Network Configuration and Change Management Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment (Cloud, On-Premises), By Organization Size (Large Enterprise, Small and Medium Enterprise), By Vertical (BFSI, IT and Telecommunication, Manufacturing, Retail, Government) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global network configuration and change management market size was valued at USD 1,633.0 million in 2022. It is expected to reach USD 3,517.52 million by 2031, growing at a CAGR of 8.9% during the forecast period (2023–2031).

Highlights

• The software segment is the highest contributor to the market by component.
• The cloud segment is the highest contributor to the market by deployment. 
• The large enterprise segment is the highest contributor to the market by organization size.
• The IT and telecommunication segment is the highest contributor to the market by vertical.
• North America is the most significant revenue contributor by region.

Network configuration management is gathering and archiving information about every computer network component. The administrator consults the network configuration control database to determine the best action when a network needs upkeep, modification, extension, or updating. A crucial part of network configuration management is its ability to take over a network system's roles in the event of failure. It is impossible to locate configuration information when a specific device needs to be changed because different network systems save configurations in various formats.

Market Dynamics

Global network configuration and change management market drivers

Rising internet automation

Network automation uses software to simplify network and security procurement and maintenance to increase network reliability and functionality. In addition to network virtualization, network automation is also used. The process of automating the deployment, testing, management, configuration, and operation of physical and virtual network systems is known as network automation. As daily network operations and activities are streamlined, manual procedures are monitored and handled automatically, and network service availability rises. Manual network configuration may result in mistakes, incorrect configurations, and network instability, making it challenging to deliver the high level of service necessary for digital business operations.

The need for manual network management procedures, such as logging into routers, switches, load balancers, and firewalls to change settings before logging out, is eliminated by network automation. Demand for network configuration and change management (NCCM) solutions has increased due to the growing importance of increased IT automation, both centrally and remotely managed. Thus, it is anticipated that the increasing demand for network automation will propel the growth of the global network configuration and change management market during the forecast period.

Low initial capital costs and lower overall ownership costs

By properly aligning strategies, NCCM solutions are efficient simulation techniques that have been shown to achieve significant capital expense savings and service quality improvements. Through excellent efficiency and various cost-cutting methods, these solutions quickly produce substantial cost savings and lower line operating costs. Additionally, NCCM helps businesses cut capital expenses throughout a project in the short, medium, and long terms. The sum of all costs incurred at the asset level from the time it is produced until it is disposed of at the end of its life cycle constitutes what is known as the total cost of ownership. NCCM reduces the expense of operation and maintenance. By concentrating on waste reduction and encouraging growth within their target operational model, organizations implementing NCCM achieve significant cost savings and set themselves up for a prosperous future. Thus, the global network configuration and change management market is anticipated to grow during the forecast period due to the low total cost of ownership and low capital expenditure.

Global network configuration and change management market restraints

Restriction among entrepreneurs

As market leaders demand that the network become more scalable, responsive, and stable, businesses are going through accelerated digital transitions. Organizations' structures are changing due to the new service's increasing fragmentation, sophistication, and several services and embedded devices. However, rather than being driven by a conceptual vision, change strategies are frequently imposed in response to legislative reforms. While dealing with complex technology that is no longer functional, many organizations can only make changes once convinced that the alternative is vastly superior. Studying an organization's industry and IT alignment should be the first step for any organization considering a reform initiative. This guarantees that it has accurately determined the service levels required for the primary operational processes that IT funds and fully understand these service levels' cost, efficiency, and availability implications. Thus, it is anticipated that the global network configuration and change management market will experience some growth restraints during the forecast period due to enterprises' hesitation to adopt NCCM solutions.

Global network configuration and change management market opportunities

New capabilities drive independent business solutions

Businesses must increase product and service competition to compete globally. They need fast, affordable innovation. In recent years, demand has grown. A clear understanding of the company's direction allows it to recognize and develop strategies for the role of innovation in promoting sustainable growth, as well as the kind of innovation it should promote and the path it should take to advance. Emerging technologies have changed workplace practices, business models, and consumer experiences during this decade of rapid digital change. Many businesses are considering technological investments to meet market goals and seize innovative, organizational, and competitive opportunities. They want to boost employee productivity and company agility. Technology helps them enter new markets, innovate products and services, form strong customer relationships, recruit and retain talent, and scale up or down as needed. More people are using user-friendly technologies, which boosts business productivity. Product and service innovation is essential, even though business model innovation can give a firm a longer-term competitive edge.

Regional Analysis

The global network configuration and change management market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America.

North america dominates the global market

North America is the most significant revenue contributor and is expected to grow at a CAGR of 7.8% during the forecast period. Since there is a greater need for network-based applications and network automation in North America, the market is most likely to be the largest. The NCCM assists by retrieving the configuration settings and restoring the devices to the working state in case of a power outage, server failure, or any other catastrophic event. The region has many networking devices that need to be operating efficiently. Canada is anticipated to experience the highest growth rate in the coming years, while the U.S. dominates the regional market.

Europe is expected to grow at a CAGR of 10.10% during the forecast period. Regarding market share for network configuration and change management, Europe is anticipated to hold a 25.6% share. The demand for network-based applications and network devices has grown due to significant digitization, an increase in business expansions, and an increase in small and large enterprises. The NCCM software has begun to be adopted by industries and the IT Sector to make these devices function in ordinary circumstances. The U.K., Germany, the rest of Europe, France, Spain, Italy, and Russia comprise the European market's different segments.

