Network Traffic Analysis Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Network Traffic Analysis Market is Segmented by Deployment (On-Premise, Cloud-Based, and Hybrid), Component (Solutions and Services), Organization Size (Large Enterprises and Small and Medium Enterprises), End-User Industry (BFSI, IT and Telecom, and More), and Geography. The Market Sizes and Forecasts are Provided in Value (in USD Million) for all the Above Segments.

Network Traffic Analysis Market Size and Share

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Network Traffic Analysis Market Analysis by Mordor Intelligence

The Network Traffic Analysis Market size is estimated at USD 4.42 billion in 2025, and is expected to reach USD 7.52 billion by 2030, at a CAGR of 11.20% during the forecast period (2025-2030). Growth reflects the security community’s pivot from perimeter defenses to deep traffic visibility as zero-trust programs, 5G rollouts, and cloud-native workloads muddy traditional boundaries. Enterprises see network telemetry as the single source of truth that can uncover lateral movement, encrypted threats, and performance bottlenecks in a hybrid world. Vendors that marry AI-driven analytics with continuous packet capture are winning mindshare as security teams consolidate point tools, while managed detection and response (MDR) services temper the skills gap in small IT shops. At the same time, platform providers are racing to embed encrypted traffic analytics and east-west inspection to keep pace with TLS 1.3 adoption and microservices proliferation.

Key Report Takeaways

  • By deployment, cloud-based models lead with 51.2% revenue share in 2024, while hybrid deployments are forecast to post the fastest 13.7% CAGR through 2030.
  • By component, solutions captured 62.4% of the market in 2024; services are projected to grow the quickest at a 14.5% CAGR to 2030.
  • By organization size, large enterprises held 61.1% market share in 2024, yet small and medium enterprises are poised for the highest 14.8% CAGR during the forecast period.
  • By end-user industry, the BFSI sector accounted for 25.7% of 2024 revenue, whereas manufacturing is set to advance at a 13.1% CAGR to 2030.
  • By application, security and threat detection commanded a 32.4% share in 2024, while performance monitoring and optimization is expected to register the fastest 13.8% CAGR.
  • By geography, North America retained 34.06% market share in 2024, and Asia-Pacific is projected to record the strongest 14.3% CAGR through 2030.

Segment Analysis

By Deployment: Hybrid Flexibility Gains Momentum

Cloud deployments controlled 51.2% of 2024 revenue, underscoring preference for elastic SaaS analytics that shift capex to opex. The hybrid model is the growth pacesetter, registering a 13.7% CAGR through 2030 as enterprises knit legacy data centers with AWS, Azure, or GCP estates. That blend ensures compliance with data-residency rules while sustaining cloud agility. Zscaler’s Traffic Capture service showcases how cloud platforms can export raw traffic to analytics pipelines without saturating on-premises capture appliances.

Enterprises adopting hybrid architectures report lower hardware refresh spend and faster rollout of new inspection features because upgrades are deployed centrally. On-premises probes persist in air-gapped or highly regulated verticals, yet their share of the network traffic analysis market steadily recedes as regulations embrace cloud certification frameworks. Hybrid adoption consequently propels overall network traffic analysis market expansion into greenfield midsize companies that lacked enterprise-class tooling.

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Note: Segment shares of all individual segments available upon report purchase

By Component: Services Rise on MDR Demand

Solutions—appliances, virtual sensors, and SaaS consoles—represented 62.4% of the network traffic analysis market size in 2024. However, services are scaling at 14.5% CAGR as organizations offload monitoring and incident response. OPSWAT’s buyout of InQuest illustrates how vendors bundle Deep File Inspection and threat intel with managed offerings to address federal-sector needs.

Managed service uptake is a pragmatic response to analyst scarcity and product complexity. Providers supply 24/7 coverage, curated threat feeds, and automated containment, boosting adoption among resource-constrained firms. Hardware sensors retain relevance in 100 Gbps-plus backbones where FPGA acceleration still outperforms virtual appliances. Even so, vendors increasingly position those sensors as data forwarders feeding cloud analytics.

By Organization Size: SMEs Close the Gap

Large enterprises captured 61.1% revenue in 2024, yet small and medium enterprises logged the fastest growth at 14.8% CAGR. Democratized pricing and simplified SaaS onboarding lower the barrier for firms lacking dedicated SOCs. Fortinet’s small-business firewall line embeds NTA functions that scored 99.88% security effectiveness, proving that enterprise-grade inspection can ship in compact form factors.

