NETWORK MANAGEMENT SYSTEM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Network Management System Market Analysis & Forecast

Network Management System Market is estimated to be valued at USD 11.08 Bn in 2025 and is expected to reach USD 21.06 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 9.6% from 2025 to 2032.

To learn more about this report, Download Free Sample

Key Takeaways

• According to Component, The Solution Category is anticipated to account for the largest share of 68.4% for the Network Management System market in 2025.
• According to Deployment, The On-Premise Segment is anticipated to hold major share of 56.2% for the Network Management System market in 2025.
• According to Enterprise, Large Enterprises Category is expected to hold the largest share of 51.8% in 2025 for network management system market.
• According to region, North America holds the largest market share of 33.6% for Network Management System market growth by 2025.

Market Overview

Increasing adoption of automation technologies across various industries along with rising network complexities boosts demand for advanced network management systems. Between 2022 and 2025, 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.

For instance, in March 2025, Telecom gear maker Nokia announced that it is deploying its latest fifth-generation (5G) radio modules and baseband to support Vodafone Idea's (Vi) upcoming 5G network launch. Nokia has completed all equipment deliveries, and the telco is rapidly deploying the network. Notably, Vodafone Idea is the only private telecom service provider yet to launch its 5G services in the country.     

Current Events and Its Impact on the Network Management System Market

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

Pricing Analysis

Pricing in the NMS market is influenced by economies of scale, especially in the solutions segment, which is expected to account for about 68.4% of the market share in 2025. As network management becomes more centralized and automated, the cost per additional customer or device decreases, allowing larger vendors to recoup development costs quickly through widespread licensing.

The shift toward cloud service network management is a significant pricing driver, as cloud solutions reduce the need for additional hardware and enable dynamic, scalable access to network management services. This shift benefits both vendors (through recurring subscription revenue) and customers (through lower upfront costs and flexible pricing models).   

Emergence of New Technologies

• These technologies are enhancing network analytics, automation, and operational efficiency, allowing for predictive maintenance and real-time optimization.
• The adoption of cloud-based solutions is accelerating, enabling remote, scalable, and cost-effective network management. This trend is driven by increased cloud spending among businesses and the need for flexible, on-demand services.

Segmental Insights

To learn more about this report, Download Free Sample

Network Management System Market Insights, by Component

By component, solution segment is expected to contribute the highest market share of 68.4% in 2025, 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.

Network Management System Market Insights, by Deployment

By deployment, on-premise segment is expected to contribute the highest market share of 56.2% in 2025. 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. 

Network Management System Market Insights, by Enterprise

By enterprise, large enterprises segment is expected to contribute the highest market share of 51.8% in 2025. 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. 

Network Management System Market Insights, by Vertical

By enterprise, large enterprises segment is expected to contribute the highest market share in 2025. The ongoing transition to 5G and next-generation technologies in IT & Telecom fuels demand for advanced NMS solutions that ensure optimized network performance and minimal downtime.

Additionally, the growing adoption of cloud computing, IoT devices, and artificial intelligence within the industry necessitates sophisticated tools for bandwidth management, network monitoring, and maintaining service quality.

Regional Insights

To learn more about this report, Download Free Sample

North America Network Management System Market

North America is expected to dominate the market with a share of 33.6% in 2025 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.

Asia Pacific Network Management System Market

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 In Europe

The growing complexity of enterprise networks, the broad use of cloud-based solutions, the spread of IoT devices, and 5G technologies are all driving the market for network management systems (NMS) in Europe.  Large businesses are spearheading the use of cutting-edge NMS platforms to maximize network performance, increase security, and boost real-time monitoring capabilities, especially in industries like IT, telecom, and BFSI.    

Network Management System Market Dominating Countries

U.S Network Management System Market

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.  

India Network Management System Market

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.   

Network Management System Market 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.   

Network Management System Market In Japan

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.

Market Concentration and Competitive Landscape

To learn more about this report, Download Free Sample

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.

Market Report Scope

Network Management System Market: Growth Drivers

• 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.

Network Management System Market: Trends

• Cloud-Based Network Management

There is a strong shift toward cloud-based network management solutions, driven by the need for scalable, flexible, and remote network oversight. Enterprises are increasingly adopting these solutions to reduce hardware dependencies and enable dynamic service procurement, as evidenced by the significant rise in cloud spending among SMBs.

Network Management System Market: Opportunities

• 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.

Network Management System Market: Key Developments

• January 2025, Israel-based SolarEdge is rolling out a new controller product in Europe, the company’s smart energy manager for residential solar, as the business targets opportunities in the energy management systems (EMS) segment. general manager for SolarEdge in Europe, has told pv magazine that the energy management system can integrate and manage energy components across a household or business.
• February 2025, Samsung Electronics announced that the company has successfully completed the industry’s first end-to-end Reduced Capability (RedCap) trial over a private 5G network with Hyundai Motor Company (Hyundai Motor), a global leader in smart mobility solutions. This trial highlights the potential of next-generation industrial private 5G connectivity, and will be showcased at the Samsung booth during the Mobile World Congress (MWC) 2025.
• November 2024, NETGEAR, Inc., announced the launch of Engage 2.0, a major upgrade to the powerful platform designed to streamline management of audiovisual (AV) networks. NETGEAR Engage 2.0 is free and available to download. The convergence of AV and IT environments and return of large-scale and mobile events and experiences continue to change the way AV systems are used, and the impact is significant. AV over IP brings complexity to commercial, broadcast, or residential installers when it comes to managing Ethernet switches, routers, and WiFi access points.

Analyst Opinion

• 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 Segmentation

• By Component Insights (Revenue, USD Bn, 2020 2032)
• • Solution
  • Services
• By Deployment Insights (Revenue, USD Bn, 2020 2032)
• • On-premises
  • Cloud
• By Enterprise Insights (Revenue, USD Bn, 2020 2032)
• • Large Enterprises
  • Small & Medium Enterprises
• By Vertical Insights (Revenue, USD Bn, 2020 2032)
• • IT & Telecom
  • BFSI
  • Government
  • Manufacturing
  • Transportation & Logistics
  • Healthcare
  • Retail
• Regional Insights (Revenue, USD Bn, 2020 2032)
• • 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.

Sources

Primary Research interviews

• IT Infrastructure Managers (Telecom & Enterprises)
• Network Operations Center (NOC) Heads
• CTOs of ISPs and Cloud Providers
• Network Engineers in large-scale data centers
• Heads of Managed Services in Telcos
• Enterprise Network Architects
• System Integrators & Network Solution Providers
• Regulatory Officials in Telecom Ministries

Databases

• IEEE Xplore
• ACM Digital Library
• Scopus
• JSTOR
• SpringerLink
• ScienceDirect
• ProQuest

Magazines

• Network World
• Wired
• InfoWorld
• Network Computing
• Light Reading
• SDxCentral
• Telecom Review

Journals

• International Journal of Network Management
• Computer Networks Journal
• Journal of Network and Systems Management
• International Journal of Communication Systems
• Journal of Communications and Networks
• IEEE Communications Magazine
• IEEE Network

Newspapers

• The Economic Times – Technology
• Business Standard – Telecom
• Mint – Technology
• The Hindu BusinessLine – Infotech
• Financial Times – Tech
• The Wall Street Journal – Tech
• The Guardian – Technology
• South China Morning Post – Tech

Associations

• IEEE Communications Society
• IETF (Internet Engineering Task Force)
• TM Forum
• ONF (Open Networking Foundation)
• MEF (Metro Ethernet Forum)
• ITU-T (International Telecommunication Union – Telecommunication Standardization Sector)
• GSMA

Proprietary Elements

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years

*Definition: Network Management System (NMS) is a set of software applications and tools designed to monitor, control, and manage the various components of a computer network. It enables network engineers and administrators to identify, configure, monitor, update, and troubleshoot network devices such as routers, switches, servers, and wireless access points within an enterprise network.