“Global Network as a Service Market to reach a market value of USD 117.14 Billion by 2031 growing at a CAGR of 25.2%”
The Global Network as a Service Market size is expected to reach $117.14 billion by 2031, rising at a market growth of 25.2% CAGR during the forecast period.
The North America segment recorded 42% revenue share in the market in 2023. The high adoption of cloud computing primarily drives this growth, advanced IT infrastructure, and the increasing demand for software-defined networking (SDN) solutions in the region. The presence of major technology companies, strong investments in 5G deployment, and a growing remote workforce have further fuelled the demand for the network as a service (NaaS).
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In, February, 2025, Amdocs Limited announced the partnership with Google, an IT company to enhance 5G network operations using AI. The Amdocs Network AIOps solution, built on Google Cloud's AI infrastructure, automates network management, improves performance, and reduces operational costs. It offers predictive maintenance, automated workflows, and AI-driven insights to optimize service reliability and customer experiences. Additionally, In February, 2024, Amdocs Limited announced the partnership with BMC, a software company to enhance growth, automation, and efficiency in telecommunications and financial services. This partnership leverages Amdocs’ expertise in IT and network services along with BMC’s automation solutions to transform industries and enable faster deployment of innovative solutions for customers.
Based on the Analysis presented in the KBV Cardinal matrix; Amazon Web Services, Inc. is the forerunner in the Network as a Service Market. In October, 2024, Amazon Web Services, Inc. teamed up with Lumen Technologies, a telecommunications company to enhance network operations using AI technologies. Lumen will provide fiber connectivity to AWS data centers across the U.S., supporting high-bandwidth, AI-driven applications. The collaboration aims to optimize network delivery, improving scalability, security, and performance for AI-driven services and applications. Companies such as Verizon Communications, Inc., AT&T, Inc., and Cisco Systems, Inc. are some of the key innovators in Network as a Service Market.
The modern enterprise landscape is evolving rapidly, requiring flexible, scalable, and cost-effective networking solutions. Traditional networking infrastructure often has limitations, such as high upfront investment, complex management, and rigid scalability. Network-as-a-Service (NaaS) addresses these concerns by providing on-demand network solutions that enterprises can scale based on their needs. Hence, the rising demand for scalable and on-demand network solutions in enterprises is driving the growth of the market.
Additionally, Cloud computing has become the backbone of digital transformation, shifting enterprises' workloads to public, private, and hybrid cloud environments. The need for efficient, secure, and scalable network solutions grows as cloud adoption accelerates. NaaS enables enterprises to connect multiple cloud environments while ensuring seamless data flow and security. Thus, the increasing adoption of cloud-based services and hybrid IT environments drives the market's growth.
However, While NaaS offers a cost-effective alternative to traditional networking solutions, the initial transition cost can be a significant barrier for many enterprises. Migrating from an on-premises infrastructure to a cloud-based networking model requires investments in new software, training, and integration efforts. Many businesses are hesitant to move to NaaS due to concerns about the total cost of ownership (TCO) and return on investment (ROI).
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
Free Valuable Insights: Global Network as a Service Market size to reach USD 117.14 Billion by 2031
Based on type, the market is characterized into WAN as a Service and LAN as a service. The LAN as a service segment procured 38% revenue share in the market in 2023. Businesses increasingly opt for LAN as a Service to streamline network management, reduce capital expenditures, and improve scalability. The demand for managed LAN solutions is rising across healthcare, education, and retail industries, where seamless connectivity and network reliability are crucial.
Based on end user, the market is segmented into corporate and individual customers. The individual customers segment acquired 20% revenue share in the market in 2023. The rising adoption of cloud-based applications, streaming services, and remote work solutions has fuelled the demand for NaaS among individual users. Consumers increasingly seek secure, high-speed network services, including virtual private networks (VPNs) and bandwidth-on-demand solutions, to enhance their online experience.
By application, the market is divided into wide area networks, virtual private networks, bandwidth on demand, cloud-based services, and others. The virtual private network segment garnered 9% revenue share in the market in 2023. The growing concerns over data security, cyber threats, and remote access solutions have significantly fuelled the demand for VPN services. Organizations increasingly adopt cloud-based VPN solutions to ensure secure communication between employees, branch offices, and cloud environments.
On the basis of enterprise type, the market is classified into large enterprise and small & medium enterprises. The small & medium enterprises segment recorded 44% revenue share in the market in 2023. SMEs increasingly leverage NaaS solutions to minimize upfront capital expenditures and streamline network management. The growing reliance on cloud computing, digital collaboration tools, and cybersecurity solutions has accelerated the adoption of NaaS among SMEs.
On the basis of industry, the market is categorized into IT & telecommunication, manufacturing, healthcare, retail, and others. The manufacturing segment acquired 19% revenue share in the market in 2023. The adoption of smart manufacturing, the Industrial Internet of Things (IIoT), and automation has increased the demand for reliable and flexible network solutions. Manufacturers utilize NaaS to connect production facilities, optimize supply chain operations, and enable real-time data analytics.
The Network as a Service (NaaS) market remains highly competitive with numerous regional providers, startups, and niche vendors offering tailored solutions. Competition is driven by cost-effectiveness, scalability, security, and cloud integration. Emerging players focus on 5G, SD-WAN, and AI-driven networking to differentiate. Strategic partnerships and innovations shape market dynamics amid evolving enterprise demands.
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment witnessed 28% revenue share in the market in 2023. The region’s increasing focus on digital transformation and stringent data security regulations have driven the adoption of NaaS solutions across various industries. European businesses invest in cloud-based networking solutions to improve operational efficiency and ensure compliance with GDPR and other regulatory requirements.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 20.09 Billion |
| Market size forecast in 2031 | USD 117.14 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 25.2% from 2024 to 2031 |
| Number of Pages | 392 |
| Number of Tables | 553 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, End User, Application, Enterprise Type, Industry, Region |
| Country scope |
|
| Companies Included | Amdocs Limited, Amazon Web Services, Inc. (Amazon.com, Inc.), Hewlett Packard Enterprise Company, NEC Corporation, Cisco Systems, Inc., Cloudflare, Inc., Verizon Communications, Inc., Juniper Networks, Inc., AT&T, Inc., and IBM Corporation |
By Type
By End User
By Application
By Enterprise Type
By Industry
By Geography
This Market size is expected to reach $117.14 billion by 2031.
Rising Demand for Scalable and On-Demand Network Solutions in Enterprises are driving the Market in coming years, however, High Initial Costs and Uncertain Long-Term Pricing Models for Enterprises restraints the growth of the Market.
Amdocs Limited, Amazon Web Services, Inc. (Amazon.com, Inc.), Hewlett Packard Enterprise Company, NEC Corporation, Cisco Systems, Inc., Cloudflare, Inc., Verizon Communications, Inc., Juniper Networks, Inc., AT&T, Inc., and IBM Corporation
The expected CAGR of this Market is 25.2% from 2023 to 2031.
The Large Enterprise segment led the maximum revenue in the Market by Enterprise Type in 2023, thereby, achieving a market value of $63.07 billion by 2031.
The North America region dominated the Market by Region in 2023, thereby, achieving a market value of $46.49 billion by 2031.
Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
Unique Offerings 