Network as a Service Market Size

Network as a Service Market Analysis

The network as a service market was valued at USD 14.46 billion the previous year and is expected to grow at a CAGR of 32.36%, reaching USD 78.38 billion by the next five years. Network-as-a-Service (NaaS) offers organizations and companies greater flexibility and even performance gains in their network infrastructure. With on-demand purchasing, firms can be more cost-conscious and pay only for the necessary networking services. Network-as-a-Service (NaaS) can also enable organizations that need greater flexibility in provisioning without having to rearchitect networks or redo contracts from the ground up.

• The broad construction of new data center infrastructures worldwide drives the growth of the network as a service (NaaS) market. Several main drivers drive this expansion, including the increasing use of cloud computing for data storage, the incorporation of Big Data analytics, and virtualization within that center to improve workload mobility. These advancements have resulted in better resource utilization, higher availability, lower total costs, and increased reliability and security for critical corporate applications.
• Furthermore, the increasing need for subscription-based and pay-per-use business models in network virtualization, cloud computing, and software-defined networking (SDN) is significantly impacting the market trajectory. The growing use of cloud services, which cater to the demands of large and small organizations, plays a significant role in shaping the industry landscape.
• NaaS gives businesses more flexibility and the opportunity for improved network performance. Organizations can emphasize cost-effectiveness by paying for the precise networking services requested via on-demand purchases. NaaS also enables businesses that need more provisioning flexibility without redoing their network or contract.
• Throughout the pandemic, Nokia studied with 100 IT leaders to learn about their expectations of their network as a service (NaaS). The study sought to identify the significant benefits, potential barriers to adoption, and the top services they will likely acquire. Forty-seven percent of the enterprise technology leaders wanted to implement NaaS within their organizations. Notably, ten percent of respondents had already purchased NaaS services, while only 14 percent said their businesses had yet to make plans to engage in NaaS service. Regarding Naas products, these executives emphasized specific criteria, with sixty-two percent emphasizing improved security, 58 percent wanting optimum performance, and forty-eight percent valuing guaranteed service levels and driving the market's growth.
• However, network as a service (NaaS) offers significant advantages; it's important to acknowledge certain obstacles and potential reliability issues that could hinder its growth in the foreseeable future. Opting for a third-party network infrastructure provider to host critical corporate infrastructure requires faith in the supplier's long-term stability. Businesses may face the challenge of replacing essential infrastructure if the provider fails to remain competitive.
• Since the outbreak of COVID-19, the demand for cloud-based solutions has seen significant growth owing to remote working models being adopted by enterprises; however, various industries such as retail, manufacturing, BFSI, and others have seen a considerable revenue slump. With the growing remote working model, companies are increasing investments in cloud-based analytics and assurance, edge computing, and AI-powered networking technologies, which are expected to boost the NaaS market.
• According to a survey by Aruba of 2400 IT decision-makers, in response to COVID-19, 38 percent of IT leaders plan to increase their investment in cloud-based networking and 35 percent in AI-based networking as they seek more agile, automated infrastructures for hybrid work environments. Also, Network-as-a-Service adoption will accelerate by 38 percent within the next two years as businesses adapt to COVID-19.