Network as a Service (NaaS) Market

Network as a Service Market Overview

The global Network as a Service Market size was valued at USD 14.1 billion in 2023 and is predicted to reach USD 104.7 billion by 2030 with a CAGR of 33.2% from 2024-2030. Network as a Service (NaaS) Market refers to the sector of cloud computing that offers network infrastructure and services on a subscription business model. NaaS enables businesses to access, manage, and optimize their networking requirements through a cloud-based platform, eliminating the need for extensive on-premises hardware and reducing operational costs. This model provides scalable and flexible network solutions, including virtualized network functions, connectivity, and management services, tailored to the specific requirements of enterprises. With the adoption of NaaS, businesses can enhance their network performance, ensuring better security, and streamline network operations while focusing on their core operations.  

Market Dynamics and Trends

The rapid growth of cloud computing driven by the rising need for flexible and scalable network solutions is significantly fuelling the network as a service market demand. As per a survey conducted by Gartner, in North America and Europe around 39% enterprises adopted industry cloud solutions and it is estimated more 17% enterprises to adopt industry cloud solutions by the end of 2026.

This trend highlights the increasing reliance on cloud-based models, that are enhancing the demand for NaaS solutions. This solution provides a cost-effective way to manage and optimize these networks without heavy investments in physical hardware. This alignment with cloud-based models simplifies network management, enhances scalability, and ensures rapid adaptability to changing business needs and technological advancements.

Also, the surge in data traffic driven by the rise of IoT devices, streaming services, and big data analytics is significantly boosting the market. With more devices and applications generating vast amounts of data, companies are facing the challenge of managing and processing this information efficiently.

To address these needs, businesses are increasingly turning to scalable and flexible network solutions that NaaS provides. These services enable organizations to handle growing data volumes effectively, ensuring optimal performance and connectivity while reducing the complexity and cost of managing their network infrastructure.

Moreover, the rise in the number of data thefts and breaches across the globe is further fuelling the growth of the market. With cyberattacks becoming more frequent and sophisticated, companies are prioritizing robust network security solutions to protect their data. In 2023, the average cost of a data breach for businesses globally was USD 4.45 million.

The United States experienced the highest average breach cost in the world, totalling USD 9.48 million. NaaS providers offer comprehensive security features, such as advanced encryption, real-time monitoring, and enhanced access controls, that help organizations defend against these threats. As companies seek to enhance their defences and ensure secure operations, increasing the demand for NaaS solutions, making it a crucial component in their cybersecurity strategy. 

However, NaaS generally offers a predictable subscription fee, that includes hidden costs associated with data transfer, egress fees, or exceeding service quotas. These additional charges result in unexpected expenses creating a barrier for small and medium size businesses to adopt this solution, thus restraining the network as a service market growth.

On the other hand, the introduction of AI-powered threat detection and response in Network-as-a-Service (NaaS) is poised to create significant growth opportunities for the market. AI technologies can enhance the capability of NaaS platforms to detect and respond to security threats in real-time, offering more robust and proactive protection. This advanced threat management improves overall network security and reduces the risk of data breaches and cyberattacks. 

Market Segmentation and Scope of Study

The global network as a service market report is segmented on the basis of type, enterprise size, application, end-user, and geography. Based on type, the market is classified into WAN as a service and LAN as a service. Based on the enterprise size, the market is segmented into small & medium-sized enterprise and large enterprise. On the basis of application, the market is categorized into wide area network, virtual private network, cloud-based services, bandwidth on demand, and others. On the basis of end-user, the market is divided into BFSI, IT & telecommunication, manufacturing, healthcare, retail, and others. Geographical breakdown and analysis of each of the aforesaid classifications include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the global network as a service market share and is potently expected to remain dominant in the market throughout the forecast period. This is attributed to the increasing prevalence of cybersecurity threats and data theft in the region. According to a report published by Federal Trade Commission in February 2022, shows that consumers reported losing more than USD 5.8 billion to online frauds in 2021.

As cyberattacks become more frequent and sophisticated, companies are seeking secure and reliable network solutions to protect their sensitive data. NaaS providers offer enhanced security features, such as advanced encryption and threat detection, that help businesses safeguard their information. This growing need for robust security measures is pushing more organizations to adopt NaaS, fueling market expansion in the region.

Moreover, the presence of key market players such as Oracle Cloud Infrastructure and Aryaka Networks that are adopting strategies including product launches is further driving the growth of NaaS market. 

