Network as a Service Market By Type (LANaaS, WANaaS, VPNaaS, Network Security, Bandwidth on Demand); By Application (Cloud Connectivity, VPN, Unified Communications, Network Optimization); By End User (IT & Telecom, BFSI, Healthcare, Retail, Manufacturing, Education, Government); By Geography, Segment Revenue Estimation, Forecast, 2024–2030.

1. Introduction and Strategic Context

The Global Network As A Service (Naas) Market will witness a robust CAGR of 27.5% , valued at $18.2 billion in 2024 , and is expected to appreciably expand and reach $78.5 billion by 2030 , confirms Strategic Market Research.

 

NaaS is revolutionizing the way enterprises manage and consume networking infrastructure. Instead of procuring, maintaining, and upgrading complex hardware environments, businesses are increasingly turning to service-based models that offer scalability, cost-efficiency, and agility. Network as a Service delivers virtualized network functions such as WAN, VPN, load balancing, and firewalls via the cloud, abstracting complexity while enabling centralized control and rapid provisioning.

 

Between 2024 and 2030, the market is strategically poised to accelerate due to three converging forces:

• Cloud-Native Transformation : The shift to cloud-first and hybrid cloud strategies is pressuring traditional network architectures, fueling demand for on-demand, scalable solutions that seamlessly integrate with public, private, and edge clouds.

• Edge Computing and IoT Proliferation : As enterprises deploy edge nodes and IoT sensors across industrial, retail, and smart city settings, they require dynamic connectivity frameworks. NaaS empowers them to respond in real time with lower latency and optimized bandwidth.

• Operational Efficiency and CapEx Avoidance : NaaS allows businesses to eliminate upfront capital expenditures for networking hardware and focus on Opex -based subscriptions, which are attractive during global economic uncertainties.

Furthermore, regulatory environments are increasingly favoring secure, modular, and vendor-agnostic networking approaches. Governments across North America and Europe are actively supporting digital infrastructure upgrades through grants and funding, further catalyzing NaaS adoption.

 

Key Stakeholders in the NaaS ecosystem include:

• Cloud Service Providers (CSPs) such as AWS, Microsoft Azure, and Google Cloud

• Network OEMs offering virtualized infrastructure platforms

• Telecom Operators transitioning into network service providers

• Managed Service Providers (MSPs) delivering turnkey solutions to SMEs

• Enterprises across BFSI, healthcare, manufacturing, and retail verticals

• Investors and VCs funding NaaS startups and platforms

Strategically, the rise of distributed workforces and digital-first operations has made secure, scalable network consumption models more mission-critical than ever before.

 

2. Market Segmentation and Forecast Scope

The Network as a Service ( NaaS ) market is comprehensively segmented to reflect its multi-layered structure and diverse adoption patterns. Strategic Market Research categorizes the market across four key dimensions : By Type , By Application , By End User , and By Region . Each dimension captures a critical lens through which vendors, enterprises, and policy stakeholders evaluate and implement NaaS strategies.

By Type

• LAN as a Service ( LANaaS )

• WAN as a Service ( WANaaS )

• Network Security as a Service

• Bandwidth on Demand

• Virtual Private Network (VPN) as a Service

• Others (Load balancing, Firewall, SD-WAN, etc.)

Among these, WAN as a Service accounted for the largest share in 2024 , estimated at over 34% , driven by rapid SD-WAN adoption across distributed enterprise environments. WANaaS is emerging as a default solution for branch connectivity, especially as businesses decommission MPLS in favor of agile, cloud-integrated networks.

By Application

• Cloud Connectivity

• Virtual Private Networking (VPN)

• Unified Communications

• Network Optimization

• Others (Content Delivery, Monitoring)

Cloud Connectivity is forecasted to be the fastest-growing application segment between 2024 and 2030. As organizations extend workloads across public, private, and hybrid clouds, the demand for seamless, programmable, and secure connectivity is surging.

By End User

• IT and Telecom

• Banking, Financial Services, and Insurance (BFSI)

• Healthcare

• Retail and E-commerce

• Manufacturing

• Education

• Government and Public Sector

• Others

The IT and Telecom segment dominates current adoption, with over 29% share in 2024 , fueled by hyperscalers and telecom operators adopting NaaS to drive operational agility. Meanwhile, the Healthcare segment is witnessing strong growth post-COVID, as hospitals deploy NaaS to interlink facilities and enable remote diagnostics securely.

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa (MEA)

North America leads the global NaaS market due to robust cloud infrastructure, early technology adoption, and a high concentration of enterprises investing in zero-trust network architectures. However, Asia Pacific is projected to exhibit the fastest CAGR , driven by digitization initiatives in India, China, and Southeast Asia, where SMEs are leapfrogging legacy networks.

The market’s segmentation reveals significant white spaces, particularly in emerging economies where fiber penetration is increasing and 5G rollouts are accelerating.

 

3. Market Trends and Innovation Landscape

The Network as a Service ( NaaS ) market is experiencing a wave of transformational innovations that are fundamentally reshaping how network infrastructure is consumed, managed, and scaled. From AI-based orchestration to intent-based networking, the innovation landscape is being defined by the convergence of cloud, edge, and software-defined technologies.

1. Rise of AI-Driven Network Automation

One of the most powerful trends in NaaS is the integration of Artificial Intelligence (AI) and Machine Learning (ML) for proactive network management. Vendors are embedding AI engines into their orchestration layers to automate traffic routing, fault detection, SLA optimization, and threat mitigation in real time.

For example, AI-enhanced NaaS platforms can predict bandwidth spikes before they occur and dynamically allocate capacity, reducing downtime and improving application performance across cloud-native environments.

2. SD-WAN and SASE Convergence

The fusion of Software-Defined Wide Area Networking (SD-WAN) with Secure Access Service Edge (SASE) is rapidly becoming a cornerstone of next-generation NaaS offerings. This integrated approach provides zero-trust security , edge performance optimization , and centralized policy enforcement , especially for hybrid and remote workforces.

NaaS providers are positioning SASE capabilities as a key differentiator, allowing enterprises to eliminate silos between network and security infrastructure while supporting decentralized operations.

3. Multi-Cloud and Edge Support

With over 85% of enterprises operating in multi-cloud environments, the ability of NaaS platforms to support seamless multi-cloud routing and interoperability with edge nodes is becoming critical. Emerging solutions offer integrated support for major cloud platforms and edge devices, enabling dynamic policy management across diverse geographic and technological boundaries.

This capability is particularly useful for sectors like manufacturing and logistics, where real-time edge analytics depend on reliable and low-latency connectivity frameworks.

4. Subscription-Based Network Consumption

The shift from CapEx to subscription-based network models is not just financial—it's operational. Enterprises are increasingly opting for usage-based models that scale elastically, reducing both financial risk and management burden. This transition is supported by innovations in network slicing , API-based provisioning , and self-service portals that enable customers to configure and monitor networks in real time.

5. Technology Partnerships and Vertical Integration

A surge in strategic partnerships is reshaping the vendor landscape. Telecom operators are teaming up with cloud hyperscalers and cybersecurity firms to offer integrated NaaS stacks. Likewise, OEMs are embedding orchestration software directly into hardware to deliver “plug-and-play” NaaS kits for SMEs and branch offices.

An example includes collaborations between telecom giants and cybersecurity leaders to roll out secure, managed SASE services across North America and Europe.

Pipeline Developments and M&A Activity

Major NaaS vendors are investing heavily in platform enhancement , white- labeled solutions , and verticalized offerings for healthcare, education, and industrial automation. The last two years have witnessed numerous acquisitions aimed at bolstering orchestration, AI capabilities, and global footprint.

Experts expect a wave of consolidation as legacy networking firms race to modernize their service portfolios.

