Network Analytics Market Size, Share, and Trends 2024 to 2033

Network Analytics Market Size and Growth 2024 to 2033

The global network analytics market size was valued at USD 3.95 billion in 2023 and is anticipated to reach around USD 22.55 billion by 2033, expanding at a CAGR of 19.03% from 2024 to 2033.

Key Takeaways

• North America has contributed over 35% of market share in 2023.
• Asia-Pacific is estimated to expand at the remarkable CAGR of 22% between 2024 and 2033.
• By component, the network intelligence solutions segment has held the biggest market share of 65% in 2023.
• By component, the services segment is anticipated to grow at a remarkable CAGR of 20.22% between 2024 and 2033.
• By enterprise size, the large enterprise segment has captured over 61% of market share in 2023.
• By enterprise size, the small and medium enterprises (SMEs) segment is projected to grow at the notable CAGR of 21.25% over the projected period.
• By end-user, the telecom providers segment has recorded more than 36% of market share in 2023.
• By end-user, the cloud service providers segment is growing at the remarkable CAGR of 19.43% over the projected period.
• By application, the network performance management segment has accounted over 31% of market share in 2023.
• By application, the quality management segment is expected to expand at the fastest CAGR of 21.03% over the projected period.

Network Analytics Market Size in U.S. 2024 to 2033

The U.S. network analytics market size was estimated at USD 970 million in 2023 and is projected to surpass around USD 5,520 million by 2033 at a CAGR of 19.07% from 2024 to 2033.

North America held a share of 35% in the network analytics market due to several factors. The region boasts advanced telecommunications infrastructure, high internet penetration rates, and a strong presence of key market players. Moreover, North American businesses prioritize digital transformation initiatives and invest significantly in cutting-edge technologies, including Network Analytics solutions, to enhance operational efficiency and maintain a competitive edge. Additionally, favorable government regulations and initiatives supporting the adoption of advanced networking technologies contribute to the region's dominance in the network analytics market.

Asia-Pacific is experiencing rapid growth in the network analytics market due to several factors. Firstly, the region's expanding digital infrastructure and increasing adoption of advanced technologies such as 5G, IoT, and cloud computing are generating vast amounts of network data, driving the demand for analytics solutions. Additionally, rising cybersecurity concerns and a growing emphasis on enhancing network performance and user experience are prompting organizations across various industries to invest in network analytics tools. Moreover, favorable government initiatives and the presence of key market players are further fueling market growth in the Asia-Pacific region.

Meanwhile, Europe is experiencing notable growth in the network analytics market due to several factors. Firstly, the region's rapid adoption of advanced technologies like 5G, IoT, and cloud computing is driving the demand for network analytics solutions to manage and optimize these complex infrastructures. Additionally, stringent data privacy regulations, such as GDPR, are prompting organizations to invest in network analytics tools for enhanced security and compliance. Furthermore, the increasing digitalization across industries, coupled with a focus on improving operational efficiency and customer experience, is fueling the uptake of network analytics solutions in Europe.

Network Analytics Market Overview

Network analytics refers to the process of gathering and analyzing data from computer networks to gain insights into their performance, security, and overall health. By monitoring network traffic, devices, and interactions, network analytics helps identify patterns, anomalies, and potential issues. This information can be used to optimize network performance, detect, and mitigate security threats, and improve overall efficiency. Using specialized software and algorithms, network analytics tools can visualize network data, generate reports, and provide real-time alerts to network administrators. These insights enable organizations to make informed decisions about network design, capacity planning, and resource allocation. Ultimately, network analytics plays a crucial role in ensuring that networks operate smoothly, securely, and cost-effectively, helping businesses and organizations to meet their connectivity needs while maximizing productivity and minimizing downtime.

