The Global Network as a Service Market is expected to witness a rapid CAGR of ~30% during the forecast period (2022-2028), and reaching revenue of ~US$ 50 Bn by 2028, due to an increase in investment in advanced technology and collaboration in a cloud computing network.
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Key Growth Drivers
- The CISCO Global Cloud Index estimated that in 2021, cloud data centers would have likely processed ~90% of all workloads and computing instances, and the remaining processed by traditional data centers. As the information and applications hosted by the cloud are evenly distributed across all the servers, which are connected to work as one. Therefore, if one server fails, no data is lost and downtime is avoided. The cloud also offers more storage space and server resources, including better computing power. This means your software and applications will perform faster.
Traditional IT systems are not so resilient and cannot guarantee a consistently high level of server performance. They have limited capacity and are susceptible to downtime, which can greatly hinder workplace productivity.
- The high cost of implementation may create problems for the NaaS service provider as vendors may find it challenging in maintain and protect technology.
- Since the COVID-19 outbreak, businesses have adopted the remote working concept, which has considerably raised the need for cloud-based solutions.
- However, in 2020, sales declined significantly for a variety of industries, including manufacturing, BFSI, retail, and others. Due to the rising popularity of remote working, businesses are increasing their investments in edge computing, cloud-based analytics and assurance, and AI-powered networking solutions. It’s expected that this would lead to an increase in the NaaS market.
Key Trends by Market Segment
By Type: WAN dominates the market share of the Global market.
- WAN develops a communication network with the help of mobile phones, computers, remote offices, and data center
- WAN as a service offers cloud, and Internet connectivity used by the customers and configures the WAN using software instead of hardware appliances.
- The primary advantage of WAN is that it is designed to allow communication over a wide geographical area.
- In February 2020, The VMware Telco Automation Cloud was launched to model, onboard, orchestrate, and manage virtual network functions (VNFs), cloud network functions (CNFs), and network services. TAC prioritized the cloud to reduce the complexity of multi-cloud architectures, making NFVs and VNFs more manageable as part of its “Ready for NFV” campaign.
- In April 2018, China Mobile International, a Chinese telecom carrier, and Aryaka, a top provider of SD-WAN solutions, collaborated to offer completely compliant SD-WAN solutions for multinational corporations. This collaboration made it easier to build and administer SD-WANs and to comply with Chinese regulations.
By Application: Cloud-services provider segment accounts for the majority share of the Global NaaS Market.
- Cloud- services providers the segment that is rising the fastest. The primary forces behind cloud migration include scalability, improved efficacy, speedier deployment, mobility, and disaster recovery.
- Cloud services describe a broad variety of services that are provided on demand to businesses and clients through the internet. These services are created to offer quick, inexpensive access to resources and applications without the need for internal hardware or infrastructure.
- Due to Transmission from on-premises modules to cloud-based services and rising investment in cloud-related services by various end-user industries.
- Due to the COVID pandemic the rise in demand for Video Conferencing increases as companies are opting for Work from Home.
- According to Cisco’s Global Cloud Index, 78% of all cloud processes are anticipated to be supplied using a NaaS model between 2016 and 2021. Network as a service was expected to make up 10% of the worldwide cloud industry, while infrastructure as a service was predicted to decline from an impressive 25% in 2021.
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By Enterprises: Large enterprises segment account to hold the largest share of the market.
- Large enterprises are using virtualized technology to manage the connection in remote sites and raising support for Bring Your Own Device (BYOD) which helps them in managing their diverse source cost-effectively.
- Many large industries are embracing cloud services because they enable them to fulfill their business objectives at a low cost.
- Large enterprises are adopting NaaS as it covers a wide geographical area and it helps the large organization connect with all the branches at a time.
- The adoption of NaaS in the Large enterprise segment is due to influenced by higher uptime, better security, better Quality of Service (QoS), higher performance, and optimized systems.
By End Users: Software and Technology is the largest market in Global NaaS Market.
- The rise in demand for Software and Technology due to allocating cloud computing among enterprises as well as government agencies.
- Network infrastructure is essential in the IT and telecom sectors since the majority of activity in these sectors rely on their networks. Network services are collections of interconnected virtual and physical network operations. The foundational elements of 5G networks are those. Consequently, the development of new technologies like 5G will lead to significant adoption of the NaaS platform in the telecom sector.
