Network Management Solutions Market Trends

Growth Drivers

• Digital transformation initiatives by governments and enterprises: The shift towards digital transformation in both the public and private sectors is projected to fuel the sales of network management technologies. Many governments across the world are allocating hefty funds for infrastructure, connectivity, and automation enhancement, which is further expected to open lucrative earning opportunities for network management solution manufacturers. The U.S. Infrastructure Investment and Jobs Act (IIJA) has earmarked USD 65.5 billion for broadband upgrades, and a significant portion of it is dedicated to management, monitoring, and security systems. Also, in India, the digital and smart city initiatives are fueling the adoption of network management solutions.

• Need for operational automation due to workforce shortage: The automation trends and limited presence of network engineers and IT security professionals in some regions are likely to promote the sales of network management solutions. ENISA’s Skills Gap Survey discloses that nearly 71.5% of European organizations reported difficulty in filling network security roles in 2024. To bridge this gap, enterprises need to lean on automation and self-healing networks, enabled by modern NMS tools. The advanced solutions with automated ticketing, alert prioritization, and L1 response bots are reducing the need for large teams. Many companies are investing in network management technologies to enhance their performance and minimize operational costs. Also, this is poised to be reported more in areas with aging workforces, such as Japan and China.

Technological Innovations in the Network Management Solutions Market

The AI-driven analytics, cloud-native platforms, and intent-based networking are boosting the sales of network management solutions. Telecom, manufacturing, and logistics industries are leading the sales of advanced network management solutions. The continuous investments in technological innovations are further expected to boost the adoption of network management platforms. The table below reveals the current technological trends and their outcomes.

Sustainability Trends in the Market

Challenges

• High cybersecurity compliance costs: The cybersecurity compliance costs are expected to hamper the sales of network manufacturing solutions to some extent. The small and mid-sized companies often find it difficult to expand their operation owing to strict and complex cybersecurity mandates such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework and the European Union Agency for Cybersecurity’s (ENISA) NIS2 Directive. For example, in the U.S., the average cost of cybersecurity compliance for small ICT firms crossed USD 279,000 annually in 2023. Such hefty spending is estimated to limit new companies’ entry into the market.

• Limited public-sector infrastructure readiness: The lack of reliable telecom and data center infrastructure in some parts of emerging economies is technically hindering the deployment of advanced NMS platforms. Sub-Saharan Africa, Southeast Asia, and some parts of Latin America witness network latency, unstable connectivity, and low cloud penetration, which is likely due to low budgets. The International Trade Union’s Global Connectivity report reveals that in 2023, nearly 31.5% of public institutions in low-income countries had access to stable broadband. The poor infrastructure directly limits the feasibility of SaaS-based or real-time monitoring solutions.