Network Analytics Market Data and Statistics

• In December 2022, Nokia extended its collaboration with BT in a five-year agreement, supplying its AVA Analytics software for fixed networks. This partnership aims to bolster BT's network monitoring capabilities utilizing machine learning (ML) and artificial intelligence (AI).
• Cisco Systems reported that global mobile data traffic was approximately 19.01 exabytes per month in 2018. By 2022, this figure was projected to soar to around 77.5 exabytes per month, indicating a staggering compound annual growth rate of 46% over the period.
• In October 2022, Oracle launched the Oracle Network Analytics Suite, a new set of cloud-native analytics solutions. These solutions integrate various network function data with ML and AI to empower operators in making more informed, automated decisions concerning the stability and performance of their entire 5G network core.
• In June 2022, Zain Kuwait, a digital service provider, invested in technology from Accedian and Cisco, alongside other performance analytics and end-user experience solution providers. This investment aims to automate Zain Kuwait's network, enhancing network visibility and service assurance.
• IDC predicts that by 2023, 60% of enterprises will have implemented AI-enabled network analytics to manage their network complexities effectively.
• As per a survey by Enterprise Management Associates, 80% of enterprises consider real-time network analytics crucial for their business operations.

Growth Factors

• The continuous proliferation of data-intensive applications, streaming services, and IoT devices is generating massive volumes of network data. This surge in data traffic fuels the demand for network analytics solutions to effectively manage, optimize, and secure networks. Cisco forecasts that global IP traffic will nearly triple from 2021 to 2026, reaching 3.3 zettabytes per year, underscoring the need for robust network analytics tools to handle this growth.
• Networks are becoming increasingly complex with the adoption of technologies such as cloud computing, SDN, and edge computing. This complexity introduces challenges in network management, monitoring, and troubleshooting. Network analytics solutions equipped with AI and machine learning capabilities help organizations gain deeper insights into their intricate network infrastructures, facilitating proactive management and rapid problem resolution.
• With the escalating frequency and sophistication of cyber threats, organizations are prioritizing network security. Network analytics plays a pivotal role in threat detection, anomaly detection, and incident response. According to the Ponemon Institute, the average cost of a data breach is $4.24 million, emphasizing the importance of investing in advanced network analytics solutions to fortify cyber defenses and safeguard sensitive data.
• Businesses increasingly require real-time visibility into network performance, user experience, and application behavior to ensure optimal operation and customer satisfaction. Network analytics solutions provide actionable insights into network activity, enabling organizations to identify and address issues promptly.
• The rollout of 5G networks promises unprecedented speed, capacity, and connectivity, driving the adoption of network analytics solutions tailored for 5G environments. These solutions enable operators to monitor and optimize 5G network performance, manage network slices, and deliver innovative services.
• Organizations across various industries are subject to stringent compliance requirements and regulatory mandates concerning data privacy, network security, and operational transparency. Network analytics solutions aid in compliance efforts by providing detailed audit trails, monitoring access controls, and detecting policy violations. The implementation of regulations such as GDPR and CCPA underscores the importance of robust network analytics solutions in ensuring regulatory compliance and mitigating legal risks.

Network Analytics Market Scope

Network Analytics Market Dynamics

Driver: Escalating volume of data traffic

The escalating volume of data traffic is a significant driver for the network analytics market. As more devices connect to networks and people consume increasingly data-intensive content like videos and games, the strain on networks grows. This surge in data traffic creates challenges for network operators in managing, optimizing, and securing their infrastructure. Network analytics solutions play a crucial role in addressing these challenges by providing insights into network performance, identifying bottlenecks, and predicting capacity requirements.

Moreover, as data traffic continues to increase, businesses and organizations are under pressure to ensure a seamless user experience and maintain operational efficiency. Network Analytics tools help them achieve this by offering real-time visibility into network activity, enabling proactive monitoring, and facilitating rapid problem resolution. Therefore, the escalating volume of data traffic not only highlights the importance of Network Analytics in managing network congestion and optimizing resource allocation but also drives the market demand for advanced solutions that can handle the growing complexity of modern networks.

