North America Telecom Managed Services Market, By Type (Managed Data Center Services, Managed Network Services, Managed Communication and Collaboration Services, Managed Security Services, Managed Mobility Services, and Others), Managed Information Service (MIS) (Business Process Management, Managed Operational Support Systems/Business Support Systems, Project & Portfolio Management, and Others), Deployment Model (On-Premise and Cloud), Organization Size (Large Enterprises and Small and Medium Enterprises (SMES)) – Industry Trends and Forecast to 2031.
North America Telecom Managed Services Market Analysis and Size
The global telecom managed services market is experiencing significant growth driven by the increasing complexity of telecom networks, the need for cost-effective solutions, and the rising demand for enhanced network security and reliability. The market is characterized by the outsourcing of various telecom functions to third-party service providers, who manage and maintain the network infrastructure, provide support services, and ensure compliance with regulatory requirements. The rapid adoption of advanced technologies such as 5G, IoT, and cloud computing is further fueling market growth, as organizations seek to optimize their telecom operations and improve their overall efficiency. The telecom managed services market is expected to continue its growth trajectory, driven by the increasing demand for managed services across various industry verticals and regions.
North America telecom managed services market size was valued at USD 4.58 billion in 2023 and is projected to reach USD 13.25 billion by 2031, with a CAGR of 14.2% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Type (Managed Data Center Services, Managed Network Services, Managed Communication and Collaboration Services, Managed Security Services, Managed Mobility Services, and Others), Managed Information Service (MIS) (Business Process Management, Managed Operational Support Systems/Business Support Systems, Project & Portfolio Management, and Others), Deployment Model (On-Premise and Cloud), Organization Size (Large Enterprises and Small and Medium Enterprises (SMES))
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Countries Covered
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U.S., Canada, Mexico
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Market Players Covered
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FUJITSU (Japan), DXC Technology Company (U.S.), IBM Corporation (U.S.), Cognizant (U.S.), Wipro Limited (India), Capgemini (France), Accenture (Ireland), Tata Consultancy Services Limited (India), HCL Technologies Limited (India), NTT DATA Corporation (Japan), Verizon (U.S.), Cisco Systems, Inc. (U.S.), ZTE Corporation (China), Huawei Technologies Co., Ltd. (China), Telefonaktiebolaget LM Ericsson (Sweden), AT&T Intellectual Property (U.S.), Nokia Corporation (Finland), Lumen Technologies (U.S.), RACKSPACE TECHNOLOGY, INC. (U.S.), Comarch SA (Poland), Tech Mahindra Limited (India), Infosys Limited (India), GTT Communications, Inc. (U.S.), BT (U.K.), Unisys (U.S.)
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Market Opportunities
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Market Definition
Telecom managed services refer to the outsourcing of various telecommunications functions and responsibilities to a third-party service provider. These services can include the management of network operations, maintenance and monitoring of telecom infrastructure, support for voice and data services, and overall management of the telecom environment.
Telecom Managed Services Market Dynamics
Drivers
- Increasing Complexity of Telecom Networks
The telecom industry is witnessing a rapid evolution with the adoption of advanced technologies such as 5G, IoT, and cloud computing. These technologies bring about a higher level of complexity in network infrastructure, requiring specialized skills and resources to manage effectively. Managed services in telecom industry providers offer the expertise needed to navigate this complexity, ensuring that networks are optimized for performance, reliability, and security. By outsourcing network management to these providers, organizations can focus on their core business objectives without being burdened by the intricacies of managing a complex telecom infrastructure.
- Cost-Effective Solutions
Building and maintaining a robust telecom infrastructure can be prohibitively expensive for many organizations, especially smaller ones. Telecom managed services providers offer scalable solutions that can be tailored to the specific needs of each organization, allowing them to pay only for the services they require. This cost-effective approach enables organizations to access advanced telecom capabilities without having to make significant upfront investments. The adoption of telecom managed services is the cost-effectiveness they offer compared to in-house network management, a major driver for the market.
Opportunities
- Emergence of 5G Networks
5G technology offers unprecedented speed and bandwidth, enabling new applications and services that were not possible with previous generations of mobile networks. Telecom managed service providers can help organizations leverage the benefits of 5G technology by designing and implementing customized solutions that take advantage of its capabilities. This includes deploying small cells, optimizing network performance, and ensuring seamless connectivity across devices and locations. The rollout of 5G networks presents a significant opportunity for telecom-managed service providers.
