Network Management Systems (NMS) Market Research Report: By Deployment Model (Cloud-based, On-premises), By Enterprise Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), By Application (Network Monitoring, Network Configuration, Network Security, Network Performance Management), By Industry Vertical (Telecommunications, IT and Software, Banking and Financial Services, Healthcare, Manufacturing) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032.

Network Management Systems (NMS) Market Overview

As per MRFR analysis, the Network Management Systems NMS Market Size was estimated at 54.83 (USD Billion) in 2022.The Network Management Systems NMS Market Industry is expected to grow from 58.55(USD Billion) in 2023 to 105.57 (USD Billion) by 2032. The Network Management Systems NMS Market CAGR (growth rate) is expected to be around 6.77% during the forecast period (2024 - 2032).

Key Network Management Systems (NMS) Market Trends Highlighted

The key market drivers for NMS are the spread of IoT devices, cloud uptake and the need for automated and efficient network management. Organizations increasingly use NMS to ensure that their large network infrastructure is properly managed, oversee its performance, and guarantee availability.

The possibilities for growth in the NMS market are within artificial intelligence (AI) and machine learning (ML), which can enhance network monitoring and automation capabilities. Additionally, NMS vendors are also currently looking at ways of integrating NMS with security solutions to provide comprehensive network management and security.

Recent developments in the NMS market include increased usage of cloud-based NMS solutions, integration of NMS with DevOps tools, and growth of network analytics. On the one hand, cloud-based NMS solutions offer flexibility, scalability, and cost-effectiveness, while on the other hand, they enable faster, more effective networking management by integrating it with DevOps tools. Network analytics gives a clear picture of how networks are performing in order for organizations to identify bottlenecks that they can then optimize accordingly.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Network Management Systems NMS Market Drivers

Increased Network Complexity and Heterogeneity

The complexity of networks and their heterogeneity has been a major driver of the NMS Market Industry. When businesses take up more services and applications from the cloud and when they extend their networks to more devices, efficient network management is becoming increasingly necessary. Network Management Systems (NMS) enable companies to centrally monitor and govern their networks so that they run effectively and securely.

A shift towards a multi-vendor or hybrid environment has introduced complexities in managing disparate networking products, which has necessitated the adoption of Network Management Systems (NMSs).

Rising Demand for Network Automation

The rising demand for network automation is another key driver of the Network Management Systems NMS Market Industry. As networks become more complex and heterogeneous, the need for automation becomes increasingly important. Network automation can help organizations improve the efficiency and accuracy of their network management tasks, and it can also free up IT staff to focus on more strategic initiatives. NMS solutions that offer robust automation capabilities are becoming increasingly popular as organizations look to streamline their network management operations.

Growing Adoption of Cloud-Based NMS

The growing adoption of cloud-based NMS is another key driver of the Network Management Systems NMS Market Industry. Cloud-based NMS solutions offer a number of advantages over traditional on-premises solutions, including reduced costs, increased flexibility, and improved scalability. Cloud-based NMS solutions are also easier to deploy and manage, which makes them a more attractive option for organizations of all sizes.

Network Management Systems (NMS) Market Segment Insights

Network Management Systems Market Deployment Model Insights

There are two main deployment models in the Network Management Systems Market, including cloud-based and on-premises NMS solutions. The former option is primarily a solution hosted on remote servers and accessed over the internet. Meanwhile, the latter is deployed in an organization’s infrastructure, enabling it to have better control and expandability. The cloud-based deployment model has been developing swiftly due to its affordability and ease of implementation. Utilizing cloud-based NMS means that no upfront capital investments in software and hardware are necessary.

Instead, the organization only needs to pay for the service consumed. Simultaneously, cloud-based NMS includes both software and performance updates and scalability, providing organizations with access to new features and infrastructure volumes when needed. Notably, the on-premises deployment model also has a substantial market share, largely due to the proprietary and regulated nature of data in several industry sectors. As for market shares, it is plausible to assume that the cloud-based solution will continue to experience development, with a substantial social impact on this process being the transition to cloud-based IT infrastructure and the broad adoption of a cloud computing framework and software-as-a-service solutions.

However, on-premises NMS will be a valid choice for organizations that require the security and flexibility of their solution. In 2023, the overall NMS market value was approximately 58.55 billion dollars, with a major share belonging to the cloud-based deployment model with a demand of 25.4 billion dollars. Meanwhile, the on-premises deployment model had a revenue of about 33.15 billion dollars. The situation is expected to evolve up to 2032 at a CAGR of 6.77 percent, bringing the value of the market to 105.57 billion dollars, with an increased market share of cloud-based NMS solutions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Network Management Systems Market Enterprise Size Insights

The Enterprise Size segment of the Network Management Systems (NMS) Market holds significant growth potential. Small and medium-sized enterprises (SMEs) are expected to contribute a substantial portion of the market revenue due to the increasing adoption of cloud-based NMS solutions. SMEs are seeking cost-effective and scalable solutions to manage their IT infrastructure, and NMS offerings cater to this need. On the other hand, Large Enterprises are investing in advanced NMS capabilities, such as artificial intelligence (AI) and machine learning (ML), to automate network management tasks and gain real-time insights into their network performance.

The market data suggests that Large Enterprises are likely to drive the adoption of next-generation NMS solutions, leading to increased market growth.

Network Management Systems Market Application Insights

The Application segment of the Network Management Systems (NMS) Market is segmented into Network Monitoring, Network Configuration, Network Security, and Network Performance Management. Among these, Network Monitoring is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growing need for real-time network visibility and performance monitoring is driving the demand for Network Monitoring solutions. Network Configuration is another significant segment, as organizations seek to automate and simplify network configuration tasks.

