Network as a Service (NaaS) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (WAN-as-a-service, LAN-as-a-service), By Service (Bandwidth on Demand (BoD), Wide Area Network (WAN), Virtual Private Network (VPN)), By End User (IT & Telecom, BFSI, Healthcare, Retail & E-Commerce, Others (Government, Education etc.)), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 24.81 Billion
CAGR (2026-2031)	25.73%
Fastest Growing Segment	Wide Area Network (WAN)
Largest Market	North America
Market Size (2031)	USD 98.01 Billion

Market Overview

The Global Network as a Service (NaaS) Market will grow from USD 24.81 Billion in 2025 to USD 98.01 Billion by 2031 at a 25.73% CAGR. Network as a Service (NaaS) creates a flexible delivery model where enterprises consume network infrastructure on a subscription basis rather than owning and maintaining physical hardware. This framework allows organizations to operate networks as an operational expense while dynamically scaling bandwidth to meet fluctuating demand. The primary drivers fueling this market include the urgent need for cost efficiency through reduced capital expenditures and the growing requirement for scalable connectivity to support hybrid workforce models and expansive cloud applications.

However, the integration of modern NaaS solutions with complex legacy infrastructure poses a substantial challenge that can delay widespread implementation. Establishing seamless communication between diverse network environments remains difficult for many established enterprises, though standardization efforts are progressing. According to the GSMA, in 2025, the Open Gateway initiative covered nearly 80 percent of the global mobile market share, reflecting a decisive industry shift toward standardized network application programming interfaces to overcome these connectivity barriers.

Key Market Drivers

Increasing migration of enterprise IT infrastructure to cloud environments is reshaping connectivity requirements and acting as a primary catalyst for NaaS adoption. As organizations distribute workloads across multi-cloud ecosystems, static legacy models become insufficient, necessitating the scalability that NaaS provides. The surge in data from digital applications demands robust, flexible infrastructure to ensure consistent performance. According to Nokia, November 2024, in the 'Global Network Traffic Report', enterprise and industrial network traffic is forecasted to grow between 8 and 21 times by 2033, reflecting the critical need for scalable solutions. Consequently, organizations are prioritizing modernization. According to Aryaka, in 2024, 84 percent of respondents are ramping up their investments in cloud networking and security services, highlighting the industry consensus on the urgency of agile infrastructure.

Convergence of network and security services via SASE architecture enables enterprises to unify fragmented perimeters into a cohesive cloud-native model. NaaS platforms integrate security directly into the network fabric, reducing the complexity of maintaining separate hardware appliances for connectivity and protection. This integration is vital for securing distributed workforces without compromising user experience or increasing operational overhead. According to Cisco, July 2024, in the '2024 Global Networking Trends Report', 54 percent of IT professionals anticipate having an AI-enabled Secure Access Service Edge (SASE) architecture in place within the next two years. This widespread anticipation underscores how integral security convergence has become to the value proposition of modern NaaS solutions.

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Key Market Challenges

The integration of modern Network as a Service (NaaS) solutions with complex legacy infrastructure poses a substantial challenge that creates a bottleneck for market expansion. Established enterprises often rely on multi-generational hardware and proprietary protocols that were not designed to interoperate with cloud-native, API-driven environments. This technical dichotomy forces organizations to maintain parallel network stacks, as they struggle to establish seamless communication between their existing on-premises assets and dynamic NaaS platforms. The result is a resource-intensive modernization process that erodes the cost-efficiency and agility benefits typically associated with the subscription-based model, leading many decision-makers to postpone migration.

This impediment is further compounded by a critical shortage of technical expertise required to bridge these distinct network environments. The specialized skills needed to re-architect legacy systems for modern connectivity are in short supply, which directly stalls implementation efforts. According to CompTIA, in 2024, employers actively sought to fill more than 180,000 job openings related to operational technology, a sector where the capability to integrate and secure legacy systems is a primary requirement. This significant workforce gap highlights the difficulty enterprises face in finding qualified professionals to manage the transition, thereby delaying the widespread adoption of NaaS solutions across industries.

Key Market Trends

The integration of Artificial Intelligence into NaaS platforms is fundamentally shifting network operations from reactive management to predictive automation. By leveraging machine learning algorithms, providers can now anticipate congestion, detect anomalies, and self-heal vulnerabilities before they impact end-user experience, thereby addressing the complexity of managing distributed cloud environments. This capability is becoming a critical requirement for enterprises seeking to minimize downtime and operational overhead without expanding their IT teams. According to Cisco, July 2024, in the '2024 Global Networking Trends Report', 60 percent of enterprises expect to have AI-enabled predictive automation in place across all domains within the next two years, highlighting the rapid transition toward intelligent, self-optimizing network infrastructures.

