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Network as a Service Market

ID: MRFR/ICT/1653-HCR
100 Pages
Aarti Dhapte
October 2025

Network as a Service Market Research Report Information By Type (LAN and WAN), By Service (WAN Connection, Data Center, and BOD), By Component (Infrastructure, and Technology Service), By End-User (IT & Telecommunication, BFSI, and Healthcare), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2035

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Network as a Service Market Summary

As per MRFR analysis, the Network as a Service Market Size was estimated at 8.68 USD Billion in 2024. The Network as a Service industry is projected to grow from 10.09 USD Billion in 2025 to 45.52 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 16.26 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Network as a Service Market is experiencing robust growth driven by technological advancements and evolving business needs.

  • The adoption of cloud services continues to rise, particularly in North America, as organizations seek scalable solutions.
  • Security and compliance remain paramount, influencing purchasing decisions across both small and medium enterprises and large enterprises.
  • Integration of advanced technologies, such as artificial intelligence and automation, is reshaping service offerings in the market.
  • The growing demand for flexible networking solutions and cost efficiency is propelling the market forward, especially in the Asia-Pacific region.

Market Size & Forecast

2024 Market Size 8.68 (USD Billion)
2035 Market Size 45.52 (USD Billion)
CAGR (2025 - 2035) 16.26%

Major Players

Amazon Web Services (US), Microsoft (US), Google Cloud (US), IBM (US), Oracle (US), Cisco Systems (US), Alibaba Cloud (CN), VMware (US), AT&T (US)

Network as a Service Market Trends

The Network as a Service Market is currently experiencing a transformative phase, characterized by a shift towards more flexible and scalable networking solutions. Organizations are increasingly adopting cloud-based services, which allow for enhanced agility and cost efficiency. This trend appears to be driven by the growing demand for remote work capabilities and the need for seamless connectivity across various devices and locations. As businesses continue to prioritize digital transformation, the Network as a Service Market is likely to expand, offering innovative solutions that cater to diverse operational needs. Moreover, the competitive landscape within the Network as a Service Market is evolving, with numerous players striving to differentiate their offerings. Partnerships and collaborations among service providers are becoming more common, as companies seek to enhance their service portfolios and deliver comprehensive solutions. This collaborative approach may lead to the development of advanced technologies, such as artificial intelligence and machine learning, which could further optimize network performance. Overall, the Network as a Service Market seems poised for substantial growth, driven by technological advancements and changing consumer preferences.

Increased Adoption of Cloud Services

Organizations are increasingly embracing cloud-based networking solutions, which provide flexibility and scalability. This trend indicates a shift towards more efficient resource management and cost reduction.

Focus on Security and Compliance

As businesses migrate to Network as a Service solutions, there is a heightened emphasis on security measures and regulatory compliance. This focus suggests that providers are prioritizing robust security frameworks to protect sensitive data.

Integration of Advanced Technologies

The incorporation of technologies such as artificial intelligence and machine learning into Network as a Service offerings is becoming more prevalent. This integration may enhance network performance and enable predictive analytics.

Network as a Service Market Drivers

Enhanced Security Features

Security concerns are increasingly shaping the landscape of the Global Network as a Service Market Industry. As cyber threats become more sophisticated, organizations are prioritizing secure networking solutions. NaaS providers are responding by incorporating advanced security features such as encryption, intrusion detection, and continuous monitoring. This focus on security is crucial for businesses that handle sensitive data and require compliance with regulatory standards. The emphasis on enhanced security measures is likely to attract more organizations to adopt NaaS, thereby contributing to the overall growth of the market. As security becomes a non-negotiable aspect of networking, the Global Network as a Service Market Industry is poised for continued expansion.

Increased Adoption of Cloud Services

The rise of cloud computing is a critical factor influencing the Global Network as a Service Market Industry. As organizations migrate to cloud-based solutions, the demand for integrated networking services that support these platforms is escalating. NaaS provides the necessary infrastructure to facilitate seamless connectivity and data transfer across cloud environments. This shift is expected to contribute to a compound annual growth rate of 15.27% from 2025 to 2035, reflecting the growing reliance on cloud services. The integration of NaaS with cloud offerings not only enhances operational efficiency but also positions businesses to leverage advanced technologies, thus driving the growth of the Global Network as a Service Market Industry.

Growing Demand for Scalable Solutions

The Global Network as a Service Market Industry is witnessing a surge in demand for scalable networking solutions. Organizations are increasingly adopting NaaS to accommodate fluctuating workloads and to enhance operational efficiency. This trend is particularly pronounced among small to medium enterprises that require flexible networking capabilities without the burden of extensive infrastructure investments. The market is projected to reach 9.53 USD Billion in 2024, indicating a robust growth trajectory. As businesses continue to expand their digital footprint, the need for scalable solutions that can adapt to changing requirements becomes paramount, thereby driving the growth of the Global Network as a Service Market Industry.

Cost Efficiency and Resource Optimization

Cost efficiency remains a pivotal driver in the Global Network as a Service Market Industry. By leveraging NaaS, organizations can significantly reduce capital expenditures associated with traditional networking infrastructure. This model allows for a pay-as-you-go approach, enabling businesses to allocate resources more effectively. As a result, companies can focus on core competencies while outsourcing their networking needs. The anticipated growth from 9.53 USD Billion in 2024 to 45.5 USD Billion by 2035 underscores the financial advantages that NaaS offers. This trend suggests that organizations are increasingly recognizing the potential for resource optimization through NaaS, thereby propelling the market forward.

Market Segment Insights

By Application: Bandwidth on Demand (Largest) vs. Virtual Private Network (Fastest-Growing)

In the Network as a Service market, Bandwidth on Demand holds a significant market share, catering to businesses that need flexible and scalable network services. This preference is largely attributed to the increasing demand for consistent and reliable bandwidth across various sectors. On the other hand, Virtual Private Networks (VPNs) are rapidly gaining traction as organizations prioritize data security and privacy, making them essential for remote work environments and secure communications. This juxtaposition highlights the diverse needs and trends within the Network as a Service landscape.

Bandwidth on Demand (Dominant) vs. Virtual Private Network (Emerging)

Bandwidth on Demand has emerged as the dominant force within the Networking as a Service market, primarily due to its ability to provide scalable solutions. Businesses increasingly seek flexible bandwidth options to efficiently manage traffic spikes, reduce costs, and enhance service delivery. Conversely, Virtual Private Networks are seen as an emerging segment, driven by the need for enhanced cybersecurity and privacy in digital communications. VPNs facilitate secure connections over public networks, gaining popularity as remote work becomes more prevalent. Both segments reflect the evolving technological landscape, where adaptability and security are paramount.

By End Use: Small and Medium Enterprises (Largest) vs. Large Enterprises (Fastest-Growing)

The Network as a Service market showcases a diverse distribution among its end-use segments. Small and Medium Enterprises (SMEs) lead the segment, driven by their ongoing digital transformation initiatives and the necessity for cost-effective solutions. In contrast, Large Enterprises have also carved out a significant share, leveraging NaaS to enhance operational efficiency and reduce infrastructure costs. Government Organizations and Educational Institutions round out the spectrum, benefiting from customized NaaS solutions that cater to their unique requirements.

Small and Medium Enterprises: Dominant vs. Large Enterprises: Emerging

Small and Medium Enterprises (SMEs) are at the forefront of the Network as a Service market, primarily due to their agility and the need for scalable IT solutions. Their preference for NaaS stems from the desire to minimize upfront capital expenditure while maintaining flexibility as they grow. Meanwhile, Large Enterprises are emerging as a prominent force, fueled by their extensive digital transformation projects. They utilize NaaS for its ability to streamline operations and enhance network resilience. This shift allows them to focus more on core competencies while outsourcing their networking needs to specialized providers.

By Deployment Model: Public Cloud (Largest) vs. Private Cloud (Fastest-Growing)

In the Network as a Service market, the deployment model segment is characterized by a diverse distribution amongst public, private, hybrid, and multi-cloud options. Public cloud services dominate this space due to their scalability and cost-effectiveness, catering to a wide range of organizations looking for rapid deployment. Meanwhile, private cloud solutions are capturing a growing share of the market, as businesses increasingly prioritize enhanced security and compliance over public options, leading to a significant rise in their adoption rates.

Public Cloud: Dominant vs. Private Cloud: Emerging

The public cloud segment remains the dominant force in the Network as a Service market, favored for its flexibility and diverse service offerings. Organizations leverage public cloud solutions for their ease of use and wide-ranging capabilities, thus attracting various sectors, including SMEs and large enterprises. In contrast, the private cloud segment is emerging rapidly, driven by enterprises seeking greater control over their data and infrastructure. The demand for tailored services that adhere to strict compliance regulations fuels the growth of private cloud deployments, marking a significant shift in user preferences towards privacy and data security.

By Service Type: Managed Services (Largest) vs. Professional Services (Fastest-Growing)

In the Network as a Service market, the service type segment showcases a diverse array of offerings, with managed services dominating the share of the market. Managed services provide comprehensive solutions, encompassing network management and optimization, making them appealing for organizations seeking to outsource their network responsibilities. On the other hand, professional services are rapidly gaining traction as more enterprises look for specialized expertise in implementing and managing network solutions, contributing to their growth in the sector.

Managed Services: Dominant vs. Professional Services: Emerging

Managed services stand out as the cornerstone of the Network as a Service market, offering clients end-to-end solutions that streamline operations and improve efficiency. These services enable organizations to focus on their core competencies while leveraging expert knowledge for network maintenance and support. In contrast, professional services cater to a niche demand for tailored support from specialists who can address unique challenges, such as the integration of advanced technologies or compliance with regulatory requirements. Together, these service types enhance the overall service delivery experience, enabling businesses to maximize their network capabilities.

By Network Type: Wide Area Network (Largest) vs. Local Area Network (Fastest-Growing)

In the Network as a Service market, the distribution of market share among network types indicates that Wide Area Networks (WANs) hold the largest share due to their extensive geographic coverage capabilities. They are essential for connecting distributed offices and remote workers, making them a preferred choice for large enterprises that require robust and extensive networks. In contrast, Local Area Networks (LANs), while traditionally smaller in scope, have been gaining traction and are becoming increasingly popular as organizations prioritize remote work and localized network solutions.

Wide Area Network (Dominant) vs. Local Area Network (Emerging)

Wide Area Networks (WANs) serve as the backbone of connectivity for numerous businesses, providing significant advantages in terms of data transfer speed and geographical reach. They effectively integrate various locations, ensuring seamless communication and collaboration among teams. Conversely, Local Area Networks (LANs) are emerging as essential components of the network landscape due to their ability to offer high-speed connections within limited areas, cost-effectiveness, and ease of setup and management. The rise in remote work and digital transformation has fueled interest in LANs, allowing them to become a critical focus for organizations seeking efficient and agile networking solutions.

Get more detailed insights about Network as a Service Market

Regional Insights

North America : Leading Market Innovators

North America continues to lead the Network as a Service (NaaS) market, holding a significant share of 4.8 billion in 2025. The region's growth is driven by increasing demand for cloud-based solutions, enhanced connectivity, and the rise of remote work. Regulatory support for digital transformation and investments in 5G infrastructure further catalyze market expansion. Companies are increasingly adopting NaaS to improve operational efficiency and reduce costs. The competitive landscape is robust, with major players like Amazon Web Services, Microsoft, and Google Cloud dominating the market. The U.S. is the primary contributor, benefiting from a strong technological ecosystem and a high concentration of data centers. This environment fosters innovation and collaboration among key stakeholders, ensuring that North America remains at the forefront of NaaS advancements.

Europe : Emerging Digital Transformation Hub

Europe's Network as a Service market is projected to reach 2.5 billion by 2025, driven by the increasing adoption of cloud services and digital transformation initiatives. Regulatory frameworks, such as the EU's Digital Single Market strategy, are encouraging businesses to embrace NaaS solutions. The demand for flexible and scalable network solutions is rising, particularly among SMEs looking to enhance their operational capabilities. Leading countries like Germany, the UK, and France are at the forefront of this growth, with a competitive landscape featuring key players such as IBM and Oracle. The presence of strong telecommunications infrastructure and a focus on cybersecurity further bolster the market. As European businesses increasingly prioritize digital solutions, the NaaS sector is expected to thrive, fostering innovation and collaboration across industries.

Asia-Pacific : Rapidly Growing Technology Sector

The Asia-Pacific region is witnessing significant growth in the Network as a Service market, projected to reach 1.8 billion by 2025. This growth is fueled by the rapid digitalization of businesses, increasing internet penetration, and the demand for cost-effective network solutions. Governments are actively promoting initiatives to enhance digital infrastructure, which is a key driver for NaaS adoption across various sectors. Countries like China, India, and Japan are leading the charge, with a competitive landscape that includes major players such as Alibaba Cloud and VMware. The region's diverse market dynamics and varying regulatory environments create both opportunities and challenges for NaaS providers. As businesses seek to optimize their network capabilities, the Asia-Pacific market is poised for substantial growth in the coming years.

