The global network management systems market size was valued at USD 6.3 billion in 2018. It is estimated to expand at a CAGR of 10.2% during the forecast period. NMS helps enterprises in provisioning, monitoring, and managing computer systems as well as in optimizing bandwidth availability and hardware performance in real time. Continued rollout of 5G mobile infra in various countries, including the U.S., Germany, and the U.K., and aggressive investments being made in building new data centers have provided an upthrust to the market over the past few years.
NMS solutions can be useful for various tasks, including configuration management, performance monitoring, security management, fault detection, and accounting management. It can potentially improve performance, leveraging proactive monitoring controls, thereby helping companies reduce the total cost of ownership and cater to dynamic business needs.
Communication networks can play a critical role in enterprises’ business expansion initiatives in the current competitive environment by enabling online customer interaction, among other benefits. As such, the key players in the market offer advanced network management systems that assist enterprises in optimizing network availability in real time, curbing total revenue losses, and increasing employees’ productivity.
Software-Defined Networking (SDN) is one of the emerging technologies getting popular among enterprises all over the globe in line with evolving storage and computing needs. Spiraling demand for SDN monitoring tools that are capable of preventing unplanned failures and providing fault detection and correction management capabilities in real time is likely to propel the market over the forecast period.
Rising demand for NMS solutions that can be tailored to soaring need of incumbents of different industries and sectors along with continued automation of network management tools are also among the primary growth stimulants for the market.
However, despite numerous benefits, the growth of the market is restricted by several factors. For instance, availability of free and open-source NMS solutions and the need for skilled workforce to operate the software are poised to inhibit the growth of the market over the forecast period.
Based on component, the market has been segmented into solutions and services. The solutions segment represented over 70.0% of the overall revenue in 2018, owing to growing adoption of NMS solutions to monitor and maintain communication infrastructure.
Launch of standalone solutions and customizable offerings that can be tailored to clients’ requirements are also projected to contribute to the growth of the segment. Rising concerns over security of data are prompting enterprises to opt for solutions that can secure their network from data breaches and cyber-attacks, thereby escalating the demand for network management solutions over the forecast period.
On the other hand, burgeoning demand for integration and implementation of various NMS from operators based in developed countries to undertake performance monitoring and obtain in-depth visibility is anticipated to supplement the growth of the services segment over the forecast period. The integration and implementation sub-segment is estimated to register the highest CAGR in the network management software services segment during the forecast period.
The on-premises segment commanded over 68.0% of the overall revenue in 2018 as enterprises preferred on-premise NMS solutions over cloud-based solutions. On-premise solutions can potentially reduce the overall turnaround time (TAT) while providing support & maintenance services in events of failures as against the third-party managed solutions.
However, the popularity of cloud-based solutions and preference for software as a service (SaaS) delivery model, particularly among small & medium enterprises (SMEs), have grown remarkably over the past few years. Cloud-based solutions offer numerous benefits, such as reduction in overall infrastructure costs, rapid deployment of solutions, and ease of accessibility. The cloud-based segment is expected to post a higher CAGR over the forecast period.
The large enterprises segment represented 63.0% of the network management systems market in terms of revenue in 2018 as the leading incumbents of various industries, such as IT & Telecom and BFSI, aggressively adopted a variety of network management systems solutions to secure their networks and monitor the performance.
However, SMEs have also started opting for NMS solutions in view of significant growth in online customers and the resultant increase in data traffic, which have necessitated an overhaul of the overall infrastructure in order to optimize business processes. As a result, the SMEs segment is likely to post a noteworthy CAGR of 11.1% during the forecast period.
The IT & telecom segment accounted for just over one fourth of the overall revenue in 2018. Visibility, security, and accessibility are of paramount for incumbents of the IT and telecommunications industries and these incumbents are proactively adopting NMS solutions in order to mitigate the risks associated with downtime. Moreover, NMS solutions also help telecom service providers (TSPs) in reducing customer churn and allow them to engage in activities, such as intelligent network planning and improving customer experience, in order to streamline business functions and increase overall revenues.
On the other hand, the healthcare industry is increasingly leveraging machine-to-machine connectivity to obtain patient information effectively and accurately in real time. NMS solutions can be a part of the overall healthcare systems to ensure uninterrupted connectivity and enhance service delivery efficiency.
Implementation of new regulations, such as the Health Information Technology for Economic and Clinical Health (HITECH) Act that addresses privacy and security issues associated with electronic transmission of health information, bodes well for the growth of the healthcare segment.
North America was the leading revenue contributor in the market in 2018. North America has been witnessing a rapid rollout of 5G infrastructure, significant investments in new data centers, and a growing broadband penetration rate. The significant growth in the U.S. healthcare IT spending can also be attributed for the significant share of North America in the overall market.
On the other hand, Asia Pacific has been witnessing rapid growth in the deployment of long-term evolution (LTE) infrastructure. Meanwhile, several governments in the region have been undertaking initiatives to promote digitalization in line with rapid urbanization and subsequent proliferation of the internet. Moreover, some of the nations in APAC, such as India, China, and Japan, are also bracing for launch of 5G. Such developments are poised to pave way for aggressive adoption of network management systems across the region and create significant opportunities for NMS vendors over the forecast period.
The prominent players in the market include SolarWinds Inc.; IBM Corporation; Broadcom, Inc. (CA Technology); Riverbed Technologies, Inc.; Cisco Systems, Inc.; BMC Software, Inc.; Nokia Corporation; Oracle Corporation; Paessler AG; VIAVI Solutions, Inc.; NetScout Systems, Inc.; Colasoft, Inc.; Huawei Technologies Co. Ltd.; Hewlett Packard Enterprise Company; Juniper Networks, Inc.; and Dell Technologies, Inc.
All these market players are emphasizing on enhancing their product portfolios and strengthening their overall customer base by introducing innovative NMS compatible with 5G standards. For instance, in 2016, Nokia Corp. introduced NetAct Cloud network management option, especially for the upcoming 5G technology, so that operators would be able to implement new features rapidly and at lower costs without having to upgrade the entire network system.
Base year for estimation
Actual estimates/Historical data
2015 - 2017
2019 - 2025
Revenue in USD Million and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, South America, MEA
U.S., Canada, Mexico, U.K., Germany, France, Spain, Italy, China, India, Japan, South Korea, Brazil, Argentina
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global network management systems (NMS) market report based on component, deployment, enterprise, vertical, and region:
Component Outlook (Revenue, USD Million, 2015 - 2025)
Integration & Implementation
Training, Support & Maintenance
Deployment Outlook (Revenue, USD Million, 2015 - 2025)
Enterprise Outlook (Revenue, USD Million, 2015 - 2025)
Vertical Outlook (Revenue, USD Million, 2015 - 2025)
IT & Telecom
Transportation & Logistics
Media & communication
Regional Outlook (Revenue, USD Million, 2015 - 2025)
MEA (Middle East & Africa)
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