Local Area Network (LAN) as a Service Market Report 2025

The local area network (LAN) as a service market size has grown rapidly in recent years. It will grow from $5.8 billion in 2024 to $6.71 billion in 2025 at a compound annual growth rate (CAGR) of 15.7%. The growth in the historic period was driven by higher enterprise spending on network infrastructure, increasing demand for scalable networking solutions, greater emphasis on seamless network management, a rising need for centralized network control, and a stronger focus on reducing IT operational costs.

The local area network (LAN) as a service market size is expected to see rapid growth in the next few years. It will grow to $11.86 billion in 2029 at a compound annual growth rate (CAGR) of 15.3%. The growth in the forecast period is expected to be driven by increasing data traffic across enterprise networks, the rising outsourcing of network management services, greater deployment of edge devices within LANs, growing demand for low-latency communication, and the expansion of the mobile workforce in organizations. Key trends anticipated during this period include AI-enabled network optimization, advancements in Wi-Fi 6 and 6E technologies, adoption of zero trust network architecture (ZTNA), wider implementation of software-defined wide area networking (SD-WAN), and the use of network slicing for enterprise LANs.

The growing number of connected devices is expected to drive the expansion of the local area network (LAN) as a service market in the coming years. Connected devices are physical objects equipped with sensors, software, or network connectivity that enable them to transmit, receive, and exchange data over the internet or other networks. This rise is largely fueled by the rapid adoption of the Internet of Things (IoT), which brings smart devices into homes, workplaces, and industries to improve automation and connectivity. LAN as a Service supports these devices by offering a scalable, secure, and centrally managed network infrastructure that ensures reliable connectivity and real-time data exchange. This enables seamless communication among IoT devices, boosting performance while reducing network complexity. For example, in November 2022, Ericsson, a Sweden-based networking and telecommunications company, projected that the number of IoT-connected devices would rise from 13.2 billion in 2022 to 34.7 billion by 2028, with 28.7 billion connected through local short-range LPWANs and 6 billion via wide-area networks, including private cellular networks. Thus, the rising number of connected devices is fueling the growth of the LAN as a service market.

Leading companies in the local area network (LAN) as a service market are emphasizing technological innovations, such as fiber-based LAN solutions, to boost network speed, lower energy usage, and deliver scalable, future-ready connectivity for enterprises. A fiber-based LAN solution leverages fiber-optic cables instead of conventional copper wiring, enabling faster data transfer, greater bandwidth, and enhanced reliability. For example, in May 2025, Nokia Corporation, a Finland-based technology company specializing in telecommunications, networking, and digital infrastructure, introduced Aurelis Optical LAN, a next-generation fiber-based LAN solution designed for enterprise in-building and campus connectivity. This solution reduces cabling by up to 70% and power consumption by up to 40%, while offering a lifespan of more than 50 years and supporting speeds ranging from 1 Gb/s to future upgrades of 50 Gb/s and 100 Gb/s.

In July 2025, Hewlett Packard Enterprise (HPE), a US-based information technology company, acquired Juniper Networks Inc. in a $14 billion deal. This acquisition is intended to strengthen HPE’s edge-to-cloud networking portfolio, advance its LAN-as-a-Service capabilities, and speed up the delivery of AI-powered, cloud-managed networking solutions. Juniper Networks Inc., also based in the US, is a networking technology company recognized for its expertise in high-performance network infrastructure, AI-driven networking, and cybersecurity solutions.

Major players in the local area network (lan) as a service market are Verizon Business Global LLC, AT&T Inc., Deutsche Telekom AG, Huawei Technologies Co. Ltd., International Business Machines Corporation (IBM), Cisco Systems Inc., Broadcom Inc., Hewlett Packard Enterprise Company, NEC Corporation, Arista Networks Inc., Juniper Networks Inc., Fortinet Inc., TP-Link Technologies Co. Ltd., Tata Communications Limited, Extreme Networks Inc., Alcatel-Lucent Enterprise Holding B.V., Microland Limited, Meter Inc., Sify Technologies Limited, NetAccess Systems Inc.

North America was the largest region in the local area network (LAN) as a service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in local area network (LAN) as a service report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the local area network (LAN) as a service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

Local area network (LAN) as a service is a cloud-managed networking approach in which businesses outsource the design, deployment, and management of their LAN infrastructure to a service provider. The goal is to provide secure, scalable, and cost-effective connectivity with simplified management, enabling organizations to concentrate on core activities rather than handling complex network maintenance.

The primary components of the LAN as a service market include hardware, software, and services. Hardware consists of the physical devices that support the delivery and management of LAN services through a cloud-managed or subscription-based model. LANaaS can be implemented through either cloud-based or on-premises deployment models and can operate with various network configurations such as virtual LAN (VLAN), extended LAN (ELAN), wireless LAN (WLAN), and wired LAN. It is used across industries including banking, financial services and insurance (BFSI), education, healthcare, hospitality, telecommunications, and others, serving a wide range of end-users such as startups, small enterprises, medium enterprises, and large organizations.

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

The local area network (LAN) as a service market consists of revenues earned by entities by providing services such as consulting and integration services, support and maintenance services, security services, and network design and deployment services. The market value includes the value of related goods sold by the service provider or included within the service offering. The local area network (LAN) as a service market also includes sales of switches, routers, connectivity tools, gateways, controllers, and management software. 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.

This product will be delivered within 3-5 business days.