Network Management System Market Size - By Component (Solutions, Services), By Deployment (On-premises, Cloud), By Organization Size (Large enterprises, SME), By End-user Industry & Forecast, 2024 - 2032
Report ID: GMI2981
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Published Date: August 2024
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Report Format: PDF
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Base Year: 2023
Companies covered: 20
Tables & Figures: 259
Countries covered: 21
Pages: 252
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Network Management System Market
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Network Management System Market Size
Network Management System Market size was valued at USD 9.1 billion in 2023 and is projected to grow at a CAGR of over 9.4% between 2024 and 2032. As enterprises increasingly seek remote network management, the industry is poised for substantial growth. The rise of remote work and the challenge of managing geographically dispersed networks have driven the demand for Network Management System (NMS) solutions with robust remote capabilities.
For instance, in 2022, Cisco deployed its Network Assurance Engine (NAE) solution for a major financial services firm, enhancing its remote network management. By leveraging AI and machine learning, the NAE automates network monitoring and troubleshooting, allowing IT staff to concentrate on other critical tasks. This integration of AI and ML in NMS platforms facilitates intelligent automation, quicker issue resolution, and proactive network management, highlighting a bright future for the NMS industry.
The global demand for network management system (NMS) solutions is significantly driven by the rapid rollout of 5G networks. According to the Ookla 5G Map, by November 2022, 128 countries had recorded a total of 127,509 5G deployments, up from 85,602 deployments in 112 countries in 2021. This rapid growth underscores the global shift towards next-generation connectivity.
The introduction of 5G networks brings challenges such as increased speeds, lower latency, and the integration of diverse network elements such as IoT devices, edge computing, and enhanced mobile broadband. Advanced NMS capabilities are essential to manage these complex networks, ensuring optimal performance, security, and scalability. As 5G adoption accelerates, the demand for sophisticated NMS solutions will continue to grow, driving significant market expansion.
High implementation costs present a significant barrier in the network management system (NMS) market, particularly for small and medium-sized enterprises (SME) and organizations in developing regions. These costs include expenses for purchasing software and hardware, customizing the system to fit specific network environments, and ongoing maintenance and support. Additionally, integrating NMS with existing IT infrastructure can be complex and resource-intensive, requiring specialized personnel and training, which further escalates expenses.
The substantial initial investment deters many organizations, especially those with limited budgets, from adopting comprehensive NMS solutions. This challenge is particularly pronounced in cost-sensitive industries and regions, limiting the market's growth potential and pushing some organizations toward more affordable or less robust alternatives.
Network Management System Market Trends
Network management systems are witnessing significant technological advancements in network technology. Technological advancements in network technology drive the growth of the network management system (NMS) market. Innovations such as 5G, software-defined networking (SDN), and network function virtualization (NFV) are transforming network operations, making them more complex and dynamic. These advancements necessitate advanced NMS solutions to manage, automate, and optimize network performance effectively.
Additionally, the rise of IoT and cloud computing has led to an exponential increase in data traffic, requiring more sophisticated network management tools. As organizations strive to maintain seamless connectivity, ensure security, and enhance network efficiency, the demand for cutting-edge NMS solutions grows, driving the market's expansion.
For instance, in September 2023, Vicinity Technologies Limited showcased its advanced cloud-native and time-sensitive 5G networking solutions, at the Mobile World Congress Americas 2023, held in Las Vegas. This event highlighted Vicinity's capabilities in developing a live end-to-end 5G networking system, utilizing their proprietary software stacks on a certified 5G integrated small cell platform, which is ready for commercial deployment.
Network Management System Market Analysis
Based on components, the market is segmented into solutions and services. In 2023, the solutions segment accounted for a market share of over 72% and is expected to exceed USD 14.4 billion by 2032, driven by the increasing need for advanced tools that ensure optimal network performance, security, and reliability.
