Network Traffic Analysis Market Size and Share
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.
Global Network Traffic Analysis Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Emergence of NTA as cornerstone in modern security stacks | +2.1% | Global, early adoption in North America and EU | Medium term (2-4 years) |
Expanding network bandwidth and 5G rollouts create visibility gaps | +1.8% | APAC core, spill-over to North America | Short term (≤ 2 years) |
Migration to cloud and hybrid architectures boosts demand for cloud-native NTA | +2.3% | Global, led by North America and Europe | Medium term (2-4 years) |
Encrypted traffic ML-based inspection requirements | +1.6% | Global, regulatory drivers in EU and North America | Long term (≥ 4 years) |
Zero-trust east-west traffic proliferation | +1.9% | Global, enterprise-focused adoption | Medium term (2-4 years) |
SOC consolidation pushing NTA/NDR convergence | +1.5% | North America and EU, expanding to APAC | Short term (≤ 2 years) |
Source: Mordor Intelligence
Emergence of NTA as Cornerstone in Modern Security Stacks
Seventy percent of advanced persistent threats rely on lateral movement, detectable primarily through granular traffic analytics, prompting security teams to elevate NTA from a nice-to-have tool to a foundational control. [1]National Security Agency, “Advancing Zero Trust Maturity Throughout the Network and Environment Pillar,” media.defense.gov Tightly coupling packet analytics with SIEM and XDR cuts mean time to detect by up to 30% relative to siloed tools. Unified telemetry also trims correlation workloads 40–50%, freeing scarce analysts to focus on triage rather than data wrangling. Vendors that deliver open APIs and cloud-scale data lakes now underpin many zero-trust programs, positioning NTA as the fabric that underlies endpoint, identity, and cloud defenses. As a result, platform-first buying behavior is shifting budget from stand-alone probes toward integrated SaaS analytics.
Expanding Network Bandwidth and 5G Rollouts Create Visibility Gaps
The jump to 5G introduces ultra-dense cells, distributed user-plane functions, and multi-access edge computing that overwhelm classic taps and span ports. Private 5G outlays in the United States alone are expected to hit USD 3.7 billion by 2027, yet most existing monitoring stacks cannot ingest containerized traffic or detect millisecond-scale anomalies. [2]NETSCOUT, “Assuring Private 5G: Enterprises and CSPs,” netscout.com Service providers partner with security specialists—T-Mobile’s Prisma SASE bundle is a notable example—to pair network slicing with inline threat detection. IoT proliferation further stresses analytics engines because signature-based tools falter against diverse device behaviors, fueling demand for behavior and ML-centric models.
Migration to Cloud and Hybrid Architectures Boosts Demand for Cloud-Native NTA
With 96% of enterprise workloads relocating to public clouds, operations teams need bidirectional visibility across ephemeral assets, microservices, and serverless functions. Cloud-native NTA platforms instrument VPCs, containers, and service meshes through lightweight agents or traffic mirroring APIs, then marry that metadata with on-premises flows for a single view. Enterprises that deploy unified dashboards report smoother audits, expedited root-cause analysis, and fewer blind spots when workloads migrate. AI-guided baselining automatically recalibrates thresholds as topology morphs, helping overworked analysts avoid manual tuning.
Zero-Trust East-West Traffic Proliferation
Microservices and API-driven designs push east-west flows to roughly 80% of total traffic, shifting risk from internet ingress to inter-service chatter. Zero-trust segmentation leans on continuous verification that demands packet-level insight, yet decrypting every session is impractical. Modern NTA engines, therefore, combine JA3 fingerprinting, statistical flow analysis, and ML anomaly scoring to flag stealthy movement even when content stays encrypted. Organizations running mature zero-trust frameworks cite 87% cost savings over legacy firewalls while boosting security posture.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Rapid evolution of threats and encryption outpacing tooling | -1.4% | Global, with acute challenges in regulated industries | Long term (≥ 4 years) |
Shortage of skilled analysts and high solution complexity | -1.7% | Global, particularly acute in APAC and emerging markets | Medium term (2-4 years) |
Data-privacy regulations restricting deep packet inspection | -1.2% | EU and North America, expanding to APAC | Medium term (2-4 years) |
Budget reallocation toward endpoint/XDR tools | -0.9% | Global, with emphasis in cost-conscious SME segment | Short term (≤ 2 years) |
Source: Mordor Intelligence
Rapid Evolution of Threats and Encryption Outpacing Tooling
TLS 1.3 encrypts 95% of web traffic and conceals handshake metadata, thwarting legacy DPI. Features such as Encrypted ClientHello and 0-RTT resumption force vendors to pivot toward side-channel inference that relies on timing, sequence lengths, and traffic morphologies. Research prototypes like multi-instance encrypted traffic transformers hit 99% classification accuracy but demand GPU-class horsepower and data science talent that most IT teams lack. Smaller suppliers struggle with R&D costs, creating potential attrition or acquisition.
Shortage of Skilled Analysts and High Solution Complexity
A global deficit of cyber analysts means many alerts never see human eyes. Manufacturing breach costs rose to USD 5.56 million as lean teams missed lateral movement despite tool investments. Modern NTA stacks spew voluminous telemetry; without contextual enrichment, triage quickly becomes unmanageable. MDR uptake is therefore accelerating, and vendors now blend AI triage with staffed SOCs to bridge the talent gap.
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.
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.

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.

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
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NETSCOUT Systems Inc.
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Cisco Systems Inc.
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Palo Alto Networks Inc.
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SolarWinds Corporation
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Kentik Technologies Inc.
- *Disclaimer: Major Players sorted in no particular order

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.
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 |
On-premise |
Cloud-based |
Hybrid |
Solutions | Hardware Appliances |
Virtual Appliances | |
SaaS Platform | |
Services | Professional Services |
Managed Services |
Large Enterprises |
Small and Medium Enterprises (SMEs) |
BFSI |
IT and Telecom |
Government and Defense |
Energy and Utilities |
Retail and E-commerce |
Healthcare and Life Sciences |
Manufacturing |
Other End-user Industries |
Security and Threat Detection |
Performance Monitoring and Optimization |
Compliance and Policy Enforcement |
Capacity Planning and Forecasting |
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 |
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