Network Traffic Analysis Market Size, Share & Trends Analysis Report By Component (Software, Service), By Deployment (On-premise, Cloud), By Organization, By Vertical, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global network traffic analysis market size was valued at USD 2.49 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 9.7% from 2021 to 2028. The growth can be attributed to the rising need for proper network administration in line with the growing network complexities. The growing internet penetration rate and the subsequent rise in cybercrimes are expected to contribute to the market growth. Continued cloud migration, IoT deployments, and 5G rollouts also bode well for the growth of the market. The outbreak of the COVID-19 pandemic and the subsequent lockdowns and restrictions imposed in different parts of the world as part of the efforts to arrest the spread of coronavirus has had a moderate impact on network traffic analysis. The pandemic and the effort to control it have slowed global economic activity and reduced the efficiency of normal business activity. However, the growing awareness and need for improved visibility into devices connecting to the network drive the market growth. Surging demand for cloud-based software will drive the demand for network traffic analysis.

Furthermore, the volumes of data being exchanged over the data networks show no signs of abating as organizations are aggressively adopting remote working and work-from-home practices in the wake of the outbreak of the pandemic as part of the efforts to ensure the safety of the employees. This has particularly triggered the need for securing the data transmission and managing the data traffic efficiently, thereby driving the demand for network traffic analysis solutions.

The significant spike in traffic over the data networks is driving the need for network traffic analysis. Cloudflare had already reported additional stress on the global wireless networks in March 2020 when the pandemic was gripping the world. Access requests are particularly on a rise in line with the growing preference for remote working. Regulatory mandates, such as those drafted by the Federal Trade Commission regarding network security in the wake of the growth in cybercrimes across the globe, are also prompting both large enterprises and small and medium enterprises to opt for network traffic analysis solutions

Advances in communications and networking technology are expected to open new growth opportunities for the market over the forecast period. The growing preference for connected devices to the internet, such as smartphones, laptops, and tablets, among individuals is expected to drive the growth of the market. The continued rollout of IoT networks and the subsequent increase in IoT traffic also bodes well for the growth of the market. The Bring Your Own Device (BYOD) policy being pursued aggressively by various organizations is also expected to necessitate the adoption of network traffic analysis solutions.

Proper administration of data networks has become of paramount importance in the wake of the continued establishment of data centers in different parts of the world, and the subsequent growth in data network infrastructure and exponential rise in cloud traffic. The rising number of cyberattacks, such as malware attacks, computer virus attacks, and Denial of Service attacks, targeting enterprise networks is also necessitating the adoption of network traffic analysis solutions. However, a looming lack of adequate awareness and the high costs associated with network traffic analysis solutions is expected to restrain the growth of the market over the forecast period.

Component Insights

Based on component, the market has been further segmented into software and service. The software segment dominated the market in 2020 and accounted for a market share of over 60%. The growing need for advanced network management systems to handle network traffic complexities and growing cybercrime is driving the demand for network traffic analysis software. The dire need to ensure transparency in communication at both device and system levels is also driving the growth of the market.

The continued adoption of the latest technologies by the incumbents of various industries and industry verticals, such as BFSI, healthcare, and retail, to address network security challenges bodes well for the growth of the market. Network traffic analysis aids in ensuring network security, identifying anomalies, monitoring the network capacity consumption, and resolving network issues.

The software segment is anticipated to expand at the highest CAGR over the forecast period. The growth can be attributed to the growing smartphone proliferation and internet penetration rate in remote areas. The Work from Home (WFH) policy being pursued aggressively by various enterprises is driving the need for secure data transmission. As such, the capabilities offered by network traffic analysis software in securing data transmission are expected to drive the growth of the software segment over the forecast period.

Deployment Insights

Based on deployment, the network traffic analysis market has been further segmented into on-premise and cloud. The on-premise segment dominated the market in 2020 with a revenue share of more than 60%. On-premise deployment envisages installing software directly on the end users' computers so that all the organizational data is maintained within the premises of the organization. Several companies prefer on-premise deployment in the wake of the growing concerns over data security and privacy protection. End users operating in highly regulated industries and industry verticals, such as BFSI and healthcare, are more likely to opt for on-premise deployment, thereby driving the growth of the segment.

The cloud segment is expected to register the highest CAGR over the forecast period. Cloud deployment allows data to be accessed remotely using different connected devices, including smartphones and tablets. The proliferation of connected devices and the growing preference among professionals for accessing data on the go and obtaining information in real-time is expected to drive the growth of the cloud segment.

Organization Insights

Based on organization, the market has been further segmented into small and medium enterprise and large enterprise. The large enterprise segment accounted for a global revenue share of around 60% in 2020. Several large enterprises have witnessed cyberattacks during the past few years. Moreover, the growing preference for remote working in the wake of the outbreak of the COVID-19 pandemic has increased the risks of cyber threats and data breaches. Hence, several incumbents of various industries and industry verticals, including BFSI, healthcare, retail, education, and hospitality, among others, are aggressively adopting network traffic analysis solutions.

