Market Analysis and Insights:
The market for managed network services is projected to be valued at US$ 62.5 billion in 2022 and grow at a compound annual growth rate (CAGR) of 7.10% from 2022 to 2032, when it is expected to reach US$ 133.3 billion.
The managed network services market is experiencing significant growth due to several driving factors. Firstly, the increasing complexity and scale of networks in organizations require specialized expertise and resources that managed service providers (MSPs) can offer. Organizations are recognizing the need to outsource their network management to MSPs to ensure optimal network performance, security, and cost-efficiency. Secondly, the rising adoption of cloud-based and IoT solutions is driving the demand for managed network services, as these technologies require continuous monitoring, maintenance, and support. Additionally, the shift towards remote work and the need for secure, reliable connectivity have further fueled the demand for managed network services.
Moreover, the shortage of skilled IT professionals is another factor driving the market, as businesses prefer to leverage the expertise of MSPs rather than invest in building and maintaining in-house network teams. Overall, the increasing complexity of networks, the growth of cloud-based and IoT solutions, the demand for secure connectivity, and the shortage of skilled IT professionals are the key driving factors propelling the growth of the managed network services market.
Managed Network Services Market Scope :
|Revenue forecast in 2032
|US$ 133.3 billion
|CAGR of 7.10% during 2022-2032
|by Type, By Organization Size , By Deployment Model , by Region.
|North America, Europe, Asia Pacific, South America Middle East and Africa
|Key Players Profiled
|IBM Corporation, Cisco Systems Inc., AT&T Inc., Verizon Communications Inc., BT Group plc, CenturyLink Inc., NTT Communications Corporation, Fujitsu Ltd., Orange Business Services, and Tata Communications Ltd.
Managed Network Services refers to outsourced network management and monitoring, where a company entrusts the management of their network infrastructure, security, and connectivity to a third-party provider, allowing them to focus on core business objectives.
Managed Network Services are crucial for organizations of all sizes as they provide a wide range of benefits. Firstly, these services offer proactive network monitoring, ensuring that any potential issues are detected and resolved before they become major problems. This helps in reducing downtime and minimizing the impact on business operations. Secondly, Managed Network Services offer enhanced network security, protecting sensitive data from external threats and ensuring compliance with industry regulations.
Additionally, these services provide expert technical support and IT assistance, freeing up internal resources and allowing organizations to focus on their core competencies. By outsourcing network management, companies can benefit from cost savings, improved network performance, and scalability. Overall, Managed Network Services play a vital role in ensuring a reliable, secure, and efficient network infrastructure for businesses.
Key Market Segmentation:
Insights On Key Type
Managed Security is expected to dominate the Global Managed Network Services market. With increasing cyber threats and the need for robust security solutions, organizations are prioritizing managed security services to protect their sensitive data and network infrastructure. Managed Security services offer features like firewall management, intrusion detection, threat intelligence, and vulnerability assessments, which are crucial for maintaining a secure network environment. The growing demand for comprehensive security solutions and the need to comply with industry regulations are driving the dominance of Managed Security in the market.
Managed LAN services are projected to witness significant growth in the Global Managed Network Services market. Managed LAN solutions provide organizations with efficient and reliable local area network management, including network monitoring, troubleshooting, and performance optimization. As organizations continue to expand their network infrastructure and invest in cloud-based services, the demand for Managed LAN services to ensure seamless connectivity and efficient network operations is expected to increase.
Managed VPN services are anticipated to experience steady growth in the Global Managed Network Services market. Managed VPN solutions provide secure remote access to corporate networks and ensure data privacy and confidentiality. As businesses increasingly adopt remote work arrangements and rely on cloud-based resources, the demand for Managed VPN services becomes crucial to establishing secure and reliable connections between users and corporate networks.
