Market Overview
The global LAN-based services market will record a 16.19% CAGR in the forecast period 2023-2029.
Market Drivers
- Due to the growth of cloud computing and the need for greater flexibility and capacity, the need for LAN as a service has increased among small and medium enterprises (SMBs).
- The growth of virtualization helps organizations save on hardware costs, making LAN as a Service the better option.
- The rapid growth of mobile devices and BYOD policies has put more pressure on business networks, increasing the need for LAN-as-a-service solutions that can quickly adapt to changing needs.
- Increasing concerns about data security have led many organizations to seek LAN management services that protect against cyber threats and more.
Market Restraints
While NaaS has great benefits, certain issues such as reliability issues may hinder market growth during the forecast period. The process of hiring an external network infrastructure provider to maintain business critical infrastructure has confidence that the business service provider can support the relationship with them. If the products cannot control the competition in the market, the businesses connected to them will have to change the main process or become incapable of doing business.
Market Opportunities
Networking as a Service (NaaS) provides companies with greater flexibility and can improve the performance of their network infrastructure. With pay-as-you-go, companies can better value and pay for the network services they need. Network as a service (NaaS) can also help companies that need more flexibility in configuration without having to rebuild the network or renew the contract from scratch.
NaaS provides solutions for a flat fee, typically including hardware, software, orchestration, and management. Customize the program to meet the customer’s unique business needs by offering access to the business network.
This allows business customers to balance the pits of financial and operational excellence with continued technological innovation.
Market Size and Segmentation
- By Type:
- Managed LANaaS
- Wi-Fi Only
- Management Only
Managed LANaaS is a cloud-based platform that offers businesses the benefits of private and public cloud, allowing them to reduce capital expenditures while improving performance. It also helps organizations lower their total cost of ownership by providing affordable and flexible access to network services.
Wi-Fi Only is a wireless networking technology. Provides wireless internet connection for one device or small group. The term “wireless only” means that the network does not rely on connections to other nodes; therefore it is also called Wireless Local Area Network (WLAN).
They are used as an alternative to wired Ethernet in homes and small businesses.
Management Only is a type of network management where the administrator manages the network but does not allow users to manage the network. This type of management is often used in small organizations or organizations where users are not seen as technology savvy.
- By Application:
- BFSI
- Education
- Healthcare
- Hospitality
- Telecom
Banking, Financial Services and Insurance (BFSI) sector had a share of more than 30.0%.
BFSI business, data center management, network management, security monitoring, etc. It is one of the primary cloud services as it helps reduce costs and increase efficiency through business operations. In addition, the help of LANaaS service providers’ expertise in efficient operation in large commercial enterprises while providing high-speed connections to remote offices or on-site offices has allowed businesses to reduce IT expenditures, thereby accelerating business growth across the region.
Education system is expected to witness a significant YBBO during the forecast period due to the increasing digital transformation to provide education institutions with modern education programs equipped with technology. Routine includes smart classroom environment.
- By Region:
- North America
- United States
- Mexico
- Canada
- South America
- Brazil
- Venezuela
- Argentina
- Ecuador
- Peru
- Colombia
- Europe
- Turkey
- Spain
- Turkey
- Netherlands
- Denmark
- Belgium
- Switzerland
- Germany
- Russia
- UK
- Italy
- France
- Asia-Pacific
- Taiwan
- Hong Kong
- Singapore
- Vietnam
- China
- Malaysia
- Japan
- Philippines
- Korea
- Thailand
- India
- Indonesia
- Australia
- The Middle East and Africa
- South Africa
- Saudi Arabia
- UAE
- Israel
- Egypt
Asia Pacific is expected to be the region’s largest market during the forecast period. This growth can be attributed to the number of service providers in the region along with the increasing demand for affordable and flexible services.
Additionally, the increasing adoption of cloud technology by businesses in APAC has increased the demand for LANaaS services in the region. The growth of smartphones and tablets in APAC also leads to increased data usage, increasing the need for effective networking solutions such as managed LANaaS solutions.
COVID-19 Analysis
Since the outbreak of COVID-19, the demand for cloud as a solution has increased drastically due to remote access. The type of work received by the company; but retail, manufacturing, BFSI etc. Various industries, such as, saw a decline in revenue in 2020. Companies are increasing their investment in cloud-based analytics and authentication, edge computing and artificial intelligence as remote working models. Connected devices are expected to drive the NaaS market.
Key Competitors
Extreme Networks (United States), Juniper Networks (United States), Cisco (United States), Hewlett Packard Enterprise, Rohde & Schwarz (Germany), Lanner Electronics (Taiwan), Martello Technologies (Canada), Draytek Technologies (Taiwan), VMware (United States), Nokia Networks (Europe)