Network Management System Global Market Report 2024

A Network Management System (NMS) encompasses a collection of applications enabling network engineers to handle the individual components of a network within a larger network management framework, carrying out various essential functions. This system provides comprehensive oversight of all network operations from a centralized computer. Organizations utilize a network management system to oversee every aspect of their office infrastructure, including device monitoring, management, and performance analysis. The system also offers intelligent notifications and alerts, contributing to time and cost savings while enhancing overall productivity.

The primary components in a network management system encompass platform, solution, and services. In the context of the network management systems market, a platform refers to a system that connects frontline organizational processes with backend information systems. Various types of organizations, including large enterprises and small to medium enterprises, can benefit from network management systems. Deployment modes for these systems include both on-premises and in the cloud. Network management systems find applications across various sectors such as banking, financial services, and insurance; information technology and telecom; healthcare; media and communication; retail; and other end-users.

The network management system market research report is one of a series of new reports from The Business Research Company that provides network management system market statistics, including network management system industry global market size, regional shares, competitors with a network management system market share, detailed network management system market segments, market trends and opportunities, and any further data you may need to thrive in the network management system industry. This network management system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The network management system market size has grown strongly in recent years. It will grow from $10.57 billion in 2023 to $11.38 billion in 2024 at a compound annual growth rate (CAGR) of 7.8%. Historical growth can be attributed to early network complexity, the expansion of the internet, the transition to IP-based networks, a growing focus on security, and the acceleration of remote work trends.

The network management system market size is expected to see strong growth in the next few years. It will grow to $16.52 billion in 2028 at a compound annual growth rate (CAGR) of 9.8%. Anticipated growth in the forecast period is driven by the implementation of 5G, the proliferation of IoT, a heightened emphasis on automation, and the integration of cybersecurity measures. Major trends expected in this period include the rise of intent-based networking (IBN), a shift towards cloud-based network management, the integration of artificial intelligence (AI) and machine learning (ML), as well as the adoption of software-defined networking (SDN) and network function virtualization (NFV).

The notable surge in the demand for cloud-based services is playing a significant role in propelling the growth of the network management system market. Cloud, in this context, refers to servers provided over the Internet, along with the associated software and databases running on those servers. This paradigm shift enables network operators to dynamically access new network management services through cloud solutions, eliminating the need for installing additional hardware. As highlighted in the 2022 State of the Cloud Report by Flexera, a US-based software company that conducted a survey of 753 technical professionals, there has been a substantial increase in overall cloud spend for small to midsized businesses (SMBs). The cloud spend for these businesses grew significantly to 53%, reaching an annual expenditure of $1.2 million in 2022, up from 38% in the previous year (2021). This data underscores the growing reliance on cloud-based services, and consequently, it serves as a driving force behind the expansion of the network management system market.

The anticipated growth in the number of Internet of Things (IoT)-linked devices is poised to significantly enhance the expansion of the network management system market. IoT-linked devices, characterized by their incorporation of sensors, actuators, and connectivity capabilities, enable the collection and exchange of data through the Internet of Things (IoT) infrastructure. Network management systems play a crucial role in handling the complexity and data volume associated with IoT, ensuring seamless connectivity, monitoring performance, and optimizing data processing for the effective integration of IoT devices. As reported in November 2022 by Ericsson, a telecommunications company based in Sweden, broadband IoT (4G/5G) connections, which facilitate the majority of cellular IoT devices, reached 1.3 billion in 2022. The report further projects a transition of approximately 60% of cellular IoT connections to broadband IoT connections by the end of 2028, with 4G constituting the majority. In light of these developments, the escalating number of IoT-linked devices is a key driver propelling the growth of the network management system market.

Technological advancement is a predominant trend gaining traction in the network management system market. Leading companies in the network management system sector are actively focused on introducing new technologies to stay at the forefront of the market. A noteworthy example is IBM, a US-based technology company, which launched the IBM Cloud Pack in July 2021. The IBM Cloud Pack is a hybrid cloud solution with AI-powered automation software designed for network management. This innovative offering facilitates zero-touch operations, contributing to cost reduction and the expedited delivery of innovative services. The software empowers network engineers to create and automate network lifecycle models, monitor live network performance in real time, and automate service design and testing. Leveraging artificial intelligence for IT operations (AIOps), advanced analytics, and machine learning, the IBM Cloud Pack assists communications service providers in identifying hidden patterns in networking data. This optimization of network operations occurs with minimal human intervention, highlighting the transformative impact of advanced technologies in the network management system market.

Prominent companies in the network management system market are actively developing innovative products, with a specific focus on offerings such as digital network management solutions. A digital network management solution encompasses a comprehensive set of software tools, technologies, and processes designed to monitor, optimize, and control the performance and security of computer networks. A notable example is Huawei Technologies Co. Ltd., a China-based technology company, which launched the Digital Managed Network Solution in February 2023. This solution empowers carriers to seize digital transformation opportunities and drive new growth by offering a range of innovative services. The Digital Managed Network Solution facilitates the transformation of carriers from Internet Service Providers (ISPs) to Managed Service Providers (MSPs). Notable features include Private Line + Managed LAN, enabling the transition from standard private lines to comprehensive cloud-managed network services. Private Line + Managed Security utilizes a cloud service architecture to provide cost-effective and customizable security solutions. The solution streamlines cloud and on-premises services, allowing for faster provisioning and a 36% reduction in Total Cost of Ownership (TCO). This exemplifies the industry's commitment to leveraging advanced digital solutions for enhanced network management capabilities and improved customer outcomes.

In April 2021, IBM, a technology company based in the United States, successfully acquired Turbonomic for an undisclosed sum. Through this strategic acquisition, IBM gains access to AI-powered automation capabilities that offer assurance for maintaining target application response times, even under peak demand scenarios. Turbonomic, a U.S.-based network management company, specializes in providing tools for efficiently managing application performance, particularly in the context of resource management.

Major companies operating in the network management system market report are Deutsche Telekom AG, Huawei Technologies Co. Ltd., Hewlett Packard Enterprise Development LP, International Business Machines Corporation (IBM), Cisco Systems Inc., Oracle Corporation, Broadcom Inc., Ericsson AB, Nokia Corporation, Telstra Corporation Limited, Telia Company AB, Juniper Networks Inc., Colt Technology Services Group Limited, Micro Focus International plc, BMC Software Inc., Alcatel-Lucent Enterprise S.A., Viavi Solutions Inc., Extreme Networks Inc., Zoho Corporation Pvt. Ltd., NETSCOUT Systems Inc., SolarWinds Inc., Progress Software Corporation, Kaseya VSA LLC, Paessler AG, LiveAction Inc., eG Innovations Inc., Colasoft Technology Co. Ltd., Cubro Network Visibility, Kentik Inc.

North America was the largest region in the network management system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the network management system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the network management system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The network management system (NMS) market includes revenues earned by entities by providing network performance and monitoring, cloud monitoring, virtual monitoring, SDN monitoring, network configuration, log and event management, IP address management, VOIP monitoring, consulting services, integration and deployment services, training, support, and maintenance services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Network Management System Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on network management system market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for network management system ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The network management system market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Component: Platform; Solutions; Services
• 2) By Organization: Large Enterprises; Small and Medium Enterprises
• 3) By Deployment: On-Premise; Cloud
• 4) By End-User: Banking, Financial Services, And Insurance; Information Technology And Telecom; Healthcare; Media And Communication; Retail; Other End-Users
• Companies Mentioned: Deutsche Telekom AG; Huawei Technologies Co. Ltd.; Hewlett Packard Enterprise Development LP; International Business Machines Corporation (IBM); Cisco Systems Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.