Managed WAN services are expected to witness steady growth in the Global Managed Network Services market. With the proliferation of cloud-based applications and the need for uninterrupted connectivity, organizations are turning to Managed WAN services to optimize network performance, reduce costs, and ensure efficient utilization of bandwidth. Managed WAN solutions offer centralized management of Wide Area Networks, which enables organizations to improve network efficiency, enhance application performance, and provide secure connectivity across multiple locations.
Managed Wi-Fi services are projected to witness considerable growth in the Global Managed Network Services market. Managed Wi-Fi solutions provide organizations with wireless network management, ensuring seamless connectivity, enhanced user experience, and improved network performance. With the increasing adoption of mobile devices, IoT devices, and the demand for wireless connectivity, the need for Managed Wi-Fi services to handle network capacity, security, and user management is expected to drive market growth.
Managed Monitoring services are anticipated to demonstrate steady growth in the Global Managed Network Services market. Managed Monitoring solutions offer real-time network monitoring, proactive alerts, performance analysis, and reporting to ensure the availability and performance of network infrastructure. As organizations strive to minimize network downtime, optimize performance, and meet service level agreements, Managed Monitoring services become essential for timely issue detection and network performance management.
Insights On Key Organization Size
Large Enterprises are expected to dominate the Global Managed Network Services market due to their extensive network infrastructure and higher budget allocation for advanced networking solutions. With their ability to invest in robust and scalable networks, large enterprises can effectively manage their network requirements, including security, connectivity, and performance optimization. This dominance is driven by their need for seamless and uninterrupted network connectivity across multiple locations and a greater demand for value-added managed services.
SMEs are another important segment of the Global Managed Network Services market. While they may not have the same level of resources as large enterprises, SMEs increasingly recognize the importance of outsourcing their network management to focus on their core business activities. Managed Network Services can provide SMEs with a cost-effective solution to handle their networking needs, including network monitoring, troubleshooting, and maintenance. This allows SMEs to leverage the expertise and support of managed service providers while focusing on innovation and growth.
In conclusion, while Large Enterprises dominate the Global Managed Network Services market, SMEs are also a significant segment that is increasingly adopting managed services to optimize their network infrastructure and streamline operations. Both Large Enterprises and SMEs can benefit from the expertise and support provided by managed service providers to enhance network efficiency, security, and overall business productivity.
Insights On the Key Deployment Model
Cloud Deployment Model Dominating the Global Managed Network Services Market
The cloud deployment model is expected to dominate the global managed network services market due to its numerous benefits and advantages. Cloud-based managed network services offer organizations greater flexibility, scalability, and cost-effectiveness compared to on-premises solutions. With cloud deployment, businesses can easily scale their network infrastructure as per their changing requirements, enabling them to adapt to the dynamic business landscape. Cloud-based managed network services also eliminate the need for heavy upfront investments in hardware and software, as well as the ongoing maintenance costs associated with on-premises solutions. The ease of implementation and rapid provisioning of cloud-based services further contribute to the dominance of the cloud deployment model in the global managed network services market.
On-Premises Deployment Model
While cloud deployment dominates the global managed network services market, the on-premises deployment model still holds significance for certain organizations. On-premises solutions offer businesses greater control and visibility over their network infrastructure, making them suitable for organizations with strict data security and compliance requirements.
Additionally, on-premises deployment provides businesses with the flexibility to customize and tailor their network services according to their specific needs, which may be a critical factor for industries with specialized networking demands. Although the growth of on-premises deployment may be slower compared to cloud deployment, it is expected to continue catering to the specific needs of select organizations in the managed network services market.
Other Subsegments of the Cloud Deployment Model
While the cloud deployment model dominates the global managed network services market, other segments within this model also play a role in meeting diverse customer requirements. These segments include public cloud, private cloud, and hybrid cloud deployment.
Public cloud deployment offers businesses the ability to leverage shared infrastructure and resources provided by third-party service providers. This segment is particularly attractive for organizations looking to benefit from the cost savings and scalability offered by cloud services without needing complete ownership and management of their network infrastructure.
