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The network management system (NMS) market size is estimated to grow at a CAGR of 9.68% between 2022 and 2027. The market size is forecast to increase by USD 5,454.03 million. The growth of the market depends on several factors, including the increasing demand for efficient network management, the rise of cloud computing, and collaboration and partnership among vendors.
This network management system (NMS) market report extensively covers market segmentation by deployment (on-premises and cloud), end-user (large enterprises and SMEs), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing demand for efficient network management is notably driving the market growth, although factors such as the rising complexity of modern networks will challenge the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving growth in the network management system market is the increasing demand for efficient network management. Organizations are increasing their dependence on their networks for various operations, such as collecting data from connected network devices like switches, routers, access points, and client devices. Thus, the need for efficient network management has become very critical. NMS allows organizations effectively monitor and manage their networks in real-time and address issues promptly and proactively. With organizations moving their operations to the cloud, the need for cloud-based NMS has become essential.
Technological advances have made businesses more reliant on online services. The increased number of connected devices and the growing complexity of networks have compelled organizations to invest in robust network management solutions to ensure that their systems are secure, reliable, and high performing. NMS involves monitoring, maintaining, and optimizing computer networks to ensure they operate at peak performance levels with minimal downtime or interruptions. As a result of these factors, the demand for NMS is increasing among end-users. This is expected to drive the growth of the global network management system market during the forecast period.
The growing adoption of cloud-based NMS is the key trend expected to have a positive impact during the forecast period. Cloud-based NMS solutions offer several advantages over traditional on-premise solutions. Cloud-based NMS is cost-effective, provides greater stability, and is easy to deploy. These solutions ensure that the services are accessible and reliable while minimizing the risk of security breaches or data loss. Also, cloud-based NMS allows organizations to easily scale up or down depending on their needs without worrying about hardware limitations.
As more organizations are moving their IT infrastructure to the cloud, it makes more sense to move their NMS software to reduce the costs and complexity of managing on-premises hardware and software. This becomes beneficial for organizations with rapidly changing network environments. Additionally, cloud-based NMS allows users to access the system from anywhere with an internet connection, which can be especially useful for organizations with distributed workforces. Many such benefits are increasing the adoption of cloud-based NMS among end-users. This trend is expected to positively influence the growth of the global network management system market during the forecast period.
The rising complexity of modern networks will be a major challenge for the network management system market during the forecast period. Modern networks generate significantly large data, which includes network traffic, device configurations, and performance metrics. With networks growing larger, more diverse, and more distributed, it has become very difficult to manage and monitor. This has created the need for more advanced NMS solutions to provide greater network visibility and control. NMS must be able to process and analyze this data to identify issues and ensure optimal network performance.
The rise in the adoption of IoT has increased the number of devices and endpoints that need to be managed on the network. These devices have different configurations, protocols, and security requirements, which makes network management more complex. This creates a constantly changing network topology that requires continuous monitoring and management. Thus, managing the network infrastructure becomes more challenging. Thus, the increasing complexity of modern networks will restrict the growth of the network management system market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Network Management System (NMS) Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BMC Software Inc.: The company offers products such as BMC Helix Service and Operations Management, TrueSight IT Operations and Automation, Mainframe, and Control-M Workflow Orchestration. The company offers network management systems such as BMC AMI Ops for Networks.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the on-premises segment will be significant during the forecast period. Despite the decline in the demand for on-premise NMS, some companies still prefer to manage their networks on-premises due to various reasons such as security concerns, compliance requirements, and control over their network. On-premise NMS requires significant initial investments and skilled IT personnel to manage and maintain the system, which can be challenging for some companies.
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The on-premises segment was valued at USD 4,348.65 million in 2017 and continued to grow until 2021. Despite various financial challenges, industries and companies still prefer on-premises solutions. Government agencies, financial institutions, and healthcare organizations adopt on-premises network management systems owing to regulatory and compliance requirements. All the above-mentioned factors will boost segment growth during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America holds a major share of the network management system market due to the widespread deployment of management systems among organizations. The increasing adoption of cloud computing and the growing number of IoT devices have resulted in a significant rise in the volume of network traffic. This has created the need for advanced network management system solutions to ensure network performance, availability, and security.
North America has a well-established telecommunications infrastructure. The region is home to some of the largest technology companies in the world, including Cisco Systems Inc and International Business Machines Corp, which are major players in the network management system market. Organizations in the region invest heavily in digital technologies to improve business operations and deliver better customer experiences. Such factors positively impact the growth of the regional network management system market in North America.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 in 2020 resulted in a slowdown in major industrial processes and discrete industries, such as IT and telecom. It led to a decline in the growth of the regional market. However, with the resumption of business activities in prominent countries in the region, the demand for NMS increased in January 2021.
The network management system (NMS) market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global network management system (NMS) market as a part of the global communications equipment market within the global information technology sector. The parent global communications equipment market covers manufacturers of enterprise networking products, including LANs, WANs, routers, telephones, switchboards, and exchanges. Technavio also includes communications infrastructure or telecom equipment market within the scope of the communications equipment market. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Network Management System (NMS) Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.68% |
Market growth 2023-2027 |
USD 5,454.03 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.99 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading vendors, market positioning of vendors, competitive strategies, and industry risks |
Key companies profiled |
BMC Software Inc., Broadcom Inc., Cisco Systems Inc., Colasoft, Dell Technologies Inc., General Electric Co., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Juniper Networks Inc., Kentik Inc., LiveAction, NetScout Systems Inc., Nokia Corp., Oracle Corp., Riverbed Technology Inc., SolarWinds Corp., Telefonaktiebolaget LM Ericsson, Viavi Solutions Inc., and Zoho Corp. Pvt. Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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