The global network management software in the telecom market size was USD 9.30 billion in 2022 and is projected to reach USD 20.88 billion by 2031, expanding at a CAGR of around 9.4% during the forecast period, 2023 – 2031. The growth of the market is attributed to increasing demand for NMS solutions, owing to rising requirement of incumbents of various industries and sectors coupled with continuous automation of network management equipment.
Computer networks have become large and complex, owing to the development of worldwide web and the internet. It is difficult to operate them manually. Thus, a network management software helps manage the rising complexity of computer networks.
The network management software collects data about network devices using methods such as ICMP, CDP, SNMP, and others. This data is further delivered to the network administrators in an easy and accessible manner to help them identify and remediate problems.
A telecommunication network comprises of switches, wires, and notes that offer audio, video, and data communication. It involves microwave and wireless tools coupled with traditional telephony forms. Offering a smooth and error-free data transmission in the original point and the destination point is the key function performed by telecom networks.
Network optimization helps in real time study, as it is used for damage control. Organizations are expected to estimate the user’s location and data requirements with accuracy, with the help of management solutions. This software provides a framework for interactive communication over the operating system as well as heterogeneous telecommunication links.
This solution allows supervisors for supervising and managing individual network components in a large one that is scattered over the globe. It helps telecom service providers to enhance the customer experience, eliminate customer churn, and participate in intelligent network planning, as a result which helps in modernizing the business models and maximizes revenue for the service suppliers. The network management is crucial for the telecom industry as it plays a vital role in their business model.
Market Trends, Drivers, Restraints, and Opportunities
Growing customer needs and increasing network security violations are expected to fuel the market.
Rising focus on technology evolution is significantly contributing to the market growth.
Increasing demand for software-defined networking (SDN) monitoring equipment, which prevents unplanned failures and offers fault detection and correction management capabilities in real time, is projected to boost the market.
Increasing number of mobile users leads to growing demand for management solutions, which is expected to propel the market.
Lack of skilled workforce, intense competition, and reduction in average revenue per user (ARPU) are expected to hamper the market growth during the forecast period.
The number of telecom users increased in developing countries including India, Brazil, and China in the last few years. This trend is expected to offer several opportunities for the market players in the coming years.
Scope of the Report
The report on the global network management software in the telecom market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Global Network Management Software in The Telecom Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Components (Solutions and Services), Deployments (Cloud-based and On-premises), Enterprises (SMEs and Large Enterprises), Verticals (BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Media & communication, Retail, and Transportation & Logistics)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Alcatel-Lucent, CA Technologies, Cisco Systems, Ericsson, HP, Huawei, IBM, NetScout System, Nokia Solutions and Networks, Visual Network Systems, and ZTE
Market Segment Insights
Solutions segment is estimated to represent a high revenue share
Based on components, the market is bifurcated into solutions and services. The solutions segment is estimated to represent a high revenue share, owing to increasing adoption of NMS solutions to monitor and maintain communication infrastructure. The solution segment is further sub-segmented into accounting management, configuration management, fault management, performance management, and security management.
On the other hand, the services segment is expected to increase at a high CAGR during the forecast years, owing to rising demand for integration and implementation of different NMS from operators based in developed economies to undertake performance monitoring and achieve in-depth visibility. The services segment is further sub-segmented into training, support & maintenance, integration & implementation, and consulting.
On-premise segment is projected to register a high revenue share
On the basis of deployments, the global network management software in the telecom market is divided into cloud-based and on-premises. The on-premise segment is projected to register a high revenue share during the analysis period, as enterprises prefer on-premise NMS solutions to reduce the overall turnaround time (TAT) while providing support & maintenance services in the event of failure as against third-party managed solutions.
However, the cloud-based segment is expected to constitute a high CAGR over coming years, due to the increasing adoption of cloud-based solutions and preference for software as a service (SaaS) delivery model, especially among the SMEs. Cloud-based solutions provide several advantages including rapid deployment of solutions, reduction in overall infrastructure costs, and ease of accessibility.
Large enterprises segment is expected to constitute a large market share
Based on enterprises, the market is classified as SMEs and large enterprises. The large enterprises segment is expected to constitute a large market share during the forecast period, owing to increasing adoption of various network management software solutions by the incumbents of IT & Telecom and BFSI industries, to secure their networks and monitor the performance.
On the other hand, the SMEs segment is anticipated to increase at a high CAGR, as various SMEs are enrolling for NMS solutions to gain maximum number of online customers and increase the data traffic.
IT and telecom segment is projected to register a high revenue share
On the basis of verticals, the global network management software in the telecom market is segregated as BFSI, government, healthcare, IT & telecom, manufacturing, media & communication, retail, and transportation & logistics. The IT and telecom segment is projected to register a high revenue share over the coming years, due to the increasing adoption of NMS solutions for visibility, accessibility, and security for incumbents of the IT and telecommunications industries to mitigate the risks related to downtime.
On the other hand, the healthcare segment is expected to expand at a significant growth rate during the analysis period, owing to rising implementation of NMS solutions for ensuring uninterrupted connectivity and improved service delivery. Application of new regulations such as Health Information Technology for Economic and Clinical Health (HITECH) Act, which addresses privacy and security issues regarding electronic transmission of health information, supports the expansion of the segment.
North America is anticipated to dominate the market
In terms of regions, the global network management software in the telecom market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the forecast period, owing to constant R&D activities coupled with product innovation that result into better product development.
However, the market in Asia Pacific is expected to register a high growth rate over the coming years, due to the rapidly expanding telecom and IT sector in this region. Developing countries including China and India are projected to play a significant role in the regional market growth, owing to the existence of prominent players in these countries.
The global network management software in the telecom market has been segmented based on
- IT & Telecom
- Media & communication
- Transportation & Logistics
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- CA Technologies
- Cisco Systems
- NetScout System
- Nokia Solutions and Networks
- Visual Network Systems
Some major players competing in the global network management software in the telecom market include Alcatel-Lucent, CA Technologies, Cisco Systems, Ericsson, HP, Huawei, IBM, NetScout System, Nokia Solutions and Networks, Visual Network Systems, and ZTE.
Key market players are using strategies including mergers, acquisition, partnerships, new launches, collaborations, and product development to build a strong position in the market. R&D and innovation are the key strategies contributing to the growth of the industry. For instances,
In 2020, ALE announced to continue to develop digital age technologies to help businesses with a network foundation, which offers the services they require in the digital era. Such Service-defined Networks provide connectivity from the data center to the access layer, allowing businesses to easily, automatically, and securely connect people, processes, applications, and objects needed to navigate digital business transformation.
In May 2020, IBM announced new services and solutions sponsored by a broad ecosystem of partners to support enterprises and telecommunications companies to speed up their transition to edge computing in the 5G era. This effort combines IBM’s experience and expertise in multi-cloud environments with Red Hat’s industry-leading open-source technology, which became a part of IBM in one of the biggest tech acquisitions of all time.