Platform vendors now pursue the mid-market aggressively; Palo Alto Networks’ JAPAC initiative tailors bundles that package Prisma SASE with lightweight management to suit minimal IT staff. As ransomware actors increasingly hit midsize manufacturers and professional-services firms, boards fund NTA rollouts to satisfy cyber insurance clauses.

By End-User Industries: OT-Heavy Sectors Accelerate

The BFSI segment owns a 25.7% share due to real-time fraud analytics and stringent compliance controls. Manufacturing, propelled by Industry 4.0, charts the highest 13.1% CAGR as converged IT/OT systems widen the attack surface. Brisa Bridgestone cut OT security costs 30% and lifted team productivity by 20% after deploying a unified NTA-driven platform that spans factories and HQ networks.

Energy, telecom, and government segments steadily expand given critical-infrastructure mandates. Healthcare favors passive monitoring to protect patient data and avoid latency, while retail pursues traffic analytics for PCI compliance and omnichannel uptime.

Network Traffic Analysis Market
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Note: Segment shares of all individual segments available upon report purchase

By Application: Performance Monitoring Joins Security

Security and threat detection still accounts for 32.4% of 2024 revenue, yet performance optimization usage is climbing at 13.8% CAGR. Airlines, telcos, and e-commerce operators harness packet analytics to cut outage duration; Alaska Airlines trimmed mean time to detect to under 10 minutes and halved outages with full-stack network monitoring. [3]AppDynamics, “Alaska Airlines | Case Study,” appdynamics.com

Compliance auditing and policy enforcement represent steady revenue streams as frameworks such as GDPR and CCPA require data-in-motion controls. Capacity planning leverages flow trends to right-size WAN links, helping CFOs justify bandwidth spend. Multifunction NTA dashboards give ops and security teams a common truth source, increasing renewal rates for vendors that supply cross-domain value.

Geography Analysis

North America contributed 34.06% of 2024 revenue thanks to strict privacy statutes, early zero-trust adoption, and high cybersecurity budgets. JPMorgan’s AI-infused fraud system illustrates regional appetite for packet-driven analytics that accelerate threat identification 300-fold and save USD 200 million annually. [4]Amity Solutions, “How JPMorgan Fights Fraud with AI Tools,” amitysolutions.com State governments likewise embrace observability; Indiana improved citizen services after deploying traffic analytics across multi-cloud infrastructure.

Asia-Pacific is the high-growth engine with a 14.3% CAGR. Massive 5G rollouts in China, India, and South Korea, combined with smart-city investments and rising ransomware incidents, spur NTA adoption. Local regulations such as China’s Cybersecurity Law and Australia’s Critical Infrastructure Act compel traffic logging and anomaly detection. Manufacturers digitizing shop floors with private cellular networks need granular monitoring to secure OT and IT convergence.

Europe maintains robust demand owing to GDPR’s breach notification requirements and emerging AI legislation that mandates algorithmic transparency. Sovereign-cloud initiatives push hybrid deployments so packets stay in-region, benefitting vendors that provide fine-grained data-residency controls. Latin America and the Middle East and Africa remain nascent but promising: Brazilian banks, Saudi smart-city projects, and South African telcos are piloting AI-fueled NTA in anticipation of stricter cyber mandates.

Network Traffic Analysis Market
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Competitive Landscape

Market consolidation is intensifying, yet the field remains moderately concentrated. Cisco’s USD 28 billion splurge on Splunk brings deep observability into its security stack, while Fortinet’s Lacework acquisition folds cloud app protection into its portfolio. Zscaler’s planned USD 900 million purchase of Red Canary signals a rush to pair threat analytics with MDR expertise.

Established players—Cisco, Palo Alto Networks, Fortinet, NETSCOUT—compete on breadth, performance, and AI cadence. Specialist vendors such as ExtraHop and Flowmon differentiate through real-time behavioral analytics. New entrants leverage machine learning on encrypted flows without decryption, promising privacy compliance at scale. Competitive vectors include packet-to-process correlation, cloud-native sensor footprint, and integration depth with IT operations tools.

Patent filings center on ML feature extraction for TLS 1.3 and QUIC flows, underscoring the race to stay effective despite pervasive encryption. Service-led differentiation is rising; vendors bundle SOC analysts, threat hunting, and remediation runbooks to tackle client skill shortages. Price wars are muted; instead, contracts hinge on outcome metrics like mean time to resolve and percent false positives reduced.

