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A00174 | Pages: 285 | Charts: 86 | Tables: 178 |
Factors such as rise in digitalization and increase in adoption of advanced technologies such as IoT across the globe positively impact the growth of the market. For instance, in May 2023, IBM Corporation unveiled IBM Hybrid Cloud Mesh, a SaaS offering that is designed to enable enterprises to bring management to their hybrid multicloud infrastructure. In addition, the increase in adoption of network management solution across businesses to enhance operation & productivity is anticipated to propel the growth of the market in future.
Network management consists of applications, tools and processes used to provision, operate, maintain, administer, and secure network infrastructure. The overarching role of network management has ensured network resources are made available to users efficiently, effectively, and quickly. It leverages fault analysis and performance management to optimize network health.
Furthermore, an increase in investments by top players and a rise in demand for enhanced security solutions are expected to provide lucrative growth opportunities for market expansion during the forecast period. Moreover, the increase in adoption of emerging technologies such as 5G & edge computing and growth in demand for SD-WAN technology are anticipated to provide lucrative growth opportunities for the market in the upcoming years. However, network infrastructure complexity, security threats and costs budget are anticipated to hamper the network management market growth.
The network management market is segmented into component, deployment mode, network type, organization size, industry vertical, and region. On the basis of component, it is categorized into hardware, software and services. On the basis of network type, the market is divided into LAN, WAN and MAN. On the basis of deployment mode, it is bifurcated into on-premise and cloud. On the basis of organization size, the market is bifurcated into large enterprises, and small & medium-sized enterprises. On the basis of industry vertical, the market is classified into manufacturing, BFSI, retail, healthcare, IT & telecom and others. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
[ORGANIZATIONSIZEGRAPH]
On the basis of organization size, the global network management market share was dominated by the large enterprises segment in 2022 and is expected to maintain its dominance in the upcoming years, owing to demand for network management solution in enterprises. However, the SMEs segment is expected to witness the highest growth in the upcoming years. The adoption of advanced and cost-effective technologies such as 5G and IoT is expected to optimize the business capabilities of small & medium-sized enterprises.
[REGIONGRAPH]
Based on the region, North America dominated the market share in 2022 for the market. The increase in investment in advanced technologies such as SD-WAN and network management solution to improve businesses and the customer experience are anticipated to propel the growth of the market in this region. However, Asia-Pacific is expected to exhibit the highest growth rate during the forecast period. This is attributed to the increase in penetration of digitalization and higher adoption of IoT based devices. For instance, in October 2022, Nokia launched the cross-portfolio line up of Fixed Network solutions. The SaaS delivery model reduces IT dependencies, and with a usage-based subscription can deliver up to 25% lower cost of ownership.
Organizations have embraced hybrid cloud migration as a strategic initiative to achieve a balance between security, flexibility, and scalability. Better visibility and control over the distributed network infrastructure has already resulted in the adoption of new technologies such as SD-WAN and network function virtualization (NFV). This migration has brought new skills to the networking table such as cloud infrastructure management, network automation, and orchestration. According to 2022 Global Hybrid Cloud Trends Report of Cisco, 82% of IT leaders have adopted the hybrid cloud, as hybrid clouds stay as long as the markets demand scalability, resilience, cost optimization, security, and streamlined IT operations.
Furthermore, many players have invested and exploring technologies through the partnership, product launch and acquisition to strengthen the market footprint. For instance, in February 2021, Italian software company Tanaza has partnered with Intelbras, the Brazilian manufacturer of telecoms and security products, to launch a cloud-managed networking platform for the Latam market. The platform allows remote configuration, monitoring, and troubleshooting in real-time of Intelbras-Tanaza powered devices deployed in multiple locations, from a single dashboard.
Digital experience monitoring is another essential aspect of network management, as it provides greater visibility and control over both managed and unmanaged networks. The need for experience-driven network observability and management solutions is critical as businesses increasingly depend on digital services. DEM provides visibility into every communication path and degradation point, empowering teams to identify and resolve issues that could potentially impact the user experience delivery chain. This growth in need for user experience measurement and monitoring is expected to drive the adoption of DEM.
The network management market exhibits varied dynamics across regions, influenced by distinct economic and technological factors.
North America is a dominant market, characterized by high IT investment and advanced network infrastructure. The U.S. and Canada lead in adopting sophisticated network management solutions, driven by the need to support large-scale, complex networks and maintain high levels of operational efficiency such factors drive the market.
In Europe, the market benefits from significant investments in IT infrastructure and stringent data protection regulations like GDPR, which drive demand for robust network management tools. Western Europe, particularly, shows strong growth in sectors such as finance and telecommunications, where network reliability and compliance are critical.
The Asia-Pacific region is experiencing rapid growth due to accelerated urbanization and industrialization. Countries like China, India, and Japan are increasingly adopting advanced network management solutions to handle the rising complexity of their networks and address cybersecurity concerns.
Latin America is witnessing steady growth driven by the digital transformation of businesses and the increasing complexity of network environments. The expanding IT infrastructure across the region supports this upward trend. In the Middle East & Africa, investments in network management are on the rise, driven by expanding IT infrastructure and smart city initiatives. The market is growing as these regions enhance their technological capabilities and infrastructure development.
The market players operating in the market are Cisco Systems, Inc., IBM Corporation, Microsoft Corporation, juniper Networks, Inc., SolarWinds Corporation, Broadcom Inc., Huawei Technologies Co., Ltd., Hewlett Packard Enterprise, BMC Software, Inc. and Nokia Corporation. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the network management market globally.
October 2023, Huawei Technologies launched its latest Intelligent Cloud-Network products and solutions. The solution offers unmatched computing power and super-connectivity for AI-driven productivity in the intelligent era.
In July 2023, Juniper Networks, Inc., a leader in secure, AI-driven networks, launched the new EX4100 series of enterprise-grade wired access switches, which leverage a modern microservices cloud and Mist AI to deliver outstanding performance, ease, flexibility and security for all enterprise access layer switching environments, including campus fabric architectures.
In June 2022, Cisco has announced two new products that mark a shift in its approach to network management that will shape the company's portfolio for the coming years.
In May 2023, NTT Ltd., a leading IT infrastructure and services company partnered with Cisco, a global leader in technology, to develop and deploy joint solutions that empower organizations to improve operational efficiencies and advance sustainability goals.
Key Market Segments
Key Market Players