Private cloud deployment, on the other hand, provides businesses with dedicated and isolated infrastructure, ensuring enhanced security and control over their network services. This segment is favoured by organizations with stringent compliance requirements and sensitive data that cannot be stored on shared infrastructure.
Hybrid cloud deployment combines the features of both public and private clouds, allowing organizations to benefit from the flexibility and cost-effectiveness of public cloud services while ensuring the security and control of private cloud resources. This segment caters to organizations with varying workloads and application requirements, providing them with a balanced approach to managing their network services.
In conclusion, while the cloud deployment model dominates the global managed network services market due to its flexibility, scalability, and cost-effectiveness, on-premises deployment and segments within the cloud deployment model, such as public cloud, private cloud, and hybrid cloud, also cater to the specific needs of certain organizations. The market dynamics continue to evolve as businesses seek the optimal mix of deployment models to meet their strategic objectives and network requirements.
Insights On Key Application
IT & Telecom is expected to dominate the Global Managed Network Services market due to the increasing demand for efficient and secure network management solutions in the IT and telecom industry. With the growing dependency on digital infrastructure and data communication networks, companies in the IT and telecom sectors are seeking managed network services to optimize their network performance, ensure data security, and enhance operational efficiency.
The BFSI segment is expected to witness significant growth in the Global Managed Network Services market. The banking, financial services, and insurance sectors are increasingly adopting managed network services to improve network connectivity, enhance data security, and streamline their operations. The need for reliable and high-speed network infrastructure, along with compliance with stringent regulatory requirements, is driving the demand for managed network services in the BFSI industry.
The healthcare segment is projected to experience substantial growth in the Global Managed Network Services market. The healthcare industry is rapidly adopting advanced technologies such as telemedicine, electronic health records (EHR), and digital imaging, which require a robust and secure network infrastructure. Managed network services offer healthcare organizations the ability to manage their network efficiently, maintain data confidentiality, and ensure seamless connectivity, leading to improved patient care and operational efficiency.
The manufacturing segment is anticipated to witness significant growth in the Global Managed Network Services market. Manufacturing companies are increasingly embracing digital transformation and leveraging technologies such as IoT (Internet of Things) and cloud computing to enhance their operational efficiency and productivity. Managed network services provide manufacturers with a reliable and secure network infrastructure to enable real-time monitoring, remote access, and seamless connectivity across different production units, thereby driving the demand for such services in the manufacturing industry.
The government segment is expected to experience notable growth in the Global Managed Network Services market. Government agencies and departments require robust and secure network infrastructure to support their operations, including data transmission, communication, and collaboration. Managed network services enable governments to enhance network efficiency, improve data security, and ensure uninterrupted connectivity across different government branches and departments, thereby driving the adoption of such services in the government sector.
Retail & Consumer Goods
The retail and consumer goods segment is forecasted to witness substantial growth in the Global Managed Network Services market. The retail industry heavily relies on digital platforms, e-commerce, and point-of-sale systems, leading to an increased need for secure and reliable data networks. Managed network services offer retailers the ability to manage their network infrastructure effectively, ensure uninterrupted connectivity, and enhance customer experience through seamless online and offline operations.
The "Others" segment, which includes industries not mentioned in the above segments, is also expected to witness growth in the Global Managed Network Services market. Various sectors such as education, transportation, media, and energy are increasingly adopting managed network services to optimize their network performance, enhance data security, and improve operational efficiency. The demand for managed network services in these industries is driven by factors such as the need for reliable connectivity, data management, and efficient network infrastructure.
Insights on Regional Analysis:
North America is expected to dominate the global managed network services market due to the high adoption of advanced technologies and the presence of major market players in the region. The increasing demand for efficient network management solutions and the growing trend of outsourcing network services are contributing to the market dominance. Additionally, the region's strong economic growth, well-established infrastructure, and the rising trend of cloud computing are further driving the demand for managed network services in North America.
