Network as a Service (NaaS) Market

Industry Overview

The Global Network as a Service (NaaS) Market size was valued at USD 14.3 billion in 2023. It is likely to grow up to USD 53.4 billion by 2030 at a CAGR of 29.6% during the forecast period ranging between 2025 and 2030.

The growth of the market is especially attributed to its popularity among businesses because it allows them to focus on the core operations and management of business without investing in infrastructure development. This eliminates the need for large capital expenditure and operational costs, making NaaS more cost-effective. These subscription-based network services are more scalable to meet the fluctuating demand for networks according to the situation.

A cloud-based model or network infrastructure that provides service on demand is called a Network as a Service (NaaS). This specific arrangement uses software-defined networking (SDN) and virtualization technologies and allows users to access network resources and manage them without having to own any physical hardware. As a result, NaaS is cost-effective since consumers have to pay only for resources they use. It also offers flexibility and scalability and allows remote access, rapid expansion, branch connectivity, and better network management for industries like healthcare, finance, and retail.

Global Network as a Service (NaaS) Market Report Coverage

Network as a Service Industry Dynamics     

Global Network as a Service Market Trends/ Growth Drivers:

Rising preference for cloud and remote work adoption

The higher demand for NaaS is the primary growth driver of the Network as a Service (NaaS) market. This is attributed to the growing preference among businesses for remote work and cloud adoption to promote flexible work environments. This is because NaaS solutions are more secure and scalable and can be accessed from anywhere. Furthermore, being a cloud-based network service, NaaS allows remote security support teams to manage the network more effectively and securely. The beneficial properties of NaaS help businesses to make digital transformation from traditional, hardware-based services to more adaptable and scalable on-demand networking solutions.

A few other additional factors that promote the growth of the market include the growing demand for SDN and virtualization technologies that offer more centralized control over network traffic. The development and integration of 5G technology further offers flexibility to network usage and management that facilitates IoT growth. Also, a greater focus on network security and the need for businesses to be more agile contributes to market growth. Furthermore, the adoption of NaaS in businesses is attributed to its better integration with modern IT infrastructure and environments, which is mainly due to lower hardware dependency and the need for new and additional hardware.   

Global Network as a Service Market Challenges

Rising concerns over data privacy and security

The Network as a Service (NaaS) market faces a few specific challenges that hinder its widespread adoption among users and, hence, its market expansion. One such is the rising concern and apprehension among finance, healthcare, and government sectors over data privacy and security. This is mainly because NaaS is typically a cloud-based service, and consumers are not too confident with it apprehending unauthorized access, data breaches, and strict regulatory compliance. Moreover, such concerns are further aggravated because businesses need to rely on third-party service providers. This limits their control over data management and storage, thereby raising their security and privacy concerns. Some other significant challenges to the market growth include unpredictable availability of service, network downtime during peak hours, unstable connectivity, complications in deploying while integrating legacy systems with NaaS, the need for advanced expertise, and lack of a global standard and universal protocols and procedures.

Global Network as a Service Market Opportunities

Growing demand for on-demand and a more scalable network solution

Major growth opportunities are offered to the Network as a Service (NaaS) market by the rising demand among businesses for a more scalable and on-demand network solution. They need flexible networking solutions because more and more businesses are moving to cloud storage to adapt to digital transformation drives and strategies. It allows easy and quick scaling without spending on costly hardware. This specific subscription-based service that allows meeting varying networking demands is suitable and cost-effective for all businesses, irrespective of their size or type. The growth of remote work also presents a significant growth opportunity because it needs scalable and secure access to networks through the cloud. The development of 5G technology that offers reliable and faster connectivity and IoT integration creates additional value through specialized services like Software-Defined Wide Area Networking (SD-WAN) within NaaS, which also presents novel growth opportunities to the market.