- In June 2022, NaaS Technology Inc. has officially listed on the NASDAQ under the ticker NaaS. to operate its technology in 358 cities across China and has connected more than 400,000 chargers and 44,000 charging stations.
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By Geography: North America accounts for the largest share among all regions within the global Network as a Service market, accounting for total market revenue.
- The increase in demand for Network as a Service in Canada is growing mainly due to its new product roll-outs, acquisitions, mergers, and partnerships, which are changing the market in North America overall.
- The presence of a large number of service providers offering network services is also anticipated to drive regional growth over the forecast period.
- The second largest region is Europe. Several collaboration initiatives taking place in the nation are contributing to the growth of NaaS platforms and product innovation. In February 2021, Packet Fabric and Colt Technology Services of the UK announced a strategic relationship to directly integrate Colts on Demand with Packet Fabric’s Network as a Service (NaaS) infrastructure. This will provide real-time network access to 100 prestigious data center sites around Europe, which will be advantageous to Packet Fabric’s business clients.
- Asia-Pacific is the fastest-growing region driven by China’s widespread adoption of 5G and 5G mobile networks that support many different service types such as health, automotive, Banking Services, and Telecom.
Competitive Landscape
The Global NaaS market is highly competitive with ~500 players which include globally diversified players, regional players as well as a large number of country-niche players each with their niche in a cloud-based solution, and technologies. The NaaS market’s growth is heavily reliant on technological advancement and Software investment. Nowadays, numerous cloud-based companies, including Rackspace, Verizon, Cisco, and Juniper are investing in NaaS, and governments are also making significant investments in NaaS.
Country-Niche players constitute about ~65% of the competitors, while global players constitute ~5%. Some of the major players in the market include Rackspace, Verizon, Cisco, AT&T, Aryaka Networks, Juniper Networks, NEC Corporation, VMware, Telefonica, Cloud flare, Ciena Corporation, Wipro, and among others.
Recent Developments Related to Major Players
- In September 2022, Juniper announces its expansion to Apstra software. This will help Juniper enterprises, service providers, and cloud provider customers to manage their data center automation.
- In June 2021, AT&T introduced Cisco Webex Calling. AT&T Business offers Webex Calling with AT&T Enterprise to Cisco’s Unified Communications Manager – Cloud (UCMC). It will support businesses in increasing digitization and process optimization. UCMC will increase reliability and effectiveness for all users of Webex Calling with AT&T-Enterprise.
- In March 2021, Verizon introduced NaaS. This new SDN and NFV solution allow businesses to switch to a virtual infrastructure paradigm, resulting in more agility and on-demand resources.
- In December 2021, Aryaka Networks introduced an “all-in-one” SD-WAN and SASE solution for diverse businesses. This decision has helped to increase company flexibility and accelerate cloud adoption.
Conclusion
The Global NaaS Market is forecasted to continue an exponential growth that is witnessed since 2017, during the forecast period is also, primarily driven by rising demand due to increasing digital transformation through data and networking technologies, such as IoT, blockchain, cognitive, and advanced analytics intensifies the adoption of connectivity advances in various industry. Though the market is highly competitive with over 500 participants, few global players control the dominant share, and regional players also hold a significant share.
Note: This is an upcoming/planned report, so the figures quoted here for market size estimate, forecast, growth, segment share and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients and report delivered within maximum 2 working weeks.
Ken Research has recently published report titled, Global Network as a Service Market Size, Segments, Outlook, and Revenue Forecast 2022-2028, market is segmented by Type, Application, Enterprises, and End-User. In addition, the report also covers market size and forecasts for the region’s four major regions’ Network as a Service market. The revenue used to size and forecast the market for each segment is USD billion.
Market Taxonomy
By Type
- WAN
- LAN
- Bandwidth on Demand
- Data Connectivity Center
By Application
- Virtual Private Network
- Content Delivery Network
- Cloud Service Provider
- UCaaS/ Video Conferencing
- Integrated network security as a service
By Enterprises
- SMEs
- Large enterprises
By End-User
- Banking, Financial, Services, and Insurance
- Manufacturing
- Retail and eCommerce
- Healthcare
- Education
- Software and Technology
- Media and Entertainment
- Government
- Others
By Geography
- North America (USA, Canada, Mexico)
- Europe (Germany, UK, France, Italy, Spain)
- Asia Pacific (China, Japan, India, Australia, South Korea, Rest of Asia Pacific)
- Latin America, Middle East and Africa (LAMEA)