For instance, in March 2022, Oracle Cloud Infrastructure (OCI) launched 11 new computer, networking, and storage services and capabilities that enable customers with truly flexible core infrastructure services. It automatically optimizes resources to match application requirements and significantly reduce costs.

On the other hand, Asia Pacific shows a substantial growth in the global network as a service market owing to the increasing adoption of IoT devices such as smartphones, smart home systems, wearable tech, and connected industrial equipment. According to latest GSMA report, Asia Pacific is expected to have over 3 billion smartphone connections by 2030.

This will result in a smartphone adoption rate of 94% for the region, surpassing the global average of 92%. Thus, this surge in adoption of IoT devices increases the need for scalable, efficient, and secure network solutions. NaaS provides the necessary infrastructure to handle the massive data flow and connectivity requirements, enabling businesses and consumers to manage their IoT ecosystems effectively.

Moreover, the rapid urbanization and the expansion of smart cities in countries such as China and India are driving the demand for advanced networking solutions. According to a report from the India Brand Equity Foundation, the total investments allocated for the Smart City Mission reached USD 86.43 billion as of February 2024. As cities evolve and integrate more smart technologies, such as IoT devices and automated systems, there is a growing need for flexible and scalable network management. NaaS provides a solution by offering efficient, on-demand network resources and management.

This helps cities handle the increasing volume of data and connectivity requirements while keeping costs manageable. Through enabling seamless integration and operation of smart infrastructure, NaaS supports the creation of more intelligent, responsive urban environments.

Competitive Landscape

Various key market players operating in the NaaS industry includes Palo Alto Networks, Inc., Amdocs Limited, Megaport Limited, Akamai Technologies, Inc., Cisco Systems, Inc., Cloudflare, Inc., AT&T Inc., Verizon Communications Inc., DXC Technology Company, Synnex Corporation, NEC Corporation, Aryaka Networks, Inc., IBM Corporation, Oracle Corporation, and Cloudflare, Inc.

These market players are adopting various strategies such as business expansion and product launches to maintain their dominance in the global NaaS market. For instance, in April 2024, Megaport Limited announced that it became the first Independent Software Vendor (ISV) to list an AWS Direct Connect network service offering in AWS Marketplace. 

Additionally, Megaport expanded its NaaS offerings by integrating with more data centers and cloud regions worldwide. This expansion enhanced Megaport's ability to provide flexible and scalable connectivity solutions, enabling businesses to connect to a broader range of cloud service providers and data center locations.

Also, in February 2024, Palo Alto Networks launched private 5G security solutions in partnership with a broad ecosystem of technology providers. The new offerings included comprehensive security tools and services designed to protect private 5G networks from cyber threats and ensure secure connectivity. The solutions featured advanced threat detection, network visibility, and automated response capabilities tailored for the unique requirements of private 5G environments. 

Key Benefits

• The report provides quantitative analysis and estimations of the network as a service market from 2024 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the network as a service market including the current and future trends to depict prevalent investment pockets in theindustry.

• Information related to key drivers, restraints, and opportunities and their impact on the network as a service market is provided in the report.

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated on the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders. 

Network as a Service Market Key Segments

By Type

• WAN as a Service

• LAN as a Service

By Enterprise Size

• Small & Medium-sized Enterprise

• Large Enterprise

By Application

• Wide Area Network

• Virtual Private Network

• Cloud-Based Services

• Bandwidth on Demand

• Others  

By End User

• BFSI

• IT & Telecommunication

• Manufacturing

• Healthcare

• Retail

• Others

By Region

• North America

  • U.S

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World (RoW)

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 14.1 Billion
Revenue Forecast in 2030	USD 104.7 Billion
Revenue Growth Rate	CAGR of 33.2% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	The rapid growth of cloud computing is driving the market growth. The surge in data traffic driven by the rise of IoT devices fuels the market. The surge in the number of data thefts and breaches boosts the growth of the market.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

Key Players

• Palo Alto Networks, Inc.

• Amdocs Limited

• Megaport Limited

• Akamai Technologies, Inc.

• Cisco Systems, Inc.

• Cloudflare, Inc.

• AT&T Inc.

• Verizon Communications Inc.

• DXC Technology Company

• Synnex Corporation

• NEC Corporation

• Aryaka Networks, Inc.

• IBM Corporation

• Oracle Corporation

• Cloudflare, Inc.