The emergence of Private 5G Network-as-a-Service models is providing industrial sectors with the ultra-low latency and high reliability required for mission-critical applications without the burden of managing physical infrastructure. These managed services allow organizations to deploy dedicated cellular networks as an operational expense, effectively democratizing access to Industry 4.0 capabilities such as autonomous logistics and remote machine control. This adoption is accelerating as companies move beyond pilot phases to full-scale implementations. According to Nokia, June 2024, in the '2024 Industrial Digitalization Report', 45 percent of early adopters are already scaling their private wireless deployments to support more use cases than initially planned, underscoring the growing reliance on flexible, service-based private connectivity.

Segmental Insights

Based on current industry analysis, the Wide Area Network (WAN) segment is recognized as the fastest-growing category within the Global Network as a Service (NaaS) market. This rapid expansion is primarily driven by the strategic shift toward cloud-based applications and the necessity for seamless, secure connectivity across geographically dispersed branch offices and remote workforces. Enterprises are increasingly replacing rigid, hardware-centric infrastructure with agile, software-defined solutions to optimize performance and reduce operational costs. Consequently, the ability to scale bandwidth dynamically through subscription-based models is fueling the widespread adoption of WAN services, cementing its leadership in market growth.

Regional Insights

North America maintains a dominant position in the Global Network as a Service market, primarily driven by the widespread adoption of cloud computing and digital transformation strategies across the United States and Canada. The region benefits from a mature telecommunications infrastructure, including significant investments in 5G and fiber networks, which establishes a stable foundation for virtualized service delivery. Furthermore, the concentration of established technology providers and major cloud vendors in this area accelerates innovation and service accessibility. This robust ecosystem encourages enterprises to replace traditional hardware investments with flexible, subscription-based network management models.

Recent Developments

• In January 2025, Console Connect, a provider of software-defined interconnection, announced a strategic collaboration with Connectbase, a global ecosystem for buying and selling connectivity. This partnership was established to expand the company's presence across the global connectivity marketplace while enhancing the partner's ability to provide high-performance network-as-a-service (NaaS) solutions. The collaboration allowed the integration of a comprehensive suite of connectivity services, including Layer 2, Layer 3, and IP transit, into the Connectbase ecosystem. This initiative aimed to simplify solutions for enterprises navigating complex cloud environments and offered seamless, on-demand access to over 1,000 data center locations worldwide.
• In April 2024, Megaport Limited announced that it became the first independent software vendor to list an AWS Direct Connect network service offering in the AWS Marketplace. This development allowed Amazon Web Services customers to streamline the purchase and management of private connectivity directly within their marketplace accounts. The Network as a Service (NaaS) platform was designed to empower users to optimize cloud connectivity, reduce latency, and customize network resources efficiently. The company highlighted that this listing would offer a seamless and flexible network experience, further solidifying its commitment to driving innovation in the cloud networking landscape for global enterprises.
• In March 2024, Aryaka Networks Inc. unveiled Aryaka Unified SASE as a Service, a secure networking solution engineered to deliver agility, simplicity, and performance without trade-offs. This new offering combined the company's unified single-pass architecture, global private network backbone, and security capabilities into a single platform delivered as a service. The launch aimed to modernize legacy multiprotocol label switching networks and optimize performance for multi-cloud applications. By integrating security and networking in a converged service, the company sought to assist enterprises in transforming their network security environments and ensuring secure remote access for distributed workforces globally.
• In February 2024, Verizon Business launched a new service titled Network as a Service (NaaS) Cloud Management, designed to enable enterprises to control application components and network architecture across multiple cloud environments. This solution provided a unified online portal for managing public, private, and hybrid cloud connections, addressing the complexities faced by Chief Information Officers in connecting workloads across disparate environments. The service offered enhanced visibility into network performance, traffic conditions, and application health, allowing businesses to establish secure interconnections between cloud service providers and end users. It was introduced to simplify multi-cloud management as part of the company's flexible service-model fabric.

Key Market Players

• Cisco Systems Inc.
• Verizon Communications Inc.
• International Business Machines Corporation
• NEC Corporation
• Oracle Corporation
• AT&T Inc.
• Juniper Networks Inc.
• DXC Technology Company
• VMware Inc.
• Ciena Corporation.

By Type	By Service	By End User	By Region
WAN-as-a-service LAN-as-a-service	Bandwidth on Demand (BoD) Wide Area Network (WAN) Virtual Private Network (VPN)	IT & Telecom BFSI Healthcare Retail & E-Commerce Others (Government, Education etc.)	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Network as a Service (NaaS) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Network as a Service (NaaS) Market, By Type:

• WAN-as-a-service
• LAN-as-a-service

• Network as a Service (NaaS) Market, By Service:

• Bandwidth on Demand (BoD)
• Wide Area Network (WAN)
• Virtual Private Network (VPN)

• Network as a Service (NaaS) Market, By End User:

• IT & Telecom
• BFSI
• Healthcare
• Retail & E-Commerce
• Others (Government, Education etc.)

• Network as a Service (NaaS) Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE