Indonesia Network as a Service Market Size, Share, Trends and Forecasts 2031

Key Findings

• The Indonesia Network as a Service (NaaS) Market is experiencing strong growth as enterprises shift from traditional network infrastructure to cloud-based networking models.

• NaaS enables organizations in Indonesia to deploy, manage, and scale network services on a subscription basis, reducing capital expenditure.

• Growing adoption of cloud computing, remote work, and digital transformation initiatives is accelerating demand for NaaS solutions.

• Enterprises in Indonesia are leveraging NaaS to improve network agility, security, and performance across distributed environments.

• Integration of AI and automation is enhancing network visibility and predictive maintenance capabilities.

• Telecom operators and cloud service providers are expanding NaaS offerings to capture enterprise customers.

• Rising demand for secure and reliable connectivity is positioning NaaS as a critical enterprise service model.

• SMEs in Indonesia are increasingly adopting NaaS due to its cost efficiency and simplified network management.

Indonesia Network as a Service Market Size and Forecast

The Indonesia Network as a Service Market is projected to grow from USD 5.6 billion in 2025 to USD 18.4 billion by 2031, registering a CAGR of 22.1% during the forecast period. Market growth is driven by increasing enterprise reliance on cloud platforms and hybrid IT environments. Organizations in Indonesia are seeking flexible networking solutions that support rapid scalability and changing business needs.

The shift from hardware-centric networks to software-defined architectures is accelerating NaaS adoption. With rising investments in digital infrastructure, the market is expected to witness sustained growth through 2031.

Introduction

Network as a Service refers to a cloud-based networking model where organizations consume network services such as connectivity, security, and management on a subscription basis. In Indonesia, NaaS is gaining traction as enterprises move away from owning and maintaining complex network hardware.

The model offers flexibility, scalability, and reduced operational complexity. NaaS is particularly relevant for businesses adopting hybrid work models and multi-cloud strategies. As network demands evolve, NaaS is becoming a core component of modern IT infrastructure in Indonesia.

Future Outlook

By 2031, Network as a Service in Indonesia will become a mainstream networking approach for enterprises of all sizes. AI-driven automation will enable self-healing and predictive networks that minimize downtime. NaaS providers will expand service portfolios to include advanced security and edge connectivity solutions.

Telecom operators and hyperscalers will play a central role in shaping the NaaS ecosystem. Overall, the market will evolve toward intelligent, scalable, and fully managed networking services.

Indonesia Network as a Service Market Trends

• Rising Adoption of Software-Defined Networking and SD-WAN
  Enterprises in Indonesia are increasingly adopting software-defined networking technologies to support NaaS deployments. SD-WAN enables centralized control and improved visibility across distributed networks. This approach reduces dependency on legacy hardware and enhances network flexibility. Businesses benefit from optimized traffic routing and improved application performance. The growing use of SD-WAN is a foundational trend supporting the expansion of NaaS offerings.

• Integration of AI and Automation in Network Management
  AI and automation are transforming how NaaS platforms operate in Indonesia by enabling real-time monitoring and intelligent decision-making. Automated workflows reduce manual configuration errors and improve network reliability. Predictive analytics help identify potential issues before they impact operations. AI-driven insights also optimize bandwidth usage and performance. This trend is driving higher efficiency and service quality across NaaS solutions.

• Growing Demand for Secure Cloud Connectivity
  As enterprises in Indonesia migrate workloads to the cloud, demand for secure and reliable connectivity is increasing. NaaS providers are integrating advanced security features such as zero trust networking and encryption. These capabilities help protect sensitive data across distributed environments. Organizations benefit from unified security policies and simplified compliance management. This trend highlights the convergence of networking and security within NaaS platforms.

• Expansion of NaaS for Remote and Hybrid Workforces
  The rise of remote and hybrid work models in Indonesia is accelerating NaaS adoption. Businesses require flexible and scalable networks to support employees working from multiple locations. NaaS enables consistent network performance regardless of user location. Centralized management simplifies connectivity for remote users. This trend underscores the role of NaaS in enabling modern workforce models.

• Partnerships Between Telecom Operators and Cloud Providers
  Telecom operators in Indonesia are partnering with cloud service providers to deliver integrated NaaS solutions. These collaborations combine connectivity expertise with cloud-native capabilities. Customers benefit from end-to-end managed services and global reach. Joint offerings accelerate time-to-market for advanced networking solutions. This trend is strengthening the overall NaaS ecosystem in Indonesia.

Market Growth Drivers

• Accelerating Digital Transformation Initiatives
  Organizations in Indonesia are undergoing digital transformation to improve operational efficiency and customer experiences. NaaS supports this transformation by providing flexible and scalable networking infrastructure. Businesses can rapidly deploy new applications without extensive network reconfiguration. The ability to adapt networks to evolving digital needs is a key advantage. This driver is significantly boosting demand for NaaS solutions.

• Shift from Capital Expenditure to Operational Expenditure Models
  Enterprises in Indonesia are increasingly favoring subscription-based IT services to reduce upfront costs. NaaS eliminates the need for heavy investments in network hardware. Predictable monthly expenses improve budget planning and financial flexibility. This cost model is particularly attractive to SMEs and growing businesses. The shift to OPEX-based networking is a major driver of market growth.

• Growth of Cloud Computing and Multi-Cloud Environments
  The widespread adoption of cloud computing in Indonesia is creating complex networking requirements. NaaS simplifies connectivity across multiple cloud platforms and data centers. Centralized management improves performance and reliability. Organizations can scale network resources in line with cloud workloads. This driver highlights the strong link between cloud adoption and NaaS growth.

• Increasing Need for Network Agility and Scalability
  Businesses in Indonesia operate in rapidly changing environments that require agile network infrastructure. NaaS enables quick scaling of bandwidth and services based on demand. This flexibility supports seasonal workloads and business expansion. Enterprises can respond faster to market changes without infrastructure constraints. This driver emphasizes the strategic value of NaaS in dynamic markets.

• Rising Focus on Network Security and Compliance
  Cybersecurity threats and regulatory requirements are increasing in Indonesia. NaaS providers offer integrated security services that enhance network protection. Centralized security management simplifies compliance with industry regulations. Organizations benefit from continuously updated security features. This driver is reinforcing the adoption of managed networking solutions.

Challenges in the Market

• Concerns Over Data Privacy and Control
  Enterprises in Indonesia often express concerns about relinquishing control of network infrastructure to third-party providers. Sensitive data transmitted over managed networks raises privacy issues. Regulatory compliance adds complexity to data handling practices. Organizations require assurance of robust security measures. These concerns can slow adoption of NaaS solutions.

• Integration with Legacy Network Infrastructure
  Many organizations in Indonesia still rely on legacy networking systems. Integrating these systems with NaaS platforms can be complex and time-consuming. Compatibility issues may affect performance and reliability. Migration requires careful planning and expertise. This challenge can delay full-scale NaaS deployment.

• Dependence on Service Providers for Network Performance
  NaaS shifts network responsibility to external providers, creating dependency risks. Service outages or performance issues can directly impact business operations. Organizations in Indonesia require strong service-level agreements to mitigate risks. Vendor reliability becomes a critical decision factor. This challenge highlights the importance of provider selection and governance.

• Limited Awareness Among Small Enterprises
  Despite its benefits, awareness of NaaS remains limited among some SMEs in Indonesia. Misconceptions about cost and complexity hinder adoption. Lack of technical understanding can delay decision-making. Vendors need to invest in education and outreach initiatives. This challenge affects market penetration in the SME segment.

• Customization and Standardization Trade-Offs
  NaaS solutions often follow standardized service models that may not meet all enterprise-specific needs. Highly customized networking requirements can be difficult to address. Balancing standardization with flexibility remains a challenge for providers. Enterprises in Indonesia may face limitations in tailoring services. This challenge can impact adoption among large and complex organizations.

Indonesia Network as a Service Market Segmentation

By Type

• LAN as a Service

• WAN as a Service

• Wireless Network as a Service

By Deployment Model

• Public Cloud

• Private Cloud

• Hybrid Cloud

By End-User

• Large Enterprises

• Small & Medium Enterprises

Leading Key Players

• Cisco Systems, Inc.

• VMware, Inc.

• AT&T Inc.

• Verizon Communications Inc.

• Orange S.A.

• NTT Ltd.

• Hewlett Packard Enterprise

• Cloudflare, Inc.

• Juniper Networks, Inc.

• IBM Corporation

Recent Developments

• Cisco Systems, Inc. expanded its cloud-managed NaaS portfolio in Indonesia.

• VMware, Inc. introduced AI-driven network automation features for NaaS customers in Indonesia.

• AT&T Inc. partnered with enterprises in Indonesia to deliver managed SD-WAN services.

• Verizon Communications Inc. launched secure NaaS solutions for hybrid work environments in Indonesia.

• Hewlett Packard Enterprise enhanced its NaaS offerings with integrated security capabilities in Indonesia.

This Market Report Will Answer the Following Questions

1. What is the projected size and CAGR of the Indonesia Network as a Service Market by 2031?

2. How is cloud adoption influencing demand for NaaS in Indonesia?

3. Which industries are driving the highest adoption of NaaS solutions?

4. What challenges are limiting wider implementation of NaaS in Indonesia?

5. Who are the leading players shaping the Network as a Service ecosystem?