Network Management System (Nms) Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, UK, Germany, India - Size and Forecast 2024-2028

Network Management System Market Size 2024-2028

The network management system market size is forecast to increase by USD 6.35 billion at a CAGR of 10.22% between 2023 and 2028. Market growth is driven by several key factors, including the rising demand for efficient network management solutions, the expansion of cloud computing, and stronger collaboration and partnerships among industry players. As businesses strive to optimize their network infrastructure and improve operational efficiency, the need for advanced network management tools continues to grow. Additionally, the widespread adoption of cloud computing technologies increases the demand for robust solutions like software-defined networking (SDN), which can support cloud-based applications and services. Collaboration between companies further enables the development of comprehensive, integrated solutions that meet the evolving needs of modern businesses. By leveraging these trends, the market is set for continued growth, helping organizations effectively manage their networks in an increasingly digital and interconnected world.

What will be the size of the Network Management System Market During the Forecast Period?

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Network Management System Market Segmentation

The network management system market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Deployment Outlook 
  • On-premise
  • Cloud

• End-user Outlook
  • Large Enterprise
  • Small and Medium Enterprise

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Deployment

The market share growth by the on-premises segment will be significant during the forecast period. The market encompasses solutions that ensure network security, optimization, and efficient business operations for various organizations. While cloud-based solutions have gained traction, SMEs and enterprises continue to utilize on-premises NMS due to security concerns, compliance requirements, and control over their network infrastructure. On-premises NMS involves substantial upfront investments in hardware, embedded software, and skilled IT personnel for management and maintenance.

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The on-premises segment was valued at USD 4.61 billion in 2018. Further, key components include switches, routers, and software programs that monitor network behavior, such as SDN's data and control planes. NMS tools facilitate network performance optimization, ensuring optimal bandwidth and flow of information. They also provide network administrators with insights into network intensity and commercial network management. Branch networks and data centers employ NMS for SD WAN, networking, storage, and software-defined platforms. VMs and containers benefit from automation, while NMS tools monitor network performance, bandwidth, and optimal routes. Network security attacks necessitate robust monitoring, and NMS tools offer application, database, and network security features. Enhancing workforce productivity and streamlining business processes are additional benefits of implementing NMS.

By End-user

Network management solutions have become indispensable for large enterprises as their IT and telecom infrastructure grows in complexity. With the adoption of new technologies such as AI, ML, 5G networks, and the proliferation of connected devices, network management deployment has become essential for ensuring network reliability and security. Service providers, government organizations, healthcare institutions, retail businesses, transportation and logistics companies, and data centers all benefit from NMS. These systems enable real-time monitoring and analysis of network performance, including bandwidth utilization, traffic flows, and cybersecurity threats. NMS adoption rate is driven by the need to optimize managed IT infrastructure, improve network performance, and reduce costs. Online collaboration tools and cloud services adoption have also increased the demand for NMS. On-premises and cloud-based services are both popular options for network management. Transportation and logistics industries, in particular, require NMS to manage the vast amounts of data generated by their networks and ensure the smooth operation of their operations.

By Region

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APAC is estimated to contribute 36% to the growth of the global network management system market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The NMS market in North America is experiencing significant growth due to the increasing deployment of advanced network management solutions. Service providers in IT and telecom, government, healthcare, retail, transportation and logistics sectors are adopting NMS to manage the increasing network traffic caused by the proliferation of connected devices, data centers, and cloud-based services. The adoption rate of AI and ML technologies, 5G networks, and online collaboration tools in North America is driving the demand for NMS. Cloud services adoption and cybersecurity threats are also key factors fueling the market growth. Major players in the market include Cisco Systems Inc and International Business Machines Corp. On-premises NMS and transportation infrastructure are other areas of focus in the region.

Network Management System Market Dynamics

Cloud services adoption and online collaboration tools have also increased the demand for NMS in the transportation and logistics industries. The NMS market is witnessing a high adoption rate due to the need for efficient network management and cybersecurity protection. Data center components, such as storage and networking, require NMS for optimal performance and maintenance. Cybersecurity threats continue to pose a significant challenge, making NMS an indispensable tool for securing network infrastructure. In conclusion, the NMS market is thriving due to the increasing demand for network optimization, security, and efficiency across various industries. The integration of advanced technologies, such as AI, ML, and SDN, is driving the market's growth and transforming network management.

Key Market Driver

One of the key factors driving network management system market growth is the increasing demand for efficient network management. Network Management Systems (NMS) are essential for securing and optimizing business operations by monitoring and managing network infrastructure in real-time. SMEs and enterprises alike benefit from NMS solutions, which enable efficient management of switches, routers, and other network devices. With the rise of Software-Defined Networking (SDN) and cloud-based services, NMS tools have become increasingly important for managing network behavior in data centers and branch networks. SD WAN and other advanced networking technologies require NMS for optimal performance, ensuring the flow of information between VMs, containers, and network components.

Further, NMS software programs provide network administrators with automation capabilities, enabling them to maintain network intensity and respond to network security attacks. Performance monitoring, application monitoring, and database monitoring are critical functions of NMS, ensuring workforce productivity and IT network reliability. Network infrastructure, including storage and networking hardware, requires continuous optimization to maintain peak performance levels and minimize downtime. NMS tools play a vital role in managing network performance, bandwidth, and optimal routes, ensuring the efficient flow of information in commercial networks.

Significant Market Trends

The growing adoption of cloud-based NMS is the key network management system market trend expected to have a positive impact. NMS plays a crucial role in ensuring the security, optimization, and reliability of business operations for enterprises and SMEs. With the increasing adoption of cloud services, SDN, SD WAN, and software-defined platforms, NMS tools have become essential for managing and monitoring network infrastructure, including switches, routers, and data center components. These solutions enable network administrators to analyze network behavior, optimize network performance, and automate workflows.

Moreover, NMS tools provide real-time monitoring of network intensity, identifying potential issues before they impact network availability or workforce productivity. Additionally, they offer advanced features such as application monitoring, database monitoring, and network security attacks prevention. NMS solutions are particularly valuable in managing complex branch networks and data centers, ensuring optimal routes and flow of information between VMs, containers, and other network elements. Overall, NMS tools are essential for maintaining network security, optimizing network performance, and enhancing business processes.

Major Market Challenge

The rising complexity of modern networks will be a major challenge to network management system market growth. In today's complex business environment, managing and optimizing IT networks has become a significant challenge for enterprises and SMEs alike. With the proliferation of Internet of Things (IoT) devices and the increasing size and distribution of networks, network management systems (NMS) have become essential for ensuring network security, business operations, and optimal performance. NMS solutions process and analyze vast amounts of data from network traffic, device configurations, and performance metrics to identify issues and provide network administrators with real-time insights. Modern NMS tools employ software defined platforms, such as Software Defined Networking (SDN), to manage the control and data planes of switches and routers.

Additionally, SDN enables automation of network behavior, allowing for quick response to changing network conditions and improved network infrastructure efficiency. NMS solutions are also critical for managing branch networks, data centers, and Software Defined Wide Area Networks (SD WAN), ensuring optimal routes and bandwidth for the flow of information. NMS tools play a crucial role in network security, monitoring network performance, and ensuring workforce productivity. They provide application, database, and network security attacks monitoring, enabling businesses to mitigate potential threats and maintain network integrity. NMS solutions also integrate with cloud platforms, providing centralized management and monitoring of virtual machines (VMs) and containers. Overall, NMS tools are essential for managing the complexity of modern IT networks and ensuring business continuity.

Customer Landscape

The network management system market forecasting 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 network management system market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

 Market Customer Landscape

Who are the Major Market Players?

Companies 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 network management system market trends and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• 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.
• Zoho Corp. Pvt. Ltd.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The network management system market is a significant segment in the technology industry, focusing on managing and optimizing telecommunication and IT networks. NMS enables organizations to monitor, control, and maintain their network infrastructure, ensuring optimal performance and availability. Key components of NMS include fault management, configuration management, accounting management, performance management, and security management. These features help network administrators identify and resolve issues, optimize network resources, and secure the network against potential threats. The NMS market is driven by the increasing adoption of advanced technologies such as IoT, cloud computing, and AI. These technologies require robust and efficient network management systems to ensure seamless connectivity and optimal performance.

Additionally, the growing demand for high-speed internet and the need for businesses to improve network reliability and reduce downtime further fuel the market's growth. Network management systems are essential for organizations of all sizes, from small businesses to large enterprises. They help organizations streamline their network operations, reduce costs, and improve overall network performance. With the continuous evolution of technology and the increasing complexity of networks, the demand for advanced NMS solutions is expected to grow in the coming years.

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What are the Key Data Covered in this Network Management System Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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