Network as a Service (NaaS) market growth is primarily driven by factors like increasing adoption of cloud-based networking technologies, rising demand for cost-effective networking solutions, increase in broadband penetration and rapid investments in next-gen 5G network solutions. Network virtualization is helping companies reduce expenditure required on managing & maintaining physical infrastructure. Meanwhile, numerous government regulations regarding data privacy & security are anticipated to supplement NaaS industry growth over the coming years.
How will the IT & telecom sector impact Network as a Service (NaaS) market growth?
Nowadays companies in the telecom sector are increasingly replacing their network hardware with network functions virtualization (NFV) and software-defined networking (SDN) to develop a centralized network infrastructure that allows them to centrally manage & control all networking operations from a single location.
The operational cost-effectiveness of SDN has encouraged telecom firms to shift towards NaaS from traditional network infrastructure. Moreover, enterprises are also constantly outsourcing network & cyber-security solutions to focus more on their core competencies to cope with ever-increasing market competition. Supported by such factors, the IT & telecom sector will effectively generate new growth prospects for NaaS market in the upcoming years.
How will Bandwidth on Demand (BoD) segment propel NaaS market size?
BoD allows users to customize their connectivity parameters, eventually giving them better control over their network bandwidth. The technology effectively deals with demands for short-duration bandwidths mainly at crucial times like important conferences, seminars, webcasting of live sports events or during delicate medical surgeries. The ability of BoD to cope with uncertain network traffic demands has attracted attention of carriers and vendors worldwide. Telecom giants are also developing advanced BoD solutions to support customers changing bandwidth demand globally.
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What’s driving APAC NaaS market growth?
Asia Pacific is anticipated to witness commendable market growth during the forecast period. Increase in demand for virtualization primarily to reduce cost and complexities of physical network infrastructures will support market penetration. Global network solution providers are also deploying virtualization network across the region to leverage market potential.
For instance, in July 2018, VMware launched a new Virtual Cloud Network in Malaysia to boost digitalization in the country. Stringent government policies regarding data protection & cybersecurity across countries like Japan, Australia, and Singapore will also accelerate deployment of cloud-based network infrastructure, thereby fostering NaaS market size.
In essence, increasing demand from the IT & telecom sectors will drive Network as a Service (NaaS) market growth. Rise in adoption of cloud-based networking technologies as well as increase in broadband penetration will foster industry size. Global Market Insights, Inc. estimates NaaS market size to exceed US $50 billion by 2025.