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Network-as-a-service Market Size, Status, Top Players, Trends and Forecast to 2026

Network-as-a-service (NaaS) is the network transport connectivity used for delivering network services virtually over the internet on a metered service (pay-per-use). NaaS providers offer necessary network hardware to end users on subscription basis, which provides a complete network solution. Consumers have to pay only for services that are being used.

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In NaaS model, the networking operators offer network resources such as optical switches, IP networks, BoD Domains, and routers. Some of the major advantages of NaaS are, it provides scalability and elasticity of service using which the network can be upgraded, providing a strong layer of security when the cloud is to be accessed, and functioning in the background. Furthermore, NaaS aids in providing efficient network bandwidth, effective flexibility of the network over consumption, and positive impact on resource-centric processes such a network monitoring and trouble management.

Increasing deployment of cloud computing and network virtualization are the major factors driving growth of the network-as-a-service market

Adoption of cloud computing services and network virtualization has led to significant increase in data collected on various digital and social platforms. In cloud computing, the NaaS benefits in providing scalable, pluggable, and API (Application Programmer Interface) driven network management, where the users can deploy and manage their networks virtually. NaaS offers a networking framework that outspreads the cloud computing’s on-demand and self-service provisioning model to the network service provider. Therefore, increasing deployment of cloud computing positively impacts growth of the market. For instance, according to Coherent Market Insights’ analysis, in 2015 the annual spending on cloud services is US$ 70 million and it is projected to grow to US$ 141 billion by 2019. Moreover, annual global cloud IP traffic is estimated to reach 14.1 ZB (Zeta Byte) by the end of 2020, from 3.9 ZB in 2015.

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Information Technology (IT) and telecommunication segment is expected to account for the largest market share over the forecast period

IT and telecommunication segment is expected to be dominant in the market over the forecast period, due to increasing deployment of cloud computing services. Therefore, increasing cloud computing services is driving adoption of cloud-based networking services, which offer the end-users on-demand network resources. The IT and telecom end-users are rapidly using networking and cloud technologies, which vary from checking of emails to managing the large volume of business data on the cloud. For instance, according to the Coherent Market Insights’ analysis, the in 2011 the cloud application adopted by the telecom sector is 6.18% and by 2014 it is reached to 17.96%. Therefore, increasing adoption of cloud computing by the telecom sector will positively impact on fuelling the growth of network as a services market.

Global Network-as-a-service Market: Regional Insights

On basis of region the global network-as-a-service is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. Asia Pacific is expected to exhibit the highest growth, during the forecast period. India, China, and Japan are the major growth engines in the market of Asia Pacific. Increasing internet penetration is one of the major factors responsible for driving growth of the market in this particular region. For instance, according to the Internet World Stats estimations in 2017, China and India together contributed to over 1.2 billion Internet users as of June 2017. In addition to this, development of the Internet infrastructure and online businesses in this region are also expected to provide substantial growth opportunity over the forecast period.

Global Network-as-a-service Market: Competitive Background

Kay players in the network-as-a-service ecosystem comprises solutions and service providers, such as Cisco Systems Inc., Juniper Networks, Inc., IBM Corp., NEC Corp., VMware, Aryaka Networks Inc., Alcatel Lucent, Brocade Communications Systems Inc., AT&T Inc., and Ciena Corporation.
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