NETWORK MANAGEMENT SYSTEM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)
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.
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.
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.
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.
Get actionable strategies to beat competition: Request sample copy
Top Strategies Followed by Network Management System Market Players
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.
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.
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: |
|
||
| Segments covered: |
|
||
| 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: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
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.
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
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.
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Credibility and Certifications
860519526
9001:2015
27001:2022
Need a Custom Report?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports
Customize NowSelect a License Type
Credibility and Certifications
860519526
9001:2015
27001:2022
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
U.S.: 
U.K. : 
India : 
