NaaS Market Treads Upward with $103B Projection

NaaS Market Treads Upward with $103B Projection

By Greg Tavarez

Many organizations continue to deploy and incorporate Network-as-a-Service (NaaS) solutions, and for good reason. NaaS is deployed for scaling IT infrastructure by replacing hardware-centric VPN and multiprotocol label switching connections, and IT organizations incorporate NaaS to improve the speed, agility, and scalability of workloads.

NaaS is expected to continue expanding as more organizations seek to take advantage of flexibility, scalability, and cost-effectiveness by deploying related solutions. Already in the first month of 2023, NTT DATA partnered with intelligent cloud networking company Aviatrix to deliver seamless services to Aviatrix as it provides vital SAP application services to enterprise clients.

It makes sense that a report from Emergen predicts the NaaS market size to grow from $16.65 billion in 2021 to $103.24 billion in 2030 at a CAGR of 22.4%.

The main factors are already touched on a bit, such as NaaS improving the speed and scalability to manage network resources efficiently, as well as NaaS reducing costs by introducing new virtualized network infrastructure processes for hardware, software, operations and maintenance.

The main driving force of revenue growth in the market, however, is the increased utilization of NaaS in digital transformation of businesses.

Several market players deploy AI and machine-learning based NaaS to mitigate risks with proactive advisory and management capabilities. These proactive strategies improve business operations and performance while resolving or mitigating problems before IT operation disruption. Information technology companies also introduce NaaS for automating deployment processes or facilitating ML-based tools to enhance daily tasks.

Furthermore, NaaS providers charge a monthly subscription-based cost for network function virtualization and bandwidth on demand, which enables enterprises to leverage their monthly IT budget.

Additionally, the introduction of 5G networks and IoT in functional areas of business are driving demand for more advanced networking capabilities.

NaaS is in a good position, and is expected to continue in an upward trend as more organizations seek to take advantage of flexible, scalable and cost-effective solutions.

Edited by Alex Passett
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MSPToday Editor

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