The global Network Management System market is valued at USD 10,579.2 million in 2024. The industry was seen to have USD 9,600.0 million in 2023. The industry is projected to show a CAGR of 10.2% from 2024 to 2034. The business is set to surpass USD 27,942.7 million by the end of 2034.
In network management system (NMS) market, the main focus is for optimizing network operations through software and services. The demand for NMS is growing due to the growing complexity of IT infrastructures with the increasing adoption of cloud technologies, IoT devices and 5G networks.
Global Network Management System Market Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 9,600.0 million |
| Estimated Size, 2024 | USD 10,579.2 million |
| Projected Size, 2034 | USD 27,942.7 million |
The NMS plays a very crucial role in telecommunication sectors for managing network traffic, monitoring performance and ensuring reliable connectivity across large-scale networks. In healthcare sector the NMS help for ensuring the smooth operation of data-heavy applications, improving patient care through real-time monitoring and efficient system management. In BFSI sector it heavily depends on NMS for maintaining secure and seamless data transmission, reduce downtime and help to enhance security measures.
The rising need for centralized control and automation of network operations, ensuring network reliability and resilience. As the enterprises prioritize scalability, cloud-based NMS solutions are gaining traction, allowing real-time monitoring and management from remote locations. The large enterprises benefit each for advanced NMS tools that help to optimize resource allocation, enhance network security and help to reduce operational costs.
North America dominating in NMS adoption due to its advanced IT infrastructure and focus on digital transformation across different sectors such as IT & Telecom, healthcare and BFSI. South Asia & Pacific region is growing due to expansion of telecommunications networks and growing investments in smart infrastructure helps to propel the demand for robust NMS solutions.
As the industries hold Industry 4.0 and the rising demand for efficient NMS solutions for managing complex, interconnected systems is rising, ensuring optimal network performance and help for enhancing operational efficiency.
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The below table presents the expected CAGR for the global Network Management System market over several semi-annual periods spanning from 2024 to 2034. This assessment outlines changes in the Network Management System industry and identify revenue trends, offering key decision makers an understanding about market performance throughout the year.
H1 represents first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 9.6%, followed by a slightly higher growth rate of 10.5% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 9.6% (2023 to 2033) |
| H2 | 10.5% (2023 to 2033) |
| H1 | 9.8% (2024 to 2034) |
| H2 | 10.8% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 9.8% in the first half and remain higher at 10.8% in the second half. In the first half (H1) the market witnessed a increase of 20 BPS and in the second half (H2), the market witnessed an increase of 30 BPS.
Growing need for configuration management solutions to streamline network changes and updates
The configuration management helps organizations to streamline network changes, track updates and help to ensure consistency across the network. The rise of cloud-based environments and multi-vendor networks, businesses require tools that help to manage dynamic network configurations effectively. The solutions help to enable organizations to automate changes, reduce human error and help for minimizing downtime during upgrades.
The governments globally are focused on investing in smart infrastructure and digital transformation initiatives and this help for propelling the demand for configuration management tools. For modernizing federal IT systems such as network management upgrades the government of USA allocated USD 1.9 billion boosting the need for configuration management solutions for ensuring the smooth implementation of new technologies.
Shift toward AI-driven performance management solutions for proactive network monitoring
As the businesses are shifting towards AI-driven solutions for proactive monitoring. The traditional performance management methods react to issues after they occur and it will lead to downtime. AI-driven performance management solutions will help to predict and prevent potential network problems by analyzing real-time data, identifying anomalies and suggesting optimizations.
The shift is important in industries with critical network demands such as telecommunications and healthcare. The government are also recognizing the value of AI in network management. For AI research and development in IT infrastructure the European Union allocated USD 150 million for AI-based network management solutions for improving performance and security in public networks.
Increased focus on training, support and maintenance services for enhancing the usability of advanced NMS solutions
The services are very essential for ensuring that the businesses are fully utilize the capabilities of modern NMS platforms. The growing adoption of cloud-based and AI-driven NMS tools, organizations will face skill gaps that require extensive training programs to bridge. The ongoing support and maintenance services are very critical for minimizing downtime and ensuring system reliability.
