all report title image

NETWORK MANAGEMENT SYSTEM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Network Management System Market, By Component (Solution and Services), By Deployment (On-premises and Cloud), By Enterprise (Large Enterprises and Small & Medium Enterprises), By Vertical (IT & Telecom, BFSI, Government, Manufacturing, Transportation & Logistics, Healthcare, and Retail), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Network Management System Market Size and Trends

Global network management system market is estimated to be valued at USD 10.11 Bn in 2024 and is expected to reach USD 18.91 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 9.4% from 2024 to 2031.

Network Management System Market Key Factors

Discover market dynamics shaping the industry: Request sample copy

Increasing adoption of automation technologies across various industries along with rising network complexities boosts demand for advanced network management systems. Between 2022 and 2024, advancements in AI and machine learning have enhanced network analytics and automation, improving operational efficiency. Proliferation of IoT devices, 5G deployment, and the need for robust cybersecurity can drive the market growth. Major players like Cisco, IBM, and Juniper Networks are innovating with cloud-based solutions to support scalable and remote management. Challenges remain in handling complex network architectures and ensuring real-time performance. The market is expected to witness substantial growth due to rising focus on AI-driven solutions.

Network Management System Market By Component

Discover high revenue pocket segments and roadmap to it: Request sample copy

Insights By Component- Economies of Scale Drive Solution Dominance

By component, solution segment is expected to contribute the highest market share of 67.9% in 2024, due to economies of scale. As network management becomes centralized and automated through software, the cost per additional customer or device decreases significantly. Large vendors are able to recoup development costs rapidly by licensing widely used solutions. Standardized solutions also allow enterprises to leverage community support and integrate other systems more seamlessly. However, services remain essential for customization, integration and ongoing technical support.

Insights By Deployment- On-Premises Have Become Popular and Preferred Security Solutions

By deployment, on-premise segment is expected to contribute the highest market share of 55.7% in 2024. Network management involves monitoring and controlling mission-critical infrastructure, thus, many organizations prioritize security and control over flexibility. On-premises solutions allow enterprises to seclude network activity behind their own firewalls and avoid hosting risks. These solutions also enable batch processing and analytics on large traffic datasets without internet dependencies. While cloud options continue gaining, cultural preferences for on-site IT persists especially in sensitive government and financial domains.

Insights By Enterprise- Scalability Drives Focus on Large Enterprises

By enterprise, large enterprises segment is expected to contribute the highest market share of 51.3% in 2024. These manage vast networks spanning offices worldwide, requiring centralized solutions to scale monitoring and policies. Organization spread across geographies face challenges in managing extensive networks built around thousands of devices. Devices such as routers, switches, or IoT devices need consistent troubleshooting, and optimization to ensure the network operations are smooth. Therefore, scalability is one of the solutions to counter the challenges.

Regional Insights

Network Management System Market Regional Insights

To learn more about this report, Request sample copy

Dominating Region- North America

North America is expected to dominate the market with a share of 33.1% in 2024 due to the strong presence of leading vendors such as Cisco, IBM, and SolarWinds. High technology adoption and advanced network infrastructure across various industries have accelerated the market growth over the years.

Fastest-Growing Region- Asia Pacific

Asia Pacific region exhibits the fastest growth, led by countries like China, India, and Japan. Massive investments in digital transformation initiatives coupled with the rapid expansion of mobile and IoT networks have boosted demand for network management solutions. Leading local players such as Huawei and ZTE can also drive the market growth.

Network Management System Market Outlook for Key Countries

High Demand for Cybersecurity and Network Optimization in the U.S.

The U.S. network management system market is characterized by a high concentration of global networking giants and network-intensive sectors. IoT, 5G deployment, and enterprise demand for cybersecurity and network optimization are some notable trends. Cisco remains the leader with innovative offerings, while other players like Juniper and Arista are enhancing competitiveness in the country.

