Network as a Service Global Market Report 2024

The network as a service market size has grown exponentially in recent years. It will grow from $20.22 billion in 2023 to $26.2 billion in 2024 at a compound annual growth rate (CAGR) of 29.6%. Historical growth can be attributed to a heightened demand for scalable solutions, cost-efficiency, and the increasing prevalence of remote work.

The network as a service market size is expected to see exponential growth in the next few years. It will grow to $78.61 billion in 2028 at a compound annual growth rate (CAGR) of 31.6%. Anticipated growth in the forecast period is driven by the expansion of edge computing, the need for enhanced security and compliance, industry-specific networking solutions, and the adoption of flexible subscription models. Major trends expected in this period include the integration of 5G, digital transformation initiatives, the adoption of software-defined networking (SDN), network security as a service (SECaaS), and the utilization of network analytics and intelligence.

The increasing prevalence of cloud-based applications within enterprises is poised to drive the growth of the network-as-a-service (NaaS) market in the foreseeable future. Cloud-based applications, integral to cloud computing for data storage, have experienced heightened demand due to the amplified usage of the internet by individuals working from home. This surge in demand for high-speed network connections has prompted the adoption of NaaS, leveraging cloud computing to enable customers to manage their networks by deploying cloud-based applications. This approach grants direct and secure access to network infrastructure. As indicated by Cisco in 2021, the overall data center workloads and compute instances are projected to more than double compared to 2021, with a forecasted workload and compute instance density for cloud data centers reaching 13.2 by the same year. Hence, the increasing prevalence of cloud-based applications across enterprises stands as a driving force behind the growth of the network-as-a-service market.

The substantial increase in remote work is anticipated to be a driving factor in the growth of the network-as-a-service (NaaS) market in the coming years. Remote work, characterized by employees fulfilling their job responsibilities outside the traditional office environment, has surged in recent times. This surge emphasizes the critical need for resilient and adaptable networking solutions. NaaS emerges as a solution by providing secure, reliable, and scalable connectivity, enabling seamless collaboration and access to corporate resources. This, in turn, is contributing to the widespread adoption of NaaS in the market. For example, a September 2022 report from the United States Census Bureau, a US-based government agency, indicated that nearly half of the workforce in the District of Columbia, comprising 48.3%, engaged in remote work in 2021 - the highest percentage of home-based workers compared to states and state equivalents. Noteworthy states with high proportions of remote workers included Washington (24.2%), Maryland (24.0%), Colorado (23.7%), and Massachusetts (23.7%). Therefore, the significant increase in remote work is a key driver behind the growth of the network-as-a-service market.

Prominent companies in the network-as-a-service market are actively engaged in developing innovative products, such as digital orchestrations, to cater to broader customer bases, drive increased sales, and boost overall revenue. Digital orchestration involves the coordination, integration, and management of diverse digital resources, processes, and technologies with the aim of achieving specific outcomes or goals An exemplar in this realm is BT Group PLC, a UK-based telecommunications operator, which, in October 2023, introduced Global Fabric. Operating on a network-as-a-service model, Global Fabric prioritizes flexibility, scalability, and resilience in connectivity. Notably designed for adaptability and convenience, it adopts a pay-as-you-use structure, allowing customers to harness the power of digital automation and artificial intelligence (AI). A distinguishing feature is the empowerment of customers to select and manage their preferred connectivity for applications and workloads, providing control over the routes traversing the network. BT emphasizes that this control enhances application performance, facilitates efficient cost management, and ensures compliance with regulatory data transit requirements. The introduction of such innovative products highlights the industry's commitment to meeting evolving customer needs and driving advancements in the network-as-a-service market.

Major companies in the network-as-a-service market are increasingly adopting a strategic partnership approach to expedite the adoption of optical LAN. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits and success. An illustrative example is the collaboration between Nokia Corporation, a Finland-based telecommunications company, and Furukawa Electric LatAm S.A., a Brazil-based manufacturer of structured cabling, in August 2022. In this strategic partnership, Furukawa Electric LatAm becomes Nokia's partner for implementing optical LAN solutions within the Latin American enterprise sector, with initial deployment initiatives focusing on Brazil. The agreement outlines Furukawa Electric LatAm's integration of Nokia's optical networking equipment into its Laserway passive optical LAN solution. Marketed through its partner ecosystem, this collaboration is geared towards delivering advanced optical LAN solutions to enterprises in the Latin American region. The objective is to enhance connectivity and network capabilities, demonstrating the commitment of these companies to drive advancements in optical LAN solutions through strategic partnerships in the network-as-a-service market.

In March 2022, Acuative, a United States-based information technology services company, successfully acquired Tenfour for an undisclosed sum. This strategic acquisition is designed to reinforce and broaden Acuative's expertise in network as a service, allowing the company to better meet the evolving demands of its customer base. Tenfour, a U.S.-based network as a service provider, offers a range of services including managed infrastructure, security, and digital analytics. The integration of Tenfour's capabilities into Acuative enhances the overall network services portfolio of the combined entity, positioning Acuative to deliver enhanced solutions and address the dynamic needs of the information technology services market.

Major companies operating in the network as a service market report are China Telecom Corporation Limited, Verizon Communications Inc., China Mobile Limited, AT&T Inc., Deutsche Telekom AG, NTT Communications Corporation, IBM Corp., Cisco Systems Inc., Vodafone Group PLC, KDDI Corporation, Orange SA, Telefonica S.A., Oracle Corp., BT Group PLC, Lumen Technologies Inc., Telstra Corporation Limited, TELUS Corporation, Singtel, Wipro Limited, Comcast Business, Telia Company AB, Juniper Networks Inc., Colt Technology Services Group Limited, Tata Communications Ltd., Cloudflare Inc., Axians, PCCW Global, GTT Communications Inc., Aryaka Networks Inc., Servsys Corp.

North America was the largest region in the network as a service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the network as a service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the network as a service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of Network as a Service (NaaS) include LAN as a Service, WAN as a Service, Bandwidth on Demand (BoD), VPN as a Service, and Managed Services. A Local Area Network (LAN) refers to a group of computers and peripheral devices sharing a common communications line or wireless link to a server within a specific geographic area. This service caters to both large enterprises and SMEs. Various end-users benefiting from NaaS are found in sectors such as banking, financial services, and insurance (BFSI), government and the public sector, healthcare, IT and telecommunications, manufacturing, retail, e-commerce, and other industries.

The network as a service market research report is one of a series of new reports that provides network as a service market statistics, including network as a service industry global market size, regional shares, competitors with a network as a service market share, detailed network as a service market segments, market trends and opportunities, and any further data you may need to thrive in the network as a service industry. This network as a service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The network as a service market consists of revenues earned by entities by providing data center connectivity services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.