Recent Developments by the key Players:

Megaport Limited (the global leading Network as a Service (NaaS) provider) has expanded into Brazil to establish its connectivity services in Sao Paulo. This expansion shall enable enterprises to securely connect locally and globally, including all major cloud service providers, in less than 60 seconds.

Global Network as a Service Market Segmentation

VynZ Research provides an analysis of the key trends in each segment of the Global Network as a Service Market report, along with forecasts at the regional and country levels from 2025-2030. Our report has categorized the market based on Type, Organization Size, Application and End User.

Market Segmentation

Insight by Type

The LAN and WLAN segments are more dominant due to higher demand

The Network as a Service (NaaS) market is segmented by type into Local Area Network (LAN) and Wireless Local Area Network (WLAN), Wide Area Network (WAN), Communication and Collaboration, and Network Security. Out of all these segments, the LAN and WLAN segments are more dominant due to higher demand for multi-branch connections that offer higher security, scalability, and centralized management abilities. These specific network solutions allow businesses to adopt safer and faster hybrid work models to connect across their dispersed offices.

Insight by Organization Size

The large enterprises segment dominates due to the higher demand for secure network solutions

Based on the size of the organizations, the Network as a Service (NaaS) market is divided into Large Enterprises and Small and Medium-Sized Enterprises (SMEs), where the large enterprises segment dominates due to higher demand for secure network solutions for efficient management of global operations at a low cost compared to traditional network solutions that need a high investment in networking hardware. It is expected that this specific segment will grow at a much higher CAGR during the forecast period due to the rapid growth in demand for scalable and flexible networks as they adopt and invest in the more robust and secure cloud infrastructure.

Insight by Application

The video conferencing and UCaaS services segments dominate being the larger contributor

According to a wide range of applications, the Network as a Service (NaaS) market is split into Unified Communications as a Service (UCaaS)/Video Conferencing, Virtual Private Networks (VPN), Cloud and SaaS Connectivity, Bandwidth on Demand, Multi-Branch Connectivity, WAN Optimization, Secure Web Gateway, Network Access Control, and other segments. Out of all these segments, the video conferencing and UCaaS services segments are more dominant, being the larger contributor to the market and expected to grow more due to the rising demand for hybrid and remote work models.

Insight by End User

The BFSI segment dominates due to a higher need for a secure, scalable, and compliant network

The Network as a Service (NaaS) market is also segmented by different end users into Banking, Financial Services and Insurance (BFSI), Manufacturing, Retail and E-commerce, Software and Technology, Media and Entertainment, Healthcare, Education, Government, and other segments. Among them, the BFSI segment dominates due to the need for a secure, scalable, and compliant network solution.

Global Network as a Service Market: Geographic Overview

North America is the most dominating region of the Network as a Service (NaaS) market. It is expected to continue its dominance in the study period mainly due to the sophisticated and robust infrastructure and high demand for and adoption rates of cloud services, especially in the BFSI, retail, and healthcare sectors in the US.

Europe is also a key market, with UK, Germany, and France being the main contributors. This is typically attributed to the rising adoption of NaaS, cloud movement, and demand for scalable and secure networks.

Asia Pacific region happens to be the most promising region of the NaaS market, with the primary contributors being China and India. This is the result of the significant digital transformation drives and a very high rate of cloud adoption, along with the growing demand for IoT and stable connectivity.

The market in the Middle East and Africa is also expanding rapidly. It is expected to continue expanding during the forecast period due to higher government investments in digital infrastructure, especially in the GCC region, and the growing demand for secure networking and smart city technologies.

Latin America is also witnessing a moderate growth rate, as led by Brazil and Argentina. This is attributed to the rising cloud adoption as well as the higher demand for scalable and cost-effective network solutions.

