Global Managed Network Services Market Segmentation, By Component (Managed LAN/WPN Networks, Managed IP Telephony, Managed IP/VPN, Managed Ethernet Links, Managed Wi-Fi, Managed Video Conferencing/ Tele-presence), Service Type (Managed Internet Access and Network Infrastructure Provisioning, Managed VPN, Data Storage, Network Monitoring, Managed Network Security, Hosted IP Telephony and Other Services), Deployment Type (On-Premise and Cloud), Organization Size (Large Enterprises, Small and Medium Enterprises), End User (Banking and Securities, Insurance, Communication, Media and Services, Healthcare Providers, Manufacturers, Retail and Ecommerce, Wholesale Trade, Transportation, Utilities, Education, Government and Others) – Industry Trends and Forecast to 2031.
Managed Network Services Market Analysis
Managed services such as WAN optimization, unified messaging, network administration, managed security firewalls, and virtual private networks (VPNs) are also available in addition to network access and transport. MSPs often offer managed enterprise network services in their own data centers and facilities, where they can also host virtual network operations. MSPs range in size from little specialized service providers to enormous traditional national and international telecommunications operators.
Managed Network Services Market Size
Global managed network services market size was valued at USD 69.48 billion in 2023 and is projected to reach USD 137.93 billion by 2031, with a CAGR of 8.95% during the forecast period of 2024 to 2031.
Report Scope and Market Segmentation
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Attributes
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Managed Network Services Key Market Insights
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Segmentation
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Countries Covered
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U.S., Canada and Mexico in North America, Brazil, Argentina and Rest of South America as part of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
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Key Market Players
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IBM (U.S.), Cisco Systems, Inc. (U.S.), Telefonaktiebolaget LM Ericsson (Sweden), Verizon (U.S.), Huawei Technologies Co., Ltd. (China), AT&T Intellectual Property. (U.S.), BT (U.K.), Telefónica S.A. (Spain), T-Systems International GmbH. (Germany), NTT Corporation. (Japan), Orange Business Services (France), FUJITSU (Japan), Lumen Technologies. (U.S.), Masergy Communications, Inc. (US), Colt Technology Services Group Limited (U.K.), Telstra (Australia), CommScope, Inc. (U.S.), Singtel (Singapore), GTT Communications, Inc. (U.S.) among many others.
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Market Opportunities
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Managed Network Services Market Definition
Business organizations hire managed service providers (MSPs) to remotely administer, monitor, and support their networking applications, operations, and services. Managed network services include all types of network access and transport services, from traditional leased WAN and LAN lines to cutting-edge software-defined WAN (SD-WAN) connections and virtual network services.
Managed Network Services Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
Drivers
- The need to reduce capital expenditure
Managed Network Services (MNS) promotes businesses to use predictable operating expense (OPEX) models rather than CAPEX. Customers who use MNS save money by forgoing the cost of purchasing their own apps with specific monitoring capabilities as well as the expertise required to administer the tools and procedures required. Businesses frequently enter into annual or multi-year service agreements with an MSP for managed network services.
- Increased demand for effective security solutions
The number of data breaches are increasing rapidly all across organizations. Large scale organizations are heavily investing in centralized data safety and security solutions. This has widened the scope of growth for the market. Growing shift towards cloud-based data platforms to manage and mitigate data theft and cyber security issues is bolstering the market's growth rate in a sharp upward direction.
Furthermore, the factors such as rising urbanization, industrialization and mounting need to extract in-depth insights from growing volumes of data and achieve benchmarking during the forecast period are some other important market drivers. Additionally, rising investment by the enterprises for data storage centers and rising demand for simplified access to organizational data from departmental silos are anticipated to drive the market's growth rate.
Opportunities
- Rising adoption of advanced technologies
Internet of things or connected devices technology will truly benefit the market in the long run. Internet of things technology allows the data collection through more ways and improves the operational efficiency with respect to cost and the data analytics. IOT even offers greater degree of ease in running analytics.
- Increasing demand by small scale enterprises
Managed network services give SMEs plenty of room to grow and accomplish their goals. The predicted sharp increase in IT spending among SMEs shows that these businesses are constantly under pressure to grow by installing new and extended IT services. The need for MSPs will increase as SMEs adopt cloud computing, automate services, and investigate cutting-edge digital technologies.
Restraints/Challenges
- Security concerns and issues can challenge as well
You depend on an MSP you employ to uphold service level agreements (SLAs) and perform jobs on schedule. If they don't fulfil their end of the contract, you can be stuck with a lot of downtime. If managed service providers use exclusive tools to maintain and watch over infrastructure, one can also be unable to get system information. This makes it more difficult to transfer suppliers or take over maintenance if necessary because it limits your ability to stay informed about the current condition of your infrastructure.