Middle East and Africa : Emerging Market Potential

The Middle East and Africa (MEA) region is gradually emerging in the Network as a Service market, with a projected size of 0.58 billion by 2025. The growth is driven by increasing investments in digital infrastructure and a rising demand for cloud-based services. Governments are focusing on enhancing connectivity and promoting technology adoption, which serves as a catalyst for NaaS solutions in the region. Leading countries such as South Africa and the UAE are making strides in digital transformation, with key players like Cisco Systems and AT&T establishing a presence. The competitive landscape is evolving, with local startups and established firms collaborating to meet the growing demand for flexible network solutions. As the region continues to develop its digital capabilities, the NaaS market is expected to gain momentum.

Key Players and Competitive Insights

The Network as a Service Market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for flexible networking solutions. Major players such as Amazon Web Services (US), Microsoft (US), and Google Cloud (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Amazon Web Services (US) focuses on continuous innovation, particularly in enhancing its cloud infrastructure to support diverse applications. Microsoft (US), on the other hand, emphasizes strategic partnerships and integrations, particularly with its Azure platform, to provide comprehensive solutions that cater to enterprise needs. Google Cloud (US) is leveraging its strengths in artificial intelligence and machine learning to differentiate its offerings, thereby shaping a competitive environment that is increasingly reliant on technological prowess and service diversification.

In terms of business tactics, companies are increasingly localizing their services to better meet regional demands, optimizing supply chains to enhance efficiency, and investing in digital transformation initiatives. The market structure appears moderately fragmented, with a mix of established players and emerging startups. This fragmentation allows for a variety of service offerings, yet the collective influence of key players like IBM (US) and Cisco Systems (US) remains substantial, as they continue to innovate and expand their service portfolios.

In November 2025, IBM (US) announced a strategic partnership with a leading telecommunications provider to enhance its Network as a Service offerings. This collaboration aims to integrate advanced AI capabilities into network management, thereby improving operational efficiency and customer experience. Such a move underscores IBM's commitment to leveraging cutting-edge technology to maintain a competitive edge in the market.

In October 2025, Cisco Systems (US) unveiled a new suite of security-focused Network as a Service solutions designed to address the growing concerns around cybersecurity. This initiative not only reflects Cisco's proactive approach to market demands but also positions the company as a leader in providing secure networking solutions, which is increasingly critical in today's digital landscape. The emphasis on security is likely to resonate well with enterprises seeking to safeguard their data and operations.

In September 2025, Google Cloud (US) launched a new initiative aimed at enhancing its hybrid cloud capabilities, allowing businesses to seamlessly integrate on-premises and cloud resources. This strategic move is indicative of the growing trend towards hybrid solutions, as organizations seek flexibility and scalability in their networking environments. By focusing on hybrid cloud solutions, Google Cloud is likely to attract a broader customer base, further intensifying competition in the market.

As of December 2025, the competitive trends within the Network as a Service Market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are playing a pivotal role in shaping the current landscape, enabling companies to pool resources and expertise to deliver innovative solutions. Looking ahead, competitive differentiation is expected to evolve, with a notable shift from price-based competition towards innovation, technological advancements, and supply chain reliability. This transition suggests that companies that prioritize these aspects will likely emerge as leaders in the Network as a Service Market.