Network Traffic Analysis Industry Leaders

  1. NETSCOUT Systems Inc.

  2. Cisco Systems Inc.

  3. Palo Alto Networks Inc.

  4. SolarWinds Corporation

  5. Kentik Technologies Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Network Traffic Analysis Market Concentration
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Recent Industry Developments

  • May 2025: Zscaler agreed to acquire Red Canary to fuse AI-driven analytics with MDR expertise and streamline SOC workflows.
  • May 2025: T-Mobile and Palo Alto Networks unveiled a managed SASE offer that blends nationwide 5G and Prisma SASE 5G security.
  • April 2025: Palo Alto Networks mulled a USD 650–700 million bid for Protect AI to deepen generative-AI security capabilities.
  • February 2025: NETSCOUT published guidance on private 5G assurance, stressing end-to-end packet visibility.
  • January 2025: Axiom and Cloudflare joined forces to centralize 100% of Logpush data for live traffic queries.
  • December 2024: Cisco added eBPF-based Cilium visibility to multicloud troubleshooting suites.
  • November 2024: Verizon integrated New Relic and Pixie for Kubernetes observability on 5G Edge.
  • October 2024: BlueCat sought to buy LiveAction, expanding its network management portfolio with packet analytics.

Table of Contents for Network Traffic Analysis Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Emergence of NTA as cornerstone in modern security stacks
    • 4.2.2 Expanding network bandwidth and 5G rollouts create visibility gaps
    • 4.2.3 Migration to cloud and hybrid architectures boosts demand for cloud-native NTA
    • 4.2.4 Encrypted traffic ML-based inspection requirements
    • 4.2.5 Zero-trust east-west traffic proliferation
    • 4.2.6 SOC consolidation pushing NTA/NDR convergence
  • 4.3 Market Restraints
    • 4.3.1 Rapid evolution of threats and encryption outpacing tooling
    • 4.3.2 Shortage of skilled analysts and high solution complexity
    • 4.3.3 Data-privacy regulations restricting deep packet inspection
    • 4.3.4 Budget reallocation toward endpoint/XDR tools
  • 4.4 Industry Value Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Industry Attractiveness – Porter’s Five Forces Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Impact of Macroeconomic Factors on the Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUES)

  • 5.1 By Deployment
    • 5.1.1 On-premise
    • 5.1.2 Cloud-based
    • 5.1.3 Hybrid
  • 5.2 By Component
    • 5.2.1 Solutions
    • 5.2.1.1 Hardware Appliances
    • 5.2.1.2 Virtual Appliances
    • 5.2.1.3 SaaS Platform
    • 5.2.2 Services
    • 5.2.2.1 Professional Services
    • 5.2.2.2 Managed Services
  • 5.3 By Organization Size
    • 5.3.1 Large Enterprises
    • 5.3.2 Small and Medium Enterprises (SMEs)
  • 5.4 By End-user Industry
    • 5.4.1 BFSI
    • 5.4.2 IT and Telecom
    • 5.4.3 Government and Defense
    • 5.4.4 Energy and Utilities
    • 5.4.5 Retail and E-commerce
    • 5.4.6 Healthcare and Life Sciences
    • 5.4.7 Manufacturing
    • 5.4.8 Other End-user Industries
  • 5.5 By Application
    • 5.5.1 Security and Threat Detection
    • 5.5.2 Performance Monitoring and Optimization
    • 5.5.3 Compliance and Policy Enforcement
    • 5.5.4 Capacity Planning and Forecasting
  • 5.6 By Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
    • 5.6.2 South America
    • 5.6.2.1 Brazil
    • 5.6.2.2 Argentina
    • 5.6.2.3 Chile
    • 5.6.2.4 Rest of South America
    • 5.6.3 Europe
    • 5.6.3.1 Germany
    • 5.6.3.2 United Kingdom
    • 5.6.3.3 France
    • 5.6.3.4 Italy
    • 5.6.3.5 Spain
    • 5.6.3.6 Russia
    • 5.6.3.7 Rest of Europe
    • 5.6.4 Asia-Pacific
    • 5.6.4.1 China
    • 5.6.4.2 India
    • 5.6.4.3 Japan
    • 5.6.4.4 South Korea
    • 5.6.4.5 Malaysia
    • 5.6.4.6 Singapore
    • 5.6.4.7 Australia
    • 5.6.4.8 Rest of Asia-Pacific
    • 5.6.5 Middle East and Africa
    • 5.6.5.1 Middle East
    • 5.6.5.1.1 United Arab Emirates
    • 5.6.5.1.2 Saudi Arabia
    • 5.6.5.1.3 Turkey
    • 5.6.5.1.4 Rest of Middle East
    • 5.6.5.2 Africa
    • 5.6.5.2.1 South Africa
    • 5.6.5.2.2 Nigeria
    • 5.6.5.2.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 NETSCOUT Systems Inc.
    • 6.4.2 Cisco Systems Inc.
    • 6.4.3 Palo Alto Networks Inc.
    • 6.4.4 SolarWinds Corporation
    • 6.4.5 Kentik Technologies Inc.
    • 6.4.6 Dynatrace LLC
    • 6.4.7 ExtraHop Networks Inc.
    • 6.4.8 Flowmon Networks A.S. (Progress)
    • 6.4.9 GreyCortex s.r.o.
    • 6.4.10 Genie Networks Ltd.
    • 6.4.11 ManageEngine (Zoho Corp.)
    • 6.4.12 Plixer LLC
    • 6.4.13 Nagios Enterprises LLC
    • 6.4.14 Gigamon Inc.
    • 6.4.15 Corelight Inc.
    • 6.4.16 Vectra AI Inc.
    • 6.4.17 Ixia (Keysight Technologies Inc.)
    • 6.4.18 Riverbed Technology LLC
    • 6.4.19 Nozomi Networks Inc.
    • 6.4.20 Nokia Corporation

