NaaS Market to Surge Beyond $80 Billion

MSP TODAY NEWS

NaaS Market to Surge Beyond $80 Billion

By Greg Tavarez

The COVID-19 pandemic impacted every business in every industry and augmented the adoption of as-a-service offerings, including Network-as-a-Service, as businesses shifted from conventional business practices to online platforms.

Traditional network models require capital expenses for a physical network, as well as complex management tools that require IT expertise. NaaS is an emerging model for organizations to consume network infrastructure through flexible operating expense subscriptions, which include hardware, software, management tools, licenses and lifecycle services.

NaaS is a more affordable cost structure and offers a greater degree of operational automation. This provides opportunities to create new services and better capabilities to architect the network. Benefits of NaaS include flexibility in making changes to the network, maintenance and management of software and hardware upgrades, easy integration of networking services and security services, global interconnection and scalability.

The NaaS market was valued at $6.67 billion in 2021 and, because of a surge since the start of the pandemic, is expected to expand at a 32.9% CAGR from 2022 to 2030, hitting $81.82 billion, according to Grand View Research.

The cloud and SaaS connectivity segment held a revenue share of more than 24% in 2021 and is expected to grow at a 33.6% CAGR. The use of technology and consumer propensity toward the cloud propelled the adoption of cloud-based solutions, which enable the verticals to access data from remote areas. Cloud-based services allow scalability, migration, mobility and data recovery and increases effectiveness. With these services, organizations will achieve enhanced scaling, network assurance and time-to-value at affordable costs.

Verticals such as financial services, manufacturing, retail, and IT and telecom will contribute to the NaaS market growth as these verticals deploy more public NaaS. With network services, vertical organizations minimize capital investment, improve service quality and increase uptime.

Within the verticals, IT and telecommunication held a revenue share of 24% in 2021 and is expected to expand at a 33.1% CAGR in the forecast period. The growth is attributed to increasing use-cases and the adoption of cloud services and IT infrastructure. Network infrastructure minimizes the digital divide by delivering quick network services and addressing the concerns of bandwidth scarcity at affordable costs.

The shared active and passive infrastructure allows high-speed internet access and empowers networks to expand profitably. NaaS solutions are 5G network building blocks, and the telecommunication sector anticipates adoption of the NaaS platform.

NaaS is among the newer as-a-service models, but the market will continue to boom. As long as technological innovations continue and organizations adopt cloud-managed network services for the low cost and scalability, the NaaS market will thrive as a result.




Edited by Erik Linask

MSPToday Editor

SHARE THIS ARTICLE
Related Articles

MSPs Enable Enterprises to Accelerate Growth at Top Speed

By: Greg Tavarez    2/2/2023

MSP Expo Sponsor: MSPs are building their technical expertise to address customers' needs by merging with different sets of companies as the Managed S…

Read More

Pax8 Acquires Bam Boom Cloud, Deepening Microsoft Dynamics 365 Expertise

By: Reece Loftus    2/2/2023

Pax8 announced it has acquired Bam Boom Cloud, an award-winning Microsoft Dynamics 365 Business Central services organization.

Read More

Pax8 Expands Horizons Bringing in Rob Rae to Champion MSP Power Initiatives

By: Arti Loftus    2/1/2023

Pax8 today announced that Rob Rae, a highly regarded and influential innovator in the IT channel market, has joined the company as Corporate Vice Pres…

Read More

Codex IT Reaches Wasatch Front Through Intranet Consulting Acquisition

By: Greg Tavarez    2/1/2023

Codex IT is expanding its services along the Wasatch Front and the rest of Utah through its acquisition of Intranet Consulting.

Read More

GFI Software Named a Platinum Sponsor for MSP Expo 2023, Part of the #TECHSUPERSHOW

By: TMCnet News    1/31/2023

MSP Expo is the premier conference and networking summit for MSPs. This is where MSP business owners and technology specialists share strategies to gr…

Read More