Key Companies in the Network as a Service Market market include

Industry Developments

  • Q2 2024: Cisco Launches New Network-as-a-Service Platform for Enterprises Cisco announced the launch of its new NaaS platform, designed to help enterprises manage and scale their network infrastructure with subscription-based services.
  • Q2 2024: Aryaka Raises $100 Million to Expand Network-as-a-Service Offerings Aryaka, a leading NaaS provider, secured $100 million in funding to accelerate product development and global expansion of its managed SD-WAN and SASE services.
  • Q3 2024: Verizon and HPE Announce Strategic Partnership for Network-as-a-Service Solutions Verizon and Hewlett Packard Enterprise (HPE) entered a partnership to deliver joint NaaS solutions targeting large enterprises and government clients.
  • Q3 2024: Juniper Networks Appoints New CEO to Drive Network-as-a-Service Strategy Juniper Networks named a new CEO, emphasizing a renewed focus on expanding its NaaS portfolio and cloud-based networking solutions.
  • Q4 2024: AT&T Wins $250 Million Federal Contract for Network-as-a-Service Deployment AT&T secured a $250 million contract from a U.S. federal agency to deploy NaaS solutions across multiple government sites.
  • Q4 2024: Nokia Launches NaaS Platform for 5G Private Networks Nokia introduced a new NaaS platform tailored for 5G private networks, enabling enterprises to deploy and manage secure, scalable connectivity.
  • Q1 2025: VMware Spins Off NaaS Business Unit to Focus on Cloud Networking VMware announced the spin-off of its NaaS business unit, aiming to accelerate innovation in cloud-based networking and edge services.
  • Q1 2025: Oracle Unveils Network-as-a-Service for Multi-Cloud Environments Oracle launched a new NaaS offering designed to simplify network management across multi-cloud deployments for enterprise customers.
  • Q2 2025: Telstra Acquires CloudGenix to Expand Network-as-a-Service Portfolio Telstra completed the acquisition of CloudGenix, enhancing its NaaS capabilities with advanced SD-WAN and cloud networking solutions.
  • Q2 2025: IBM Partners with Equinix to Deliver Global Network-as-a-Service Solutions IBM and Equinix announced a partnership to offer global NaaS solutions, leveraging Equinix's data center footprint and IBM's cloud networking expertise.
  • Q3 2025: Ciena Launches AI-Driven Network-as-a-Service Platform Ciena introduced an AI-powered NaaS platform, enabling automated network optimization and predictive analytics for enterprise clients.
  • Q3 2025: GTT Communications Wins Major European NaaS Contract GTT Communications secured a multi-year contract to provide NaaS solutions for a consortium of European financial institutions.

Future Outlook

Network as a Service Market Future Outlook

The Network as a Service Market is projected to grow at a 16.26% CAGR from 2024 to 2035, driven by increasing demand for flexible networking solutions and cloud integration.

New opportunities lie in:

  • Development of AI-driven network optimization tools
  • Expansion of edge computing services for real-time data processing
  • Creation of tailored NaaS solutions for specific industry verticals

By 2035, the Network as a Service Market is expected to be a pivotal component of global IT infrastructure.

Market Segmentation

Network as a Service Market End Use Outlook

  • Small and Medium Enterprises
  • Large Enterprises
  • Government Organizations
  • Educational Institutions

Network as a Service Market Application Outlook

  • Bandwidth on Demand
  • Disaster Recovery
  • Network Security
  • Virtual Private Network
  • Load Balancing

Network as a Service Market Network Type Outlook

  • Wide Area Network
  • Local Area Network
  • Metropolitan Area Network

Network as a Service Market Service Type Outlook

  • Managed Services
  • Professional Services
  • Support Services

Network as a Service Market Deployment Model Outlook

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud
  • Multi-Cloud

Report Scope

MARKET SIZE 20248.68(USD Billion)
MARKET SIZE 202510.09(USD Billion)
MARKET SIZE 203545.52(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)16.26% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledAmazon Web Services (US), Microsoft (US), Google Cloud (US), IBM (US), Oracle (US), Cisco Systems (US), Alibaba Cloud (CN), VMware (US), AT&T (US)
Segments CoveredApplication, End Use, Deployment Model, Service Type, Network Type
Key Market OpportunitiesIntegration of artificial intelligence enhances efficiency and scalability in the Network as a Service Market.
Key Market DynamicsRising demand for flexible network solutions drives competitive innovation and regulatory adaptations in the Network as a Service Market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Aarti Dhapte
Team Lead - Research

She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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FAQs

How much is the Network as a Service market?

The Network as a Service market size was valued at USD 8.67 Billion in 2024.

What is the growth rate of the Network as a Service market?

The market is projected to grow at a CAGR of 16.26% during the forecast period, 2025-2034.

Which region held the largest market share in the Network as a Service market?

North America had the largest share in the market

Who are the key players in the Network as a Service market?

The key players in the market are Alcatel Lucent (U.S.), Brocade Communications Systems Inc. (U.S.), Ciena Corporation (U.S), Cisco Systems (U.S.), IBM Corp. (U.S.).

Which type led the Network as a Service market?

The WAN category dominated the market in 2022.

Which end user had the largest market share in the Network as a Service market?

The IT & Telecommunication had the largest share in the market.

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