Local Area Network as a Service Market to Register a Growth Rate of Over 30% until 2020, Reports Technavio

LONDON--()--According to the latest market study released by Technavio, the global local area network as a service (LANaaS) market is expected to reach USD 2,474.5 million by 2020, growing at a CAGR of more than 30%.

This research report titled ‘Global LANaaS Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. To calculate the market size, Technavio analysts consider revenue generated from the sale of cloud-based LAN solutions to enterprises. The market has been segmented based on end-users and geographic concentration.

The declining growth rate trend of hardware equipment used to set-up LAN infrastructure has compelled network equipment manufacturers and service providers to add new products and services based on innovative technologies. Digital transformation has created opportunities for networking vendors to market their products and services. Advanced IT trends, such as Internet of Things (IoT), are the specific areas in the market where LANaaS solution can be successfully marketed to the targeted consumers. With advances in smart and connected technologies, the demand for cost-effective IT solutions, such as cloud computing solutions, has grown at a double-digit rate in recent years.

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Technavio’s ICT analysts categorize the global LANaaS market into six major segments by end user. They are:

  • BFSI
  • Education
  • Healthcare
  • Hospitality
  • Telecom
  • Others

Global LANaaS market by end-user 2015

Telecom             21.05%
BFSI             18.23%
Healthcare             15.21%
Education             12.11%
Hospitality             7.63%
Others             25.77%

Source: Technavio

The top three end-user segments in the global LANaaS market are:


The telecom sector accounted for 21.05% of the global LANaaS market in 2015.

Telecom operators in most countries have already embraced digital technologies at a deep level. Such processes may enhance communication and connectivity. The need to improve omni-channel customer experience with the aid of digital offerings has encouraged telecom companies to increase their IT spending. The digitalization of phone services from fixed landlines to wireless phones has helped telecommunications service providers (and operators) track and record customer data in the interest of designing and promoting customer-specific offerings.

According to Amit Sharma, a lead IT spending research analyst from Technavio, “Leading vendors such as Cisco Systems and Huawei provide wireless LAN solutions to telecom service providers such as Vodafone and AT&T to provide LAN services. The telecom service market is highly competitive and dynamic. Telecom service providers are often under pressure to provide high-quality services at minimal cost.”


In 2015, the BFSI sector accounted for 18.23% of the global LANaaS market.

The BFSI sector is an early adopter of cloud computing solutions. The implementation of digital transformation in banking services to cut down operating cost requires effective IT strategies. Mobile banking solutions require high-speed broadband services to perform financial transactions. The financial services sector requires robust Wi-Fi systems to provide quality services for digital banking customers. LANaaS provides flexible options for the banking sector to install wireless access points according to business requirements.

“The BFSI sector is an information-intensive industry and has aggressively invested in ICT infrastructure. The sector is investing extensively in digitalization to stay abreast of changing customer demands and evolving business landscapes. Products and services from retail banks are moving to the digital domain in a bid to craft better customer experience,” says Amit.


The healthcare sector accounted for 15.21% of the global LANaaS market in 2015.

Digital transformation in the healthcare industry verticals such as the implementation of healthcare information systems requires efficient networking services. Hospitals and super-specialty clinics widely use LAN systems for healthcare information exchange. Hospitals using healthcare information systems, such as electronic health record (EHR), picture archiving and communication system (PACS), and radiology information system (RIS), require reliable infrastructure to transfer files from one department to another without any interruption or blockage in the networking system.

IT plays an important role to improve the quality of healthcare service delivery systems and reduce the overall operating costs. High bandwidth with less traffic congestion in networking systems is required for the smooth flow of information over wireless systems. Cloud-based LAN services can help hospitals connect directly to LANaaS, without the need to install networking equipment.

The top vendors highlighted by Technavio’s research analysts in this report are:

  • Cisco Systems
  • Huawei Technologies
  • Juniper Networks
  • VMware

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770

Release Summary

According to the latest market study released by Technavio, the global local area network as a service (LANaaS) market is expected to reach USD 2,474.5 million by 2020, posting a CAGR of over 30%.



Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770