Network Management System Market Size, Share & Trends Analysis Report By Component (Platform, Solutions, Services), By Solution (Network Performance & Monitoring, Cloud Monitoring, Virtual Monitoring, SDN Monitoring, Network Configuration, Log and Event Management, Others), By Service (Consulting Services, Integration and Deployment Services, Training, Support, and Maintenance Services), By Deployment Type (On-premises, Cloud), By Organization Size (Large Enterprises, SMEs), By End User (Service Providers, Verticals), By Service Provider (Telecom Service Providers (TSPs), Cloud Service Providers (CSPs), Managed Service Providers (MSPs), Others (ISPs and cable operators)), By Verticals (BFSI, IT and Telecom, Government, Manufacturing, Healthcare, Retail, Transportation & Logistics, Others (education and hospitality)) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

A Network Management System (NMS) is a set of applications that allows network engineers to manage components inside a complex framework. It identifies, monitors, updates, and troubleshoots wired as well as wireless network devices and displays the data collected, which allows engineers to make changes as required.

NMS primarily manages five functional areas, namely:

Fault Management

At the fault management level, network problems are identified and then corrected. Steps are taken to analyze the root cause so that the problem does not re-occur in the future. The network is still operating, and the outage is minimized.

Configuration Management

The configuration level deals with the monitoring and control of the network. Programming changes are made, including addition, modification, upgradation, and deletion of programs and systems.

Performance Management

At the performance management level, the overall performance of the network is managed. Repetitive problems are identified, and effort is made to determine which improvements will yield the greatest overall performance enhancement.

Security Management

At the security management level, the aim is to protect the network from hackers, unauthorized users, and physical or electronic breaches. The data is maintained as confidential. Security systems allow network administrators to control what each individual authorized user can do with the system by giving permissions to files and folders.

Accounting Management

The accounting management level is also known as the allocation level. It is designed to distribute resources optimally among network subscribers and is also responsible for ensuring appropriate billing for each user; thereby minimizing the cost of operation.

Thus, an NMS can be used to monitor both the software and the hardware components in a network. It records data from a network's remote points and sends it to a system administrator. The key benefit of a network management system is that it allows users to monitor and manage entire business operations using a central computer.

Market Dynamics

Data Centers Demand Advanced Technologies

The advancements in technology, increase in implementation of Network Management Systems by data centers, and increasing network security breaches are the primary drivers of the Network Management System market. The growing demand for high-quality performance in all industry verticals is expected to propel market growth during the forecast period. Network Management Systems enhance performance and reduce downtime risks. Big companies in the market are adopting this new technique to manage a large-scale high-complexity network to meet challenging business needs. An NMS’ ability to control entire business operations from a central computer eliminates the need to travel to different locations to check the status of the system and, hence, saves significantly on time. Since only one system is managing the entire framework, it also cuts down hiring expenditures and increases productivity.

Complex Installation Serves as a Drawback

A Network Management System has to manage the entire business and, therefore, requires to be installed correctly. The complex circuitry can be time-taking to install and requires highly skilled professionals to complete the task. The lack of available resources or professional technicians to install the complex setup is a major drawback.

Shift from Traditional Methodologies to Cloud Services

The increase in the adoption of cloud-based services by Small and Medium Enterprises (SMEs) and the penetration of IoT devices are projected to create immense opportunities for the Network Management Systems market. As they reduce the overall infrastructure cost and allow easy access to data, demand by enterprises, for such systems, increases. The security management functionality, out of the multiple advantages of Network Management Systems, is expected to offer multiple opportunities for market growth due to the increasing number of data breaches, hacks, and other online threats.

Poor Performance Threatens the Market

The number of functionalities to be handled by the network creates pressure on the network and may cause the network to suffer or shut down completely, leading to poor performance of the network. The systems, therefore, are prone to security threats and cyber-attacks. Surveys in recent years have shown that more than 60% of IT budgets are allocated to maintain the existing service levels. Some federal government agencies are also spending more than 90% of their budgets to maintain such systems in their businesses.

Regional Analysis

North America Emerges as the Leading Market Player

North America is currently leading the Network Management Systems market due to the advent of 5G infrastructure, increased rate of adoption of advanced technologies, and the emergence of new businesses and data centers. This has significantly attributed to North America’s overall market share and results in North America continuing to dominate the market during the coming years.

Asia-Pacific to Portray Promising Growth Rate

Growing infrastructure, rapid digitalization, and industrialization in Asia-Pacific are expected to propel market growth in the near future. Developing countries such as India, China, and Japan are launching 5G, which is poised to pave the way for the adoption of Network Management Systems solutions. The IT and Telecom industry of India is growing at a rapid rate, thereby creating a significant requirement for NMS services by companies. Other major segments rapidly emerging in Asia-Pacific are media and BSFI, which are projected to create opportunities for the market.

Segmental Analysis

On-Premise Solutions Contribute Significantly to Revenue

The solutions segment represented approximately 70% of the overall market revenue in 2018. This is attributed to the increase in the adoption of NMS solutions by multinational companies. Standalone platforms and a customized interface are also expected to propel market growth. The increasing incidents of security breaches and cyber-attacks are creating demand for a secure network solution that is also user-friendly.

Small scale enterprises are opting for on-premise deployments rather than cloud-based ones due to the ability of on-premise solutions to reduce the turnaround time and provide support in case of failures, which is anticipated to propel market growth. However, the demand for cloud-based solutions and the Software as a Service (SaaS) model, has grown considerably over the past few years as they offer a reduction in overall infrastructure costs, rapid deployment of solutions, and easy accessibility. Therefore, the cloud-based deployment segment is expected to show significant growth in the years to come.

NMS Application Sectors

The leading industry verticals, IT, and telecom sectors have adopted numerous network management solutions to enhance their productivity. An increasing number of online users and a significant rise in data traffic have demanded companies to shift to a sophisticated approach to handle business processes. Small and Medium Enterprises are likely to register a noteworthy growth rate.

Network Management Systems solutions have enabled service providers to allow customer engagement in activities and improve their experience. The healthcare industry is also showing a high rate of interest in adopting Network Management Systems solutions to deliver effective services. Government initiatives in funding advanced technological developments and regulations related to privacy and security, such as Health Information Technology for Economic and Clinical Health (HITECH) has completely aligned with the growth of the segment. Other sectors such as Banking, Financial Services, and Insurance verticals (BFSI) and travel and tourism also offer tremendous opportunities for market growth due to expansion in the industry infrastructure and abundance of data that requires to be managed.

Emphasis on enhancing product portfolios and strengthening the overall customer base by introducing innovative management systems compatible with 5G standards. Nokia Corp. introduced Net Act Cloud network management option for the upcoming 5G technology, which enables the implementation of new features rapidly and at lower costs without having to upgrade the entire network system

Emphasis on services provided to end-users such as consultation, implementation services, post-deployment services, as well as training support and maintenance services to gain user trust and expand global reach

Investments in SMEs further facilitate the growth of on-premise and cloud-based solutions in line with the rising popularity of SDN to streamline business processes and enhance business performance

Collaborations and partnership strategy with various e-health projects, which are aimed at connecting hospitals and mobile healthcare units, ensure efficient and easy-to-access services for people

Impact of covid-19

Various vendors in the market have used the pandemic situation to offer their solutions to the healthcare industry users to expand their positions in the market. For instance, in October 2020, Medialogix started working with the Royal Preston Hospital to reduce patient contact while still delivering media imagery across all departments. The company's focus is to be the leader in offering DAM solutions in law enforcement and healthcare.

Similarly, in October 2020, FotoWare's DAM software was used to increase the impact of infection control measures without compromising patient care and safety at Royal Preston Hospital. Such trends were observed worldwide, where DAM solutions were used to tackle the pandemic effectively.

During the pandemic, the closing of businesses induced by the lockdown had led to a significant slump in the market; however, digital consumption businesses are shifting to digital-first strategies, owing to which the demand for DAM solutions is expected to have a positive outlook.

Recent Developments

BNP Paribas, a leading European bank, is working with IBM to launch the new digital and AI customer services on the cloud, which secures and maintains the confidentiality of user data. Similarly, telecom leader Vodafone is partnering with IBM to innovate the way it delivers multi-cloud and digital capabilities

IBM Services are creating cloud-enabled solutions with its clients, using design thinking and agile methods, which enables the clients to implement new ways of working, such as rapid prototyping and iteration to move technology projects from pilot to production more quickly, at scale

KMD is the largest technology company in Denmark, which is dedicated to providing the latest technologies to its clients. The company is using IBM Services to provide a critical foundation of servers, networks and other technologies that help it handle large volumes of data with high levels of security

Agile 3 Solutions is a software used by C-Suite to visualize better, understand and manage risks associated with the protection of sensitive data and adds capabilities to the network security portfolio

• In 2019, as a result of the industry shift, Oracle Corporation launched a new solution, Oracle banking API’s, which helps the bank to deliver partner solutions along with banking services
• Oracle has also announced the release of new corporate banking engagement solutions, Oracle banking credit facilities process management, lending process management, and oracle banking trade finance process management. These solutions are designed to help banks digitalize the entire product lifecycle for corporates