Press release
Connectivity as a Service Market to hit US$ 280.42 Billion by 2033 | North America leads with 35% share | Major Companies 2026 - Cisco Systems, Inc., AT&T Intellectual Property, Verizon
As per DataM intelligence research report "The global connectivity as a service market reached US$ 31.49 billion in 2023, with a rise to US$ 33.40 billion in 2024, and is expected to reach US$ 280.42 billion by 2033, growing at a CAGR of 26.7% during the forecast period 2025-2033."The market is expanding due to growing demand for flexible and scalable network solutions. CaaS enables seamless connectivity across enterprises and cloud environments. Digital transformation and remote work trends drive adoption.
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DataM Intelligence unveils exclusive insights into the Connectivity as a Service Market 2026, highlighting emerging trends, growth drivers, and key regional opportunities for manufacturers, suppliers, and industry professionals worldwide
United States: Recent Developments
✅ In January 2026, Cisco Systems expanded its Connectivity-as-a-Service portfolio with cloud-managed networking solutions for enterprises. The offering integrates SD-WAN, security, and real-time analytics to enhance network performance. Cisco continues enabling scalable and flexible enterprise connectivity models.
✅ In December 2025, AT&T Inc. enhanced its CaaS offerings by integrating 5G and edge computing capabilities for enterprise clients. The solution supports low-latency applications and IoT deployments across industries. AT&T is focusing on delivering end-to-end managed connectivity services.
✅ In November 2025, Verizon Communications expanded its managed connectivity services with network-as-a-service solutions targeting large enterprises. The platform provides flexible subscription-based networking and enhanced cybersecurity features. Verizon continues strengthening its digital infrastructure services.
✅ In September 2025, Lumen Technologies launched advanced edge-based connectivity services designed for high-performance enterprise applications. The solution integrates cloud networking and AI-driven traffic optimization. Lumen is focusing on next-generation connectivity solutions for digital transformation.
Japan: Recent Developments
✅ In January 2026, NTT Communications expanded its Connectivity-as-a-Service solutions with cloud-based networking and managed security services. The platform enables enterprises to scale network infrastructure efficiently. NTT continues driving digital transformation through integrated connectivity services.
✅ In December 2025, KDDI Corporation enhanced its enterprise connectivity services by integrating 5G and IoT solutions into its CaaS portfolio. The offering supports smart city and industrial automation applications. KDDI is focusing on high-speed, reliable connectivity solutions.
✅ In November 2025, SoftBank Corp. expanded its cloud networking services with subscription-based connectivity solutions for enterprises. The platform integrates AI-driven network management and analytics. SoftBank continues investing in advanced digital infrastructure services.
✅ In September 2025, Fujitsu Limited introduced managed connectivity solutions combining cloud, AI, and network orchestration technologies. The offering supports enterprise digitalization and hybrid work environments. Fujitsu continues advancing its CaaS and IT services portfolio.
Connectivity as a Service Market: Competitive Intelligence
Cisco Systems, Inc., AT&T Intellectual Property, Verizon, NTT DATA Inc., Vodafone Limited, BT, Tata Communications Limited, Lumen Technologies, Cloudflare, Inc, Telefónica Tech
Cisco Systems, Inc., AT&T Intellectual Property, Verizon, NTT DATA Inc., Vodafone Limited, BT, Tata Communications Limited, Lumen Technologies, Cloudflare, Inc., Telefónica Tech, and Oceaneering International collectively underpin the rapidly evolving Connectivity as a Service Market by driving scalable, secure, and flexible network solutions that meet modern enterprise demands. These companies support the transition from legacy infrastructure to cloud‐first, software‐defined connectivity models that reduce total cost of ownership while enhancing performance. Their combined investments in edge computing, SD‐WAN, 5G, and managed connectivity services strengthen digital ecosystems across industries, enabling customers to deploy and adapt network services on demand. Broad geographical reach and diverse service portfolios improve reliability and service continuity, reinforcing confidence among enterprises adopting CaaS. In aggregate, their participation accelerates the Connectivity as a Service Market's growth and reinforces its role as a foundational technology layer for digital transformation.