Expansion of Digital Infrastructure in China

China's market exhibits robust expansion, supported by the nation's mega digital projects and 5G rollout. The expansion is largely driven by country’s industrial growth, rise in investments in digital infrastructure, and the adoption of 5G networks enhancing network management needs. For instance, Huawei, a leading electronics company in China, witnessed a huge spike in sales of digital solutions in 2023 based on the company’s technological prowess.

Japan’s Focus on Designing IoT Infrastructure

Japan continues to lead in Asia for mission-critical networks. Fujitsu, NEC, and Hitachi are complementing the government's digital infrastructure plans with advanced management platforms. Japan is emphasizing the integration of IoT and AI which boosts the adoption of NMS solutions enhancing operational efficiency and maintaining competitiveness.

India- Wave of Digital Transformation: India's market is witnessing a spike in spending from telecom operators and large corporations. Tech Mahindra, HCL, and others are capitalizing on opportunities across verticals. The country’s strong industrial base, emphasis on digital transformation initiatives, and the need for efficient network management sectors such as telecommunications and IT are pivotal factors boosts adoption of NMS solutions.

Market Concentration and Competitive Landscape

Network Management System Market Concentration By Players

Get actionable strategies to beat competition: Request sample copy

Top Strategies Followed by Network Management System Market Players

  • Established Players- Leading companies focus extensively on research and development to deliver high-performance network management systems. In 2023, Cisco invested over USD 5 billion in R&D to develop innovative solutions like analytics-driven automation. Cisco has alliances with IBM, Microsoft and HPE to integrate their network management platforms with various enterprise solutions. SolarWinds collaborates with AWS, Google Cloud and Microsoft Azure to provide cloud-based management of their networks.
  • Mid-Level Players- Medium sized players like Zoho and Paessler focus on delivering cost-effective yet feature-rich solutions. Paessler provides free and commercial versions of its PRTG product. In 2023, Paessler partnered with SevOne to integrate network performance monitoring with fault and configuration management for an end-to-end view.
  • Small-Scale Players- Emerging vendors specialize in niche areas like SD-WAN, IoT, or hybrid networks. CloudCherry delivered AI-driven network optimization to a Fortune 500 logistics company in 2023, reducing network latency by 15% in its SD-WAN infrastructure. In 2023, Network to Code partnered with Verizon to deploy its low-code automation platform for managing hybrid network operations, offering improved efficiency for IoT-enabled logistics hubs.

Emerging Startups in the Network Management System Market

Innovative Technologies- Startups like Anthropic and Netree applies machine learning and mobile edge computing respectively to develop self-healing networks. Their cognitive approaches could automate problem resolution, freeing up resources for strategic tasks. Over time, these AI-powered networks may become self-sufficient with minimal human intervention.

Sustainable Solutions- EcoNet focuses on sustainability with an open-source network monitoring solution requiring no additional hardware. It analyzes traffic patterns to optimize infrastructure utilization and reduce power consumption.

Market Contribution- Some startups fill gaps in serving specialized verticals. For instance, Anthropic Labs works with autonomous vehicle makers to ensure network connectivity for advanced driver-assistance systems.

Network Management System Industry News

  • In November 2023, Microsoft launched Azure Network Manager, a centralized platform designed to simplify the management of large-scale networks across different regions and subscriptions. This tool provides unified network policy management and connectivity monitoring.
  • In September 2022, Juniper Networks introduced its AI-Driven Enterprise portfolio, integrating Mist AI with its wired and wireless solutions. This development aimed to simplify network operations and improve user experiences through automation and insights.
  • In April 2021, IBM acquired Turbonomic, an application resource management and network performance management software provider. This move was intended to strengthen IBM's AI-powered automation capabilities for hybrid cloud environments.

Key Takeaways from Analyst

Network management system market growth is driven by increasing network complexity and growing demand for centralized network management. Rising need for efficient network monitoring and troubleshooting can drive the market growth. Surge in network traffic due to rapid digital transformation across industries can boost demand. However, high initial investment and maintenance costs associated with network management systems may hamper the market growth.

