Network Management Software Market By Deployment Type (On-Premises, Cloud-based), End-User Industry (IT & Telecom, BFSI, Government & Defense, Healthcare), Application (Network Monitoring, Network Performance Management, Security Management), & Region for 2024-2031

Network Management Software Market Valuation – 2024-2031

The network management software industry is driven by the increasing complexity of current network infrastructures. As businesses and organizations use cloud computing, the Internet of Things (IoT), and Software-Defined Networking (SDN) to improve efficiency and usefulness, their networks evolve into complex ecosystems including various interconnected devices and applications. This growing complexity needs a centralized and automated approach to network management, which traditional manual approaches cannot handle successfully. Network management software steps in, providing a full set of tools for monitoring network performance, proactively identifying and troubleshooting issues, and optimizing resource allocation. By automating important operations and delivering real-time insights, network management software enables enterprises to maintain network stability and assure smooth operation in increasingly complex IT ecosystems. According to the analyst from Market Research, the Network Management Software market is estimated to reach a valuation of 20008.56 USD Million over the forecast subjugating around 10485.32 USD Million in 2023.

The growing worry about cybersecurity is functioning as another important development driver for the network management software market. As cyberattacks become more sophisticated and targeted, organizations face enormous pressure to strengthen their network security. Network management software plays an important role in this quest by providing sophisticated security features. Vulnerability assessments, intrusion detection, and real-time threat monitoring are among the elements that enable enterprises to detect and mitigate potential security breaches ahead of time. Furthermore, network management software makes it easier to impose access rules and partition the network, which improves overall network security. Network management software is becoming an essential tool for enterprises navigating today’s dangerous landscape because it provides a comprehensive view of network activity and empowers managers to apply strong security measures. This surge in demand enables the market to grow at a CAGR of 9.28% from 2024 to 2031.

Network Management Software MarketDefinition/ Overview

Network Management Software(NMS) serves as the central nervous system for managing and controlling the complex web of devices, applications, and connections that make up a contemporary network. It provides network managers with a comprehensive toolkit for monitoring network health, optimizing performance, and troubleshooting problems rapidly. NMS accomplishes this by using several protocols, such as SNMP (Simple Network Management Protocol), to collect real-time data from network devices such as routers, switches, and firewalls. This data includes a variety of parameters, such as device availability, bandwidth use, and error rates.

Once collected, NMS displays this data in a user-friendly and unified dashboard, allowing administrators to acquire a comprehensive understanding of their network’s overall health. Administrators can detect the exact location of potential faults within the network infrastructure using NMS functions such as network mapping and topology visualization. Furthermore, NMS provides a powerful warning system that alerts administrators to crucial events such as outages, performance bottlenecks, and security concerns. This real-time notification enables preemptive troubleshooting while reducing downtime.

NMS goes beyond monitoring by providing advanced capabilities that improve network performance and automate mundane operations. Administrators can use NMS to remotely configure network devices, automate network configuration changes, and set traffic-shaping policies to prioritize key applications. This automation improves network management operations, minimizes human error, and frees up administrators’ time for more strategic activities. Network Management Software enables enterprises to maintain a strong and efficient network by providing a centralized platform for monitoring, troubleshooting, and optimization, resulting in smooth operation and an optimal user experience.

What are the Drivers Encouraging the Adoption of Network Management Software?

Several causes are driving the adoption of Network administration Software (NMS), including the need for a more sophisticated and automated approach to network administration. For starters, the increasing complexity of modern networks is a major factor. As businesses increasingly use cloud-based services, the Internet of Things (IoT), and Software-Defined Networking (SDN) to improve efficiency and functionality, their networks evolve into complex ecosystems bursting with interconnected devices and applications. Handling these complex situations manually becomes increasingly difficult and error-prone. NMS provides a solution by centralizing and automating network management procedures, allowing managers to successfully monitor even the most complex network infrastructures.

