Network as a Service (NaaS) Market
By Type;
Local Area Network & Wireless Local Area Network, Wide Area Network, Communication & Collaboration, and Network SecurityBy Organization Size;
Large Enterprises, and Small & Medium-Sized EnterprisesBy Application;
UCaaS/Video Conferencing, Virtual Private Network, Cloud & SaaS Connectivity, Bandwidth on Demand, Multi-Branch Connectivity, and WAN OptimizationBy End User;
Banking, Financial, Services, & Insurance, Manufacturing, Retail & e-Commerce, Software, Technology, Media & Entertainment, Healthcare, Education, Government, and OtherBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Network as a Service (NaaS) Market Overview
Network as a Service (NaaS) Market (USD Million)
Network as a Service (NaaS) Market was valued at USD 18,008.90 million in the year 2024. The size of this market is expected to increase to USD 61,577.34 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 19.2%.
Network as a Service (NaaS) Market
*Market size in USD million
CAGR 19.2 %
Study Period | 2025 - 2031 |
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Base Year | 2024 |
CAGR (%) | 19.2 % |
Market Size (2024) | USD 18,008.90 Million |
Market Size (2031) | USD 61,577.34 Million |
Market Concentration | Low |
Report Pages | 345 |
Major Players
- IBM
- Cisco
- Telefonaktiebolaget LM Ericsson
- Verizon
- Huawei Technologies Co., Ltd.
- AT&T Intellectual Property.
- BT
- Telefónica S.A.
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Network as a Service (NaaS) Market
Fragmented - Highly competitive market without dominant players
The Network as a Service (NaaS) Market is rapidly evolving as companies seek more flexible, on-demand connectivity solutions. Approximately 62% of enterprises are migrating from traditional infrastructure to cloud-delivered networking services. This shift is being driven by the demand for greater agility, reduced upfront costs, and scalable performance.
Cloud Integration Powers NaaS Uptake
Nearly 71% of businesses have adopted cloud-native systems, fueling the need for virtual network services that adapt to hybrid IT environments. NaaS facilitates dynamic scaling and centralized control, helping IT teams support distributed operations with ease. These solutions offer seamless integration with existing cloud frameworks, enhancing network flexibility.
Streamlined Network Management Gains Traction
With 66% of companies handling increasingly complex networks, demand is surging for centralized and automated network management. NaaS platforms simplify operations with real-time monitoring, policy automation, and unified control across endpoints. This shift improves operational efficiency and reduces overhead in managing infrastructure.
Integrated Security Enhancing Trust in NaaS
Around 59% of organizations have reported enhanced network security post-NaaS deployment. Built-in zero-trust frameworks and encrypted traffic protocols strengthen enterprise defenses. Additionally, automated compliance tools help companies meet regulatory standards more efficiently, making NaaS an appealing solution for security-conscious sectors.
Network as a Service (NaaS) Market Recent Developments
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In January 2022, the NaaS market grew as businesses increasingly shifted to hybrid and multi-cloud networks, using NaaS to reduce network complexity, enhance flexibility, and lower costs for delivering cloud-based services.
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In July 2023, the market continued to expand with the integration of SD-WAN (Software-Defined Wide Area Networks), providing secure, efficient, and scalable network connectivity for enterprises operating in a distributed environment.
Network as a Service (NaaS) Market Segment Analysis
In this report, the Network as a Service (NaaS) Market has been segmented by Type, Organization Size, Application, End User, and Geography.
Network as a Service (NaaS) Market, Segmentation by Type
The Network as a Service Market has been segmented by Type into Local Area Network & Wireless Local Area Network, Wide Area Network, Communication & Collaboration, and Network Security.
Local Area Network & Wireless Local Area Network
This sub-segment is widely adopted for providing internal connectivity across enterprise environments. Its ease of deployment and cost-effectiveness are key drivers. LAN & WLAN NaaS solutions dominate in office infrastructure and shared workspaces, supporting dynamic digital workflows and mobility.
Wide Area Network
WAN-based NaaS offerings are crucial for enabling inter-branch connectivity across geographically dispersed enterprises. Organizations prefer WAN NaaS for its centralized management, scalable infrastructure, and secure traffic handling. It sees rising usage in sectors like banking, logistics, and global retail chains.
Communication & Collaboration
This segment focuses on delivering real-time connectivity and collaboration tools over cloud networks. With the shift toward hybrid work models, demand for integrated voice, messaging, and video services has surged. NaaS platforms here help reduce downtime and enhance team productivity.
Network Security
NaaS with embedded security ensures end-to-end data protection and compliance with enterprise protocols. As threats evolve, enterprises increasingly adopt NaaS for features like firewall-as-a-service, intrusion detection, and network access control, especially in highly regulated industries.
Network as a Service (NaaS) Market, Segmentation by Organization Size
The Network as a Service Market has been segmented by Organization Size into Large Enterprises and Small & Medium-Sized Enterprises.
Large Enterprises
Large organizations prefer NaaS for its ability to streamline complex IT operations and manage extensive networks globally. These enterprises benefit from reduced infrastructure costs and enhanced network flexibility, making NaaS integral to their cloud-first strategies.
Small & Medium-Sized Enterprises
SMEs are rapidly adopting NaaS due to its cost-efficient subscription model and minimal maintenance burden. These businesses value the ability to scale network services on demand without heavy investment in IT infrastructure. Security and uptime also remain top priorities for SME adoption.
Network as a Service (NaaS) Market, Segmentation by Application
The Network as a Service Market has been segmented by Application into UCaaS/Video Conferencing, Virtual Private Network, Cloud & SaaS Connectivity, Bandwidth on Demand, Multi-Branch Connectivity, and WAN Optimization.
UCaaS/Video Conferencing
This application area supports seamless remote communication through hosted services. Enterprises increasingly rely on UCaaS NaaS for consistent video quality, secure transmission, and integration with productivity tools. The demand has grown with the rise of distributed workforces.
Virtual Private Network
VPN-based NaaS solutions ensure encrypted communication across public and private networks. Organizations utilize them for remote access, especially when handling sensitive corporate data. This sub-segment sees heavy adoption across finance and healthcare sectors.
Cloud & SaaS Connectivity
Enterprises opt for this application to establish high-performance links with cloud-hosted apps and services. It reduces latency and enhances app delivery, critical for cloud-native operations. Businesses value the secure and optimized connections provided by this NaaS model.
Bandwidth on Demand
This segment enables enterprises to dynamically adjust bandwidth usage based on real-time requirements. It enhances cost management and network agility, particularly in data-intensive environments like media streaming and online education platforms.
Multi-Branch Connectivity
Companies with multiple locations leverage NaaS for streamlined branch networking. It ensures uniform policy enforcement and centralized control, reducing latency and operational overhead. Retail and logistics sectors benefit heavily from this setup.
WAN Optimization
NaaS with WAN optimization helps improve application performance over long distances. This segment is essential for organizations looking to enhance throughput, reduce packet loss, and manage mission-critical applications globally.
Network as a Service (NaaS) Market, Segmentation by End User
The Network as a Service Market has been segmented by End User into Banking, Financial, Services, & Insurance, Manufacturing, Retail & e-Commerce, Software, Technology, Media & Entertainment, Healthcare, Education, Government, and Other.
Banking, Financial Services, & Insurance
BFSI firms rely on NaaS for secure, real-time transactional connectivity and regulatory compliance. NaaS helps modernize legacy infrastructure while supporting high availability for critical applications like trading systems and core banking platforms.
Manufacturing
NaaS in manufacturing supports smart factory initiatives and IoT integration. It facilitates reliable communication between machines, plants, and control systems while reducing manual networking overhead. Security and uptime remain essential for production continuity.
Retail & e-Commerce
Retailers use NaaS to connect stores, warehouses, and e-commerce portals through unified, scalable networks. These solutions support real-time inventory tracking and personalized customer experiences. NaaS also enables fast rollout of new locations.
Software and Technology
Tech firms demand high-performance, agile networks to support cloud development, testing, and deployment. NaaS ensures flexible bandwidth, secure APIs, and real-time monitoring, which are crucial for DevOps and SaaS platforms to operate seamlessly.
Media & Entertainment
This segment uses NaaS to distribute high-resolution content globally with minimal delay. Network agility, streaming optimization, and DDoS protection are key benefits. Media houses leverage NaaS for scalability during content launches and live broadcasts.
Healthcare
Hospitals and clinics adopt NaaS to secure patient data transmission and maintain uptime for critical systems. Telemedicine, digital imaging, and EHR platforms depend on these networks for seamless operation and compliance with data privacy laws.
Education
Educational institutions utilize NaaS to support hybrid learning environments and campus-wide connectivity. It enables high-quality video conferencing, digital exams, and secure resource sharing, especially in universities and remote learning hubs.
Government
Governments implement NaaS for centralized network control across public departments. It helps reduce IT complexity and improve responsiveness during emergencies. These services are critical for mission-critical applications and public safety systems.
Other
This includes hospitality, transport, and energy sectors adopting NaaS to simplify network provisioning and scale with demand. The shared model reduces capital expenditure and allows real-time infrastructure customization for varied business needs.
Network as a Service (NaaS) Market, Segmentation by Geography
In this report, the Network as a Service Market has been segmented by Geography into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Regions and Countries Analyzed in this Report
Network as a Service (NaaS) Market Share (%), by Geographical Region
North America
North America holds the largest market share of around 38% due to its early adoption of cloud technologies and advanced enterprise networks. High demand from IT, banking, and healthcare drives continued growth across the U.S. and Canada.
Europe
Europe accounts for nearly 25% of the market, driven by digitalization policies and robust telecom infrastructure. Countries like Germany and the UK lead in enterprise adoption of NaaS for managing hybrid workforces and regulatory compliance.
Asia Pacific
Asia Pacific contributes about 22% of the market, with rapid expansion seen in India, China, and Southeast Asia. Government digitization programs and SME cloud adoption are key growth factors across the region.
Middle East & Africa
This region represents approximately 9% of the market, supported by digital transformation in Gulf countries and investments in smart city projects. NaaS helps governments and enterprises modernize IT services securely.
Latin America
With a market share near 6%, Latin America is witnessing increased NaaS demand in retail, manufacturing, and telecom sectors. Brazil and Mexico are primary adopters, focusing on improving network scalability and uptime.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Network as a Service (NaaS) Market. These factors include; Market Drivers, Restraints and Opportunities.
Drivers:
- Cloud Adoption
- Remote Workforce
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IoT Growth - IoT devices generate massive amounts of data that need to be transmitted, processed, and analyzed in real-time. Traditional networking solutions often struggle to cope with this increased data flow and connectivity demand. NaaS offers a flexible and scalable approach to managing IoT networks, allowing businesses to dynamically adjust their network resources based on real-time needs. This ensures optimal performance and reliability, which are crucial for applications such as smart cities, industrial automation, healthcare monitoring, and connected vehicles.
NaaS provides several advantages in an IoT-driven environment. It allows organizations to deploy and manage IoT networks without significant upfront investments in hardware and infrastructure. By subscribing to NaaS, businesses can benefit from advanced network services that include automated provisioning, real-time monitoring, and centralized management. This reduces the complexity and cost associated with setting up and maintaining large-scale IoT networks. Additionally, NaaS providers offer integrated security solutions to protect IoT data from cyber threats, ensuring data integrity and privacy.
Restraints:
- Security Concerns
- Compliance Issues
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Cost Management - For large enterprises, managing costs involves balancing the need for advanced, high-performance network services with budgetary constraints. While these organizations may benefit from outsourcing network management to NaaS providers, the continuous expenditure on subscription fees, particularly for comprehensive service packages, can accumulate over time and strain financial resources. Additionally, large enterprises often require customized solutions tailored to their complex and varied needs, which can further drive up costs. The challenge lies in ensuring that the cost of NaaS services aligns with the organization's overall IT budget without compromising on network performance or security.
Small and medium-sized enterprises (SMEs) face even more significant cost management challenges. Although NaaS provides a more affordable alternative to traditional network infrastructure investments, the subscription-based model requires ongoing financial commitment. For SMEs with limited budgets, the need to allocate funds for continuous network services can be a deterrent. These enterprises must carefully assess the value proposition of NaaS, weighing the benefits of scalability and managed services against the recurring expenses. Ensuring that the cost structure is predictable and manageable is crucial for SMEs to adopt and sustain NaaS solutions without jeopardizing their financial stability.
Opportunities:
- AI Integration
- Emerging Markets
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Custom Solutions - Custom NaaS solutions provide businesses with the ability to design and deploy networks that are precisely aligned with their specific workloads, traffic patterns, and security requirements. For example, an organization with a high volume of real-time data processing needs might require low-latency connections and enhanced bandwidth management, while a company with stringent data security regulations might prioritize advanced encryption and secure access controls. By offering customizable network configurations, NaaS providers can address these diverse needs, delivering tailored solutions that enhance business operations and productivity.
The ability to customize NaaS solutions extends to integrating various networking technologies and services, such as software-defined networking (SDN), network function virtualization (NFV), and edge computing. This integration allows businesses to leverage cutting-edge technologies to optimize their network performance and scalability. For instance, SDN can provide dynamic network management capabilities, allowing organizations to adjust their network resources in real-time based on current demands. Similarly, NFV can enable the deployment of virtualized network functions that replace traditional hardware-based solutions, reducing costs and increasing agility.
Competitive Landscape Analysis
Key players in Global Network as a Service (NaaS) Market include:
- IBM (U.S.)
- Cisco (U.S.)
- Telefonaktiebolaget LM Ericsson (Sweden)
- Verizon (U.S.)
- Huawei Technologies Co., Ltd. (China)
- AT&T Intellectual Property. (U.S.)
- BT (U.K.)
- Telefónica S.A. (Spain)
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Type
- Market Snapshot, By Organization Size
- Market Snapshot, By Application
- Market Snapshot, By End User
- Market Snapshot, By Region
- Network as a Service (NaaS) Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Cloud Adoption
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Remote Workforce
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IoT Growth
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- Restraints
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Security Concerns
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Compliance Issues
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Cost Management
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- Opportunities
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AI Integration
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Emerging Markets
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Custom Solutions
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Network as a Service (NaaS) Market, By Type, 2021 - 2031 (USD Million)
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Local Area Network and Wireless Local Area Network
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Wide Area Network
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Communication and Collaboration
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Network Security
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- Network as a Service (NaaS) Market, By Organization Size, 2021 - 2031 (USD Million)
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Large Enterprises
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Small & Medium-Sized Enterprises
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- Network as a Service (NaaS) Market, By Application, 2021 - 2031 (USD Million)
- UCaaS/Video Conferencing
- Virtual Private Network
- Cloud and SaaS Connectivity
- Bandwidth on Demand
- Multi-Branch Connectivity
- WAN Optimization
- Network as a Service (NaaS) Market, By End User, 2021 - 2031 (USD Million)
- Banking
- Financial
- Services
- Insurance
- Manufacturing
- Retail & e-Commerce
- Software
- Technology
- Media & Entertainment
- Healthcare
- Education
- Government
- Other
- Global Network as a Service (NaaS) Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Network as a Service (NaaS) Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- IBM
- Cisco
- Telefonaktiebolaget LM Ericsson
- Verizon
- Huawei Technologies Co., Ltd.
- AT&T Intellectual Property.
- BT
- Telefónica S.A.
- Company Profiles
- Analyst Views
- Future Outlook of the Market