Network Security is also gaining traction due to the increasing threats of cyberattacks and data breaches. Network Performance Management is crucial for optimizing network performance and ensuring application availability, making it an essential segment in the NMS Market.

Network Management Systems Market Industry Vertical Insights

The telecommunications industry is expected to hold the largest share of the Network Management Systems NMS Market in 2024, owing to the increasing adoption of network virtualization and software-defined networking (SDN). The IT and software industry is also expected to witness significant growth due to the rising demand for cloud-based network management solutions. The banking and financial services, healthcare, and manufacturing industries are also expected to contribute to the growth of the Network Management Systems NMS Market, as they increasingly adopt digital technologies and require efficient network management solutions.

Network Management Systems Market Regional Insights

The regional segmentation of the Network Management Systems (NMS) Market offers valuable insights into the market's geographical distribution and growth potential. North America held the largest market share in 2023, accounting for approximately 35.2% of the revenue. This dominance is attributed to the region's well-established IT infrastructure, high adoption of advanced technologies, and presence of major vendors. Europe, with a market share of around 28.7% in 2023, is another significant region. The region's focus on digital transformation and government initiatives supporting network infrastructure development are driving growth.

The Asia-Pacific (APAC) region is projected to witness the fastest growth during the forecast period, with a CAGR of 7.2% from 2024 to 2032. This growth is fueled by the region's rapidly expanding economies, increasing internet penetration, and growing demand for network management solutions. South America, the Middle East, and Africa (MEA) regions are also expected to contribute to the growth of the NMS market. South America is witnessing increasing investments in network infrastructure, while the MEA region is experiencing a surge in demand for network management solutions to support the development of smart cities and digital initiatives.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Network Management Systems Market Key Players And Competitive Insights

Major players in the Network Management Systems NMS Market industry are constantly innovating and developing new technologies to gain a competitive edge. Leading Network Management Systems NMS Market players are investing heavily in research and development to stay ahead of the curve and meet the growing demands of customers. The Network Management Systems NMS Market industry is expected to witness significant growth in the coming years, driven by the increasing adoption of cloud-based solutions and the growing demand for network visibility and control. The competitive landscape of the Network Management Systems NMS Market is expected to remain fragmented, with a number of key players vying for market share.

Hewlett Packard Enterprise (HPE) is a leading provider of Network Management Systems NMS Market solutions. The company offers a wide range of products and services, including network monitoring, network management, and network security solutions. HPE's Network Management Systems NMS Market solutions are designed to help customers improve the performance, reliability, and security of their networks.

Cisco Systems is another major player in the Network Management Systems NMS Market industry. The company offers a comprehensive suite of network management solutions, including network monitoring, network management, and network security solutions. Cisco's Network Management Systems NMS Market solutions are designed to help customers manage the complexity of their networks and improve the overall performance of their IT infrastructure.

Key Companies in the Network Management Systems  Market Include:

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  Cisco Systems

  
  


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  Nokia

  
  


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  BMC Software

  
  


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  Juniper Networks

  
  


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  VMware

  
  


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  SolarWinds Worldwide

  
  


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  ManageEngine

  
  


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  Dell Technologies

  
  


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  Broadcom

  
  


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  Oracle

  
  


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  IBM

  
  


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  Zabbix

  
  


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  CA Technologies

  
  


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  Hewlett Packard Enterprise

  
  


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  Check Point Software Technologies

  
  

Network Management Systems Market Industry Developments

The Network Management Systems (NMS) market is anticipated to grow significantly during the forecast period, driven by increasing adoption of cloud-based NMS solutions and advancements in network technologies. The market is expected to witness substantial growth in the coming years, with the rising demand for efficient network management solutions to cater to the increasing complexity and scale of modern networks.

Recent developments in the NMS market include the launch of innovative solutions by key players. For instance, in 2023, Cisco introduced its new NMS platform, Cisco Network Assurance Engine (NAE), designed to provide comprehensive network visibility and management capabilities. Additionally, there has been a growing focus on partnerships and collaborations between NMS vendors and other technology providers to deliver integrated solutions. These developments are shaping the NMS market landscape and driving its growth.

Network Management Systems  Market Segmentation Insights

Network Management Systems NMS Market Deployment Model Outlook

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      Cloud-based

      
      
   
   
   2. 
      

      On-premises

      
      
   
   
   
   

Network Management Systems NMS Market Enterprise Size Outlook

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   1. 
      

      Small and Medium-sized Enterprises (SMEs)

      
      
   
   
   2. 
      

      Large Enterprises

      
      
   
   
   
   

Network Management Systems NMS Market Application Outlook

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      Network Monitoring

      
      
   
   
   2. 
      

      Network Configuration

      
      
   
   
   3. 
      

      Network Security

      
      
   
   
   4. 
      

      Network Performance Management

      
      
   
   
   
   

Network Management Systems NMS Market Industry Vertical Outlook

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   1. 
      

      Telecommunications

      
      
   
   
   2. 
      

      IT and Software

      
      
   
   
   3. 
      

      Banking and Financial Services

      
      
   
   
   4. 
      

      Healthcare

      
      
   
   
   5. 
      

      Manufacturing

      
      
   
   
   
   

Network Management Systems NMS Market Regional Outlook

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   1. 
      

      North America

      
      
   
   
   2. 
      

      Europe

      
      
   
   
   3. 
      

      South America

      
      
   
   
   4. 
      

      Asia Pacific

      
      
   
   
   5. 
      

      Middle East and Africa