Restraint: Integration challenges with existing infrastructure

Integration challenges with existing infrastructure can hinder the market demand for network analytics solutions. Many organizations have complex and heterogeneous IT environments, comprising a mix of legacy systems, proprietary technologies, and cloud-based platforms. Integrating new network analytics tools with such diverse infrastructures often proves challenging due to compatibility issues, interoperability constraints, and data silos. These integration hurdles can slow down the deployment process, increase implementation costs, and impede the seamless operation of network analytics solutions within the existing ecosystem.

Moreover, the complexity of integration processes can deter organizations from adopting network analytics solutions altogether. The need for specialized expertise and resources to navigate integration challenges adds to the perceived barriers, especially for small and medium-sized businesses with limited IT budgets and technical capabilities. As a result, integration challenges with existing infrastructure act as significant restraints on the market demand for network analytics solutions, limiting their adoption and hindering organizations from harnessing the full potential of analytics-driven insights for network management and optimization.

Opportunity: Rising demand for real-time analytics

The rising demand for real-time analytics presents significant opportunities in the network analytics market. As businesses strive to stay competitive in today's fast-paced digital landscape, the need for instant insights into network performance, security threats, and user behavior becomes paramount. Real-time analytics solutions enable organizations to monitor their networks continuously, detect anomalies or issues as they occur, and respond promptly to prevent disruptions. This capability not only enhances operational efficiency but also minimizes downtime, improves user experience, and strengthens overall network security.

Moreover, real-time analytics empower organizations to make data-driven decisions in the moment, enabling agile and proactive network management strategies. By leveraging real-time insights, businesses can optimize network resources, allocate bandwidth dynamically, and prioritize critical applications or services in response to changing demands. As a result, the rising demand for real-time analytics drives innovation in the network analytics market, leading to the development of advanced solutions that offer instantaneous visibility, actionable intelligence, and predictive capabilities to meet the evolving needs of modern enterprises.

Component Insights

The network intelligence solutions segment held the highest market share of 65% in 2023. The network intelligence solutions segment in the network analytics market refers to software and tools that provide deep insights into network performance, security, and user behaviour. These solutions utilize advanced analytics techniques, such as machine learning and AI, to analyse vast amounts of network data in real time, enabling organizations to make informed decisions and optimize their network operations effectively. Trends in this segment include the integration of AI-driven automation, enabling predictive maintenance and proactive network management. Additionally, there is a growing focus on enhancing security intelligence capabilities to detect and mitigate cyber threats in real time, reflecting the increasing importance of network security in today's digital landscape.

The services segment is anticipated to witness rapid growth at a significant CAGR of 20.22% during the projected period. In the network analytics market, the services segment typically encompasses a range of offerings provided by vendors or third-party providers to support the implementation, integration, customization, and ongoing maintenance of network analytics solutions. These services may include consulting, deployment, training, support, and managed services. One prominent trend in the services segment of the network analytics market is the increasing demand for managed services, where organizations outsource the management and operation of their network analytics infrastructure to specialized service providers. This allows businesses to leverage the expertise and resources of external partners to optimize their network performance, enhance security, and ensure regulatory compliance while focusing on their core operations.

Enterprise Size Insights

The large enterprise segment held a 61% market share in 2023. Large enterprises, typically characterized by extensive operations and significant resources, form a crucial segment in the network analytics market. They often have complex and distributed network infrastructures, driving demand for advanced analytics solutions to optimize performance, enhance security, and support digital transformation initiatives. Trends indicate increasing adoption of cloud-based analytics platforms and AI-driven insights among large enterprises to streamline network management and bolster competitive edge.

The small and medium enterprises (SMEs) segment is anticipated to witness rapid growth over the projected period. Small and medium enterprises (SMEs) typically refer to businesses with fewer than 500 employees. In the network analytics market, SMEs are increasingly adopting scalable and cost-effective solutions to monitor and optimize their networks. Trends show a growing demand for cloud-based network analytics tools tailored to SMEs' specific needs and budgets.

End-user Insights

The telecom providers segment has held a 36% market share in 2023. Telecom providers, also known as telecommunications service providers, are companies that offer communication services such as voice, data, and internet connectivity to consumers and businesses. In the network analytics market, telecom providers are increasingly adopting analytics solutions to enhance network performance, optimize resources, and improve customer experiences.

The cloud service providers segment is anticipated to witness rapid growth over the projected period. Cloud service providers are companies that offer various cloud-based services, including infrastructure, platforms, and software, to businesses and individuals over the internet. In the network analytics market, the cloud service providers segment refers to those organizations that provide network analytics solutions as part of their cloud offerings. A prominent trend in this segment is the integration of advanced analytics capabilities into cloud platforms, enabling users to gain insights into their network performance, security, and efficiency seamlessly. Additionally, cloud service providers are focusing on enhancing scalability, flexibility, and real-time analytics capabilities to meet the evolving demands of their customers for robust network management solutions.

Application Insights

The network performance management segment has held a 31% market share in 2023. Network performance management in the network analytics market refers to the practice of monitoring, analyzing, and optimizing the performance of computer networks. This segment focuses on assessing network speed, reliability, and efficiency to ensure optimal operation and user experience. Key trends in network performance management include the increasing adoption of real-time monitoring tools, the integration of AI and machine learning for predictive analytics, and the emphasis on cloud-based solutions for scalability and flexibility in managing network performance.

The quality management segment is anticipated to witness rapid growth over the projected period. In the network analytics market, quality management focuses on assessing and optimizing the performance and reliability of network services. This segment involves monitoring parameters such as latency, packet loss, and jitter to ensure that network resources meet predefined quality standards. Trends in quality management include the integration of advanced analytics techniques, such as machine learning and AI, to proactively identify and address potential issues before they impact user experience. Additionally, there is a growing emphasis on real-time analytics to provide immediate insights into network quality and facilitate prompt remediation actions.

Recent Developments

• In March 2023, IBM and Nokia forged a partnership aimed at assisting the burgeoning sector. Their collaboration seeks to empower enterprises with secure, tailored connectivity services facilitated by a highly resilient 5G cloud network.
• In November 2023, Vodafone Group Plc joined forces with Accenture to commercialize Vodafone's shared operations. This strategic alliance aims to expedite growth, elevate customer service, and generate substantial efficiencies for Vodafone's operating companies and partner markets. Additionally, it aims to create fresh career opportunities for Vodafone's workforce.
• On April 2023, Accenture entered into a partnership with Google Cloud to bolster businesses' defenses against persistent cyber threats and safeguard critical assets more effectively.
• In June 2023, Cisco introduced the Networking Cloud Platform, designed to streamline the management of networking equipment via a unified interface. This platform rollout coincides with enhancements to various Cisco products, including the ThousandEyes infrastructure monitoring service and the Catalyst portfolio.
• In November 2023, Accenture unveiled a network of generative AI studios in North America. These studios serve as hubs where companies can explore opportunities to optimize and transform their businesses responsibly through the adoption of generative AI applications.

Network Analytics Market Companies

• Cisco Systems
• Nokia Corporation
• Oracle Corporation
• IBM Corporation
• Accenture
• Google LLC
• Huawei Technologies Co., Ltd.
• Hewlett Packard Enterprise Development LP
• SAS Institute Inc.
• Juniper Networks, Inc.
• Splunk Inc.
• Extreme Networks, Inc.
• Nokia Solutions and Networks
• Broadcom Inc.
• Ericsson AB

Segments Covered in the Report

By Component

• Network Intelligence Solutions
• Services
  • Professional Services
  • Managed Service

By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By End-user

• Cloud Service Providers
• Managed Service Providers
• Telecom Providers
• Others

By Application

• Customer Analysis
• Risk Management
• Fault Detection
• Network Performance Management
• Quality Management
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa