The Global Network as a Service Market size is expected to reach $117.14 billion by 2031, rising at a market growth of 25.2% CAGR during the forecast period.
The North America segment recorded 42% revenue share in the market in 2023. The high adoption of cloud computing primarily drives this growth, advanced IT infrastructure, and the increasing demand for software-defined networking (SDN) solutions in the region. The presence of major technology companies, strong investments in 5G deployment, and a growing remote workforce have further fuelled the demand for the network as a service (NaaS).
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In, February, 2025, Amdocs Limited announced the partnership with Google, an IT company to enhance 5G network operations using AI. The Amdocs Network AIOps solution, built on Google Cloud's AI infrastructure, automates network management, improves performance, and reduces operational costs. It offers predictive maintenance, automated workflows, and AI-driven insights to optimize service reliability and customer experiences. Additionally, In February, 2024, Amdocs Limited announced the partnership with BMC, a software company to enhance growth, automation, and efficiency in telecommunications and financial services. This partnership leverages Amdocs’ expertise in IT and network services along with BMC’s automation solutions to transform industries and enable faster deployment of innovative solutions for customers.
Additionally, Cloud computing has become the backbone of digital transformation, shifting enterprises' workloads to public, private, and hybrid cloud environments. The need for efficient, secure, and scalable network solutions grows as cloud adoption accelerates. NaaS enables enterprises to connect multiple cloud environments while ensuring seamless data flow and security. Thus, the increasing adoption of cloud-based services and hybrid IT environments drives the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
The Network as a Service (NaaS) market remains highly competitive with numerous regional providers, startups, and niche vendors offering tailored solutions. Competition is driven by cost-effectiveness, scalability, security, and cloud integration. Emerging players focus on 5G, SD-WAN, and AI-driven networking to differentiate. Strategic partnerships and innovations shape market dynamics amid evolving enterprise demands.
The North America segment recorded 42% revenue share in the market in 2023. The high adoption of cloud computing primarily drives this growth, advanced IT infrastructure, and the increasing demand for software-defined networking (SDN) solutions in the region. The presence of major technology companies, strong investments in 5G deployment, and a growing remote workforce have further fuelled the demand for the network as a service (NaaS).
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In, February, 2025, Amdocs Limited announced the partnership with Google, an IT company to enhance 5G network operations using AI. The Amdocs Network AIOps solution, built on Google Cloud's AI infrastructure, automates network management, improves performance, and reduces operational costs. It offers predictive maintenance, automated workflows, and AI-driven insights to optimize service reliability and customer experiences. Additionally, In February, 2024, Amdocs Limited announced the partnership with BMC, a software company to enhance growth, automation, and efficiency in telecommunications and financial services. This partnership leverages Amdocs’ expertise in IT and network services along with BMC’s automation solutions to transform industries and enable faster deployment of innovative solutions for customers.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Amazon Web Services, Inc. is the forerunner in the Network as a Service Market. In October, 2024, Amazon Web Services, Inc. teamed up with Lumen Technologies, a telecommunications company to enhance network operations using AI technologies. Lumen will provide fiber connectivity to AWS data centers across the U.S., supporting high-bandwidth, AI-driven applications. The collaboration aims to optimize network delivery, improving scalability, security, and performance for AI-driven services and applications. Companies such as Verizon Communications, Inc., AT&T, Inc., and Cisco Systems, Inc. are some of the key innovators in Network as a Service Market.Market Growth Factors
The modern enterprise landscape is evolving rapidly, requiring flexible, scalable, and cost-effective networking solutions. Traditional networking infrastructure often has limitations, such as high upfront investment, complex management, and rigid scalability. Network-as-a-Service (NaaS) addresses these concerns by providing on-demand network solutions that enterprises can scale based on their needs. Hence, the rising demand for scalable and on-demand network solutions in enterprises is driving the growth of the market.Additionally, Cloud computing has become the backbone of digital transformation, shifting enterprises' workloads to public, private, and hybrid cloud environments. The need for efficient, secure, and scalable network solutions grows as cloud adoption accelerates. NaaS enables enterprises to connect multiple cloud environments while ensuring seamless data flow and security. Thus, the increasing adoption of cloud-based services and hybrid IT environments drives the market's growth.
