Network-as-a-Service Market

[122 Pages Report]  The Network-as-a-Service (NaaS) market has grown considerably over the past few years and is expected to grow further, with the increasing use of Bandwidth on- Demand (BoD), SDN, and Network Function Virtualization (NFV) technologies. The major areas of opportunities for these systems include lower costs with blended Wide Area Network (WAN) approaches, in developing geographic regions, such as APAC, have poised the growth of the NaaS technology. Government initiatives are playing a vital role in supporting the growth, increasing the consumer adoption, and motivating the vendors & startups to venture into this fast growing market. The overall market has been segmented by type, application, component, and vertical. This study has been done on a global level, covering four regions broadly, namely, North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. The overall Network-as-a-Service market is expected to grow from USD 1.33 Billion in 2016 to USD 9.65 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 48.4%.

The rapidly growing market for NaaS technology is expected to influence cloud and IoT technologies, thereby considerably increasing the market competitiveness. Moreover, technological advancements are expected to increase applications in numerous industries.

The research methodology used to estimate and forecast the Network-as-a-Service market begins with capturing data on key vendor revenues through secondary research, such as the Crunchbase. Vendor offerings are also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global NaaS market from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research, by conducting extensive interviews with key people, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. Data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments & subsegments.

The breakdown of profiles of primary is depicted in the below figure:

To know about the assumptions considered for the study, download the pdf brochure

The NaaS ecosystem comprises solutions & service providers, such as Cisco Systems (U.S.), Juniper Networks (U.S.), IBM Corp. (U.S.), NEC Corp. (Japan), VMware (U.S.), Aryaka Networks Inc. (U.S.), Alcatel Lucent (U.S.), Brocade Communications Systems Inc. (U.S.), AT&T (U.S.), and Ciena Corporation (U.S).

Key Target Audience

• Mobile network operators
• SDN solution providers
• Wireless infrastructure provider
• Cloud and virtualized datacenters
• Network infrastructure providers

Report Scope

The report scope covers the following submarkets of the Network-as-a-Service market:

By Type

• LAN-as-a-Service (LANaaS)
• WAN-as-a-Service (WANaaS)

By Application

• BoD
• NFV
• Virtual Customer Premises Equipment (V-CPE)
• Integrated network security-as-a-service

By Component

• Infrastructure
• Technology services

By Vertical

• Information Technology (IT) and telecommunication
• Manufacturing
• Banking, Financial Services, and Insurance (BFSI)
• Government
• Healthcare
• Transport and logistics
• Retail
• Others

By Region

• North America
• Europe
• APAC
• MEA
• Latin America

Available Customization

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Geographic Analysis

• Further breakdown of the SD-WAN market into country-wise market.

Company Information

• Detailed analysis and profiling of additional market players (Up to 5).

Accelerated adoption of cloud services among large and small enterprises and WAN connectivity becoming the performance bottleneck are expected to drive the global network-as-a-service market to USD 9.65 billion by 2021

NaaS is a cloud-based service model that offers on-demand network connectivity and the provisioning and management of network services. NaaS permits tenants to customize the service that they receive from the network. NaaS allows enterprises to order, provision, and modify WAN services, such as Ethernet connectivity and virtual private network via web portal.

The rapidly growing market for NaaS technology is expected to influence the cloud and IoT technologies, thereby considerably increasing the market competitiveness. Moreover, technological advancements are expected to increase applications in numerous other industries.

Industry verticals including transportation and logistics, IT and telecom, manufacturing, retail, BFSI, healthcare, and others are using NaaS solution and services. The healthcare vertical is the fastest growing in the NaaS market. Recently, healthcare organizations have started investing more on cloud-based solutions, including wireless communication solutions, to improve the overall network strength and quality. Wireless solutions and services improve the operational efficiency, by providing a reliable and efficient bandwidth for the organizations. Many hospitals are employing NaaS methods, such as NFV solutions, which aid in creating a positive output and increasing revenue margins. Moreover, IT and telecom vertical are rapidly using various networking and cloud technologies, which vary from simply checking emails to managing huge amount of enterprise data placed on the cloud. The rapid use of IT and telecommunication, therefore generates a huge amount of data. With cloud becoming an economic platform for utilization of various resources, the demand for cloud platform among enterprises is rapidly increasing. In the case of NaaS model, network operators offer their key network resources, such as data and communication, as well as, intelligence to third parties on a commercial basis.

Lower cost with blended WAN approaches is expected to provide the major opportunity to the market

The major areas of opportunities for these systems include lower costs with blended Wide Area Network (WAN) approaches, in developing geographic regions, such as APAC, have poised the growth of the NaaS technology. Government initiatives are playing a vital role in supporting the growth, increasing the consumer adoption, and motivating the vendors & start-ups to venture into this fast-growing market.

Market Dynamics

The global Network-as-a-Service (NaaS) market is expected to grow from USD 1.33 Billion in 2016 to USD 9.65 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 48.4%. The rapidly growing market for NaaS technology is expected to influence the cloud and IoT technologies, thereby considerably increasing the market competitiveness. Moreover, technological advancements are expected to increase applications in numerous other industries.

Among NaaS applications, Network Function Virtualization (NFV) is estimated to be the fastest growing and has the largest market share during the forecast period. NFV is evolving as one of the most promising networking technologies, which is on its way to redefining networking, with an advanced approach of unleashing the data plane from the control plane, a coherent improvisation to the traditionally distributed control planes. This is executed by separating the forwarding hardware of Ethernet switches (data plane) from the logical links that control the flow of packets (control plane). The major factors driving the Network-as-a-Service market are network expansion, telco Operating Expenditure (OPEX) savings, and mobility, which are expected to positively impact the SDN market, owing to the global push for mobility. At the same time, opportunities in controller applications and Value-Added Reseller (VAR) products are expected to benefit the growth in this market.

Among NaaS by component, the infrastructure component segment is the largest contributor during the forecast period, whereas the technology services segment is expected to grow at the highest CAGR. The infrastructure component includes Ethernet switches, firewalls, VPN, and wireless LAN. On the other hand, technology services include consulting & integration, support & maintenance, and network security services & analytics, which are increasing the growth & awareness of NaaS.

The healthcare vertical is the fastest growing in the Network-as-a-Service market. Recently, healthcare organizations have started investing more on cloud-based solutions, including wireless communication solutions, to improve the overall network strength and quality. Wireless solutions and services improve the operational efficiency, by providing a reliable and efficient bandwidth for the organizations. Many hospitals are employing NaaS methods, such as NFV solutions, which aid in creating a positive output and increasing revenue margins.

Among regions, North America is projected to have the largest market share and is expected to dominate the Network-as-a-Service market from 2016 to 2021. Correspondingly, during the same period, APAC is expected to showcase a significant growth potential and is projected to grow at the highest CAGR. This is backed by the existence of a large population, increasing customer awareness, developing technology hubs, and affluent countries, such as South Korea, Singapore, & Hong Kong.

However, due to lack of awareness, expertise, and other operational challenges, most of the organizations struggle to optimally utilize the full potential of NaaS technologies. This has been significantly hindering the growth of the market. Technological giants, such as IBM, Juniper, and Cisco Systems, along with the key innovator, Mushroom Networks Inc., have created leading NaaS systems & platforms. These players have adopted various growth strategies, such as new product launches, partnerships, contracts, collaborations, acquisitions, and expansions to expand their global presence and increase their market shares in the global Network-as-a-Service market.

NaaS is a fairly new business model for delivering network services to customers virtually over the internet on a pay-per-use or monthly subscription basis. Enterprises demand continuous and enterprise-grade network connectivity across the globe. High-speed internet allows enterprises to access cloud applications with bandwidth per Megabit (MB) pricing. However, commodity internet simply lacks the trustworthiness and reliability required for mission-critical cloud applications and Software-as-a-Service (SaaS)-based applications.

Bandwidth On Demand

BoD is primarily a data communication method supplying additional network boosts on a link as per required. Bandwidth on-Demand (BoD) has created vibrant prospects for marketers and other stakeholders in the market. The main advantage of BoD is that, enterprises can buy BoD from their respective ISPs at a comparatively lower price, rather than leasing a fixed bandwidth from another ISP for a higher price. BoD can be very scalable, as enterprises are able to scale the network bandwidth to aid cloud applications. BoD functions in the background, making sure it is always ready for end-user disposal. It also provides a strong security feature over the network, when the cloud is being accessed.

Network Function Virtualization

Network Functions Virtualization (NFV) is a concept which implements the technologies related to virtualize the classes of network node functions that may do multiple functions such as connect or form up a communication services. NFV, lessens the time to launch new networking services to aid dynamic business requirements and grab hold of new market opportunities. With advancements in NaaS technologies, NFV is evolving as one of the most promising networking technologies, which is on its way to redefining networking, with an advanced approach of unleashing the data plane from the control plane, a coherent improvisation to the traditionally distributed control planes.

Virtual customer premises equipment (V-CPE)

Virtual Customer Premise Equipment (V-CPE) is developing as a favourable networking technology which is acknowledged by many of the key players from the networking market industry. The concept is moving forward to redefine customer premise equipment with an innovative approach to link it through cloud by minimizing the use of hardware, a lucid improvisation to the traditional customer premise equipment. On the basis of the location, the deployment model of V-CPE is executed by three ways: V-CPE functionality at customer site, V-CPE functionality at networking & customer site and V-CPE functionality at networking site.

Integrated Network Security As A Service

The Network Security as a service contains a roster of technologies which are content monitoring and filtering, firewalls and Virtual private network (VPN). For attaining the security of the network NaaS also includes the above mentioned technologies with regards to network security.

Organizations have to go through increasing number of channels from where information gets analysed, processed and then stored. To make sure that authorised people who owns that information know where the information is stored and where it needs to be sent, some additional measures needs to be undertaken. In such scenarios content monitoring and filtering (CMF) becomes a necessity. As users are getting access to information and contained within the databases and the data repository very conveniently constant tacking of that data becomes very crucial for enterprises. Another important reason is to why CMF has gained popularity is owing to the leakage of information on to the unsecured and accessible communication channels from where user can easily get access to data easily.

• What are the latest innovations happening in the Network as a Service market?
• Various strategies adopted by the leading vendors in the market?
• What should be your go-to-market strategy to expand the reach into developing countries across APAC, MEA, and Latin America?

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