The governments are actively promoting skill development initiatives in the IT sector for enhancing network management capabilities. In 2023, the government of India allocated USD 30 million for the program to upskill IT professionals in NMS technologies focusing on cloud-based and AI-driven platforms for improving the country's network management infrastructure.
Concerns about data privacy and security in NMS solutions hinder wider cloud adoption
The concern regarding data privacy and security in network management system solutions are substantial barriers to wider cloud adoption. As the organizations move their network management to the cloud, they worry about how their sensitive data will be protected. Cloud-based NMS solutions help to store critical information such as network configurations, performance data and user activities. If not secured properly the data will be vulnerable to cyberattacks or unauthorized access.
The businesses fear that transferring their data to the cloud exposes them to risks that will lead to data breaches, loss of sensitive information and potential regulatory fines. The anxiety is sensitive by frequent news reports about high-profile data breaches affecting organizations of all sizes.
Principal Consultant
The global network management system (NMS) market grew steadily due to the adoption of cloud technologies, IoT and 5G networks. The market poised at a CAGR of 10.2% with the increasing demand for NMS software and services as organizations help to optimize IT infrastructures.
The NMS market was valued in 2023 is 9,600.0 Million and this support is due to various end use industry such as IT & telecom, BFSI, healthcare and manufacturing sectors due to the growing complexity of networks and the need for real-time management.
The network management system (NMS) market is expected to grow at a CAGR of 10.2% and valued at 27,942.7 Million by the end of 2034. The growth is due to cloud solutions, 5G deployment and AI-powered network management. The different sectors such as healthcare, telecommunications and smart cities is fueling the demand for NMS solutions as businesses hold Industry 4.0 and IoT and this will help to improve network reliability, performance and security.
Tier 1 vendors are the leading giants with the largest market share, extensive global presence and comprehensive product offerings. Tier 1 giants such as Cisco Systems, IBM Corporation, Huawei and Nokia are dominating the market and cater around 40% to 45% of the market. Tier 1 vendors benefit from their long-established customer base, strong financial capabilities and a wide range of NMS solutions that help to cater various industries such as telecom, IT and BFSI.
Tier 2 vendors contains mid-sized players with a notable market presence but slightly smaller scale and reach compared to Tier 1 vendors. Vendors such as SolarWinds, Juniper Networks and BMC Software fall into this category. Tier 2 vendors cater around 15% to 20% of the market. Tier 2 vendors offers specialized solutions and services which help for targeting specific verticals such as healthcare or manufacturing.
Tier 3 vendors contains smaller companies and emerging players that have strong regional focus or cater to niche markets. Tier 3 vendors such as Manage Engine, NetBrain Technologies and Paessler AG. Tier 3 vendors cater around 30% to 35% of the market. Tier 3 vendors are small and their share is also smaller they are focused on gaining traction by offering innovative and cost-effective NMS solutions for small and mid-sized enterprises.
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The section highlights the CAGRs of countries experiencing growth in the Network Management System market, along with the latest advancements contributing to overall market development. Based on current estimates, USA, China and India are expected to see steady growth during the forecast period.
| Countries | CAGR from 2024 to 2034 |
|---|---|
| China | 12.1% |
| India | 11.0% |
| Germany | 8.5% |
| Japan | 9.8% |
| United States | 7.9% |
The rising complexity of networks in BFSI and IT & Telecom sectors is propelling the demand for advanced network management system solutions. As the industries are focused on expanding their digital operations, as they encounter challenges such as managing large volumes of data, ensuring cybersecurity and help for maintaining consistent services.
The NMS solutions help to streamline network operations, improve performance monitoring and help to enhance security. The USA Department of Commerce are focused on investment for network infrastructure which are projected to reach USD 35 billion by the end of 2025 and it is showing the government dedication to fuel the digital economy.
The investment will help to enhance connectivity and resilience in the BFSI and IT & Telecom sectors. The shift toward cloud-based NMS solutions indicates that the giants are seeking for more scalable and efficient options. In 2023, the USA NMS market is expected to surpass 2,519.8 Million with a growth of 7.9%.
The merging opportunities for network management system providers in China healthcare sector are becoming clear as the government are focused on digital transformation. The growing need for effective data management and smooth communication among healthcare providers ae creating strong demand for advanced NMS solutions.
To offer NMS providers a chance to enhance their data sharing, improve patient care and help to streamline operations The government of China are planning to invest around USD 50 billion in healthcare IT infrastructure by end of 2025. The Policies are promoting the integration of healthcare services through various digital platforms are projected to boost NMS adoption in hospitals and clinics.
For expansion of the network management system and also helps to improve the health services the government is focused on initiative such as the Healthy China 2030. The healthcare NMS market is estimated around 964.9 Million wand poised at a CAGR of 12.1% from 2024 to 2034. The growth will reflect the increasing recognition of the importance of effective network management in areas such as telemedicine and electronic health records.
The manufacturing industry in India is focused on adopting network management systems to enhance automation and efficiency. The manufacturer is using NMS solutions for monitoring complex networks, track machinery and help to manage resources effectively.
The Indian government are focused on investment around USD 20 billion in digital infrastructure for manufacturing by end of 2025 and this will support the smart manufacturing and Industry 4.0 initiatives. The investment is aligning with the Make in India campaign, promoting investment in manufacturing. By 2024, the NMS market in this sector is projected to reach around 561.6 Million and it grows at CAGR of 11.0%.
The section provides detailed insights into key segments of the Network Management System market. The deployment category includes cloud based and on premise. Enterprise size category such as small & mid-sized enterprise and large enterprise. Among these, cloud based is growing quickly. The cloud-based hold largest market shares in Network Management System.
| Fiber Mode | Cloud-Based |
|---|---|
| CAGR (2024 to 2034) | 11.8% |
The cloud based network management systems are propelling the market growth due to the demand for flexible, scalable solutions. The systems help to allow businesses to remotely monitor and help to optimize networks in real time, boosting efficiency. The sectors such as BFSI, healthcare and IT & Telecom are focused on adopting cloud-based NMS.
The government of USA are focused on investments USD 30 billion in cloud infrastructure by end of 2025 are supporting this shift. The cloud-based NMS market is expected to reach 4,453.8 Million and grows at a CAGR of 11.8%.
| Enterprise Size | Large Enterprise |
|---|---|
| Value Share | 57.4% |
Large enterprises are leading the network management systems market due to need for managing large and complex networks. It is focused on investing in NMS for reliability, scalability and security. The USA government is supporting digital infrastructure with USD 40 billion allocated for network upgrades by 2026.
The large enterprises are expected to dominate 57.4% of the NMS market and valued at 6,072.5 Million in 2024. The market grows at a CAGR of 13.6% from 2024 to 2034 due to increasing complexity of networks and the demand for real-time management tools.
The network management system market is highly competitive with the major giants such as Cisco, IBM and SolarWinds are dominating the space. Smaller vendors are gaining ground by focused on offering specialized and cloud-based solutions. Vendors are focusing on innovation, partnerships and more focused on expansion of service portfolios to stay ahead. Growing demand for automated and scalable solutions is propelling more competition in the market.
Industry Update
In terms of solution, the segment is divided into software and services.
In terms of deployment, the segment is segregated into cloud based and on premise.
In terms of enterprise size, the segment is segregated into Small & Mid-Sized Enterprise and Large Enterprise.
In terms of industry, the segment is segregated into BFSI, Healthcare, IT & Telecom, Retail, Media & Entertainment and Manufacturing.
A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East & Africa.
The Global Network Management System industry is projected to witness CAGR of 10.2% between 2024 and 2034.
The Global Network Management System industry stood at USD 10,579.2 million in 2024.
The Global Network Management System industry is anticipated to reach USD 27,942.7 million by 2034 end.
East Asia is set to record the highest CAGR of 11.5% in the assessment period.
The key players operating in the Global Network Management System industry are Cisco, SolarWinds, IBM Corporation, Hewlett Packard Enterprise (HPE), Broadcom Inc., Alestra and VAS Solutions.
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