Market Restraining Factors
However, While NaaS offers a cost-effective alternative to traditional networking solutions, the initial transition cost can be a significant barrier for many enterprises. Migrating from an on-premises infrastructure to a cloud-based networking model requires investments in new software, training, and integration efforts. Many businesses are hesitant to move to NaaS due to concerns about the total cost of ownership (TCO) and return on investment (ROI).The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
Driving and Restraining Factors
Drivers
- Rising Demand for Scalable and On-Demand Network Solutions in Enterprises
- Increasing Adoption of Cloud-Based Services and Hybrid IT Environments
- Growing Digital Transformation Initiatives Across Various Industry Verticals
Restraints
- High Initial Costs and Uncertain Long-Term Pricing Models for Enterprises
- Concerns Over Data Security, Privacy, and Compliance in Cloud-Based Networking Solutions
Opportunities
- Surging Deployment of 5G Networks Driving High-Speed Connectivity Requirements
- Growth Potential in Remote Work and Hybrid Workforce Connectivity Solutions
Challenges
- Interoperability Issues Between NaaS Platforms and Existing On-Premises Systems
- Bandwidth and Traffic Management Issues in High-Demand Scenarios
Type Outlook
Based on type, the market is characterized into WAN as a Service and LAN as a service. The LAN as a service segment procured 38% revenue share in the market in 2023. Businesses increasingly opt for LAN as a Service to streamline network management, reduce capital expenditures, and improve scalability. The demand for managed LAN solutions is rising across healthcare, education, and retail industries, where seamless connectivity and network reliability are crucial.End User Outlook
Based on end user, the market is segmented into corporate and individual customers. The individual customers segment acquired 20% revenue share in the market in 2023. The rising adoption of cloud-based applications, streaming services, and remote work solutions has fuelled the demand for NaaS among individual users. Consumers increasingly seek secure, high-speed network services, including virtual private networks (VPNs) and bandwidth-on-demand solutions, to enhance their online experience.Application Outlook
By application, the market is divided into wide area networks, virtual private networks, bandwidth on demand, cloud-based services, and others. The virtual private network segment garnered 9% revenue share in the market in 2023. The growing concerns over data security, cyber threats, and remote access solutions have significantly fuelled the demand for VPN services. Organizations increasingly adopt cloud-based VPN solutions to ensure secure communication between employees, branch offices, and cloud environments.Enterprise Type Outlook
On the basis of enterprise type, the market is classified into large enterprise and small & medium enterprises. The small & medium enterprises segment recorded 44% revenue share in the market in 2023. SMEs increasingly leverage NaaS solutions to minimize upfront capital expenditures and streamline network management. The growing reliance on cloud computing, digital collaboration tools, and cybersecurity solutions has accelerated the adoption of NaaS among SMEs.Industry Outlook
On the basis of industry, the market is categorized into IT & telecommunication, manufacturing, healthcare, retail, and others. The manufacturing segment acquired 19% revenue share in the market in 2023. The adoption of smart manufacturing, the Industrial Internet of Things (IIoT), and automation has increased the demand for reliable and flexible network solutions. Manufacturers utilize NaaS to connect production facilities, optimize supply chain operations, and enable real-time data analytics.Market Competition and Attributes
The Network as a Service (NaaS) market remains highly competitive with numerous regional providers, startups, and niche vendors offering tailored solutions. Competition is driven by cost-effectiveness, scalability, security, and cloud integration. Emerging players focus on 5G, SD-WAN, and AI-driven networking to differentiate. Strategic partnerships and innovations shape market dynamics amid evolving enterprise demands.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment witnessed 28% revenue share in the market in 2023. The region’s increasing focus on digital transformation and stringent data security regulations have driven the adoption of NaaS solutions across various industries. European businesses invest in cloud-based networking solutions to improve operational efficiency and ensure compliance with GDPR and other regulatory requirements.Recent Strategies Deployed in the Market
- Feb-2025: Amdocs Limited unveiled CES25, an advanced version of its Customer Experience Suite, designed to enhance network and service automation with generative AI. The suite offers agile, modular solutions tailored for service providers of all sizes, enabling better monetization models, customer experiences, and operational efficiencies across multiple cloud deployments and ecosystems.
- Feb-2025: Amdocs Limited unveiled its Cognitive RAN Automation platform and rApp ecosystem at MWC 2025 to optimize network management and performance. The vendor-neutral, AI-driven platform supports both traditional and cloud-based RAN environments. It includes pre-built rApps for energy savings, AI, GenAI, and machine learning, enabling service providers to streamline operations and reduce costs.
- Feb-2025: NEC Corporation unveiled a Near-Real-Time RAN Intelligent Controller (Near-RT RIC) platform to optimize network performance for virtualized Radio Access Networks (vRAN) according to O-RAN Alliance specifications. The platform uses AI for dynamic network control, improving load balancing, SLA guarantees, and reliability, while reducing costs and enabling advancements in 5G and Beyond 5G/6G technologies.
- Oct-2024: Amdocs Limited unveiled an enhanced fiber offering to accelerate fiber network deployment, integrating advanced automation and AI. It enables real-time network management and automation of planning and design, resulting in 30% faster deployment, reduced costs, and improved network performance for service providers.
- Feb-2024: Amazon Web Services, Inc. announced the partnership with Liberty Global, a telecommunications company to develop a Network-as-a-Service (NaaS) framework, enabling developers to leverage Liberty Global’s telecom networks via cloud infrastructure. This partnership aims to create customizable APIs for businesses, enhancing agility and reducing integration complexities. The initiative focuses on sectors like home productivity, logistics, and remote care.
List of Key Companies Profiled
- Amdocs Limited
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Hewlett Packard Enterprise Company
- NEC Corporation
- Cisco Systems, Inc.
- Cloudflare, Inc.
- Verizon Communications, Inc.
- Juniper Networks, Inc.
- AT&T, Inc.
- IBM Corporation
Market Report Segmentation
By Type
- WAN as a Service
- LAN as a Service
By End User
- Corporate Customers
- Individual Customers
By Application
- Wide Area Network
- Cloud-based Services
- Virtual Private Network
- Bandwidth on Demand
- Other Application
By Enterprise Type
- Large Enterprise
- Small & Medium Enterprise
By Industry
- IT & Telecom
- BFSI
- Manufacturing
- Retail
- Healthcare
- Other Industry
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Network as a Service Market by Type
Chapter 6. Global Network as a Service Market by End User
Chapter 7. Global Network as a Service Market by Application
Chapter 8. Global Network as a Service Market by Enterprise Type
Chapter 9. Global Network as a Service Market by Industry
Chapter 10. Global Network as a Service Market by Region
Chapter 11. Company Profiles
Companies Mentioned
- Amdocs Limited
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Hewlett Packard Enterprise Company
- NEC Corporation
- Cisco Systems, Inc.
- Cloudflare, Inc.
- Verizon Communications, Inc.
- Juniper Networks, Inc.
- AT&T, Inc.
- IBM Corporation
Methodology
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