will play a key role in pushing the demand for NMS solutions. As of November 2022, an estimated 128 countries recorded 127,509 5G deployments compared to 85,602 in 112 countries in 2021, as per the Ookla 5G Map. 5G deployment requires advanced NMS capabilities to manage the increased network speed, lower latency, and diverse network elements, driving the demand for network management systems.
 

However, high initial investment and maintenance costs, lack of skilled personnel to manage NMS effectively, and concerns over data privacy and security issues may affect the NMS adoption rate. Additionally, rapid advancements in networking technologies and evolving industry standards create challenges for NMS vendors to keep up with the changing landscape, which may impact industry dynamics over the forthcoming years.
 

COVID-19 Impact

The COVID-19 pandemic had a significant impact on the network management system market. With widespread remote work and increased reliance on digital infrastructure, the demand for NMS solutions surged to ensure network stability and security. Instances like the exponential growth in online collaboration tools, cloud services adoption, and heightened cybersecurity threats highlighted the crucial role of NMS in maintaining seamless connectivity and mitigating network disruptions. However, the economic uncertainties during the pandemic also led to budget constraints, hindering some NMS investments for certain industries.
 

Network Management System Market Trends

Organizations across various industries recognize the importance of having real-time visibility into their network performance. NMS enables administrators to monitor network traffic, identify bottlenecks, and troubleshoot issues promptly. The rise in cyber threats and attacks has emphasized the need for robust network security management. Estimates suggest that in 2021 over 1.4 million cybersecurity incidents were reported to CERT-In. This number stood at over 1.1 million in 2020. NMS solutions often integrate security features like intrusion detection, firewall management, and threat analysis, which is likely to streamline the NMS market expansion over 2023-2032.
 

Network Management System Market Analysis

The network management system market from deployment segment has been divided into On-Premises and cloud. The on-premise segment was valued at over USD 5 billion in 2022 and will be valued at over USD 12 billion by 2032. The demand for on-premise Network Management System (NMS) solutions is driven by specific requirements of organizations that prioritize data control, security, and compliance. Industries such as healthcare, finance, and government often opt for on-premise NMS to maintain sensitive data within their secure networks and meet strict regulatory guidelines.
 

For instance, the Health Insurance Portability and Accountability Act (HIPAA), a US federal law, regulates the disclosure and protection of health information. The law requires healthcare organizations to implement a number of security measures to protect patient data. Additionally, companies with legacy infrastructure may prefer on-premise solutions to integrate seamlessly with their existing systems. These instances demonstrate how certain industries prioritize the benefits of on-premise NMS to ensure data privacy and maintain control over their network management processes.
 

The network management system market from industry vertical segment has been divided into IT & Telecom, BFSI, Government, Manufacturing, Healthcare, Transportation, Retail and Others. The IT & Telecom sector held a market share of 22.5% in 2022 and will be valued at over USD 4.5 billion by 2032.  The IT & telecom sector's demand for Network Management System (NMS) solutions is primarily driven by the need to ensure seamless network operations, optimize resource utilization, and enhance customer experience.
 

Telecommunication service providers require NMS to monitor network performance, manage bandwidth, and identify potential issues proactively. Additionally, the increasing adoption of 5G technology necessitates advanced NMS capabilities to handle the complexities of next-generation networks. Instances like the rapid expansion of internet connectivity and the growth of IoT devices further underscore the importance of NMS in the IT & telecom industry.
 

North America segment was valued at over USD 2.5 billion in 2022 and will be valued at over USD 6 billion by 2032. The demand for Network Management System (NMS) solutions in North America is driven by several factors, including the region's robust IT infrastructure, the proliferation of connected devices, and the growing need for efficient network management across various industries. With a large number of enterprises and data centers in North America, NMS solutions are sought after to ensure seamless connectivity, monitor network performance, and optimize resource utilization. The increasing deployment of cloud-based services and the rise in cybersecurity threats further contribute to the demand for NMS in the region.
 

Network Management System Market Share

Major players operating in the network management system market are:

• BMC Software
• CA Technologies
• Cisco Systems
• Hewlett Packard Enterprise (HPE)
• Huawei Technologies
•  IBM
• Juniper Networks
•  ManageEngine
•  Micro Focus
•  NETSCOUT Systems
•  Nokia Corporation
•  Paessler AG
•  Riverbed Technology
•  SolarWinds
•  Splunk Inc.

These companies are prioritizing strategic partnerships, launching new products, and commercialization efforts to expand their market reach.
 

Telecom Expense Management Industry News

• In April 2022, Juniper /networks acquired Mist AI, a leader in wireless network automation and AIOps. This acquisition will help Juniper expand its NMS capabilities and offer a more comprehensive solution to customers.
   
• In January 2022, Cisco acquired Thousand Eyes, a leader in network visibility and performance monitoring, to expand its NMS capabilities.
   

The Network Management System Market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Component

• Solutions
  • Configuration management
  • Performance management
  • Security management
  • Fault management
  • Accounting management 
• Services

By Deployment

• On-Premises
• Cloud

By Enterprise

• Large Enterprises
• SMEs

By Industry Vertical

• IT & Telecom
• BFSI
• Government
• Manufacturing
• Healthcare
• Transportation & Logistics
• Retail
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia