Managed Network Services Market by Type ( Managed LAN, Managed Wi-Fi, Managed WAN, Managed IP/VPN, Managed Network Security), Vertical, and Region( North America, Asia Pacific, Europe, Middle East Africa, Latin America) - Global Forecast to 2028
[236 Pages Report] The Managed Network Services market size is projected to grow from USD 65.7 billion in 2023 to USD 89.9 billion by 2028 at a CAGR of 6.5% during the forecast period. Managed network services are an attractive alternative to the costly, time-consuming business of in-house network management services, which are difficult to install and manage for SMEs where cost is a significant factor.
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Managed Network Services Market Dynamics
Driver: Increasing trend of digital transformation across the globe
Digitalization is sweeping industries and necessitates networks with remarkable agility to deliver unparalleled customer experiences. Recognizing this critical imperative, global enterprises embark on ambitious digital journeys, embracing cutting-edge technologies to transform their operations and customer interactions. These transformative endeavors, however, demand skilled resources and global reach that often exceed internal capabilities. MNS providers emerge as strategic partners in this evolving landscape, adeptly bridging skill gaps and facilitating access to new markets through innovative solutions. Their comprehensive expertise empowers organizations to navigate the multifaceted digital terrain, encompassing cloud, mobile, and emerging technologies. This strategic alliance fosters a surge in MNS adoption as organizations seek agile networks and skilled resources to fuel their digital metamorphosis. Further propelling this trend are advancements in cloud technologies, accelerated mobile device penetration, a growing appetite for technological adoption, and the strategic initiatives undertaken by multinational corporations. These converging forces create a fertile ground for global MNS market growth, empowering organizations to thrive in the dynamic digital ecosystem.
Restraint: Concerns over data privacy and security
One of the major restraining factors in outsourcing network functions management is the risk of exposing critical business details. Data privacy and security are primary criteria enterprises consider when selecting managed network services. Enterprises believe managed network services can disclose their sensitive data and cause them to lose control over their infrastructure. Data storage control is partially or entirely under the vendors’ control, and they may get access to customer’s data when enterprises select managed network services for their networks. Network security is an imperative consideration that can guarantee the privacy of the client’s data. Outsourcing network services can also generate issues in organizational security among clients. However, managed network service providers never misuse client’s confidential documents unless access has been given to them by the client itself. Taking appropriate security and proactive control measures becomes hectic for enterprises when data access and control rests with the vendor. The data is also vulnerable to data breaches, and companies do not trust vendors. Enterprises must constantly enforce robust security and compliance protocols to limit access to sensitive and critical content and safeguard the information against threats. This aspect is a major restraining factor for enterprises adopting managed network services.
Opportunity: Opportunity to provide value-added services above and beyond core network infrastructure and become true business partners
In today's hypercompetitive environment, more is needed for a managed network service provider to be solely a network infrastructure provider. Nowadays, enterprises want their service providers to help drive digital transformation solutions. They expect managed network service providers to help them achieve more with the advanced technologies to better engage with their customers and radically improve performance. As more enterprises begin the digital transformation process, managed network service providers have an opportunity to provide value-added services above and beyond core network infrastructure and become true business partners.
Challenge: Monitoring complex, multi-technology physical and virtual networks across customer networks
As cloud networks and service offerings continue to expand, large businesses and SMEs have opted to outsource the management and assurance of their network. This challenges Managed Service Providers (MSPs) to continuously monitor complex, multi-technology physical and virtual networks across customer networks. The managed network service provider is expected to meet diverse customer requirements with varying networks and ensure proper regulatory compliance while offering managed network services to customers. MSPs should practice appropriate security and regulatory policies, as non-compliance with regulations and standards can directly affect the services they provide to enterprises, leading to significant financial and business risks to clients and their business processes. As technology evolves, it becomes more work for service providers to keep up with the constantly changing technology and government regulations. This is a significant challenge for managed network service providers and enterprises in this market.
Ecosystem Of Managed Network Services Market
By type, Manged LAN will account for the largest market size during the forecast.
Managed network service providers offer various services to monitor, maintain, and protect organizations' network infrastructure while reducing network operating costs. Providers roll out new network business tools to connect users in different geographical locations and increase communication efficiency. Managed LAN is an industrialized service that comprehensively addresses the LAN and WLAN infrastructure at organizations’ small branch offices, big campuses, and data centers. Managed LAN services boost productivity by minimizing downtime, and the ongoing support frees IT teams to concentrate on organizations’ other projects and priorities. Managed LAN services from MSPs comprise planning, on-demand provisioning, and the management of organizations' LAN ports, including roll-out to all sites, software and hardware maintenance, proactive monitoring, service level reporting, and support. Managed LAN services cut both infrastructure and operational costs for an enterprise.
Based on region, North America is expected to hold the largest market size during the forecast.
North America houses the headquarters of the major players in the MNS market, such as Cisco, IBM, Verizon, and AT&T. The region witnesses a considerable demand for the SD-WAN solution because of the rising demand for the next-generation 5G network. Due to the rapidly changing technological landscape, enterprises are inclined toward managed SD-WAN services. North America remains a leader in the market due to the rising demand for high-speed networks, the increasing competition among major players in the networking industry to provide better customer experience, and the growing adoption of cloud networking. Mobile penetration in the region is high.
Market Players:
The major vendors in this market include are IBM (US), Cisco (US), Ericsson (Sweden), Verizon (US), Huawei (China), AT&T (US), BT Group (UK), Telefonica (Spain), T-Systems (Germany), NTT (Japan), Orange (France), Vodafone (UK), Fujitsu (Japan), Lumen (US), Masergy (US), Colt Technology Services (UK), Telstra (Australia), CommScope (US), etc. These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their MNS footprint.
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Report Metrics |
Details |
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Market size available for years |
2017-2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD) Million/Billion |
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Segments Covered |
By Type, Verticals, and region |
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Region covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
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Companies covered |
The major players in the managed network services market are IBM (US), Cisco (US), Ericsson (Sweden), Verizon (US), Huawei (China), AT&T (US), BT Group (UK), Telefonica (Spain), T-Systems (Germany), NTT (Japan), Orange (France), Vodafone (UK), Fujitsu (Japan), Lumen (US), Masergy (US), Colt Technology Services (UK), Telstra (Australia), CommScope (US). |
This research report categorizes the managed network services market to forecast revenues and analyze trends in each of the following submarkets:
Based on Type:
- Managed LAN
- Managed Wi-Fi
- Managed VPN
- Managed WAN
- Network Monitoring
- Managed NFV
- Managed Network Security
Based on Network Security:
- Managed Firewall
- Managed IDS/IPS
- Other Managed Network Security
Based on Verticals:
- Banking, Financial Services and Insurance
- Retail and Ecommerce
- IT and Telecom
- Manufacturing
- Government
- Education
- Healthcare
- Media and Entertainment
- Other Verticals
By Region:
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North America
- US
- Canada
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Europe
- UK
- France
- Germany
- Spain
- Italy
- Nordics
- Rest of Europe
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Asia Pacific
- China
- Japan
- India
- Australia and New Zealand
- South East Asia
- Rest of Asia Pacific
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Middle East and Africa
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GCC Countries
- UAE
- KSA
- Rest of GCC Countries
- South Africa
- Rest of the Middle East & Africa
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GCC Countries
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Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In May 2023, NTT announced the Next Generation Platform for Managed Network Services. The platform provides customers a direct pathway towards network transformation, underpinned by NTT’s managed services experience, expertise, and expansive technical resources.
- In Feb 2023, Huawei launched the digitally managed network solution to boost new growth for carriers' B2B services.
- In June 2021, with Cisco, AT&T Business introduced Webex Calling with AT&T – Enterprise to Cisco’s Unified Communications Manager – Cloud (UCMC), helping businesses optimize operations and accelerate digital transformation in any environment.
- In May 2021, Cisco Webex, one of the leading providers of cloud-based collaboration solutions, and Box, one of the leading Content Clouds, announced new and deepened integrations between the two technology platforms to make it easier for customers to work securely and effectively in the cloud.
Frequently Asked Questions (FAQ):
What are Managed Network Services?
Managed network services refer to outsourcing/offloading network-related operations of organizations to an expert third-party organization such as Managed Service Providers (MSPs). MSPs are responsible for a few or entire networking needs, including monitoring and management of network infrastructure components, network security management, networking applications, and functions. They also offer value-added services apart from managing networks, thus looking after organizations’ IT services and processes, helping them stay focused on their core business uninterrupted
What is the market size of the Managed Network Services market?
The Managed Network Services market size is projected to grow from USD 65.7 billion in 2023 to USD 89.9 billion by 2028 at a CAGR of 6.5% during the forecast period.
What are the major drivers in the Managed Network Services market?
The latest technological breakthroughs, such as big data and analytics, IoT, AI, and Machine Learning (ML), have made systems and network demands more connected and complex. Enterprises need expertise to implement such technologies into their business functions. They also need more infrastructure to execute these technologies. Hence, buying the latest equipment and managing them in-house becomes quite expensive. Enterprises have become more open to adopting Bring Your Own Device (BYOD) policies due to the increase in mobile application users in the workforce. Employees use mobile devices to connect with the corporate database in BYOD. Even though organizations rapidly adopt this technology, the primary challenge is to build networks that are more secure and accessible. User experience in BYOD is strongly dependent on the availability of continuous and robust wireless connections. Customers are leveraging cloud-based applications in their organizations, which are often bandwidth-intensive, enhancing network pressure. Engaging managed network service providers is wise for enterprises to achieve business agility. This, in turn, represents a significant opportunity for MSPs. MSPs use the latest technologies and equipment and provide strategic advice to keep enterprise businesses moving forward. They even manage enterprise systems remotely via managed services platforms, which helps enterprises boost their growth.
Who are the key Managed Network Services market players?
The key vendors operating in the Managed Network Services market include are IBM (US), Cisco (US), Ericsson (Sweden), Verizon (US), Huawei (China), AT&T (US), BT Group (UK), Telefonica (Spain), T-Systems (Germany), NTT (Japan), Orange (France), Vodafone (UK), Fujitsu (Japan), Lumen (US), Masergy (US), Colt Technology Services (UK), Telstra (Australia), CommScope (US) etc.
What are the opportunities for new market entrants in the Managed Network Services market?
Global IP traffic is increasing at an unprecedented rate. Network infrastructure trends, such as enterprise mobility, cloud services, and Voice over Internet Protocol (VoIP), have generated tremendous network traffic. Internet traffic is growing tremendously due to the proliferation of smartphones and Over-The-Top (OTT) players. This significantly burdens network administrators to effectively manage and utilize network resources, creating an opportunity for managed network service providers. Managed network service providers can provide a network with fast speed, excellent Quality of Service (QoS), and reliable and geographically diverse infrastructure to ensure ongoing business continuity. .
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The research study involved four major activities in estimating the managed network services market size. Exhaustive secondary research has been done to collect important information about the market and peer markets. The next step has been to validate these findings, assumptions, and sizing with the help of primary research with industry experts across the value chain. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In the secondary research process, various secondary sources were referred to for identifying and collecting information for the study. The secondary sources included annual reports, press releases, investor presentations of companies, white papers, certified publications, and articles from recognized associations and government publishing sources. Secondary research was mainly used to obtain key information about industry insights, the market’s monetary chain, the overall pool of key players, market classification, and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from the market and technology-oriented perspectives.
Primary Research
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for the report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations providing managed network services. The primary sources from the demand side included end users, such as Chief Information Officers (CIOs), consultants, service professionals, technicians and technologists, and managers at public and investor-owned utilities.
In the market engineering process, top-down and bottom-up approaches and several data triangulation methods were extensively used to perform market estimation and market forecasting for the overall market segments and subsegments listed in the report. Extensive qualitative and quantitative analyses were performed on the complete market engineering process to list key information/insights throughout the report.
After the complete market engineering (including calculations for market statistics, market breakup, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information. Primary research was undertaken to identify the segmentation types, industry trends, key players, the competitive landscape of different market players, and key market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies.
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Market Size Estimation
In the market engineering process, top-down and bottom-up approaches and multiple data triangulation methods were used to estimate and validate the size of the managed network services market and other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
- Initially, MarketsandMarkets focuses on top-line investments and spending in the ecosystems. Further, significant developments in the critical market area have been considered.
- Tracking the recent and upcoming developments in the managed network services market that include investments, R&D activities, product launches, collaborations, mergers and acquisitions, and partnerships, as well as forecasting the market size based on these developments and other critical parameters.
- Conduct multiple discussions with key opinion leaders to know about diverse types of authentications and brand protection offerings used and the applications for which they are used to analyze the breakup of the scope of work carried out by major companies.
- Segmenting the overall market into various market segments
- Validating the estimates at every level through discussions with key opinion leaders, such as chief executives (CXOs), directors, and operation managers, and finally with the domain experts at MarketsandMarkets
Market Size Estimation Methodology-Bottom-up approach
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Market Size Estimation Methodology-top-down approach
Data Triangulation
The managed network services market has been split into segments and sub-segments after arriving at the overall market size from the abovementioned estimation process. Where applicable, data triangulation and market breakdown procedures have been used to complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments. The data has been triangulated by studying various factors and trends from both the demand and supply sides.
The managed network services market size has been validated using top-down and bottom-up approaches.
Market Definition
Managed network services refer to outsourcing/offloading network-related operations of organizations to an expert third-party organization such as Managed Service Providers (MSPs). MSPs are responsible for a few or entire networking needs, including monitoring and management of network infrastructure components, network security management, networking applications, and functions. They also offer value-added services apart from managing networks, thus looking after organizations’ IT services and processes, helping them stay focused on their core business uninterrupted.
Stakeholders
- Global managed service providers
- Cloud Service Providers (CSPs)
- Independent Software Vendors (ISVs)
- System integrators
- Value-added Resellers (VARs)
- Managed Service Providers (MSPs)
- Chief Financial Officers (CFOs)
- Information Technology (IT) directors
- Small and Medium-sized Enterprises (SMEs)
- IT strategy consultants
- Managed services consulting vendors
- Technology partners
- Research organizations
- Enterprise users
- Technology providers
Report Objectives
- To determine and forecast the global managed network services market based on type, vertical, and region from 2023 to 2028, and analyze the various macroeconomic and microeconomic factors that affect the market growth.
- To forecast the size of the market segments concerning five central regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the managed network services market.
- Analyze each submarket concerning individual growth trends, prospects, and contributions to the overall market.
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market.
- To profile the key market players; provide a comparative analysis based on business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the market’s competitive landscape.
- Track and analyze competitive developments in the market, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities.
Available Customizations
With the given market data, MarketsandMarkets offers customizations per the company’s specific needs. The following customization options are available for the report:
Geographic Analysis
- Further break-up of the Asia Pacific market into countries contributing 75% to the regional market size
- Further break-up of the North American market into countries contributing 75% to the regional market size
- Further break-up of the Latin American market into countries contributing 75% to the regional market size
- Further break-up of the Middle East African market into countries contributing 75% to the regional market size
- Further break-up of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Managed Network Services Market
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