Network as a Service Market Is Forecast to Reach $185 Billion

Network as a Service (NaaS) is forecast to expand from $14 billion in 2024 to $185 billion by 2033, according to IMARC Group, implying a compound annual growth rate (CAGR) of 25.5% from 2025 to 2033. The forecast is based on cloud migration, software-defined networking and demand for scalable networking without large upfront hardware investment.

What is the NaaS market forecast to 2033?

NaaS is forecast to reach $185 billion by 2033 from a $14 billion market in 2024. IMARC Group’s 25.5% CAGR estimate covers 2025 to 2033 and describes a model in which organisations obtain network infrastructure, management and security on demand instead of owning all physical networking equipment.

The NaaS forecast CAGR of 25.5% exceeds the 8.35% CAGR projected for the wider global IT services market between 2026 and 2033. The global IT services market is estimated at $1,500 billion in 2025E and projected to reach $1,850 billion by 2033, while NaaS is a defined networking segment within the broader technology-services landscape.

The forecast depends on companies continuing to move workloads and operations towards cloud-based infrastructure. Traditional hardware networks require capital expenditure, meaning upfront spending on physical infrastructure, as well as maintenance and upgrades; NaaS allows users to increase or reduce network resources as requirements change.

Why are cloud migration and SDN supporting NaaS growth?

Cloud migration and software-defined networking (SDN) support NaaS growth because they make network capacity configurable through software rather than solely through dedicated hardware. SDN separates the control plane, which directs network traffic, from the data plane, which carries that traffic, enabling centralised control and automated network configuration.

The source identifies real-time data processing and seamless communication across industries as further demand factors in the $14 billion 2024 market. Companies using cloud services and distributed systems need connectivity between data centres, branch offices and remote employees, and NaaS can provide virtual private networks, bandwidth management and software-defined wide area networks through cloud platforms.

Network automation is another mechanism supporting the forecast. Automated management tools can identify network issues, optimise traffic flow and address performance bottlenecks in real time without manual input, while IMARC Group projects the related global network automation market to reach $103.6 billion by 2033.

Which regions and customer segments lead NaaS demand?

North America was the largest regional concentration in NaaS, accounting for more than 41.4% of the global market in 2024. IMARC Group links United States demand to business digital transformation, cloud adoption and the need to support distributed systems with scalable connectivity.

The United States also has an internet of things (IoT) demand driver. IoT refers to connected devices including sensors, wearables, smart-home products and industrial equipment; IMARC Group forecasts the United States IoT integration market to grow at a 27% CAGR from 2024 to 2032, increasing the traffic volumes and connectivity complexity that networks must handle.

By end-use industry, IT and telecom was the largest NaaS segment, with a 25.8% share in 2024. These customers require high-speed, stable networks for large data transfers, global connectivity and telecommunications infrastructure, which historically involved spending on routers, switches, cables, maintenance and upgrades.

Healthcare illustrates the flexibility requirement identified by the source. In the United States, 75% of healthcare providers and payers increased IT investment, while 65% of payers cited legacy technology as a major challenge; 15% of providers and 25% of payers had adopted artificial intelligence strategies that can require network capacity and configurations to change quickly.

What NaaS categories hold the largest market shares?

Wide area network as a service (WAN-as-a-Service) was the largest NaaS type, holding 66.2% of the market in 2024. A wide area network connects locations across wider geographies, including data centres, branch offices and cloud environments, and the source links WAN-as-a-Service demand to secure, high-performance connectivity without comparable upfront infrastructure investment.

Cloud-based services were the largest application category, with a 23.9% share of the 2024 NaaS market. This category includes cloud-delivered networking functions such as virtual private networks and bandwidth management, allowing capacity to be adjusted as workloads and user demand fluctuate.

Cost structure is a further adoption factor cited by IMARC Group. Industry reports referenced by the source indicate that NaaS can reduce total cost of ownership (TCO) by 30% to 50% compared with traditional capital-expenditure-based network models; TCO includes initial infrastructure, maintenance, upgrades and management costs.

The stated TCO range is not a guaranteed outcome for every customer. It depends on the service model replacing enough owned infrastructure, management work and excess network provisioning for usage-based spending to differ from a conventional hardware-led network model.

Conclusion

The $185 billion NaaS forecast for 2033 reflects a shift in how organisations obtain and operate connectivity: cloud-delivered, programmable and scalable services are replacing portions of capital-intensive hardware ownership. The 25.5% forecast CAGR, compared with 8.35% for global IT services, and the 66.2% WAN-as-a-Service share show both the expected pace of expansion and the current concentration of demand.

What to watch next is whether providers can translate investment in SDN, automation and security into services that meet changing enterprise workloads. IMARC Group identifies research and development, strategic partnerships, global expansion, green networking and data-centre optimisation as disclosed industry plans; Broadcom and Telia expanded their partnership in 2024 to modernise telco and cloud infrastructure and develop NaaS offerings across the Nordics and Baltics.