 

4. Competitive Intelligence and Benchmarking

The Network as a Service ( NaaS ) market is populated by a dynamic mix of telecom giants , cloud service providers , networking OEMs , and specialized NaaS vendors . As competition intensifies, strategic differentiation is pivoting on platform orchestration, vertical specialization, geographic scalability , and security integration .

Below are some of the most influential players in the global NaaS landscape:

1. Cisco Systems

As a legacy networking leader, Cisco is at the forefront of NaaS transformation. It has restructured core offerings into subscription-based, software-driven services , integrating AI-powered analytics and cloud-native orchestration . Cisco's strategy includes acquiring edge security startups and enhancing SASE capabilities through in-house innovation and partner channels. Its global presence, extensive partner ecosystem, and enterprise trust make it a benchmark player.

2. VMware

VMware offers virtual networking solutions through its NSX and SD-WAN platforms , with recent transitions into service-based delivery. VMware leverages its strong cloud partnerships and virtualization expertise to offer NaaS bundles that align with hybrid and multi-cloud environments. Its modular approach enables telcos and enterprises to scale securely across distributed architectures.

3. AT&T

AT&T is leveraging its telecom backbone to launch flexible managed NaaS services across the U.S. and Latin America. Its offerings bundle SD-WAN, VPN, and firewall services for SMEs and enterprises, managed via centralized dashboards. AT&T’s strength lies in network reach and enterprise-grade SLAs, making it a dominant force in managed connectivity.

4. Aryaka

A pure-play NaaS provider, Aryaka differentiates itself with fully managed WAN services , specifically targeting mid-market and global enterprises. It offers a unified platform combining network performance, cloud optimization , and application-layer intelligence . Aryaka’s ability to offer end-to-end visibility and rapid deployment cycles has earned it a loyal customer base in tech and manufacturing sectors.

5. Hewlett Packard Enterprise (HPE)

Through its Aruba Networks division , HPE delivers enterprise NaaS offerings focused on wireless LAN, edge networking , and security integration . Its GreenLake platform enables customers to consume networking services on a pay-per-use model , aligning with broader infrastructure-as-a-service (IaaS) strategies. HPE’s value proposition lies in tight integration with edge devices and IoT ecosystems.

6. Verizon

Verizon Business offers scalable NaaS bundles integrated with 5G edge computing and cybersecurity services . Its recent focus has been on enabling distributed workforce models and secure mobile access. Verizon combines network capacity, real-time analytics , and enterprise SLA compliance , making it a go-to provider for financial services and healthcare verticals.

7. Megaport

Megaport provides a cloud-native approach to NaaS with its on-demand elastic interconnection model. Through its SDN backbone, customers can rapidly provision private connectivity between data centers and cloud providers. Megaport’s agility and granular billing make it particularly attractive to SaaS providers and startups.

Across the board, competitive strategies are shifting toward service bundling, AI-enabled orchestration, and verticalized offerings. The players that will lead in 2030 are those embracing multi-domain automation, security-by-design, and real-time scalability.

 

5. Regional Landscape and Adoption Outlook

The Network as a Service ( NaaS ) market shows varied maturity levels and adoption rates across regions, shaped by differences in cloud readiness, telecom infrastructure, cybersecurity regulations, and enterprise digital maturity. While North America currently dominates in value terms, Asia Pacific and select countries in Latin America and the Middle East are emerging as high-growth adoption zones due to aggressive digitization, 5G expansion, and increasing enterprise demand for scalable network solutions.

North America

North America remains the largest regional market , accounting for over 38% of global revenue in 2024 . The U.S. leads due to widespread cloud adoption, strong enterprise IT budgets, and the presence of major vendors such as Cisco, AT&T, HPE, and Verizon . Canadian enterprises are increasingly investing in hybrid networking solutions that align with cross-border cloud governance and compliance mandates.

The North American region has seen rapid adoption of SD-WAN, SASE, and secure NaaS platforms to support remote work, with major financial services and healthcare firms demanding network models that offer both agility and zero-trust security.

Europe

Europe is a mature but fragmented market, with high adoption in countries like Germany, the UK, France, and the Netherlands , and emerging interest from Eastern European nations. GDPR and other data sovereignty laws are influencing NaaS providers to offer localized and encrypted services .

The EU’s emphasis on digital infrastructure modernization , along with public-private partnerships to boost SME connectivity, is fostering new opportunities. Telecom companies like Orange and Deutsche Telekom are building custom NaaS stacks to serve enterprise clients seeking compliance-aligned, region-specific solutions.

Asia Pacific

The fastest-growing market , Asia Pacific is witnessing double-digit growth , led by China, India, Japan, South Korea, and Australia . Government-driven digitization initiatives like Digital India , Smart Nation Singapore , and Made in China 2025 are pushing enterprises to adopt flexible networking architectures that support massive data volumes and real-time analytics.

Enterprises in APAC are leapfrogging legacy MPLS setups in favor of mobile-first and cloud-integrated NaaS solutions. In sectors like manufacturing and logistics, the need for agile edge connectivity is driving demand for WANaaS and VPNaaS platforms.

Latin America

Latin America is an emerging opportunity zone , with countries like Brazil, Mexico, and Chile investing in 5G rollout and enterprise digitization. Telecom operators are forming joint ventures with global NaaS vendors to offer managed SD-WAN and cybersecurity-as-a-service for local enterprises and public sector clients.

Infrastructure gaps persist, but the growing fintech ecosystem and digital-native startups are creating a customer base that values pay-as-you-go and API-driven networking models.

Middle East & Africa (MEA)

MEA remains a nascent but high-potential region , especially in the GCC countries (UAE, Saudi Arabia, Qatar) where government initiatives like Vision 2030 are pushing for smart city networks and digital healthcare infrastructure. Demand is rising for secure, modular NaaS platforms that can support edge deployments, AI integration, and compliance with data localization laws.

However, limited network infrastructure and skilled personnel continue to restrict adoption in broader Sub-Saharan Africa, although startups are driving small-scale implementations.

Regionally, we observe a growing white space in secondary urban centers and Tier II cities across APAC, Latin America, and MEA. As 5G matures and cloud penetration rises, NaaS adoption is expected to follow an accelerated curve in these underserved geographies.

 

6. End-User Dynamics and Use Case

The Network as a Service ( NaaS ) market is seeing widespread adoption across industries as enterprises re-architect their networks to support cloud-native operations , remote workforce models , IoT integration , and data-heavy applications . End users range from digitally mature IT firms to traditional sectors like manufacturing and public services, each with distinct needs for flexibility, security, and automation.

1. IT and Telecom

IT service providers, cloud-native startups, and telecom operators are among the earliest adopters of NaaS . They utilize it to build agile backbones that support scalable SaaS delivery, low-latency streaming, and hyperconnected data center networks. Telecoms, in particular, are evolving into NaaS providers themselves , delivering SD-WAN, bandwidth on demand, and managed network services to enterprise clients.

2. Banking, Financial Services, and Insurance (BFSI)

BFSI institutions demand highly secure, compliant, and low-latency network environments. NaaS supports these needs with encrypted VPN services , network segmentation , and AI-powered traffic monitoring . Banks also benefit from bandwidth elasticity during high-load periods like quarterly closures and audit cycles.

3. Healthcare

Hospitals, research centers , and telemedicine providers are increasingly adopting NaaS to support cross-location patient data sharing , real-time diagnostics , and remote surgical consultations . HIPAA-compliant VPNaaS and SASE-enabled architectures help maintain secure patient data environments across geographically dispersed facilities.

4. Manufacturing

The shift to Industry 4.0 has made manufacturing plants reliant on NaaS for real-time machine-to-machine (M2M) communication , predictive maintenance , and edge analytics . Network latency and downtime directly affect operational efficiency, making flexible WAN solutions with automated failover critical.

5. Retail and E-Commerce

Retailers are integrating NaaS to unify point-of-sale (POS) systems, customer Wi-Fi, digital signage, and omnichannel inventory networks. The ability to centrally manage branch connectivity, especially across hundreds of outlets, is a key advantage. For e-commerce, secure and scalable connections with logistics partners are enabled via API-driven bandwidth provisioning.

6. Education

Universities and K–12 institutions leverage NaaS to support distance learning , campus-wide Wi-Fi , and digital content streaming . Education-focused NaaS platforms often include content filtering, student traffic prioritization, and identity-based access controls.

7. Government and Public Sector

Governments use NaaS to interlink departments, enable digital services, and enhance cybersecurity readiness. As public services migrate to the cloud, NaaS offers rapid deployability and robust policy-based access management.

Use Case Scenario: Smart Healthcare Network in South Korea

A major tertiary hospital group in South Korea deployed a secure NaaS platform across its 12 facilities to unify diagnostics, imaging, and patient record systems in real time. Using a hybrid SD-WAN and VPNaaS architecture, the network dynamically allocated bandwidth during emergency load spikes and prioritized critical imaging traffic. This deployment led to a 22% reduction in diagnostic latency and improved collaborative care across departments. Additionally, with AI-driven threat monitoring, the group recorded a 70% decrease in network breach attempts in the first year.

This use case underscores how NaaS enables scalable, secure, and resilient connectivity—particularly critical in high-stakes, data-intensive environments like modern healthcare.

 

7. Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• Cisco launched its “Cisco+ Secure Connect” NaaS offering (2023) — A unified SASE platform combining networking and security-as-a-service aimed at enterprise cloud migration support.

• AT&T expanded its partnership with Microsoft Azure (2023) to enhance edge computing and NaaS solutions across North America, targeting enterprise workloads and real-time analytics.

• Megaport introduced Megaport Virtual Edge (MVE) enhancements (2024) , enabling deeper integration with SD-WAN vendors and improving multicloud interconnection.

• Verizon launched NaaS bundles for SMEs (2023) that include managed SD-WAN, VPNaaS , and 5G mobile edge access through a self-service portal model.

• HPE’s Aruba rolled out GreenLake for NaaS (2023) across EMEA and APAC, enabling pay-per-use wired and wireless network infrastructure for enterprises.

 

Opportunities

• Rising Edge and IoT Deployments The global rise of smart factories , connected retail , and edge AI applications creates significant demand for NaaS platforms that offer low-latency, scalable, and modular architectures .

• SME Adoption in Emerging Markets As SMEs in Asia Pacific, Latin America, and Africa embrace digital transformation, cost-effective and cloud-delivered network solutions represent a massive untapped market.

• Security-Centric Network Design (SASE) Increasing cyber threats are accelerating the shift to SASE-based NaaS platforms that combine zero-trust principles , identity-based access , and end-to-end encryption in one stack.

 

Restraints

• High Initial Integration Complexity Enterprises with legacy infrastructure often face challenges integrating NaaS due to compatibility issues , organizational silos , and lack of skilled personnel for orchestration.

• Data Localization and Compliance Risks Regulations such as GDPR , CCPA , and country-specific data residency laws require localized service delivery, increasing the complexity and cost of global NaaS deployments.

 

Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 18.2 Billion
Revenue Forecast in 2030	USD 78.5 Billion
Overall Growth Rate	CAGR of 27.5% (2024 – 2030)
Base Year for Estimation	2023
Historical Data	2017 – 2021
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Type, By Application, By End User, By Geography
By Type	LANaaS, WANaaS, VPNaaS, Network Security, Bandwidth on Demand, Others
By Application	Cloud Connectivity, VPN, Unified Communications, Network Optimization
By End User	IT & Telecom, BFSI, Healthcare, Retail, Manufacturing, Education, Government
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, etc.
Market Drivers	Cloud migration, zero-trust security demand, shift to Opex model
Customization Option	Available upon request