Network Analytics Market Size - By Component (Network Intelligence Solutions, Services), Deployment Model (On-premises, Cloud), End User (Cloud Service Providers, Managed Service Providers, Telecom Providers), Application, Enterprise Size & Forecast, 2023 – 2032

Network Analytics Market Size - By Component (Network Intelligence Solutions, Services), Deployment Model (On-premises, Cloud), End User (Cloud Service Providers, Managed Service Providers, Telecom Providers), Application, Enterprise Size & Forecast, 2023 – 2032

Network Analytics Market Size

Network Analytics Market size was valued at USD 3.5 billion in 2022 and is anticipated to register a CAGR of over 19% between 2023 and 2032, due to the increasing frequency and sophistication of cyber threats & attacks. As cyberattacks become more complex and difficult to detect, organizations require advanced network analytics tools to monitor their networks in real time, identify anomalies, and respond swiftly to security breaches. These solutions offer threat detection, intrusion detection, and behavior analytics capabilities, enabling proactive cybersecurity measures. The rising awareness of the financial and reputational damages caused by cyber incidents compels businesses to invest in network analytics for enhanced security and risk mitigation.

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The network analytics market is experiencing growth owing to the increasing regulatory compliance and data privacy requirements. Governments and industry regulators are imposing stringent data protection regulations, forcing organizations to ensure the security and privacy of their networks. Network analytics solutions help companies meet these requirements by monitoring and safeguarding sensitive data, ensuring compliance with standards such as GDPR and HIPAA. The need to avoid hefty fines and reputational damage is prompting organizations to invest in advanced network analytics tools for robust data protection and regulatory compliance.
 

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Security and privacy concerns pose significant challenges in the network analytics market. With the growing complexity of cyber threats and increasing amounts of sensitive data being transmitted over networks, ensuring the security and privacy of this data is a top priority. Companies grapple with protecting their networks from breaches while complying with data privacy regulations. This requires advanced network analytics solutions that can detect and mitigate threats while safeguarding user privacy.

COVID-19 Impact

The COVID-19 pandemic accelerated the adoption of network analytics as organizations turned to remote work and digital transformation. With the increased demand for reliable networks, network analytics solutions became essential for monitoring and optimizing network performance. This positive impact led to greater investments in analytics tools, driving innovations and market growth as companies sought to ensure the efficiency and security of their networks owing to the challenges posed by the pandemic.

Network Analytics Market Trends

The growing adoption of cloud-based network analytics solutions is an emerging trend in the network analytics industry. Organizations are increasingly migrating their network analytics to the cloud to leverage the benefits of scalability, flexibility, and cost-effectiveness. Cloud-based solutions allow real-time analysis of network data from any location, making it easier for businesses to monitor and manage their networks remotely.

For instance, in October 2021, Ericsson launched the Network Data Analytics Function (NWDAF) for cloud-native 5G Core. It helps operators optimize their 5G networks, ensuring efficient and reliable connectivity for various services and applications, including IoT and high-speed data transfer. This trend also facilitates the integration of Artificial Intelligence (AI) and Machine Learning (ML) for more advanced analytics and predictive insights, fueling the demand for cloud-based network analytics solutions.

The integration of AI and ML is another growing trend in the network optimization market. AI and ML technologies are being utilized to enhance network performance, efficiency, and security. These advanced algorithms can analyze large volumes of network data in real time, identifying patterns and anomalies that human operators might miss. This enables proactive network optimization, predictive maintenance, and automated response to security threats, ultimately leading to improved network reliability and performance. AI & ML integration is poised to revolutionize network optimization practices in the coming years.

Network Analytics Market Analysis

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Based on enterprise size, the large enterprises segment held over 63% of the network analytics market share in 2022. Large organizations are increasingly adopting network analytics solutions to gain better visibility into their complex and sprawling networks. These solutions help them monitor network performance, detect anomalies, and ensure optimal resource allocation. These enterprises often deal with higher security risks, making advanced analytics crucial for threat detection and mitigation. As a result, they are investing in sophisticated network analytics tools to enhance network efficiency, security, and overall operations.

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Based on the application, the Network Performance Management (NPM) segment accounted for 31% of the network analytics market share in 2022. With the increasing complexity of networks and the importance of maintaining optimal performance, organizations are turning to NPM solutions. These tools offer real-time monitoring, analysis, and troubleshooting capabilities, ensuring that networks operate smoothly and efficiently. As businesses rely more on digital operations, NPM becomes indispensable for delivering a seamless user experience and meeting performance expectations, boosting its adoption significantly in the market.

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North America network analytics market recorded more than 34% of revenue share in 2022. The region's large concentration of tech-savvy enterprises is driving the adoption of advanced network analytics solutions to enhance their IT infrastructure performance and security. Increasing cyber threats and stringent regulatory requirements are pushing organizations to invest in comprehensive network analytics tools. The rapid expansion of cloud computing and data center facilities in North America further fuels the demand for network analytics to ensure optimal network operations and cybersecurity measures.

For instance, in October 2022, Oracle introduced the Oracle Network Analytics Suite, a cloud-native collection of analytics tools. It merges network function data with AI and ML to empower operators with data-driven insights and automated decisions for optimizing the performance and stability of their 5G network core, ensuring enhanced network efficiency and reliability. These combined factors contribute to substantial growth in the region.

Network Analytics Market Share

Major Companies operating in the network analytics industry are

• Cisco Systems, Inc.
• Extreme Networks
• Fortinet, Inc.
• Hewlett-Packard Enterprise Development LP
• International Business Machines Corporation
• Juniper Networks, Inc.
• Telefonaktiebolaget LM Ericsson

Cisco Systems and International Business Machines Corporation dominate the network analytics with a prominent market share of around 15%.  The major companies operating in the market are continuously investing in research and development to enhance existing network analytics solutions and develop new features and capabilities. Also, these companies focus on innovation to address emerging technologies and trends, such as 5G, IoT, and cloud computing.

Network Analytics Industry News

• In September 2023, Viavi Solutions partnered with Google Cloud to offer NITRO AIOps, a solution that combines Viavi's advanced network analytics with Google Cloud's native services. This collaboration aims to provide innovative network analytics capabilities for enhanced operational efficiency and performance management.

The network analytics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Component

• Network intelligence solutions
• Services

Market, By Deployment Model

• On-premises
• Cloud

Market, By Enterprise Size

• SMEs
• Large enterprises

Market, By Application

• Customer analysis
• Risk management
• Fault detection
• Network performance management
• Quality management
• Others

Market, By End User

• Cloud service providers
• Managed service providers
• Telecom providers
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

How big is the network analytics market?

The market size of network analytics reached USD 3.5 billion in 2022 and is set to witness 19% CAGR from 2023 to 2032, owing to the increasing frequency and sophistication of cyber threats & attacks.

How will network performance management (NPM) application add to network analytics industry share?

The Network Performance Management (NPM) segment held a market share of around 31% in 2022 and with the increasing complexity of networks and the importance of maintaining optimal performance, organizations will keep turning to NPM solutions.

What is the size of North America network analytics market?

North America market with a share of over 34% in 2022, backed by the region's large concentration of tech-savvy enterprises that aim to enhance their IT infrastructure performance and security.

Who are the main contenders in network analytics landscape?

Cisco Systems, Inc., Extreme Networks, Fortinet, Inc., Hewlett-Packard Enterprise Development LP, International Business Machines Corporation, Juniper Networks, Inc., and Telefonaktiebolaget LM Ericsson.