During the projection period, the global network traffic analyzer market is expected to increase from USD 1.9 billion in 2019 to USD 3.2 billion in 2024, with a Compound Annual Growth Rate (CAGR) of 10.6%. The growing requirement for improved network management systems to address the increasing network traffic and complexities is one of the primary reasons driving the network traffic analyzer market.
North America, Europe, Asia Pacific, South America, and the Middle East and Africa are all represented in the worldwide network traffic analyzer market. Because of the large presence of an organisation with technical experience and extensive IT infrastructure, North America is considered a mature market for network traffic analyzer applications. The United States and Canada are the two countries that have contributed the most to the growth of the network traffic analyzer market in North America.
During the projected period, the solutions category is expected to increase at a faster rate.
Solutions are a collection of sensors, virtual machines, and software that work together to do network analysis. Network traffic analyzer systems capture information about the response time in client-server interactions, including both connectivity and application-level transactions. Network administrators can use this metadata to control network traffic. Administrators can use the metadata to troubleshoot network and application issues by finding the source of slowdowns, bottlenecks, and downtime.
During the projected period, the virtual deployment mode segment will account for the greatest market share.
Virtualization in the networking area has changed dramatically, as many legacy devices have begun to be abstracted on a single device to allow for a seamless virtual transition. In a software-defined environment, virtual sensors are typically installed over virtual machines to monitor traffic flow. The virtual deployment paradigm is very scalable, and it can be used on a variety of platforms, as well as in distant offices and big manufacturing facilities. To facilitate quick deployment and scalability, organisations have begun to adopt Virtualized Network Function Infrastructure (VNFI) on a broad scale.
The enterprise vertical is expected to increase at a faster CAGR than the consumer vertical over the projected period.
Enterprise customers are quickly adopting network traffic analyzer solutions because they provide major benefits like improved network efficiency through centralised administration, increased IT agility, and network customization through fast and reliable application services. Banking, Financial Services and Insurance (BFSI), government and utilities, healthcare, retail, media and entertainment, and others are among the sectors that make up the enterprises section (manufacturing, transportation and logistics, education and hospitality).
Over the forecast period, advancements in communications and networking technologies are projected to bring up new development prospects for the market. Individuals’ increased demand for internet-connected gadgets such as smartphones, laptops, and tablets is likely to propel the market forward. The continuing deployment of IoT networks, as well as the resulting increase in IoT traffic, bodes well for market expansion. The aggressive adoption of Bring Your Own Device (BYOD) policies by various enterprises is projected to compel the use of network traffic analysis tools.
With the continuous creation of data centres in many regions of the world, and the resulting growth in data network infrastructure and exponential rise in cloud traffic, proper data network administration has become of fundamental importance. The increasing amount of cyberattacks against company networks, such as malware assaults, computer virus attacks, and Denial of Service attacks, necessitates the use of network traffic analysis technologies. However, throughout the projected period, the market is expected to be restrained by a lack of proper awareness and the high costs associated with network traffic analysis solutions.
Insights into Components
The market has been divided into software and service segments based on component. In 2020, the software category led the market with a market share of more than 60%. The demand for network traffic analysis software is being driven by the growing requirement for advanced network management systems to address network traffic complexities and the rise in cybercrime. The urgent demand for communication transparency at both the device and system levels is also propelling the market forward.
The continuing adoption of cutting-edge technology by incumbents in numerous industries and verticals, such as BFSI, healthcare, and retail, to address network security concerns bodes well for the market’s growth. Network traffic analysis is useful for assuring network security, detecting abnormalities, monitoring network capacity usage, and resolving network problems.
Over the projected period, the software segment is expected to grow at the fastest rate. The increase can be linked to the increasing use of smartphones and the rate of internet penetration in rural areas. Work from Home (WFH) policies, which are being vigorously adopted by numerous businesses, are boosting the demand for secure data transmission. As a result, network traffic analysis software’s skills in protecting data transfer are predicted to boost the software segment’s expansion over the projection period.