Network Management Systems Market

The Network Management Systems (NMS) market has become increasingly important in recent years, as businesses aim to ensure the reliability and performance of their IT networks. NMS solutions are designed to help organizations monitor, manage, and optimize their network infrastructure, which includes everything from routers, switches, and firewalls to servers, storage systems, and other network-attached devices.

The growing demand for NMS solutions is driven by several key trends, including the increasing complexity of IT networks, the growth of cloud computing, and the need for organizations to ensure the security and availability of their data and systems.

An effective NMS solution must have the following key features:

• Network visibility: Organizations must be able to see what is happening on their networks, in real-time, in order to quickly identify and resolve issues.
• Performance monitoring: NMS solutions must be able to monitor the performance of network devices and systems, in order to ensure that they are operating optimally.
• Configuration management: NMS solutions must be able to manage the configuration of network devices and systems, in order to ensure that they are configured consistently and securely.
• Security: NMS solutions must include security features, such as intrusion detection and prevention, in order to protect against cyber threats.
• Scalability: As networks continue to grow and evolve, NMS solutions must be able to scale to meet the needs of the organization.

In the NMS market, there are a variety of solutions available, including cloud-based and on-premise options. Some of the leading vendors in the market include Cisco Systems, HPE, IBM, Juniper Networks, and SolarWinds.

As the complexity of IT networks continues to increase, the demand for NMS solutions is expected to grow. Organizations that invest in a robust NMS solution will be better positioned to ensure the reliability and performance of their networks, leading to increased productivity, efficiency, and security.

In conclusion, the Network Management Systems market is a critical component of modern IT networks, as it helps organizations monitor, manage, and optimize their network infrastructure. With the increasing demand for NMS solutions, organizations have a variety of options to choose from, including cloud-based and on-premise solutions from leading vendors. By investing in a robust NMS solution, organizations can improve the reliability and performance of their networks, leading to increased productivity, efficiency, and security.

Market Dynamics

Drivers in Network Management Systems Market

Emergence of SDN in Enterprises: SDN represents a novel approach to network architecture that emphasizes the separation of the data plane and control plane, which enables a centralized software program to manage the behavior of the entire network. This approach has gained significant traction in enterprises, particularly in the campus network, branch network, and data center. SD-WAN and Software-Defined Data Center are among the most in-demand SDN solutions for enterprises.

The introduction of SDN has replaced traditional data center components, such as compute, networking, and storage, with a software-defined platform. This has led to an influx of virtual machines, hypervisors, x86 servers, and containers into the network infrastructure. As a result, SDN has created new opportunities for network management and configuration management vendors to automate network management processes.

With the increased adoption of SDN, there will be a growing need for network management system (NMS) tools to cater to the demand for software-defined infrastructure. The adoption of NMS will be driven by various factors, including the prominence of IoT among top players and new entrants, the need for in-depth visibility into network security, and the demand for better optimization of business operations and network management solutions across SMEs.

Restraints in Network Management Systems Market

The availability of free network management tools can have an impact on the network management solutions market. These solutions provide valuable insights into a company's network performance, bandwidth, and operational efficiency, enabling them to reduce costs, optimize interconnecting routes, and obtain accurate information flow insights. There are numerous free network management tools available globally that network administrators can use to monitor and analyze their network intensity, resulting in more efficient network infrastructure operation.

Although there are commercial providers of network management solutions, several key players in the market offer free network management tools such as Nagios XI, Colasoft Capsa Free, ntop, and PRTG Network Monitor. The existence of free and open-source network management tools raises concerns among NMS solution providers as they may limit the overall growth of the NMS market.

Opportunities in Network Management Systems Market

The market for network management solutions is experiencing a surge in demand from Small and Medium-sized Enterprises (SMEs) due to their adoption of new technologies like cloud, AI, SDN, and IoT. This adoption has led to a change in network infrastructure, thus driving the need for Network Management System (NMS) tools. Efficient management and operation of the network infrastructure require solutions such as network monitoring, performance monitoring, application monitoring, and database monitoring. The adoption of NMS tools is driven by several factors such as increased network security attacks, improved workforce productivity, and lower costs.

This demand from SMEs has presented vendors with new opportunities to offer packaged and customized low-cost network management solutions and services that meet their requirements. Vendors are also offering cloud-based NMS tools, which minimize the Total Cost of Ownership (TCO). As a result, enterprises are widely deploying network management solutions to improve their network performance, reduce IT network complexities, and streamline their business processes.

The need for network management solutions is expected to increase in the future, given their ability to manage and share large volumes of networks across various platforms, particularly over the cloud. This trend is expected to create immense opportunities for NMS vendors, primarily due to the rise in demand from SMEs.

Challenges in Network Management Systems Market

Low Budget Constraints

Deploying a network management system can be a costly affair, as it requires a significant investment in equipment and solutions. Moreover, the cost of upgrading network equipment can be high, and not all companies are willing to invest in constant upgrades. However, end-users require updated solutions that comply with changing network requirements. Due to the heavy investment required, the revenue of the NMS market may be affected, potentially restricting the market's growth.

Verticals Outpacing Service Providers

The network management system market is segmented into service providers and verticals based on end-users. The verticals segment is expected to have the largest market size and highest growth rate during the forecast period. Verticals rely on NMS solutions to optimize their network infrastructure regularly, as a smooth and agile network infrastructure is crucial for every enterprise to remain competitive in the digital era.

The network management system market can be segmented by industrial verticals such as BFSI, IT & telecom, government, manufacturing, healthcare, retail, transportation & logistics, and others. The largest contributor to the NMS market is presently the BFSI vertical, which is expected to remain so in the future. This vertical is a key player globally, and network infrastructure management is crucial due to the rise of online banking. North America is home to major banking and financial firms and, therefore, has the highest market share in the NMS market across the BFSI vertical.

North America has been experiencing significant growth in the NMS market due to its leading position in technology adoption and society's digitization. Enterprises and service providers in the region continuously upgrade their network infrastructure to keep up with advanced technologies. The rapid changes in IT infrastructure, such as cloud and virtualization, have significantly increased the pressure on network administrators to manage the network infrastructure. Consequently, this is expected to increase the demand for NMS solutions across various verticals and service providers.

Top Key Players in Network Management Systems Market

• CUBRO NETWORK SECURITY
• VIAVI SOLUTIONS
• EG INNOVATIONS
• Cisco Systems, Inc.
• IBM
• Broadcom Inc.
• MICRO FOCUS
• JUNIPER
• JUNIPER
• NOKIA
• Telefonaktiebolaget LM Ericsson
• ZOHO
• Huawei Technologies Co., Ltd.
• LIVEACTION
• NETSCOUT SYSTEMS
• PROGRESS SOFTWARE CORPORATION
• PAESSLER
• KENTIK
• KASEYA
• EXTREME NETWORKS
• COLASOFT
• SOLARWINDS
• EXTRAHOP
• RIVERBED TECHNOLOGY
• ACCEDIAN NETWORKS
• BMC SOFTWARE
• HELPSYSTEMS

Recent Developments in Network Management Systems Market

The Network Management Systems Market has seen some recent developments that are worth noting. In May 2022, Ericsson and Intel announced the launch of their Tech Hub. The purpose of this Tech Hub is to enhance the energy efficiency and network performance of Ericsson cloud hub RAN and Intel. Additionally, this collaboration aims to reduce the time it takes to bring new products to the market.

LiveAction also made an announcement in May 2022, as they launched a new partner portal. This portal was designed to allow LiveAction's partner community to work more effectively and efficiently. Agents can manage and train their order pipeline with this new portal, making their work more streamlined.

NetScout made a contribution to the Network Management Systems Market in February 2022 with the launch of their nGeniusEDGE Server. This server provides customers with high-quality user experiences and valuable insights into their network performance. Additionally, it enables faster identification and resolution of any performance issues that might be impacting end-users.

Lastly, Paessler released a new solution called the Paessler Building Monitor in September 2021. This new SaaS offering provides monitoring based on building data that the system collects through LPWAN technology. With this solution, users can identify and eliminate potential dangers and optimize building operations. It also helps in identifying potential cost savings, making it a valuable addition to the Network Management Systems Market.

The Network Management Systems (NMS) market has experienced several recent developments. One of the primary drivers of this market is the rising adoption of advanced technologies such as cloud and virtualization, which has increased the demand for efficient network infrastructure management. Vendors are expanding their product portfolios to cater to different verticals, including BFSI, IT & telecom, government, manufacturing, healthcare, retail, transportation, and logistics, among others.

One notable development in the NMS market is the increasing adoption of software-defined networking (SDN) and network function virtualization (NFV) technologies. These technologies enable network administrators to manage network infrastructure more efficiently by providing real-time visibility and control over network traffic. This, in turn, leads to better network performance and reduced operational costs.

Another development in the NMS market is the growing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies enable NMS solutions to analyze vast amounts of data quickly, identify potential issues and anomalies, and provide actionable insights to network administrators. AI and ML can also automate routine tasks, such as network configuration and troubleshooting, which can save time and reduce errors.

The rise of the Internet of Things (IoT) has also impacted the NMS market, as it has led to the proliferation of connected devices and increased network complexity. NMS solutions are increasingly being used to monitor and manage IoT devices and networks, ensuring that they operate efficiently and securely.

Finally, there has been a growing trend towards cloud-based NMS solutions, which offer several benefits such as scalability, flexibility, and cost-effectiveness. As more organizations move their IT infrastructure to the cloud, the demand for cloud-based NMS solutions is expected to increase.