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  • 7.1 White-Space and Unmet-Need Assessment
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Global Network Traffic Analysis Market Report Scope

Network traffic analysis (NTA) is the process of recording, reviewing, and analyzing network traffic for the purpose of performance, security, and/or general network operations and management. It is a technique to spot anomalies, such as security and operational problems. Collecting a real-time and historical record of what is occurring on users' networks is one of the common use cases for NTA.

The Network Traffic Analysis Market is segmented by Deployment (On-premise and Cloud-based), End-user Vertical (BFSI, IT and Telecom, Government, Energy and Power, and Retail), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).

The market sizes and forecasts are provided in value (in USD million) for all the above segments.

By Deployment On-premise
Cloud-based
Hybrid
By Component Solutions Hardware Appliances
Virtual Appliances
SaaS Platform
Services Professional Services
Managed Services
By Organization Size Large Enterprises
Small and Medium Enterprises (SMEs)
By End-user Industry BFSI
IT and Telecom
Government and Defense
Energy and Utilities
Retail and E-commerce
Healthcare and Life Sciences
Manufacturing
Other End-user Industries
By Application Security and Threat Detection
Performance Monitoring and Optimization
Compliance and Policy Enforcement
Capacity Planning and Forecasting
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Chile
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Malaysia
Singapore
Australia
Rest of Asia-Pacific
Middle East and Africa Middle East United Arab Emirates
Saudi Arabia
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
By Deployment
On-premise
Cloud-based
Hybrid
By Component
Solutions Hardware Appliances
Virtual Appliances
SaaS Platform
Services Professional Services
Managed Services
By Organization Size
Large Enterprises
Small and Medium Enterprises (SMEs)
By End-user Industry
BFSI
IT and Telecom
Government and Defense
Energy and Utilities
Retail and E-commerce
Healthcare and Life Sciences
Manufacturing
Other End-user Industries
By Application
Security and Threat Detection
Performance Monitoring and Optimization
Compliance and Policy Enforcement
Capacity Planning and Forecasting
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Chile
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Malaysia
Singapore
Australia
Rest of Asia-Pacific
Middle East and Africa Middle East United Arab Emirates
Saudi Arabia
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
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Key Questions Answered in the Report

What is driving the rapid growth of the network traffic analysis market?

Heightened zero-trust adoption, pervasive 5G networks, and migration to cloud-native environments are forcing organizations to gain deeper, real-time visibility into east-west and encrypted traffic, propelling an 11.2% CAGR to 2030.

How large is the network traffic analysis market today?

The network traffic analysis market size stands at USD 4.42 billion in 2025 and is projected to hit USD 7.52 billion by 2030.

Which deployment model is expanding fastest?

Hybrid deployments show the highest momentum at a 13.7% CAGR as firms bridge on-premises assets with public-cloud workloads while meeting residency mandates.

Why are services outpacing product sales?

Managed detection and response offerings address the acute analyst shortage, prompting services to outgrow solutions at 14.5% CAGR.

Which region offers the greatest growth headroom?

Asia-Pacific leads in growth with a projected 14.3% CAGR due to 5G rollouts, smart-city investments, and rising regulatory pressure on critical sectors.

What competitive moves stand out recently?

Cisco’s purchase of Splunk, Fortinet’s takeover of Lacework, and Zscaler’s agreement to acquire Red Canary exemplify strategic consolidation aimed at fusing observability with AI-driven threat detection.

Page last updated on: June 21, 2025

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