Network as a Service Market Predicted to Reach $37.5 Billion by 2026

This research report categorizes the NaaS market to forecast revenue and analyze trends by Type(LAN and WLAN, WAN, Communication and Collaboration, Network Security), Organization Size, Application, end user, and regions


Northbrook, IL -- (SBWIRE) -- 05/14/2021 -- According to a new market research report "Network as a Service Market by Type (LAN and WLAN, WAN, Communication and Collaboration, and Network Security), Organization Size (Large Enterprises and SMEs), Application, End User ( BFSI, Manufacturing, Healthcare), and Region - Global Forecast to 2026" published by MarketsandMarkets™, the market size expected to grow from USD 10.4 billion in 2021 to USD 37.5 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 29.4% during the forecast period.

As organizations progress to cloud and adopt new technologies, the way they architect and set up network infrastructure must change. So, the enterprise NaaS has emerged as a significant new way for organizations to flexibly consume network infrastructure. It enables them to use network services over the internet using pay-per-use or subscription consumption models. Thus, enterprises are beginning to realize the significant benefits of this new model. This model has also created opportunities for CSPs to collaborate with cloud providers and other ecosystem partners on service development and delivery. With NaaS, network spending has shifted from the Capital Expenditure (CAPEX) to the Operational Expenditure (OPEX) model for network infrastructure.

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Network Security segment to grow at the highest CAGR during the forecast period

NaaS offers a strong set of security services that provide defense against malicious attacks with the provision of secure network policies, firewall-as-a-service, secure web gateways, network access control, and secure DDI. These network security services help businesses to protect networks from cyber threats, data breaches, intrusions, and detections. Network security is a broad term that comprises a set of technologies and tools designed to develop the secure flow of data and information over networks. Irrespective of size, businesses require a high degree of network security to protect their network infrastructure from the increasing cyber threats. In today's digital world and remote work culture, incidences of network threats have increased exponentially all over the globe. The changing business model and hybrid network infrastructure are challenges for businesses in terms of securing network infrastructure. Attackers have found a hundred ways to exploit network infrastructure with DDoS attacks and vulnerabilities.

Small and Medium Sized Enterprises segment is expected to grow at the highest CAGR during the forecast period

Organizations with less than 999 employees are considered under the SMEs segment. These organizations struggle with a low network infrastructure budget, despite advancements in technologies. However, with the availability of low-cost cloud services and the as-a-service model, SMEs have shifted their focus on digital transformation to benefit from emerging technologies such as cloud, analytics, IoT, and SDN. Small businesses all over the globe are no exception when it comes to access to wired and wireless infrastructure. Every organization, irrespective of size, has adopted the mobile-first strategy to cope with the growing technology world and garner new business opportunities. The NaaS model has benefitted most SMEs. This model offloads the burden of managing the entire network infrastructure at a lower cost for network operation teams. In this way, business stakeholders can emphasize on their daily business activities by accessing continuous internet connectivity. Like global organizations, SMEs in emerging countries are moving toward the subscription-based model from the ownership model. Within the subscription or NaaS model, enterprises can opt to purchase any software or hardware device costing more than the as-a-service model.

Asia Pacific (APAC) region to record the highest growing region in the NaaS market

The NaaS market is highly competitive in APAC due to the presence of various service providers, networking providers, telecom carriers, and technology service vendors. Many vendors compete to offer the best services in the region, particularly in the retail and e-commerce industry vertical. This region also hosts many emerging service players in the networking and IT domain. It is proving to be a rich space in terms of the existence of several multinational corporations, government organizations, and many midsized as well as large telecommunications and IT organizations. The growth is attributed to the presence of developing economies, such as China and India. These countries have expansively considered the usage of wireless internet to cater to the unparalleled needs of Wi-Fi connectivity in large enterprises and SMEs of the region. The retail and e-commerce industry vertical is gaining traction in India and China.

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Key and innovative vendors in NaaS market are AT&T (US), Verizon (US), Telefonica (Spain), NTT Communications(Japan), Orange Business Services(France), Vodafone (UK), BT Group(London), Tata Communications(India), Lumen(US), Masergy(US), Servsys(US), TELUS(Canada), PCCW Global(China), KDDI(Japan), Cloudflare(US), ARYAKA NETWORKS(US), China Telecom(China), China Mobile(China), Singtel(Singapore), GTT Communications(US), Telia(Sweden), Telstra(Australia), Deutsche Telekom(Germany), Colt Technology Services(UK), HGC(China), TenFour(US),PacketFabric(US), OnX Canada(Canada), Megaport(Australia), Wipro(India), Epsilon(Singapore), Axians(France), IPC Tech(US), and Microland(India).

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