Competitive Insights of Global Network as a Service Market :

PRIMARY RESEARCH INTERVIEWS - BREAKDOWN

1.    Research Overview

        1.1.    The Report Offers
        1.2.    Market Coverage
                1.2.1.    By Type 
                1.2.2.    By Organization Size 
                1.2.3.    By Application 
                1.2.4.    By End User 
        1.3.    Research Phases
        1.4.    Limitations
        1.5.    Market Methodology
                1.5.1.  Data Sources
                        1.5.1.1. Primary Research
                        1.5.1.2. Secondary Research
                1.5.2.  Methodology
                        1.5.2.1. Data Exploration
                        1.5.2.2. Forecast Parameters
                        1.5.2.3. Data Validation
                        1.5.2.4. Assumptions
                1.5.3.    Study Period & Data Reporting Unit

2.    Executive Summary

3.    Industry Overview

        3.1.    Industry Dynamics
                3.1.1.    Market Growth Drivers
                3.1.2.    Market Restraints
                3.1.3.    Key Market Trends
                3.1.4.    Major Opportunities
        3.2.    Industry Ecosystem
                3.2.1.    Porter’s Five Forces Analysis
                3.2.2.    Recent Development Analysis
                3.2.3.    Value Chain Analysis
        3.3.    Competitive Insight
                3.3.1.    Competitive Position of Industry Players
                3.3.2.    Market Attractive Analysis
                3.3.3.    Market Share Analysis

4.    Global Market Estimate and Forecast

        4.1.    Global Market Overview
        4.2.    Global Market Estimate and Forecast to 2030

5.    Market Segmentation Estimate and Forecast

        5.1.    By Type 
                5.1.1. Local Area Network (LAN) and Wireless Local Area Network (WLAN)
                        5.1.1.1. Market Definition
                        5.1.1.2. Market Estimation and Forecast to 2030
                5.1.2. Wide Area Network (WAN)
                        5.1.2.1. Market Definition
                        5.1.2.2. Market Estimation and Forecast to 2030
                5.1.3. Communication and Collaboration
                        5.1.3.1. Market Definition
                        5.1.3.2. Market Estimation and Forecast to 2030
                5.1.4. Network Security
                        5.1.4.1. Market Definition
                        5.1.4.2. Market Estimation and Forecast to 2030

        5.2.    By Organization Size 
                5.2.1. Large Enterprises
                        5.2.1.1. Market Definition
                        5.2.1.2. Market Estimation and Forecast to 2030
                5.2.2. Small and Medium-Sized Enterprises (SMEs)
                        5.2.2.1. Market Definition
                        5.2.2.2. Market Estimation and Forecast to 2030

        5.3.    By Application 
                5.3.1. Unified Communications as a Service (UCaaS)/Video Conferencing
                        5.3.1.1. Market Definition
                        5.3.1.2. Market Estimation and Forecast to 2030
                5.3.2. Virtual Private Networks (VPN)
                        5.3.2.1. Market Definition
                        5.3.2.2. Market Estimation and Forecast to 2030
                5.3.3. Cloud and SaaS Connectivity
                        5.3.3.1. Market Definition
                        5.3.3.2. Market Estimation and Forecast to 2030
                5.3.4. Bandwidth on Demand
                        5.3.4.1. Market Definition
                        5.3.4.2. Market Estimation and Forecast to 2030
                5.3.5. Multi-Branch Connectivity
                        5.3.5.1. Market Definition
                        5.3.5.2. Market Estimation and Forecast to 2030
                5.3.6. WAN Optimization
                        5.3.6.1. Market Definition
                        5.3.6.2. Market Estimation and Forecast to 2030
                5.3.7. Secure Web Gateway
                        5.3.7.1. Market Definition
                        5.3.7.2. Market Estimation and Forecast to 2030
                5.3.8. Network Access Control
                        5.3.8.1. Market Definition
                        5.3.8.2. Market Estimation and Forecast to 2030
                5.3.9. Others
                        5.3.9.1. Market Definition
                        5.3.9.2. Market Estimation and Forecast to 2030

        5.4.    By End User 
                5.4.1. Banking
                        5.4.1.1. Market Definition
                        5.4.1.2. Market Estimation and Forecast to 2030
                5.4.2. Financial Services and Insurance (BFSI)
                        5.4.2.1. Market Definition
                        5.4.2.2. Market Estimation and Forecast to 2030
                5.4.3. Manufacturing
                        5.4.3.1. Market Definition
                        5.4.3.2. Market Estimation and Forecast to 2030
                5.4.4. Retail and E-commerce
                        5.4.4.1. Market Definition
                        5.4.4.2. Market Estimation and Forecast to 2030
                5.4.5. Software and Technology
                        5.4.5.1. Market Definition
                        5.4.5.2. Market Estimation and Forecast to 2030
                5.4.6. Media and Entertainment
                        5.4.6.1. Market Definition
                        5.4.6.2. Market Estimation and Forecast to 2030
                5.4.7. Healthcare
                        5.4.7.1. Market Definition
                        5.4.7.2. Market Estimation and Forecast to 2030
                5.4.8. Education
                        5.4.8.1. Market Definition
                        5.4.8.2. Market Estimation and Forecast to 2030
                5.4.9. Government
                        5.4.9.1. Market Definition
                        5.4.9.2. Market Estimation and Forecast to 2030
                5.4.10. and Others
                        5.4.10.1. Market Definition
                        5.4.10.2. Market Estimation and Forecast to 2030

6.   North America Market Estimate and Forecast

      6.1.    By Type   
      6.2.    By Organization Size   
      6.3.    By Application   
      6.4.    By End User   
                6.4.1.    U.S. Market Estimate and Forecast
                6.4.2.    Canada Market Estimate and Forecast
                6.4.3.    Mexico Market Estimate and Forecast

7.   Europe Market Estimate and Forecast

      7.1.    By Type   
      7.2.    By Organization Size   
      7.3.    By Application   
      7.4.    By End User   
                7.4.1.    Germany Market Estimate and Forecast
                7.4.2.    U.K. Market Estimate and Forecast
                7.4.3.    France Market Estimate and Forecast
                7.4.4.    Italy Market Estimate and Forecast
                7.4.5.    Spain Market Estimate and Forecast
                7.4.6.    Russia Market Estimate and Forecast
                7.4.7.    Rest of Europe Market Estimate and Forecast

8.   Asia-Pacific (APAC) Market Estimate and Forecast

      8.1.    By Type   
      8.2.    By Organization Size   
      8.3.    By Application   
      8.4.    By End User   
                8.4.1.    China Market Estimate and Forecast
                8.4.2.    Japan Market Estimate and Forecast
                8.4.3.    India Market Estimate and Forecast
                8.4.4.    South Korea Market Estimate and Forecast
                8.4.5.    Vietnam Market Estimate and Forecast
                8.4.6.    Thailand Market Estimate and Forecast
                8.4.7.    Malaysia Market Estimate and Forecast
                8.4.8.    Rest of Asia-Pacific Market Estimate and Forecast

9.   Rest of the World (RoW) Market Estimate and Forecast

      9.1.    By Type   
      9.2.    By Organization Size   
      9.3.    By Application   
      9.4.    By End User   
                9.4.1.    Brazil Market Estimate and Forecast
                9.4.2.    Saudi Arabia Market Estimate and Forecast
                9.4.3.    South Africa Market Estimate and Forecast
                9.4.4.    U.A.E. Market Estimate and Forecast
                9.4.5.    Other Countries Market Estimate and Forecast

10.    Company Profiles

        10.1.   Amdocs
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.1.   Akamai
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.1.   Megaport
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.1.   Cloudflare
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.1.   AT&T Inc.
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.1.   Verizon Communications Inc.
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.1.   IBM Corporation
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.1.   Hewlett Packard Enterprise Co.
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.1.   Cisco Systems Inc.
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.1.   NEC Corporation
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments

11.    Appendix

        11.1.    Exchange Rates
        11.2.    Abbreviations

Note: Financial insight and recent developments of different companies are subject to the availability of information in the secondary domain.