Individually and in combination, these organizations' strengths create momentum and competitive advantage within the Connectivity as a Service Market by offering complementary technology stacks and domain expertise. Cisco Systems' robust networking hardware and software platforms integrate with Cloudflare's edge‐centric security and traffic optimization capabilities to deliver differentiated service value. AT&T Intellectual Property, Verizon, Vodafone, BT, and Tata Communications bring deep carrier‐grade connectivity and global scale that support multinational deployments, while NTT DATA Inc. and Telefónica Tech strengthen integration and professional services that help enterprises operationalize CaaS solutions. Lumen Technologies' focus on enterprise networking and cloud connectivity further enhances performance for bandwidth‐intensive applications. Oceaneering International's deployment of advanced communications systems in challenging industrial environments demonstrates the market's applicability beyond traditional corporate IT, extending CaaS value into sectors like offshore, energy, and IoT‐centric operations. Together, these strengths foster a competitive landscape that accelerates adoption and innovation in the Connectivity as a Service Market.
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Segment Covered in the Connectivity as a Service Market:
By Service Type
The market is segmented into wide area network (WAN) as a service 40%, virtual private network (VPN) as a service 25%, local area network (LAN) as a service 20%, and others 15%, with WAN as a service dominating due to increasing demand for scalable and flexible enterprise networking across geographically dispersed locations. VPN as a service is widely adopted for secure remote access and data protection. LAN as a service is gaining traction in campus and enterprise environments. Growing need for secure, cloud-managed connectivity drives market growth.
By Enterprise Size
The market is categorized into large enterprises 65% and SMEs 35%, with large enterprises dominating due to higher IT budgets and complex networking requirements. SMEs are rapidly adopting connectivity as a service solutions due to cost efficiency, scalability, and reduced infrastructure management. Increasing digital transformation among small and medium businesses supports segment growth.
By Deployment Mode
Deployment modes include public cloud-based 45%, private cloud-based 30%, and hybrid cloud 25%, with public cloud dominating due to cost-effectiveness, flexibility, and ease of deployment. Private cloud is preferred by organizations with strict data security and compliance requirements. Hybrid cloud is growing rapidly as enterprises seek a balance between security and scalability. Rising adoption of multi-cloud strategies drives demand.
By End-Use
End-use industries include IT & telecommunication 30%, BFSI 20%, retail & e-commerce 15%, healthcare 10%, manufacturing 10%, government 10%, and others 5%, with IT & telecommunication dominating due to high demand for advanced networking solutions and cloud services. BFSI is a key segment driven by secure connectivity requirements. Retail & e-commerce is growing with digital platforms expansion. Healthcare and government sectors are increasingly adopting secure and reliable connectivity solutions.
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Regional Analysis
North America - 35% Share
North America leads with 35% share due to high adoption of cloud networking solutions and strong presence of major technology providers in the United States and Canada. WAN and VPN services dominate. Large enterprises are primary users. Public cloud deployment is widely adopted. Advanced IT infrastructure and early technology adoption drive growth.
Europe - 25% Share
Europe holds 25% share driven by digital transformation initiatives in countries like Germany, the UK, and France. WAN and LAN services are widely used. Large enterprises and SMEs both contribute to demand. Hybrid cloud deployment is gaining traction. Strong data protection regulations influence adoption patterns.
Asia-Pacific - 20% Share
Asia-Pacific accounts for 20% share due to rapid digitization in China, India, Japan, and Southeast Asia. WAN as a service dominates. SMEs are rapidly adopting solutions. Public cloud deployment leads. Growth in e-commerce and IT services drives demand. Increasing internet penetration and enterprise mobility support expansion.
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