- IoT Adoption Driving Demand
IoT devices generate vast amounts of data that need to be collected, processed, and analyzed in real-time. This requires specialized infrastructure and expertise to manage effectively. Managed service providers offer solutions tailored to the unique requirements of IoT environments, including data management, connectivity, and security. By outsourcing IoT management to these providers, organizations can streamline operations, improve efficiency, and enhance decision-making based on real-time insights from IoT data. The increasing adoption of IoT devices across various industries is fueling the demand for managed services.
Restraints/Challenges
- Data Privacy and Security Concerns
The increasing reliance on third-party providers for network management raises concerns about data privacy and security. Organizations are increasingly storing sensitive data on their networks, making it imperative to ensure that this data is protected from unauthorized access and breaches. Telecom managed services providers implement robust security measures to safeguard their clients' data, including encryption, firewalls, and intrusion detection systems. However, organizations must still exercise caution and due diligence when selecting a managed services provider to ensure that their data remains secure.
- Dependency on Service Providers
Outsourcing network management to third-party providers can lead to a dependency on these providers for the smooth operation of the network. Any issues or downtime experienced by the service provider can have a direct impact on the organization's operations, highlighting the importance of choosing a reliable and experienced provider. To mitigate this risk, organizations should carefully evaluate potential service providers and ensure that they have the necessary expertise and resources to meet their needs.
This 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 market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Recent Developments
- In October 2023, Logicalis, a technology services provider, introduced its Intelligent Connectivity suite featuring solutions like SASE, SSE, SD-WAN, and Private 5G, all powered by Cisco Systems, Inc. This suite allows Logicalis customers to access digitally managed services developed using Cisco technology and supported by the Logicalis Digital Fabric Platform
- In September 2023, Cloud5 Communications, a provider of communications and technology solutions, launched a new division dedicated to managed services. This division aims to address IT-related requirements and challenges across various markets, including the hospitality industry, student housing, and senior living. The division will help clients efficiently manage IT operations, technology infrastructures, and security
Telecom Managed Services Market Scope
The market is segmented based on type, managed information service (MIS), deployment model, and organization size. 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.
Type
- Managed Data Center Services
- Managed Network Services
- Managed Communication and Collaboration Services
- Managed Security Services
- Managed Mobility Services
- Others
Managed Information Service (MIS)
- Business Process Management
- Managed Operational Support Systems/Business Support Systems
- Project & Portfolio Management
- Others
Deployment Model
- On-Premise
- Cloud
Organization Size
- Large Enterprises
- Small and Medium Enterprises (SMES).
Telecom Managed Services Market Regional Analysis/Insights
The market is analyzed and market size insights and trends are provided by country, type, managed information service (MIS), deployment model, and organization size as referenced above.
The countries covered in the market report are U.S., Canada, and Mexico.
The U.S. is expected to dominate the market due to significant technological advancements and the widespread adoption of managed services, the U.S. is anticipated to lead the North America telecom managed services market. The country ALSO boasts a strong presence of the majority of key players in the industry.
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 North America 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.
Competitive Landscape and Telecom Managed Services Market Share Analysis
The 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, North America 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 market.
Some of the major players operating in the market are:
- FUJITSU (Japan)
- DXC Technology Company (U.S.)
- IBM Corporation (U.S.)
- Cognizant (U.S.)
- Wipro Limited (India)
- Capgemini (France)
- Accenture (Ireland)
- Tata Consultancy Services Limited (India)
- HCL Technologies Limited (India)
- NTT DATA Corporation (Japan)
- Verizon (U.S.)
- Cisco Systems, Inc. (U.S.)
- ZTE Corporation (China)
- Huawei Technologies Co., Ltd. (China)
- Telefonaktiebolaget LM Ericsson (Sweden)
- AT&T Intellectual Property (U.S.)
- Nokia Corporation (Finland)
- Lumen Technologies (U.S.)
- RACKSPACE TECHNOLOGY, INC. (U.S.)
- Comarch SA (Poland)
- Tech Mahindra Limited (India)
- Infosys Limited (India)
- GTT Communications, Inc. (U.S.)
- BT (U.K.)
- Unisys (U.S.)
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