Escalating cybersecurity concerns are providing a strong drive for NMS adoption. The changing threat landscape, marked by increasingly sophisticated and targeted cyberattacks, forces enterprises to strengthen their network security. NMS plays an important part in this quest by providing a complete set of security measures. These features include vulnerability assessments, intrusion detection, and real-time threat monitoring, allowing enterprises to proactively identify and mitigate possible security breaches. NMS also makes it easier to impose access rules and segment networks, which improves overall network security. NMS is becoming a vital tool for enterprises navigating today’s treacherous cybersecurity landscape because it provides a comprehensive view of network activity and empowers managers to deploy strong security measures.

Another key factor driving NMS use is the growing requirement for network efficiency and performance optimization. In today’s digital landscape, network performance has a direct impact on corporate efficiency and user experience. Organizations can use NMS to gain useful insights into network performance parameters including bandwidth utilization and latency. Administrators can use this data to identify bottlenecks and optimize network resources, ensuring smooth operation and prioritizing key applications. Furthermore, NMS enables the automation of mundane operations such as network device configuration and traffic shaping, which streamlines network management processes and frees up valuable IT personnel for more strategic initiatives. NMS is becoming a crucial tool for firms seeking to preserve a competitive advantage since it enables administrators to maximize network performance and efficiency.

Will Security Concerns Affect the Growth of the Network Management Software Market?

Security concerns are a significant challenge that may hamper the growth of the Network Management Software (NMS) industry. As NMS grows more important to network operations, it will undoubtedly become a more appealing target for hackers. Successful assaults on NMS could provide attackers with unauthorized access to large network infrastructure, allowing them to steal sensitive data, interrupt key processes, or launch other attacks from within the compromised network.

The nature of NMS, which is meant to collect and analyze massive amounts of network data, raises another security problem. NMS captures extremely sensitive data, such as network traffic, device configurations, and user behavior. If this data is not properly secured, it may be intercepted by unauthorized users, resulting in data breaches and privacy violations. Furthermore, the security of the NMS program itself is critical. Vulnerabilities in the NMS can be used to obtain unauthorized access to the network and the sensitive data it contains. Keeping NMS software up to speed with the latest security updates is critical, but this necessitates regular monitoring and trained IT personnel.

The expanding use of cloud-based NMS solutions adds another level of complication.  When NMS data is stored in the cloud, it is subject to the security practices of the cloud service provider.  Organizations contemplating cloud-based NMS must carefully assess possible providers’ security posture to guarantee their data is sufficiently safeguarded.  Ultimately, the problem is to strike a balance between the need for robust security and the usability and functionality that NMS provides.  Excessive security measures may impair program usability, whereas insufficient protection may leave networks exposed to attack.  Addressing these security issues will be crucial in assuring the sustained growth and use of Network Management Software in the years ahead.

Category-Wise Acumens

How is the Demand for Robust Cybersecurity Driving NMS Adoption with Advanced Security Features?

According to analysis, security management is expected to dominate the application segment in the market. The growing demand for robust cybersecurity is driving the Network Management Software (NMS) market, particularly for solutions with enhanced security management capabilities. This increase in demand can be attributable to several major issues that are fundamentally changing the cybersecurity landscape.

The cyber threat landscape is continually changing, with cyberattacks becoming increasingly complex and targeted. Traditional security methods frequently fail to keep up with these changes, making organizations susceptible. NMS with additional security features provides a comprehensive set of capabilities for combating these developing threats. These capabilities include vulnerability evaluations, intrusion detection, and real-time threat monitoring. Organizations can utilize these functionalities to proactively identify and remediate potential security breaches before they cause major damage. This proactive approach to cybersecurity is becoming increasingly important for enterprises in today’s threat landscape, prompting them to look for NMS solutions that prioritize security management.

The increasing volume of data that businesses acquire, store, and transport needs strong security measures. NMS with security management tools is critical for protecting this data. NMS enables enterprises to acquire a comprehensive view of their network activities and detect any strange behavior that could indicate a security breach by providing capabilities such as user activity monitoring and data encryption. This increased visibility into network activities enables enterprises to adopt more granular access controls and network segmentation, thereby boosting their overall security posture. As data remains the lifeblood of modern businesses, the ability to secure it properly is critical. As a result, NMS solutions with strong security management capabilities are becoming increasingly appealing options for enterprises looking to protect their important data assets.

Which Factors are Influencing the Growth of IT & Telecom Sector in the End-User Segment in the Market?

According to analysis, the IT & Telecom sector is estimated to dominate the end-user segment in the market. The IT and telecom sectors are the foundation of today’s digital landscape. From allowing communication and data transmission to enabling cloud-based services and online transactions, a well-functioning network is critical to their operations. Even modest network outages or performance difficulties can have serious effects, disrupting services, creating financial losses, and negatively impacting customer satisfaction. NMS provides IT and telecom firms with the tools they need to proactively monitor network health, quickly identify and troubleshoot problems, and enhance network performance. By ensuring network stability and smooth operation, NMS enables IT and telecom firms to provide dependable services while maintaining a competitive advantage. This significant reliance on network performance creates a considerable market demand for NMS solutions in the IT & Telecom sectors.

The IT and telecommunications industries are continually evolving, adopting new technologies such as cloud computing, Software-Defined Networking (SDN), and the Internet of Things (IoT). These developments provide several benefits, but they also increase network complexity. Traditional network management techniques struggle to handle these complexities. NMS steps in, providing a centralized platform for efficiently managing these complex network infrastructures. NMS functionality for IT and telecom enterprises includes network mapping, real-time performance monitoring, and automated configuration management. This gives them complete visibility into their networks, simplifies network operations, and ensures effective resource allocation. As the IT and telecom sectors continue to adopt new technologies, the requirement for NMS systems capable of managing the increasing complexity will drive market expansion.

Because of the large amount of sensitive data it manages, including customer information, financial transactions, and essential infrastructure data, the IT and telecommunications sectors are a prime target for cyberattacks. Cyberattacks on IT and telecom organizations can have disastrous repercussions, resulting in data breaches, service outages, and reputational loss. NMS with enhanced security features enables IT and telecom firms to strengthen their network defenses. These capabilities include vulnerability evaluations, intrusion detection, and real-time threat monitoring. NMS enables them to proactively identify and mitigate security threats, implement access rules, and segment their networks, thus improving their overall security posture. As cyberattacks become more sophisticated, the IT & Telecom sector’s requirement for comprehensive security solutions drives the growth of the Security Management segment within the NMS market.

Gain Access to Network Management Software Market Report Methodology

Country/Region Wise Acumens

How will Growing IT Spending by Small & Medium-Sized Businesses in Asia Pacific Influence NMS Adoption?

According to analysis, the Asia Pacific region is rapidly growing in the market. SMBs in Asia Pacific are rapidly understanding the role of technology in driving business growth and efficiency. They are embracing cloud-based solutions, implementing online collaboration tools, and broadening their digital footprint.  However, these developments demand strong network management to ensure seamless operation and avoid disruptions that could jeopardize customer service and productivity. NMS provides SMBs with a cost-effective and user-friendly solution for monitoring network health, proactively identifying and troubleshooting issues, and optimizing network performance.  NMS enables SMBs to fully benefit from technology investments by providing them with the tools they need to successfully manage their IT infrastructure.

The Asia Pacific region’s regulatory standards are growing increasingly demanding, notably in terms of data security and privacy. Small and medium-sized businesses that handle customer data or financial information must follow these requirements. NMS with security capabilities such as intrusion detection and access control enables SMBs to strengthen their network defenses while also demonstrating compliance with data protection standards. The growing pressure to comply with shifting regulations, combined with increased awareness of cybersecurity concerns, is driving demand for NMS solutions among SMBs in Asia Pacific.

The rise of cloud-based NMS systems, as well as the expanding presence of Managed Service Providers (MSPs), are driving NMS adoption among SMBs. Cloud-based NMS reduces the need for initial hardware investment and extensive software installations, making it a more accessible choice for small and medium-sized businesses with limited IT resources. MSPs provide expertise in administering NMS solutions, allowing SMBs to reap the benefits of NMS without overburdening their IT teams. This combination of cloud-based accessibility and managed service choices makes NMS an appealing proposition for SMBs in the Asia Pacific region, contributing to the NMS market’s rapid expansion.

What Factors Enable North America to Hold a Major Share in the Network Management Software Market?

According to analysis, the North American region, is well-positioned to maintain its significant share of the market over the projected period (2024-2031). North America is a hub for some of the world’s most prominent technological companies. These organizations are at the cutting edge of technical developments, continually innovating and implementing new technologies such as cloud computing, Software-Defined Networking (SDN), and the Internet of Things. While these developments provide major advantages, they also increase network complexity. Traditional network management techniques struggle to handle these complexities. NMS solutions emerge as a formidable ally, providing a centralized platform for managing these complex network infrastructures efficiently. The existence of these digital behemoths, which extensively invest in powerful network infrastructure to support their operations, generates a strong demand for advanced NMS solutions, boosting the market in North America.

North America implements some of the world’s most stringent data privacy standards, including HIPAA (Health Insurance Portability and Accountability Act) and PCI DSS (Payment Card Industry Data Security Standard). These requirements require enterprises to prioritize data security and employ strong security measures to safeguard sensitive information. NMS with sophisticated security features becomes a vital tool for enterprises seeking to comply with these rules. These capabilities include vulnerability evaluations, intrusion detection, and real-time threat monitoring. NMS enables enterprises to proactively identify and mitigate security threats, implement access rules, and segment networks, thereby improving their overall security posture. The requirement to comply with severe data security regulations mandates the use of advanced NMS solutions, which serve as a significant growth driver in the North American NMS market.

North America has a well-developed IT infrastructure, including vast networks of fiber-optic cables, high-speed internet connectivity, and widespread use of broadband services. This sturdy architecture serves as a solid platform for the implementation and operation of advanced NMS solutions. Unlike certain emerging nations, which may struggle with legacy infrastructure, North America’s robust IT infrastructure enables enterprises to fully utilize NMS functions. The compatibility of NMS systems with existing infrastructure ensures a seamless adoption process and drives market expansion in North America.

Competitive Landscape

The Network Management Software Market is highly competitive, with a mix of established global competitors and new domestic manufacturers. Major international firms dominate the industry, providing full NMS systems with advanced features. However, regional players are gaining traction by catering to specific needs in their local markets and providing competitive pricing structures. This combination of established brands and new domestic enterprises creates a dynamic market environment, with ongoing technical improvements and changing client expectations at the center.

Some of the prominent players operating in the network management software market include

SolarWinds, IBM, Microsoft, Cisco, Hewlett Packard Enterprise (HPE), Broadcom (CA Technologies), ManageEngine, Paessler AG, Datadog, OpsRamp.

Latest Developments

• In August 2023, Broadcom finalized its acquisition of CA Technologies, creating a giant in the enterprise software market. This acquisition strengthens Broadcom’s network management portfolio, particularly in areas like security and automation.
• In April 2022, Microsoft announced the general availability of Azure Network Watcher, a cloud-based network monitoring and troubleshooting tool. This move signifies the growing importance of cloud-based network management solutions.
• In June 2021, ManageEngine, a leading provider of IT management solutions, launched its AIOps platform, integrating machine learning and automation capabilities into its network management software. This highlights the trend of AI becoming a key driver in network management.
• In November 2020, SolarWinds suffered a major cyberattack that compromised its Orion network management platform. This event underscores the critical need for robust cybersecurity features within NMS solutions.
• In February 2020, The COVID-19 pandemic disrupted traditional work models and accelerated the adoption of cloud-based network management solutions. This trend is driven by the need for remote network monitoring and management capabilities.

Report Scope

Network Management Software Market, By Category

Deployment Type

• On-Premises
• Cloud-based

End-user Industry

• IT & Telecom
• BFSI
• Government & Defense
• Healthcare

Application

• Network Monitoring
• Network Performance Management
• Security Management

Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Research Methodology of Market Research

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