Asia-Pacific is anticipated to grow by 14.4% in network configuration and change management market share. The region has seen significant Internet penetration and applications increase in recent years. Several industries and the IT sector in the area are adopting NCCM solutions to make network reconfiguration hassle-free and simple. This will make the network up and ring in case of faulty network problems or outage events. Asia-Pacific has a high adoption rate, so this region is predicted to have a high demand.

The market in the Middle East and Africa is anticipated to increase in the coming years with the development of network-based applications and network automation in Middle Eastern and African nations. GCC nations, South Africa, Israel, and Turkey, are among the countries. The South American market is expanding due to the rising awareness of networking, its uses, and the software used to manage them. The market is also being significantly impacted by investments made by various players in other regions. Argentina and Brazil's rising per capita disposable income also expanded the market during the anticipated period.

Segmental Analysis

The global network configuration and change management market is segmented by component, deployment, organization size, and vertical.

Based on components, the global market is bifurcated into software and services.

The software segment is the highest contributor to the market and is expected to grow at a CAGR of 8.4% during the forecast period. One of the products available in the market for network configuration and change management is software. The software segment includes several tools that can be used to configure role-based access, backup devices, compare configurations, monitor user activity, and quickly restore devices to reliable configuration versions. These tools can help manage the entire network workflow. Roles can be created, and users can be assigned to them using the Network Admin user interface.

By locating and fixing security flaws before they cause a network outage, the segment's network configuration and change management services are improving network security. Additionally, it increases network uptime and stability by automatically identifying the proper configurations, avoiding misconfiguration, and avoiding the need for recalibration in the event of a network failure.

Based on deployment, the global market is bifurcated into cloud and on-premises.

The cloud segment is the highest contributor to the market and is expected to grow at a CAGR of 9.6% during the forecast period. Solutions for cloud deployment are frequently cost-effective and adaptable to changing requirements and needs. Cloud deployments serve as a better and more real-time mode of effective data management through flexible computing resources, real-time access to online data, and ad hoc resource deployment for better performance. Cloud services make hiring an on-premises analytics team unnecessary by making data models, uploads, application servers, cutting-edge tools, and analytics readily available.

On-premises deployments are created and maintained internally by the business. Only a small number of enterprise companies still provide on-premises NCCM solution deployments. The fact that on-premises deployment requires physical infrastructure, human expertise, and significant time and financial investment has given cloud deployment an advantage over on-premises over the years.

Based on organization size, the global market is bifurcated into large enterprises and small and medium enterprises.

The large enterprise segment is the highest contributor to the market and is expected to grow at a CAGR of 8% during the forecast period. According to sr analysis, large enterprises are defined as business units with over 1000 employees. Due to their extensive network infrastructure, large corporations adopt NCCM solutions much faster than SMEs. Large businesses have acknowledged the significance of NCCM technology. They have taken advantage of its advantages to improve network management, increase productivity, deliver better business results, and ultimately increase profitability.

Companies classified as SMEs typically have fewer than 1,000 employees. During the study's forecasted period, SMEs are anticipated to adopt NCCM solutions at a higher rate. SMEs can adopt network automation standards while making it secure and reliable and saving time and costs of manual configuration and manual management of the network after observing how larger enterprises effectively enable NCCM solutions for better business efficiency.

Based on vertical, the global market is bifurcated into BFSI, IT and telecommunication, manufacturing, retail, and government.

The IT and telecommunication segment is the highest contributor to the market and is expected to grow at a CAGR of 9.5% during the forecast period. Rapid technological advancements, rising investments in AI technology, the rollout of 5G networks, and increasing cloud infrastructure are key drivers of market growth in the IT and telecommunications sector. The final technologies revolve around a secure network and reliable network. The NCCM solution is a crucial component of the industry. In the event of security attacks and network failure, it helps manage and automate network configurations and saves time compared to manual methods.

Commercial banks, insurance firms, cooperatives, mutual funds, non-banking financial institutions, pension funds, and other smaller financial organizations are all included in banking, financial services, and insurance (BFSI). Financial institutions in the BFSI sector need thorough and accurate information to make wise decisions and provide their clients with profitable products. Major banking players have implemented NCCM in the banking system to achieve optimal uptime and improved security because banking networks are regarded as critical networks and cannot afford to be attacked or go down.

Recent Developments

• December 2022- The U.S.-based provider of IT modernization and digital transformation services, Octo, which served only the federal government of the United States, including defense, health, and civilian agencies, announced an agreement to be acquired by IBM. The federal government now has one of the biggest digital transformation partners thanks to IBM's acquisition of Octo. The roughly 1,500 employees of Octo will join IBM Consulting's public and federal market division after the acquisition is finalized.
• December 2022- The world's largest highly scalable and distributed nationwide cloud native converged core gateway was made public by T-Mobile in partnership with Cisco. The Un-carrier switched all of its 4G and 5G traffic to the new cloud-native core gateway, which improved customer speed and latency by more than 10%. It's comparable to removing walls (or other obstacles) to transform two townhouses into sizable mansions, which would then be outfitted with cutting-edge technology.