The global Managed Network Services market size was USD 60.2 Billion in 2022 and is likely to reach USD 135 Billion by 2031, expanding at a CAGR of 8.8% during 2023–2031. The market growth is attributed to rising cybersecurity concerns and technological advancements.
Rising cybersecurity concerns across organizations in several sectors are expected to fuel the global managed network services market. With the increasing frequency and sophistication of cyber threats, businesses are placing a higher premium on network security. Managed network service (MNS) providers have specialized expertise in cybersecurity, making them crucial partners for organizations looking to protect their networks.
-
In August 2023, HCLTech, an IT services and consulting company, announced a partnership with Verizon Business, a top U.S. telecom company, to become its primary managed network services associate, for business customers in all networking deployments. This partnership is expected to reduce potential churn, add new clients, and grow existing managed service businesses.
Compliance and regulatory requirements for organizations are projected to further augment the market. Many industries have strict compliance standards related to data security and privacy. Managed service providers help companies to meet regulatory requirements by implementing and maintaining secure network infrastructures. These factors are expected to propel the growth of the market in the coming years.
The research report finds that COVID-19 boosted the market. The pandemic accelerated the adoption of remote work and amplified the importance of reliable, flexible, and secure managed network services. Network providers are adapting to meet the evolving needs of businesses, emphasizing solutions that enable seamless remote collaboration and ensure business continually in uncertain times.
Impact of Artificial Intelligence on Managed Network Services Market
Artificial Intelligence (AI) has a significant impact on the Managed Network Services market. It is revolutionizing the way networks are monitored, managed, and optimized. AI is transforming the managed service market by making it more efficient, reliable, and secure. It enables providers to offer proactive and data-driven solutions. The growing implementation of AI in managed network services is leading to better user satisfaction and network performance.
Managed Network Services Market Dynamics
Major Drivers
Increasing proactive network monitoring and maintenance across organizations is driving the managed network service market. Managed services include 24/7 monitoring and proactive maintenance, which helps MNS providers identify and address network issues before they lead to disruptions. It allows organizations to adapt to changes in network requirements easily. This scalability and flexibility are crucial for businesses experiencing rapid growth or fluctuations in demand, which further propel the growth of the market. For instance,
-
In April 2022, Prevailion, a leading player in Compromise Breach Monitoring, announced the launch of its first malware replication platform named ARKTOS. This malware replica platform allows businesses to securely examine their information security against the world’s highly challenging early-stage malware.
Existing Restraints
Stringent regulations imposed by several governments in managed network services are restraining the market. The rise in cyberattacks, data breaches, and growing data security concerns have increased the demand for regulatory and compliance requirements. Thus, these compliances and rules are constraining the managed network services market that several businesses must follow.
Emerging Opportunities
Rising technological advancements in managed network services solutions are expected to create lucrative opportunities in the market. Managed service providers with expertise in these areas are in high demand. Emerging technologies such as the Internet of Things (IoT), 5G, and edge computing are likely to create new opportunities and challenges in the network management.
Scope of the Managed Network Services Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Managed Network Services Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Type (Managed Wi-Fi, Managed LAN, Managed WAN, Network Monitoring, Managed VPN, Managed Network Security [Managed IPS/IDS, Managed Firewall, Others]), Organization Size (Large Enterprises and Small & Medium Enterprises), Deployment Mode (Cloud and On-Premises), and End-user (IT & Telecom, Government, Healthcare, BFSI, Government, Media & Entertainment, Education, and Others)
|
|
Regional Scope
|
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
Cisco Systems, Inc.; Alcatel-Lucent Enterprise (ALE International); Fujitsu Ltd.; Amazon Web Services; Prevailion; Dell EMC; IBM Corporation; Verizon; Calix; Telstra; and Huawei.
|
Market Segment Insights
Type Analysis
Based on type, the managed network services market is segregated into managed Wi-Fi, managed LAN, managed WAN, network monitoring, managed VPN, and managed network security. The managed network security segment is further sub-segmented into managed IPS/IDS, managed firewall, and others.
The managed network security segment is expected to expand at a significant growth rate during the projection period, as it protects enterprises from all types of security threats. Network breaches and threats, to data and systems, negatively affect business innovation, damage compliance efforts, and limit productivity. Managed network security service provides safeguards and strong security controls to protect enterprise network services and customer information, which is further propelling the segment in the market.