North America region currently dominates the network management system market and is expected to continue its dominance in the near future. Rapid 5G deployments and growing focus on smart city projects boosts demand in the region. Asia Pacific region is likely to witness the fastest growth and emerge as a lucrative market. Significant investments in digital infrastructure by China and India coupled with the growing adoption of cloud-based solutions present ample opportunities.

Market Report Scope

Network Management System Market Report Coverage

Report Coverage Details
Base Year: 2023 Market Size in 2024: US$ 10.11 Bn
Historical Data for: 2019 to 2023 Forecast Period: 2024 to 2031
Forecast Period 2024 to 2031 CAGR: 9.4% 2031 Value Projection: US$ 18.91 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Component: Solution and Services
  • By Deployment: On-premises and Cloud
  • By Enterprise: Large Enterprises and Small & Medium Enterprises
  • By Vertical: IT & Telecom, BFSI, Government, Manufacturing, Transportation & Logistics, Healthcare, and Retail 
Companies covered:

Cisco, Broadcom CA Technologies, Micro Focus, Juniper Networks, Nokia, Huawei, Paessler, Kentik, Progress, AppNeta, HelpSystems, Ericsson, Hewlett Packard Enterprise Company, and Dell Technologies, Inc

Growth Drivers:
  • Need for efficient network monitoring and troubleshooting
  • Increased need for network visibility and control
Restraints & Challenges:
  • Lack of skilled workforce
  • High initial costs

Uncover macros and micros vetted on 75+ parameters: Get instant access to report

Market Dynamics

Market Driver- Need for Efficient Network Monitoring and Troubleshooting

There has been increase in complexity of enterprise networks in recent years. Most organizations now have a highly heterogeneous network infrastructure comprising of various switches, routers, wireless access points, firewalls and other networked devices from multiple vendors. For instance, SolarWinds' Orion platform manages a heterogeneous network spanning 30 countries. The platform's real-time monitoring and automated troubleshooting is capable of reducing network outages by 20%, ensuring seamless transactions and a better customer experience for fintech players.

Market Challenge- Lack of Skilled Workforce

Shortage of skilled workforce can hamper the network management system market growth. As the adoption of software-defined networking (SDN) and AI-driven tools accelerates, there is a pressing demand for engineers with expertise in these technologies. The gap arises because traditional networking skills do not directly translate to newer, software-oriented approaches. However, enhanced learning solutions might bridge these gaps. For instance, education initiatives from Cisco Networking Academy have directly addressed workforce shortages by providing targeted training on SDN and AI-driven tools globally.

Market Opportunity- Emergence of SDN and NFV

SDN allows separation of routing decisions from hardware, enabling centralized programmability and automation of networks. NFV decouples network functions from proprietary hardware appliances, allowing them to run as software on standard servers. For instance, in 2023, AT&T adopted VMware’s SD-WAN and NFV solutions to virtualize its network functions, enabling rapid service deployment across multiple geographies. This transition reduced operational costs by 25% while enhancing the agility of their network to support dynamic enterprise demands.

Key Stakeholders of Market

What does growth in network management system industry mean for different stakeholders?

Network management system industry includes several players and offers multiple opportunities based on their operational scope and diligence. The table below illustrates and interprets growth aspects for different stakeholders involved.

Key Stakeholder

Opportunities Due to Network Management System Industry Growth

Contract Manufacturers

Growing demand for telecom equipment like 5G infrastructure offers contract manufacturers opportunities to scale production for major telecom brands, ensuring timely delivery and high-quality products.

Distributors

Expanding telecommunications networks provide distributors with opportunities to manage the supply of critical telecom equipment to service providers, ensuring efficient deployment.

Network Operators

Increasing adoption of high-speed data services and IoT applications creates opportunities for network operators to upgrade their infrastructure and support advanced telecom services.

ODMs (Original Design Manufacturers)

The rise of custom telecom equipment needs presents opportunities for ODMs to design and manufacture specialized devices tailored to specific network requirements.

Software Developers

Growing complexity in telecom networks provides opportunities for software developers to create solutions for network management, monitoring, optimization, and cybersecurity.

System Integrators

Expanding demand for integrated telecom solutions, including 5G and IoT, offers system integrators opportunities to provide end-to-end deployment and optimization services.

Telecom Equipment Manufacturers

The rollout of 5G, fiber networks, and IoT infrastructure creates opportunities for manufacturers to introduce innovative, high-performance telecom equipment.

Uncover macros and micros vetted on 75+ parameters: Get instant access to report

Market Segmentation

  • By Component Insights (Revenue, USD Bn, 2019 - 2031)
    • Solution
    • Services
  • By Deployment Insights (Revenue, USD Bn, 2019 - 2031)
    • On-premises
    • Cloud
  • By Enterprise Insights (Revenue, USD Bn, 2019 - 2031)
    • Large Enterprises
    • Small & Medium Enterprises
  • By Vertical Insights (Revenue, USD Bn, 2019 - 2031)
    • IT & Telecom
    • BFSI
    • Government
    • Manufacturing
    • Transportation & Logistics
    • Healthcare
    • Retail
  • Regional Insights (Revenue, USD Bn, 2019 - 2031)
    • North America
      • U.S.
      • Canada
    • Latin America
      • Brazil
      • Argentina
      • Mexico
      • Rest of Latin America
    • Europe
      • Germany
      • U.K.
      • Spain
      • France
      • Italy
      • Russia
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • Australia
      • South Korea
      • ASEAN
      • Rest of Asia Pacific
    • Middle East
      • GCC Countries
      • Israel
      • Rest of Middle East
    • Africa
      • South Africa
      • North Africa
      • Central Africa
  • Key Players Insights
    • Cisco
    • Broadcom CA Technologies
    • Micro Focus
    • Juniper Networks
    • Nokia
    • Huawei
    • Paessler
    • Kentik
    • Progress
    • AppNeta
    • HelpSystems
    • Ericsson
    • Hewlett Packard Enterprise Company
    • Dell Technologies, Inc

Share

About Author

Ankur Rai is a Research Consultant with over 5 years of experience in handling consulting and syndicated reports across diverse sectors.  He manages consulting and market research projects centered on go-to-market strategy, opportunity analysis, competitive landscape, and market size estimation and forecasting. He also advises clients on identifying and targeting absolute opportunities to penetrate untapped markets.

Missing comfort of reading report in your local language? Find your preferred language :

Frequently Asked Questions

Global network management system market is estimated to be valued at USD 10.11 Bn in 2024 and is expected to reach USD 18.91 Bn by 2031.

The CAGR of network management system market is projected to be 9.4% from 2024 to 2031.

Need for efficient network monitoring and troubleshooting and increased need for network visibility and control are the major factors driving the growth of network management system market.

Lack of skilled workforce and high initial costs are the major factors hampering the growth of network management system market.

By component, solution segment is estimated to dominate the market in 2024.

Cisco, Broadcom CA Technologies, Micro Focus, Juniper Networks, Nokia, Huawei, Paessler, Kentik, Progress, AppNeta, HelpSystems, Ericsson, Hewlett Packard Enterprise Company, and Dell Technologies, Inc are the major players.

North America is expected to lead the network management system market in 2024.
Logo

Credibility and Certifications

ESOMAR
DUNS Registered

860519526

Clutch
Credibility and Certification
Credibility and Certification

9001:2015

Credibility and Certification

27001:2022

Select a License Type





Logo

Credibility and Certifications

ESOMAR
DUNS Registered

860519526

Clutch
Credibility and Certification
Credibility and Certification

9001:2015

Credibility and Certification

27001:2022

EXISTING CLIENTELE

Joining thousands of companies around the world committed to making the Excellent Business Solutions.

View All Our Clients
trusted clients logo
© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.