As networks become more complex with rising data traffic, cloud adoption, and IoT integration, organizations require robust solutions for fault management, network automation, and performance monitoring. These solutions provide real-time insights, automation, and analytics, enabling proactive management and rapid resolution of network issues. Additionally, the shift towards software-defined networking (SDN) and network function virtualization (NFV) fuels the demand for more sophisticated and integrated NMS solutions, further strengthening this segment's market leadership.
Based on the deployment mode, the network management system market is divided into on-premises and cloud. The on-premises segment held around 63% market share in 2023. Organizations prioritizing data control, security, and compliance drive the demand for on-premises network management system (NMS) solutions. Industries such as healthcare, finance, and government frequently choose on-premises NMS to keep sensitive data within secure networks and adhere to stringent regulatory standards.
For instance, the Health Insurance Portability and Accountability Act (HIPAA) mandates that healthcare organizations implement specific security measures to safeguard patient data. Additionally, companies with legacy infrastructure often prefer on-premises solutions for seamless integration with their existing systems. It highlights the adoption of on-premises NMS in certain industries to uphold data privacy and maintain control over their network management processes.
North America region accounted for a network management system market share of over 37% in 2023 and is expected to exceed USD 7.4 billion by 2032. Several factors drive the demand for network management system (NMS) solutions in the region. These include robust IT infrastructure, the proliferation of connected devices, and the growing need for efficient network management across various industries in the region.
With the abundance of enterprises and data centers in North America, there's a heightened demand for NMS solutions to ensure seamless connectivity, monitor network performance, and optimize resource utilization. Additionally, the increasing deployment of cloud-based services and the rise in cybersecurity threats further contribute to the increasing demand for NMS in the region.
Moreover, the growth of the network management system (NMS) market in Europe is driven by the region's emphasis on digital transformation, cybersecurity, and compliance with stringent data protection regulations such as GDPR. Germany, the UK, and France, with their advanced IT and telecom sectors, are key contributors. The market benefits from widespread cloud adoption, increasing network complexity, and the growing need for automation in industries like manufacturing and finance. Additionally, Europe's focus on smart city initiatives and 5G deployment further fuels the demand for sophisticated network management solutions.
Further, the Asia Pacific network management system market is experiencing swift growth, driven by digital transformation initiatives, increased internet penetration, and the expansion of telecom networks in countries such as China, India, and Japan. The region's flourishing IT & telecom sector, combined with a rising demand for cloud-based services, drives the adoption of advanced NMS solutions. Additionally, the emergence of smart cities and IoT deployments in countries such as South Korea and Singapore further accelerates market growth. The presence of major technology players and government support for digital infrastructure development further contributes to the region's robust market expansion.
The network management system market in Latin America is expanding due to increased digitization, growing telecom infrastructure, and rising cloud adoption. Brazil and Mexico are the key markets in this region. In the Middle East & Africa (MEA), growth is driven by investments in smart city projects, expanding IT infrastructure, and government initiatives to enhance network security. The UAE and Saudi Arabia are leading the adoption of advanced network management solutions in the region.
Network Management System Market Share
Cisco Systems, Huawei Technologies, and IBM held a significant market share of over 31% in 2023. Cisco is enhancing network management through AI-driven automation and analytics. Their strategy integrates security features into their network management systems and expands cloud-based solutions, ensuring seamless and secure connectivity in hybrid work environments.
Huawei champions AI-powered, intent-driven networking for automated and intelligent network management. Their strategy strengthens support for 5G and IoT networks and offers open, flexible platforms designed for easy integration with third-party solutions, enhancing scalability and customization.
IBM leverages AI and machine learning to optimize network management. They focus on delivering comprehensive, cloud-based solutions that provide predictive insights and automation, reducing operational complexity and improving network performance and security across multi-cloud environments.
Network Management System Market Companies
Major players operating in the network management system industry are:
Network Management System Industry News
The network management system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:
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Market, By Component
Market, By Deployment
Market, By Organization Size
Market, By End-User Industry
The above information is provided for the following regions and countries: