Network Management System (NMS) Market
By Component;
Platform, Solutions, and ServicesBy Solution;
Network Performance & Monitoring, Network Performance & Monitoring, Virtual Monitoring, Software Defined Networking Monitoring, Network Configuration, Log & Event Management, and OthersBy Service;
Consulting Services, Integration & Deployment Services, Training, Support, and Maintenance ServicesBy Deployment Mode;
On-Premises and CloudBy Organization Size;
Large Enterprises and Small & Medium-Sized EnterprisesBy Service Provider;
Telecom Service Provider, Cloud Service Provider, Managed Service Provider, and OthersBy Vertical;
BFSI, IT &Telecommunications, Government, Manufacturing, Healthcare, Retail, Transportation & Logistic, and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Network Management System (NMS) Market Overview
Network Management System (NMS) Market (USD Million)
Network Management System (NMS) Market was valued at USD 10,995.99 million in the year 2024. The size of this market is expected to increase to USD 20,888.55 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 9.6%.
Network Management System (NMS) Market
*Market size in USD million
CAGR 9.6 %
Study Period | 2025 - 2031 |
---|---|
Base Year | 2024 |
CAGR (%) | 9.6 % |
Market Size (2024) | USD 10,995.99 Million |
Market Size (2031) | USD 20,888.55 Million |
Market Concentration | Medium |
Report Pages | 387 |
Major Players
- Cisco
- IBM
- Broadcom (CA Technologies)
- Solarwinds
- Nokia
- Juniper Networks
- CA
- Riverbed Technology
- Micro Focus
- Progress (Ipswitch)
- ExtraHop Networks
- Colasoft
- Flowmon Networks
- ManageEngine, a Division of Zoho Corporation
- LiveAction
- Paessler
- SevOne
- Cubro Network Visibility
- Kentik
- Bmc Software
- VIAVI Solutions
- Accedian
- Kaseya
- HelpSystems
- Extreme Networks
- AppNeta
- Ericsson
- Huawei
- Eg Innovations
- Opmantek
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Network Management System (NMS) Market
Fragmented - Highly competitive market without dominant players
The Network Management System (NMS) Market is witnessing consistent growth as businesses aim to streamline their IT operations. With a focus on automated control and real-time performance monitoring, around 65% of enterprises are embracing NMS solutions to manage growing network complexities efficiently.
Cloud-Driven Transformation in NMS Adoption
The demand for cloud-based NMS platforms is rising swiftly, supported by their ease of deployment and lower infrastructure costs. Currently, more than 50% of new implementations utilize cloud-based architecture, reflecting a strong shift toward agile and remotely managed network environments.
Stronger Emphasis on Security-Driven Management
With the surge in cyber threats, network security and compliance tracking have emerged as top priorities. Over 55% of NMS solutions include integrated threat monitoring features, offering organizations enhanced control over vulnerabilities and regulatory adherence.
Growth Aligned with Infrastructure Expansion
The rapid expansion of enterprise IT ecosystems has fueled the need for advanced NMS tools. Adoption in hybrid and large-scale networks has reached over 60%, indicating a growing reliance on these systems to maintain operational consistency and manage network sprawl effectively.
Network Management System (NMS) Market Recent Developments
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Cisco announced the acquisition of BroadSoft, a leading provider of cloud,based NMS and collaboration service.
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Cisco, Juniper Networks, and Huawei started integrating AI,driven tools into their NMS platforms to improve network performance monitoring, predictive analytics, and automated issue resolution.
Network Management System (NMS) Market Segment Analysis
In this report, the Network Management System (NMS) Market has been segmented by Component, Solution, Service, Deployment Mode, Organization Size, Service Provider, Vertical and Geography.
Network Management System (NMS) Market, Segmentation by Component
The Network Management System (NMS) Market has been segmented by Component into Platform, Solutions, and Services
Platform
The platform segment leads the Network Management System market, capturing around 40% of the market share. This segment offers essential infrastructure for robust network monitoring and management. Its growth is fueled by increasing requirements for centralized network visibility and streamlined operations.
Solutions
Holding approximately 35% market share, solutions encompass specialized tools for addressing specific network management issues. Key components include performance monitoring, security management, and efficient fault resolution, enhancing overall network reliability and efficiency.
Services
Services represent about 25% of the NMS market and include offerings such as implementation, consulting, and ongoing maintenance support. This segment continues to expand due to complexities in network setups and rising demands for expert assistance and timely updates.
Network Management System (NMS) Market, Segmentation by Solution
The Network Management System (NMS) Market has been segmented by Solution into Network Performance & Monitoring, Network Performance & Monitoring, Virtual Monitoring, Software Defined Networking Monitoring, Network Configuration, Log & Event Management, and Others
Network Performance & Monitoring
This segment dominates, comprising approximately 30% of the NMS solutions market. It focuses on tools that provide continuous network analysis, ensuring optimal performance, quick fault identification, and reduced downtime.
Virtual Monitoring
Virtual Monitoring accounts for around 15% of the market, driven by increased adoption of virtualized network environments. It provides visibility and management for virtual networks, ensuring seamless operations across cloud and hybrid infrastructures.
Software Defined Networking Monitoring
With nearly 18% share, Software Defined Networking (SDN) Monitoring is experiencing rapid growth due to widespread implementation of SDN architectures. It offers enhanced flexibility, automation, and real-time insights into network activities.
Network Configuration
Network Configuration solutions hold about 12% of the market. They facilitate effective management of network device settings and changes, reducing configuration errors and enhancing overall network security and reliability.
Log & Event Management
This segment represents roughly 10% of the NMS solutions market. It emphasizes log management, real-time event tracking, and analytics, playing a crucial role in security monitoring and compliance management.
Others
The remaining 15% of the market includes specialized and emerging solutions. These cover niche areas such as traffic management, policy compliance, and custom monitoring tools tailored to specific enterprise needs.
Network Management System (NMS) Market, Segmentation by Service
The Network Management System (NMS) Market has been segmented by Service into Consulting Services, Integration & Deployment Services, Training, Support, and Maintenance Services
Consulting Services
Consulting Services hold around 28% of the Network Management System services market. These services offer expert guidance on network optimization, strategy development, and technology selection, enabling organizations to achieve efficient network performance.
Integration & Deployment Services
Integration & Deployment Services comprise approximately 30% of the market. This segment ensures seamless integration of NMS solutions into existing IT infrastructure, emphasizing efficient deployment, minimal disruption, and enhanced interoperability.
Training, Support, and Maintenance Services
This segment represents about 42% of the total NMS service market. It focuses on ongoing technical assistance, system maintenance, user training, and regular updates, significantly boosting system reliability and user adoption.
Network Management System (NMS) Market, Segmentation by Deployment Mode
The Network Management System (NMS) Market has been segmented by Deployment Mode into On-premises and Cloud.
On-Premises
The On-Premises deployment mode captures approximately 55% of the Network Management System market. It is preferred by organizations seeking complete control over their network infrastructure, data security, and customization capabilities within their own facilities.
Cloud
Cloud deployment accounts for about 45% of the market, driven by increasing demand for scalability, flexibility, and cost-effective network management solutions. Cloud-based NMS offers remote accessibility and faster implementation, making it popular among growing enterprises.
Network Management System (NMS) Market, Segmentation by Organization Size
The Network Management System (NMS) Market has been segmented by Organization Size into Large Enterprises and Small and Medium-Sized Enterprises.
Large Enterprises
Large enterprises dominate the Network Management System market, accounting for around 65% of the segment. Their complex and extensive network infrastructures require advanced management solutions with high scalability and security features.
Small and Medium-Sized Enterprises
Small and Medium-Sized Enterprises (SMEs) hold approximately 35% of the market. The growing adoption of affordable and user-friendly NMS solutions is driving increased penetration among SMEs seeking efficient network oversight without heavy infrastructure investment.
Network Management System (NMS) Market, Segmentation by Service Provider
The Network Management System (NMS) Market has been segmented by Service Provider into Telecom Service Provider, Cloud Service Provider, Managed Service Provider, and Others
Telecom Service Provider
Telecom Service Providers lead the Network Management System market segment, representing about 40% of the share. They utilize NMS solutions to manage vast and complex telecom networks, ensuring high performance and minimal downtime.
Cloud Service Provider
Cloud Service Providers hold around 30% of the market, driven by the rising adoption of cloud infrastructure and services. They rely on NMS for efficient management of virtualized and distributed network environments.
Managed Service Provider
Managed Service Providers account for roughly 20% of the segment. They offer outsourced network management services to various enterprises, emphasizing cost efficiency and expert support.
Others
The remaining 10% includes niche service providers focusing on specialized network management solutions tailored to specific industry needs or emerging technologies.
Network Management System (NMS) Market, Segmentation by Vertical
The Network Management System (NMS) Market has been segmented by Vertical into BFSI, IT &Telecommunications, Government, Manufacturing, Healthcare, Retail, Transportation & Logistic, and Others
BFSI
The BFSI vertical dominates the Network Management System market with around 25% share. The sector demands robust and secure network solutions to ensure uninterrupted financial transactions and data protection.
IT & Telecommunications
IT & Telecommunications hold approximately 22% of the market. This vertical requires advanced NMS solutions for managing extensive and complex network infrastructures efficiently.
Government
Government accounts for about 15% of the segment, focusing on secure and compliant network management to support critical public services and defense communications.
Manufacturing
Manufacturing represents roughly 12% of the market. The industry leverages NMS to optimize operational efficiency and maintain network reliability across automated and connected facilities.
Healthcare
Healthcare holds around 10% share, driven by the need for secure, compliant, and real-time network monitoring to support patient care systems and telemedicine.
Retail
Retail constitutes about 8% of the market, utilizing NMS to manage point-of-sale systems, supply chain networks, and customer data securely and efficiently.
Transportation & Logistics
Transportation & Logistics cover close to 6% of the segment. Network management ensures smooth operations, tracking, and communication across distributed transportation systems.
Others
The remaining 2% includes other industries adopting network management solutions for tailored operational and security needs.
Network Management System (NMS) Market, Segmentation by Geography
In this report, the Network Management System (NMS) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Regions and Countries Analyzed in this Report
Network Management System (NMS) Market Share (%), by Geographical Region
North America
North America holds the largest share in the Network Management System market, accounting for approximately 35%. The region benefits from advanced IT infrastructure, high adoption of innovative technologies, and significant investments in network modernization.
Europe
Europe represents around 25% of the market. The demand here is driven by stringent regulatory frameworks, increasing digital transformation initiatives, and rising focus on network security.
Asia Pacific
Asia Pacific commands roughly 30% of the market, fueled by rapid industrialization, expanding telecommunications sectors, and growing adoption of cloud-based NMS solutions.
Middle East and Africa
Middle East and Africa contribute about 5% to the market. The growth in this region is supported by increasing investments in IT infrastructure and rising government initiatives toward digitalization.
Latin America
Latin America accounts for close to 5% of the NMS market. Expansion is driven by improving network infrastructure and increasing demand for managed services among enterprises.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Network Management System (NMS) Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces—Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
---|---|---|---|---|---|
Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunity Analysis
Drivers
- Increased network complexity
- Rising demand for automation
- Growing need for real-time analytics
- Emergence of IoT and 5G
-
Expansion of virtualized network environments - The growing adoption of virtualized network environments is significantly influencing the demand for advanced network management systems. As organizations shift from traditional hardware-based setups to software-defined and virtualized infrastructures, the need for centralized monitoring, orchestration, and optimization tools becomes critical. These changes introduce new levels of complexity that only robust NMS platforms can manage effectively. Virtualized environments demand greater visibility and real-time oversight due to the dynamic nature of virtual machines, containers, and network functions. Network management systems are evolving to offer automated provisioning, policy enforcement, and performance analytics tailored to these dynamic network components. This automation reduces manual workloads while improving response times to operational issues.
With the rise of cloud computing, edge computing, and NFV (Network Function Virtualization), network architectures are becoming more distributed. This trend increases the necessity for NMS solutions that can oversee and manage resources across on-premises, cloud, and hybrid environments from a single interface. Enterprises and service providers alike are adopting software-defined networks (SDN) that require real-time feedback loops between virtual elements. NMS tools that support SDN enable intelligent traffic routing, congestion mitigation, and performance optimization in these complex, virtualized ecosystems.
The demand for scalability and agility in virtualized networks is pushing organizations to integrate AI-driven NMS capabilities. These systems can proactively predict failures, recommend optimizations, and detect anomalies using machine learning algorithms, ensuring that virtual network operations remain seamless and efficient.As network environments continue to expand and evolve, the importance of adopting next-gen NMS platforms that align with virtual infrastructure becomes more urgent. Organizations that prioritize such systems gain enhanced visibility, faster troubleshooting, and improved network health across virtualized deployments.The continued expansion of virtualized networks presents a long-term growth driver for the NMS market, reinforcing the need for intelligent, adaptive, and future-ready network management capabilities.
Restraints
- High initial deployment costs
- Complexity in integration processes
- Security and privacy concerns
- Lack of skilled workforce
-
Compatibility issues with legacy systems - A significant barrier to the widespread adoption of advanced NMS platforms is the persistent presence of legacy network infrastructure. Many organizations still operate critical systems built on older technologies that lack interoperability with modern management solutions. This incompatibility results in increased integration time, cost, and complexity when deploying new NMS tools.Legacy hardware often does not support open APIs or standardized communication protocols, making it difficult for network management systems to gather and analyze data effectively. This limitation hinders full visibility and reduces the accuracy of performance metrics, impacting the overall efficiency of network monitoring.
In environments with mixed hardware generations, IT teams must rely on a combination of manual processes and outdated monitoring tools. The coexistence of old and new technologies places a heavy burden on system administrators who must navigate between incompatible platforms to maintain operations.Upgrading or replacing legacy systems can be disruptive and costly, especially for large enterprises or organizations in regulated industries. These entities are often risk-averse, leading them to postpone NMS modernization projects despite the known benefits of improved visibility, automation, and analytics.
The need to maintain service continuity and meet uptime SLAs makes it challenging to implement modern NMS platforms without significant planning and phased migration. Even when partial upgrades are pursued, the presence of legacy components can still constrain the full capabilities of the new management system.Security concerns also arise, as legacy systems are more vulnerable to cyber threats and often lack proper patching or encryption protocols. Integrating them with new NMS platforms can inadvertently expand the attack surface, unless proper segmentation and safeguards are applied.Until interoperability standards are widely adopted and legacy systems are systematically replaced or upgraded, compatibility challenges will continue to restrain the adoption and effectiveness of advanced NMS solutions in many enterprise environments.
Opportunities
- Cloud-based NMS solutions
- AI and machine learning integration
- Demand for hybrid network management
- Expansion in developing regions
-
Focus on network security managemen - The increasing complexity and exposure of modern networks are driving a strong focus on network security management, creating significant opportunities for the NMS market. As cyber threats become more sophisticated, organizations need tools that not only monitor performance but also provide deep security visibility across all endpoints and connections. Network management systems are evolving to include integrated security functions such as anomaly detection, threat alerts, and traffic analysis. These features allow security teams to proactively identify suspicious behavior and respond to incidents in real time, strengthening the organization’s defense posture.
Regulatory frameworks such as GDPR, HIPAA, and PCI-DSS are mandating stricter controls over data transmission and access across networks. This has made secure network configuration, audit logging, and vulnerability detection essential components of compliance. Advanced NMS platforms help businesses stay audit-ready and avoid costly penalties. As businesses increasingly embrace remote work and hybrid cloud models, maintaining secure and segmented network access becomes a high priority. NMS tools with built-in access control, identity verification, and encrypted communication protocols enable organizations to safeguard distributed operations effectively.
The integration of artificial intelligence into NMS platforms is further enhancing security capabilities. AI can quickly detect patterns of compromise, prioritize alerts, and automate responses to common threats, thereby reducing response time and human error during incidents. Industries such as finance, healthcare, and critical infrastructure, where data integrity is paramount, are particularly interested in security-focused NMS solutions. Vendors that can deliver unified visibility and real-time security monitoring across complex networks are well-positioned to tap into these sectors. With growing awareness of cyber risks and a push for zero-trust architecture, the NMS market stands to benefit from the rising emphasis on network security management, positioning intelligent monitoring solutions as essential tools for modern enterprises.
Competitive Landscape Analysis
Key players in Network Management System (NMS) Market include:
- Cisco
- IBM
- Broadcom (CA Technologies)
- Solarwinds
- Nokia
- Juniper Networks
- CA
- Riverbed Technology
- Micro Focus
- Progress (Ipswitch)
- ExtraHop Networks
- Colasoft
- Flowmon Networks
- ManageEngine, a Division of Zoho Corporation
- LiveAction
- Paessler
- SevOne
- Cubro Network Visibility
- Kentik
- Bmc Software
- VIAVI Solutions
- Accedian
- Kaseya
- HelpSystems
- Extreme Networks
- AppNeta
- Ericsson
- Huawei
- Eg Innovations
- Opmantek
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Market Share Analysis
- 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 Component
- Market Snapshot, By Solution
- Market Snapshot, By Service
- Market Snapshot, By Deployment Mode
- Market Snapshot, By Organization Size
- Market Snapshot, By Service Provider
- Market Snapshot, By Vertical
- Market Snapshot, By Region
- Network Management System (NMS) Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Increased network complexity
- Rising demand for automation
- Growing need for real-time analytics
- Emergence of IoT and 5G
- Expansion of virtualized network environments
- Restraints
- High initial deployment costs
- Complexity in integration processes
- Security and privacy concerns
- Lack of skilled workforce
- Compatibility issues with legacy systems
- Opportunities
- Cloud-based NMS solutions
- AI and machine learning integration
- Demand for hybrid network management
- Expansion in developing regions
- Focus on network security management
- 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 Management System (NMS) Market, By Component, 2021 - 2031 (USD Million)
- Platform
- Solutions
- Services
- Network Management System (NMS) Market, By Solution, 2021 - 2031 (USD Million)
- Network Performance and Monitoring
- Network Performance and Monitoring
- Virtual Monitoring
- Software-Defined Networking Monitoring
- Network Configuration
- Log and Event Management
- Others
- Network Management System (NMS) Market, By Service, 2021 - 2031 (USD Million)
- Consulting Services
- Integration & Deployment Services
- Training
- Support
- Maintenance Services
- Network Management System (NMS) Market, By Deployment Mode, 2021 - 2031 (USD Million)
- On-Premises
- Cloud
- Network Management System (NMS) Market, By Organization Size, 2021 - 2031 (USD Million)
- Large Enterprises
- Small & Medium-Sized Enterprises
- Network Management System (NMS) Market, By Service Provider, 2021 - 2031 (USD Million)
- Telecom Service Provider
- Cloud Service Provider
- Managed Service Provider
- Others
- Network Management System (NMS) Market, By Vertical,2021 - 2031 (USD Million)
- BFSI
- IT & Telecommunications
- Government
- Manufacturing
- Healthcare
- Retail
- Transportation & Logistics
- Others
- Network Management System (NMS) 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 Management System (NMS) Market, By Component, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Cisco
- IBM
- Broadcom (CA Technologies)
- Solarwinds
- Nokia
- Juniper Networks
- CA
- Riverbed Technology
- Micro Focus
- Progress (Ipswitch)
- ExtraHop Networks
- Colasoft
- Flowmon Networks
- ManageEngine, a Division of Zoho Corporation
- LiveAction
- Paessler
- SevOne
- Cubro Network Visibility
- Kentik
- Bmc Software
- VIAVI Solutions
- Accedian
- Kaseya
- HelpSystems
- Extreme Networks
- AppNeta
- Ericsson
- Huawei
- Eg Innovations
- Opmantek
- Company Profiles
- Analyst Views
- Future Outlook of the Market