In South America, the managed network services market is experiencing steady growth. The region is witnessing an increasing adoption of digital transformation strategies among businesses, leading to a growing demand for managed network services. Furthermore, the rising need to enhance network security, optimize network performance, and the emergence of IoT are driving the market growth in South America. However, the market is not expected to dominate globally due to the presence of more developed regions such as North America and Europe.
The Asia Pacific region is emerging as a significant player in the global managed network services market. Rapid digitization and technological advancements in countries like China, India, and Japan are driving the adoption of managed network services. The increasing number of small and medium-sized enterprises (SMEs) in the region, along with the growing demand for efficient and cost-effective network management solutions, is further fueling market growth. While Asia Pacific shows substantial potential, it is not expected to dominate globally due to the presence of more mature markets like North America and Europe.
Europe is witnessing steady growth in the managed network services market. The region's technologically advanced infrastructure, high internet penetration rate, and the presence of numerous key industry players are contributing to market growth. European businesses are increasingly adopting managed network services to streamline their operations, improve productivity, and ensure data security. Moreover, factors like the rising demand for cloud-based services and the growth of the IoT sector are fueling market growth in Europe. However, it is not anticipated to be the dominating region globally due to strong competition from North America.
Middle East & Africa
The Middle East & Africa region is experiencing significant growth in the managed network services market. The rising adoption of digital technologies and the increasing need for efficient networking solutions in various industries are driving market growth. Additionally, the growing demand for cloud-based services and managed security solutions in the region is further propelling market expansion. However, the Middle East & Africa region is not expected to dominate the global market due to the presence of more developed regions like North America and Europe.
The key players in the Global Managed Network Services market, such as IBM, Cisco Systems, and AT&T, provide comprehensive solutions and services for managing and optimizing network infrastructure, ensuring seamless connectivity and efficient operations for businesses worldwide.
The key players in the Managed Network Services market include IBM Corporation, Cisco Systems Inc., AT&T Inc., Verizon Communications Inc., BT Group plc, CenturyLink Inc., NTT Communications Corporation, Fujitsu Ltd., Orange Business Services, and Tata Communications Ltd. These companies are major players in the market, offering a wide range of managed network services to address the evolving needs of businesses in areas such as network management, security, cloud connectivity, and unified communications. With their extensive experience and expertise, these key players continue to innovate and introduce new services to help organizations improve their network performance, enhance security, and better manage their IT infrastructure.
COVID-19 Impact and Market Status:
The COVID-19 pandemic has significantly boosted the demand for Global Managed Network Services as businesses strive to enhance remote productivity and cybersecurity amidst a distributed workforce.
The COVID-19 pandemic has had a significant impact on the Managed Network Services (MNS) market. With the implementation of lockdown measures and the rise of remote working, there has been an increased demand for MNS to support the sudden shift to a digital and dispersed work environment. As organizations needed to ensure secure and efficient connectivity for their employees and maintain business continuity, the demand for MNS solutions grew rapidly. Additionally, the pandemic has highlighted the vulnerabilities of traditional in-house network infrastructures, prompting organizations to seek the expertise and support of MNS providers to optimize their network performance and security. However, the market has also faced challenges due to budget constraints as many businesses faced financial difficulties during the pandemic. This has led to a more cautious approach to adopting or expanding MNS services. Overall, COVID-19 has accelerated the adoption of MNS and highlighted its importance in maintaining resilient and scalable network infrastructures in times of crisis.
Latest Trends and Innovation:
- June 2020: Verizon Communications Inc. acquires BlueJeans Network, a leading cloud-based video conferencing platform, to expand its managed network services portfolio and enhance its collaboration offerings.
- January 2020: Hewlett Packard Enterprise completes the acquisition of Silver Peak, a software-defined wide area network (SD-WAN) solutions provider, to bolster its managed network services capabilities and deliver enhanced connectivity solutions to its customers.
- November 2019: AT&T Inc. partners with IBM to offer a new managed services solution called IBM Cloud Satellite. This collaboration enables AT&T to provide globally managed networking services powered by IBM's hybrid cloud and AI technologies.
- October 2019: Cisco Systems Inc. introduces the Cisco Meraki Managed Services Dashboard, providing a centralized platform for managed service providers (MSPs) to efficiently monitor and manage their clients' network infrastructure.
- September 2019: Accenture acquires Cirruseo, a leading Google Cloud services provider, to strengthen its managed network services capabilities in the cloud space and help clients embrace digital transformation with enhanced connectivity solutions.
- August 2019: BT Group plc launches BT Managed WAN Optimization, a managed service that combines Riverbed's WAN optimization technology with BT's extensive network infrastructure, offering customers improved application performance and network efficiency.
- May 2019: Telstra Corporation Limited partners with Ericsson to deploy an IoT connectivity solution called the "IoT Edge Compute" for enterprise customers. This collaboration enhances Telstra's managed network services offerings by providing secure and reliable IoT connectivity at the network edge.
- April 2019: Orange Business Services acquires Enovacom, a healthcare IT solutions provider, to strengthen its expertise in managing and securing critical healthcare networks and enhance its managed network services portfolio in the healthcare industry.
- February 2019: Nokia Corporation introduces its Managed Security Service (MSS) solution, empowering service providers to offer advanced security services to their enterprise customers by leveraging Nokia's expertise in network security and threat intelligence.
- January 2019: Deutsche Telekom AG partners with VMware to deliver a new managed services offering called "Smart SD-WAN," combining Deutsche Telekom's wide-area network (WAN) infrastructure with VMware's SD-WAN technology to enhance network performance and agility for enterprise customers.
Significant Growth Factors:
The Managed Network Services Market is experiencing significant growth due to the increasing demand for efficient network infrastructure and the rising adoption of cloud-based services.
The managed network services market is experiencing significant growth due to several key factors. First and foremost, the increasing demand for cost-effective and efficient IT solutions is driving the adoption of managed network services. Organizations are realizing the benefits of outsourcing their network management to specialized service providers, allowing them to focus on their core business activities. Additionally, the rise in cloud computing adoption is further fueling the growth of managed network services, as businesses require secure and seamless connectivity to their cloud-based applications and data. The ever-growing reliance on technology and the rising complexity of network infrastructures are also contributing to market growth, as companies seek professional expertise to ensure reliable network connectivity and data security. Furthermore, the need for proactive network monitoring and management is becoming more apparent with the growing frequency and sophistication of cyber-attacks. Managed network service providers offer robust security solutions and 24/7 monitoring to detect and prevent potential threats. Lastly, the increasing digital transformation initiatives across various industries, such as healthcare, banking, and retail, are creating a strong demand for managed network services to support the integration of new technologies and digital platforms. Overall, these growth factors are driving the expansion of the managed network services market, offering businesses reliable, scalable, and secure network infrastructures.
The limited awareness and understanding of the benefits of managed network services act as a restraining factor in the market.
The Managed Network Services Market has been experiencing significant growth in recent years, but several restraining factors could impede its progress. Firstly, the high cost associated with deploying and maintaining managed network services can deter small and medium-sized enterprises from adopting them. Additionally, concerns regarding data security and privacy could hinder the widespread adoption of these services, as organizations fear the potential risks posed by outsourcing their network management to third-party providers. Furthermore, the lack of skilled professionals in the field of network management could pose a challenge to the growth of the market, as organizations require expertise and reliable technical support to ensure seamless operation of their networks. Moreover, the rapidly evolving technological landscape and the need for constant upgrades and updates can be a constraint for service providers in keeping up with the changing requirements of their clients. Lastly, the complexity of network infrastructures and the need for customization can pose challenges for managed network service providers to offer tailored solutions that meet the specific needs of diverse organizations. Despite these constraints, the Managed Network Services Market is expected to continue its growth trajectory due to the increasing demand for cost-effective and efficient network management solutions, the rising trend of digital transformation, and the need for organizations to focus on their core competencies by outsourcing their network operations.