Network as a Service Market Size: Technological Advancement and Growth Analysis with Forecast By 2025

The global network as a service market has been gaining a commendable impetus in the recent years as NaaS can provide companies with greater flexibility and improve the performance of their network infrastructure. The worldwide market is also making a major headway as enterprises of all sizes are striving to run IT infrastructure more efficiently and methodically operate and manage their networks.

Business models like network as a service promise the much-needed efficiency, through an on-demand provisioning model. Companies can act more cost-consciously with on-demand purchasing as they need to pay for only for the networking services they need. NaaS helps businesses that want demand provisioning flexibility without requiring to rearchitect networks from the ground up. NaaS also offers palpable return on investment by helping customers to trade Capex for Opex and refocusing person hours on other, more demanding priorities. Such benefits are majorly driving the network as a service market size, expected to surpass $50 billion by 2025.

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Considering the type of service, the adoption of bandwidth on demand (BoD) is projected to grow at a 39% CAGR through 2025. BoD provides users with better control over the network by enabling them to customize the connectivity parameters. It accommodates the demand for short-duration bandwidths in applications such as live streaming of sports events, conferences, seminars, and medical procedures.

BoD is rapidly gaining traction among vendors and carriers owing to its ability to handle uncertain network traffic demands. Leading telecom players including Airtel, Vodafone, and British Telecom are developing BoD solutions to help meet evolving bandwidth requirements of customers.

Large enterprises are likely to capture nearly 55% revenue share of network as a service market by 2025. NaaS enables these companies to use their networks more flexibly, agilely, and dynamically. Most large-size enterprises are switching to a virtual network infrastructure to optimize their expenditure related to management and maintenance of physical infrastructure.

NaaS brings numerous advantages including maximized performance, enhanced security, optimized systems, increased levels of uptime, and improved quality of service (QoS). On-demand allocation of computational resources as per the pay-per-use model will further boost NaaS adoption across large enterprises.

IT & telecom application segment is likely to account for nearly one-fourth share of network as a service market in terms of revenue by 2025. A centralized network infrastructure allows telecom companies to centrally control and manage all networking operations. Many telecom enterprises are switching to NFV and SDN to build a centralized network infrastructure.

More and more enterprises are focusing on outsourcing network and cybersecurity solutions to focus on their core competencies. Lower operational costs of SDN enables telecom and IT enterprises to switch to NaaS over their traditional network infrastructure more seamlessly and gain a competitive advantage.

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Asia Pacific network as a service market size is projected to record a robust 40% CAGR through 2025, driven by an increasing demand for network virtualization which enables businesses to reduce costs and complexities associated with the physical network infrastructure.

Amazon Web Services, Inc., Broadcom Ltd., Nokia Networks, VMware Inc., Verizon Communications Inc., Juniper Networks, Inc., Cisco Systems Inc., and IBM Corporation are among the leading NaaS providers worldwide. These companies as well as many other players are focusing on delivering advanced NaaS solutions to enterprises.

Major Key Points from Table of Content:

Chapter 5.   Network as a Service Market, By Type

5.1.  Key trends, by type

5.2.  LAN as a service

5.2.1. Market estimates and forecast, 2014 – 2025

5.3.  WAN as a service

5.3.1. Market estimates and forecast, 2014 – 2025

5.4.  Bandwidth on Demand (BoD)

5.4.1. Market estimates and forecast, 2014 – 2025

5.5.  VPN as a service

5.5.1. Market estimates and forecast, 2014 – 2025

5.6.  Managed services

5.6.1. Market estimates and forecast, 2014 – 2025

Chapter 6.   Network as a Service Market, By Enterprise Size

6.1.  Key trends, by enterprise size

6.2.  Large enterprises

6.2.1. Market estimates and forecast, 2014 - 2025

6.3.  Small and Medium Enterprises (SMEs)

6.3.1. Market estimates and forecast, 2014 - 2025

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