Network Traffic Analytics Market Size, Share & Trends Analysis Report By Component (Solution, Service), By Deployment Type (On-premises, Cloud), By Organization Size (Small and Medium-sized Enterprises, Large Enterprises), By End-User (Service Providers, Enterprises, Data Centre) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global network traffic analytics market size was valued at USD 9.02 billion in 2022. It is estimated to reach USD 35.19 billion by 2031, growing at a CAGR of 16.33% during the forecast period (2023–2031).

Network traffic analytics involves recording network traffic and then analyzing that traffic data. This gives the analyst visibility into what is happening on the network that is the subject of the inquiry. Since when the inception of the Internet, companies have been collecting statistics on network traffic, typically to enhance both their bandwidth and overall performance. This behavior has existed as long as there has been the Internet to link individuals. More sophisticated technologies are now available than ever for analyzing network data.

These technologies help companies better understand the activities on their networks and monitor network traffic to protect such networks more effectively. The aggregated packet data collected from several sensors clearly shows what's happening in real time across the network. This data was gathered to provide the user with an accurate portrayal of what is happening. Network traffic analytics solutions look at traffic movement, and the data obtained from this analysis is then used to create a baseline for traffic trends. These solutions employ machine learning and more sophisticated analytics to recognize potentially problematic initiatives and alert the IT staff in advance.

Highlights

• Solution dominates the component segment.
• On-premises dominate the deployment type segment.
• Large enterprises dominate the organization size segment.
• North America is the highest shareholder in the global market.

Market Dynamics

Global Network Traffic Analytics Market Drivers

Increasing Need for Real-Time Network Data Analysis

Huge amounts of new material are uploaded to the internet every single day. Along with firm information, this data includes pictures and videos streamed on similar platforms like Instagram and YouTube. The demand for real-time network data analysis is rising significantly due to social media platforms like Facebook, Instagram, Twitter, and Snapchat becoming increasingly popular globally.

Additionally, the necessity to protect users' personally identifiable information is expanding as more individuals utilize the Internet and other social media platforms. The widespread usage of the internet is what is driving this need. As a result, more companies are implementing network traffic analytics tools. These technologies keep constant network visibility and safeguard data from attacks that could be harmful to the network. This has led to a rise in companies installing these systems, which is projected to cause the market's current size to grow directly.

Growing Adoption of Advanced Technologies

Many IT professionals and enterprises have used network traffic analytics techniques to control and optimize their network bandwidth utilization and network performance. However, data traffic is skyrocketing as more and more businesses embrace IoT, AI, cloud computing, and wider access to the Internet. Additionally, due to the widespread adoption of these cutting-edge technologies, enterprise infrastructure is becoming digital, which in turn causes an increase in cybercrimes and makes it possible for hackers to steal crucial data.

Furthermore, the increase in the use of social networking sites like Instagram, Facebook, Twitter, Snapchat, and others has also aided in the commission of criminal acts and made it possible for hackers to steal sensitive personal data from unprotected users. Organizations are using network traffic analytics solutions to handle large amounts of data and stop data theft, which is rising as more modern technologies are adopted.

Global Network Traffic Analytics Market Restraint

Accessibility to Free Network Traffic Analysis Tools

A range of subscription and service charges are associated with traffic analytics products, even though many service providers offer tools for analyzing network traffic. As a result, many companies are concentrating their efforts on implementing free network traffic analytics tools. Additionally, a significant number of small and medium-sized firms are confined financially, which is why most SMEs are turning to solutions for network traffic analytics that are freely available to them. As a direct consequence, the development of the market for network traffic analytics is being hampered by the factors mentioned earlier. However, employing these publicly available network traffic analytics tools can be risky because they do not involve post-installation services, upgrades, or additional security layers. It may result in extra instances of theft or loss of data, restraining market growth.

Global Network Traffic Analytics Market Opportunities

Advent of 5G Technology

Several nations in Europe and North America are now testing the fifth-generation mobile networking technology, 5G. These nations are dispersed around the continent. The amount of bandwidth generated by the Internet of Things is anticipated to grow significantly with the rollout of 5G. Another prediction based on assumptions about the future is that users of mobile devices like smartphones will be able to navigate internet services much faster due to an anticipated rise in the speed at which data can be sent. Additionally, it will further reduce the total latency to a greater extent, enabling uninterrupted video and other material streaming. This is because there will be a decrease in overall latency. As a direct result of the factors mentioned above, the industry will soon face major opportunities for expansion in the not-too-distant future.

Regional Analysis

Based on region, the global network traffic analytics market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant global network traffic analytics market shareholder and is estimated to exhibit a CAGR of 14.3% over the forecast period. In this study of North America's global network traffic analytics market, the United States and Canada are potential geographic areas. The market for network traffic analytics in North America was the most lucrative in the world in 2022. This area is anticipated to remain the most attractive market for network traffic analytics over the forecast period. The presence of significant market participants like Microsoft, IBM, and Cisco and a rise in client adoption of network traffic analytics solutions are the key drivers behind the market's expansion in this particular industry. The overall number of users of the service has increased as well. Additionally, many companies with operations in North America are currently forming strategic alliances with one another to diversify the range of goods and services they offer to the customers who make up each of their respective markets.

Asia-Pacific is anticipated to exhibit a CAGR of 22.8% over the forecast period. The expansion in the Asia-Pacific region can be ascribed to increased network traffic analytics solutions adoption by business clients in nations with rapidly expanding economies like China, Australia, and India. The region's use of this technology will also be boosted by the surge in security assaults, including viruses, malware, and denial of service (DoS) via enterprise networks. This region's primary driver of market expansion is the steadily rising use of smartphones and the Internet.

Furthermore, encouraging individuals to embrace modern technologies like linked gadgets, the Internet of Things (IoT), and cloud computing is the rise in general disposable income of people in Asian nations like China, Japan, and India. For instance, a survey found that over 70% of businesses in the Asia-Pacific area plan to use cloud computing in the coming years, resulting in a huge increase in cloud traffic. The demand for traffic analytics solutions in this region is also driven by the rise in cyber-attacks and the requirement among enterprises to prevent their company information from being compromised.

The European market analysis for network traffic analytics covers the UK, Germany, France, Italy, and the rest of Europe. Early acceptance of these solutions and the large presence of the top market competitors are two of the main factors in the growth of the European region. Major telecom companies like Telefonica S.A., Vodafone, and others are anticipated to fuel the expansion of this region's network traffic analytics market. Additionally, the implementation of legislative standards for data privacy, such as the General Data Privacy Regulation (GDPR), is boosting this region's market share. The market expansion in this area is also projected to be fueled by enterprises' increased concerns about data breaches.

Latin America, the Middle East, and Africa are all included in the analysis of the global network traffic analytics market in LAMEA. A growing need for in-depth knowledge of network security and service quality and the quickly growing network infrastructure are driving the market's expansion. Latin America's mobile market is expanding quickly due to new technology development, applications, and services. It is also projected that mobile carriers will contribute to the Internet of Things (IoT) and the necessary infrastructure, increasing demand for network traffic analytics solutions in this region.

Segmental Analysis

The global network traffic analytic market is bifurcated into component, deployment type, organization size, and end-user.

Based on the component, the global network traffic analytics market is bifurcated into solutions and services.

The solution segment dominates the global market and is projected to exhibit a CAGR of 16.8% over the forecast period. The market solutions for network traffic analytics include software, servers, cloud, sensors, and storage solutions. Demand for network traffic analytics solutions is primarily driven by increased network administrators desiring to collect data on network traffic. Additionally, increasing the number of businesses necessitates a tool to scan and analyze vital business information streaming through their business networks. The demand for organizations to identify, evaluate, and process security hazards is the primary factor driving the demand for network traffic analysis solutions. These variables are anticipated to increase demand for network traffic analytics solutions.

Based on deployment type, the global network traffic analytics market is segmented into on-premises and cloud. 

The on-premises segment dominates the global market and is predicted to exhibit a CAGR of 15.1% during the forecast period. "On-premises deployment" refers to installing or integrating those technologies or solutions at the location where the business or individual conducts its operations instead of deploying those technologies or solutions at a remote site. Due to their strong desire to safeguard the privacy of their data, large enterprises are more likely to employ network traffic analytics solutions on-premises than in the cloud. A high-end networking and information technology (IT) infrastructure is also required for an on-premises installation, along with a dedicated staff of information technology professionals for support and maintenance. Furthermore, it allows for improved control over the system and the data that is being saved. These factors have a positive impact on the market, increasing the degree of demand for on-premises network traffic analytics systems.

Based on organization size, the global network traffic analytics market is bifurcated into small and medium-sized enterprises and large enterprises.

The large enterprise segment owns the highest market share and is predicted to exhibit a CAGR of 13.84% over the forecast period. In the market for network traffic analytics, decisions are made with large organizations in mind. A "large company" has at least 250 people and frequently significantly more. Multinational corporations increasingly turn to machine learning (ML), behavioral analytics, and artificial intelligence (AI) to improve their operations and boost their financial performance. This is done to improve their commercial performance.

Additionally, the solutions for network traffic analytics can recognize harmful acts thanks to the application of behavioral analytics and machine learning. This makes it possible for these solutions to identify potential environmental threats. These factors are expected to increase the demand for systems that analyze network traffic, especially among the biggest companies. In addition, large corporations frequently devote a sizeable portion of their financial resources to enhancing the efficiency of their internal business processes and the security of their data. This is because large companies frequently house their servers and other crucial resources inside the walls of their network.

Based on end-user, the global network traffic analytics market is divided into service providers, enterprises, and data centers.

The enterprise segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 15.2% over the forecast period. When discussing the market for network traffic analytics, the term "enterprise" can apply to a range of business sizes, including major corporations, small businesses, and medium organizations. These businesses can integrate network traffic analytics technology into their current enterprise architecture. Companies that use network traffic analytics can acquire a thorough understanding of market behavior and costs, which can be of significant use to these organizations while competing in global markets and trying to reclaim their advantage over other businesses in their industry.

Additionally, a network traffic analytics solution assists businesses in acquiring and analyzing the data transmitted through their networks. This allows businesses to identify issues with how their networks are operating and potential security risks. Network management becomes increasingly crucial for a hybrid data center built on several cloud services.

Recent Developments

• September 2022- AlphaSOC Inc., a security analytics company, introduced its AlphaSOC Analytics Engine (AE) solution, a cloud native NTA product that identifies the compromised workloads across Google Cloud Platform, Microsoft Azure, and Amazon Web Services.
• April 2022- Palo Alto Networks launched Okyo Garde Enterprise Edition, designed to provide lateral migration by isolating the company network from the employee's network at home. It would also protect unmanaged work equipment at home, such as hardware prototypes, printers, and VoIP phones.