The managed wide area network (WAN) segment is anticipated to hold a major share of the market in the coming years. WAN connects geographically dispersed locations and facilitates data transfer and effective communication across different sites. The global business expansion has increased the demand for these services. To enhance network performance, ensure reliable connectivity, and optimize bandwidth usage, organizations rely on managed WAN services.
Organization Size Analysis
On the basis of organization size, the global market is bifurcated into large enterprises and small & medium enterprises. The small & medium enterprises (SME) segment is projected to register a considerable CAGR during the forecast period, owing to the implementation of enhanced and innovative IT services. This has increased the global expansion of SMEs, further rising demand for MNS in SMEs, and increasing expenditure in IT are key factors propelling the market growth.
Deployment Mode Analysis
On the basis of deployment mode, the managed network services market is divided into cloud and on-premises. The cloud segment is expected to register a robust growth rate during the forecast period, owing to increasing investments from small and medium-sized organizations. Due to digitization, networks are required to be more agile, which allows businesses to offer good consumer experiences. While combining high-performance network accessibility, cloud-based MNS services enhance the flexibility and speed of businesses. For instance,
-
In July 2022, Amazon Web Services, an IT service management company, announced the AWS Cloud WAN, a managed wide area network solution. The solution aids in connecting branch offices, cloud resources, colocation facilities, and on-premise data centers to simplify global network operations.
End-user Analysis
Based on end-user, the managed network services market is divided into IT & Telecom, government, healthcare, BFSI, government, media & entertainment, education, and others. The IT & Telecom segment is expected to expand at a significant growth rate during the projection period, owing to growing demand for cloud computing, digital transformation, and mobile technologies. Managed network services meet the network management requirements such as monitoring, providing network designs, security solutions, implementation, and evolving connectivity needs. Thus, the MNS accommodates the several network-related needs for the IT & telecom sector, which is boosting their adoption from this sector.
The BFSI segment is anticipated to hold significant revenue in the market during the projected period, owing to the need for managed network services that offer robust network security and compliance to organizations in this sector. The banking, financial services, and insurance companies require managed network services to meet regulatory requirements and seamless connectivity. In addition, the increasing digitization of financial transactions, and the need for 24/7 managed network services in the BFSI sector are propelling the market.
Regional Outlook
In terms of region, the global managed network services market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the presence of major IT companies and a strong emphasis on digital transformation initiatives. Furthermore, the growing adoption of cloud computing solutions has increased the demand for secure networking among enterprises, which is projected to drive the managed network service market.
Asia Pacific region is anticipated to hold a significant share of the market in the coming years, due to the significant advancements in technology infrastructures in emerging countries such as India, Japan, China, and Australia. The expansion of SMEs, that rely on managed network services to execute their operations, the increasing adoption of mobile & smart devices, and the usage of the internet are driving the market for managed network services in the region.
Segments
The Managed Network Services market has been segmented on the basis of
Type
- Managed Wi-Fi
- Managed LAN
- Managed WAN
- Network Monitoring
- Managed VPN
- Managed Network Security
- Managed IPS/IDS
- Managed Firewall
- Others
Organization Size
- Large Enterprises
- Small & Medium Enterprises
Deployment Mode
End-user
- IT & Telecom
- Government
- Healthcare
- BFSI
- Government
- Media & Entertainment
- Education
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global managed network services market are Cisco Systems, Inc.; Alcatel-Lucent Enterprise (ALE International); Fujitsu Ltd.; Amazon Web Services; Prevailion; Dell EMC; IBM Corporation; Verizon; Calix; Telstra; and Huawei.
These major players are dominating the managed network service market and are contributing a significant share of the market through their existing distribution channels globally. For instance,
-
In September 2022, Nokia and Indosat Ooredoo Hutchison (IOH) announced the deployment of Indonesia's first Nuage Network Software-Defined WAN solutions for Paragon Tech. To increase operational simplicity and cost of ownership for them. Nuage Networks and IOH installed a managed SD-WAN system across Paragon Tech's hub sites. This simplified Paragon Tech’s operations by using automation and reducing operational expenditure by centrally monitoring applications.
-
In October 2022, Calix, a leading global provider of broadband communication access software and systems, launched its eighth managed service named SmartTown, which enables broadband service providers (BSPs) of any size to connect people with safe, secure, and private Wi-Fi experiences. Calix spent over a decade developing these solutions, with an investment of more than USD 1 billion.
Request For Customization
Enquiry Before Buying
Speak With Analyst
