Driven by the Reduction in the amount of time and money spent on automation procedures and increasing inclination toward cloud technology, the Global NaaS Market is forecasted to Reach US Bn by 2028 says Ken Research Study.
Network as a service (NaaS) is a cloud service model for delivering enterprise-wide area network services virtually on a subscription basis. NaaS allows companies to manage their own networks. Networking activities are controlled by software via NaaS providers, just like other cloud services, thereby allowing organizations to design their own networks entirely without hardware. Customers only need to have Internet connectivity. NaaS can take the place of traditional network configurations including virtual private networks (VPNs), connections using multiprotocol label switching (MPLS), and others. Additionally, it may take the position of local networking equipment like load balancers and firewall appliances. The business networking architecture has been significantly impacted by NaaS, a more recent approach for traffic routing and enforcing security requirements.
According to Ken Research estimates, the Global NaaS Market – which grew from around US$ 10 Bn in 2022– is expected to grow further to reach ~US$ 50 Bn opportunity by 2028 – “Ken Research shares 5 key insights on this high opportunity market from its latest research study”
1. NaaS market has seen Accelerated Growth after an increase in investment and collaboration in a cloud computing network.
The Global NaaS Market is expected to witness strong growth during the forecast period, owing to increasing investment and collaboration in cloud computing network virtualization and Software-defined networking. By leading market players by automating network services. Corporations need a network that enables on-demand access to their IT resources, apps, and infrastructure. To meet the connection demands of data centers, businesses are employing NaaS components to transform traditional networking components into available virtual resources. The majority of the business is working to integrate data from several sites and centralize operations in multi-tenant premises. Organizations go to cloud-based solution platforms as a result to run their business.
Furthermore, in March 2021, SDx Networks and Masergy communication Inc. entered into a partnership business to launch Australia’s next generation of ICT managed service providers. This partnership offers cloud networking in New Zealand, Asia Pacific, and Australia.
2. The increase in demand for high-speed networks by some of the end-user industries is major growth driver for Global NaaS Market.
- NaaS enables the continuous launch of new patches, enhancements, and functionalities. It delivers synchronization and optimization for maximum efficiency while streamlining several processes, including new user onboarding. This can cut down on the time and expense associated with these treatments. As a result, it is driving the market’s expansion.
- Some of the factors driving the growth of the market include the increasing need for extensive and high-speed network coverage as well as rising acceptance and deployment of the cloud for data storage. Growing public NaaS deployment across a number of industries, including BFSI, manufacturing, retail, and transportation & logistics, among others, is favorably impacting the growth of the NaaS market.
- 5G and cloud computing technology have fueled the development of mobile applications. NaaS suppliers provide a distinct set of services for online platforms, such as data recovery, backups, and security, as well as licensing, support, maintenance, and server-based scalability. Developers may focus on enhancing their apps while NaaS providers handle the rest. This factor will drive the market in the near future.
- In May 2022, Orange Business Services launched manage-watch, a solution for managing network and application services. In order to meet client expectations, it ensures end-to-end monitoring, the finest hardware, user interface, and application performance.
3. Network Security and connectivity infrastructure have emerged as an immersive opportunity for NaaS Market.
Shifting to NaaS will be challenging and time-consuming for medium- to large-sized businesses that have made considerable investments in network security and connectivity infrastructure for campuses, data centers, remote sites, and regional hubs. Any WAN connection failure can significantly slow down or even completely cease business network activities since NaaS depends on rapid, low-latency internet connections. Because the service is still in its early stages, the cost of NaaS is unknown. Business executives may discover that real annual operational expenditures are higher than anticipated as a result. Furthermore, the emergence of cloud-based solutions will enable more efficient collection and analysis of digitalization, and provide valuable data for AI systems applications.
In April 2018, China Mobile International, a Chinese telecom carrier, and Aryaka, a top provider of SD-WAN solutions, collaborated to offer completely compliant SD-WAN solutions for multinational corporations. This collaboration made it easier to build and administer SD-WANs and to comply with Chinese regulations.
4. The Large Enterprises Segment is likely to grow significantly during the forecasted period.
The NaaS market is anticipated to be dominated by the large enterprise segment. To reduce the costs involved with operating and maintaining the physical infrastructure, many businesses are moving toward virtual network architecture. Enterprises may utilize their networks more flexibly, dynamically, and quickly thanks to NaaS. The pay-per-use approach for the on-demand delivery of computing resources gives major businesses incentive to deploy NaaS systems. The adoption of NaaS in big businesses is also influenced by higher uptime, better security, better Quality of Service (QoS), higher performance, and optimized systems.
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5. Asia Pacific is the Fastest Growing Market of NaaS owing to the Increased Adoption of Advanced Technologies, a reduction in cost and complexity, and Rising Investments from Key players in the Development of Networks.
The Asia Pacific is expected to see the fastest growth in the NaaS market during the forecast period. The desire for virtualization, which reduces the cost and complexity of the traditional network infrastructure, will help the market expand. The worldwide network solution providers are establishing a virtualization network in the region to capitalize on the growing sector.
In July 2018, VMware launched a new Virtual Cloud Network in Malaysia to expedite the uptake of digital technologies. Because of its expansion, the company has been able to create products that enable businesses to create software-based end-to-end network architectures that can serve applications and data wherever they may be.
Enterprises are gaining from the technological advance of cloud-based network infrastructure owing to the strict government regulations governing data privacy and cybersecurity in nations like Japan, Australia, and Singapore. For instance, Japan and the European Union decided to recognize each other’s data protection laws in July 2018 to ensure that personal data was adequately protected.
Asia-Pacific is the fastest-growing region as, of China’s widespread adoption of 5G and 5G mobile networks that support many different service types such as health, automotive, Banking Services, and Telecom.
For more information on the research report, refer to the below link:
Top NaaS Service Providing Companies
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Ankur Gupta, Head Marketing & Communications