The small and medium enterprises segment is estimated to expand at the highest CAGR of 10.3% from 2021 to 2028. The convenience associated with cloud-based deployment is expected to encourage small and medium enterprises to opt for cloud-based network traffic analysis solutions over the forecast period. The rising levels of awareness about network traffic analysis among small and medium enterprises and the strong emphasis they are putting on ensuring adequate protection against cyberattacks are expected to drive the growth of the segment over the forecast period.

Vertical Insights

Based on vertical, the market has been further segmented into government, healthcare, BFSI, retail, education, and others. The government segment held the largest revenue share of more than 23% in 2020. Government agencies worldwide continue to emphasize ensuring adequate data security in the wake of the confidential and sensitive governmental and citizens' data they hold. This factor is anticipated to continue contributing to dominance of the segment in the forthcoming years. The BFSI segment held a significant revenue share of the market in 2020. The number of cyberattacks targeting the incumbents of the BFSI industry has been significant. The growing preference for mobile banking and internet banking among individuals has also increased the risks of cyber threats and data breaches, thereby prompting banks and other financial institutions to adopt network traffic analysis solutions.

The healthcare segment is expected to expand at the highest CAGR over the forecast period. Healthcare records contain sensitive data, including personal health information, bank details, and social security numbers of patients. The need to protect healthcare records is particularly significant in the wake of the outbreak of the pandemic. Hence, incumbents of the healthcare industry vertical are expected to aggressively adopt network traffic analysis solutions as part of the efforts to secure sensitive patient data. On the other hand, while prominent players in the healthcare industry vertical are increasingly adopting the latest technologies, such as Internet of Things (IoT), cloud computing, Artificial Intelligence (AI), and natural language processing, to reduce operational costs and enhance healthcare services; they are encountering hardships in managing the resultant complex network infrastructure, thereby driving the need for efficient data traffic analysis and management solutions. At the same time, incumbents of the healthcare industry vertical also need to abide by various rules and regulations drafted by different regulatory bodies, thereby necessitating a network traffic analyzer.

Regional Insights

North America accounted for the highest revenue share of 28.8% in 2020. Developed economies in North America, such as the U.S. and Canada, are known for early and aggressive adoption of the latest technologies, such as IoT and cloud computing. North America is also home to some of the leading market players, such as Broadcom Corporation; SolarWinds; Cloudflare, Inc.; and NETSCOUT Systems, Inc. The growing adoption of network traffic analysis for defense and military purposes bodes well for the growth of the regional market. The networking regulations applicable in North American countries are also expected to contribute to the growth of the regional market.

Asia Pacific is expected to expand at the highest CAGR over the forecast period. The region is characterized by the proliferation of smartphones and laptops, and the continued rollout of high-speed data networks. As such, several enterprises in economies, such as China, India, and Australia, are increasingly rolling out complex enterprise data networks. Several governments in Asia Pacific are also drafting regulatory reforms aimed at data security in the wake of the growing incidences of cyberattacks targeting enterprise networks. All these factors are expected to drive the growth of the regional market over the forecast period.

Key Companies & Market Share Insights

The market can be described as highly fragmented owing to the presence of both established and local market players. Moreover, all these market players are catering to a limited number of clients, thereby intensifying the competition in the market. At this juncture, market players, such as Awake Security Inc.; Broadcom Corporation; Cloudflare, Inc.; Core Security Technologies; NEC Corporation; NETSCOUT Systems, Inc.; and SolarWinds; among others, are pursuing various growth strategies, such as new product launches, mergers and acquisitions, and strategic partnerships, to strengthen their foothold in the market. For instance, in July 2020, Kentik announced the launch of the industry’s first Synthetic Monitoring Solution to provide autonomous testing. The solution proactively tests performance elements and adapts to dynamic internet traffic and paths. Some of the prominent players operating in the global network traffic analysis market are:

• Awake Security Inc.

• Broadcom Corporation

• Cloudflare, Inc.

• Core Security Technologies

• NEC Corporation

• NETSCOUTSystems, Inc.

• Netreo Incorporated

• SolarWinds

Network Traffic Analysis Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global network traffic analysis market report based on component, deployment, organization, vertical, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2028)

  • Software

  • Service

• Deployment Outlook (Revenue, USD Million, 2018 - 2028)

  • Cloud

  • On-premise

• Organization Outlook (Revenue, USD Million, 2018 - 2028)

  • Small and Medium Enterprises

  • Large Enterprises

• Vertical Outlook (Revenue, USD Million, 2018 - 2028)

  • BFSI

  • Healthcare

  • Government

  • Retail

  • Education

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa