Network Management System Market Size

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.

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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.