- Stringent regulations imposed by the government
Recent changes in business requirements, a rise in data breaches and cyberattacks, and growing data security concerns have all contributed to an ongoing increase in the demand for regulatory and compliance requirements that must be met. Companies must work to stay afloat in the market by taking steps to satisfy regulatory requirements, avoid financial penalties, protect customers and income, and stay out of legal trouble. The rules and compliances may constrain the MNS market that various businesses must follow.
- Lack of technical expertise
Dearth of expert knowledge and technical expertise and lack of awareness especially in the underdeveloped economies will create hurdles for the market in regards to the smooth growth in the market value. Further, lack of skilled professionals in data science in combination with slow adoption rate in the developing economies will yet again hamper the market growth rate.
This managed network services market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the managed network services market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
COVID-19 Impact on Managed Network Services Market
Before COVID-19, an increasing number of businesses were considering switching to a managed services operating model, but thanks to its potential to boost confidence, reshape spending, increase agility, and speed up digital transformation, the choice is now firmly front and center on many boardroom agendas. The effectiveness of non-core but board-important services like tax, compliance, risk, and finance is anticipated to increase without the need for additional resources. As regulations change more often across different nations and regulators seek more openness, managing regulatory responsibilities has grown more challenging and expensive. These lessons show that going back to "normal" is not an option as businesses start to make future plans.
Mainframe Market Scope
The managed network services market is segmented on the basis of component, service type, deployment type, organization size and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Component
- Managed LAN/WPN Networks
- Managed IP Telephony
- Managed IP/VPN
- Managed Ethernet Links
- Managed Video Conferencing/ Tele-presence
Service Type
- Managed Internet Access and Network Infrastructure Provisioning
- Managed VPN
- Data Storage
- Network Monitoring
- Port assessment
- Performance reporting
- Traffic analysis
- Configuration change management
- Visualization
- Incident management
- Managed Network Security
- Identity and access management
- IDS/IPS
- Antivirus/BOT/malware
- Hosted IP Telephony
- Other Services
Deployment Type
- On-Premise
- Cloud
Organization Size
- Large Enterprises
- Small and Medium Enterprises
End User
- Banking and Securities, Insurance
- Health Insurance (Payer)
- Insurance (Other than Health)
- Communication, Media and Services
- Entertainment
- Publishing and Advertising
- Broadcasting and Cable
- Telecommunications
- Other Business, Technical and Consumer Services
- IT Services & Software
- Healthcare Providers
- Physician
- Hospitals
- Manufacturers
- Automotive
- Consumer Nondurable Products
- Energy Resources & Processing
- Heavy Industry
- IT Hardware
- Life Sciences and Healthcare Products
- Natural Resources & Materials
- Retail and Ecommerce
- General Retailers
- Grocery
- Restaurants and Hotels
- Specialty Retailers
- Wholesale Trade
- Transportation
- Motor Freight
- Pipelines
- Rail & Water
- Warehousing, Couriers and Support Services
- Utilities
- Education
- Government
- Others
Managed Network Services Market Regional Analysis
The managed network services market is analyzed and market size insights and trends are provided by country, component, service type, deployment type, organization size and end user as referenced above.
The countries covered in the managed network services market report are U.S., Canada and Mexico in North America, Brazil, Argentina and Rest of South America as part of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
North America dominates the managed network services market due to the presence of established economies such as U.S. and Canada and growing trend of business outsourcing in these countries. Prevalence of advanced IT infrastructure is another important factor determining the dominance of this region.
Asia-Pacific region is showing a promising potential and is set to grow with the highest growth rate during the forecast period. This is because of the rising adoption of cloud based solutions by small and medium scale enterprises and growing number of small and medium scale enterprises under different verticals.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Managed Network Services Market Share
The managed network services market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to managed network services market.
Managed Network Services Market Leaders Operating in the Market Are:
- IBM (U.S.)
- Cisco Systems, Inc. (U.S.)
- Telefonaktiebolaget LM Ericsson (Sweden)
- Verizon (U.S.)
- Huawei Technologies Co., Ltd. (China)
- AT&T Intellectual Property. (U.S.)
- BT (U.K.)
- Telefónica S.A. (Spain)
- T-Systems International GmbH. (Germany)
- NTT Corporation. (Japan)
- Orange Business Services (France)
- FUJITSU (Japan)
- Lumen Technologies. (U.S.)
- Masergy Communications, Inc. (US)
- Colt Technology Services Group Limited (U.K.)
- Telstra (Australia)
- CommScope, Inc. (U.S.)
- Singtel (Singapore)
- GTT Communications, Inc. (U.S.)
Latest Developments in Managed Network Services Market
- South Korea, the fourth-largest economy in Asia, and Cisco, a global leader in technology, announced the launch of a collaborative framework in April 2021 as part of Cisco's Country Digital Acceleration (CDA) programme to speed up digitization nationwide and support an inclusive COVID-19 pandemic recovery
- The global WAN across 17 nations would be made available to ERIKS in April 2021 by AT&T. A Dutch company called ERIKS develops digital capabilities. ERIKS' US transport network will be converted to an entirely AT&T Managed network by AT&T
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