Managed Network Services Market size is expected to exceed USD 207.55 Billion by the end of 2035, expanding at a CAGR of 10.5% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of managed network services was USD 62.63 Billion. The growth of the market is largely driven by the increasing demand for managed network services from small and medium-sized enterprises, owing to the need for cost optimization, improved network performance, and high-speed internet connectivity. Also, the average small business spends 6.7% of its revenue on IT services.
A growing number of businesses are utilizing managed SD-WAN services. These services provide businesses with the ability to scale their networks quickly and efficiently, while also providing improved reliability and performance. This also provides businesses with better control over their network and applications since their service provider manages the network and ensures that the service-level agreements (SLAs) are met.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~10.50% |
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Base Year Market Size (2022) |
~ USD 62.63 Billion |
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Forecast Year Market Size (2035) |
~ USD 207.55 Billion |
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Regional Scope |
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Component (Managed LAN/WPN Networks, Managed IP Telephony, Managed IP/VPN, Managed Wi-Fi)
The managed IP/VPN segment is estimated to gain the largest market share of about 26% in the year 2035. The segment growth can be attributed to the increasing adoption of IP/VPN services, especially among large enterprises, to facilitate data transmission. This type of VPN is highly reliable and secure as it uses private, dedicated network connections running over a secure IP backbone. Furthermore, it can deploy advanced security features, such as encryption and authentication, which help protect user data from unauthorized access.
Deployment Type (On-Premise, Cloud)
Managed network services market from the cloud segment is predicted to grow to a significant share of about 58% in the year 2035 due to the increasing adoption of cloud computing services to manage the network infrastructure and the growing trend of connectivity-as-a-service. This provides an opportunity for organizations to reduce their IT expenses and increase their operational efficiency. Additionally, cloud-based solutions offer scalability, flexibility, and agility to organizations. Furthermore, cloud solutions provide a range of services that can be customized to meet the changing needs of customers.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Deployment Type |
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Enterprise Size |
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End User |
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APAC Market Analysis
Asia Pacific is expected to hold the largest managed network services market with a share of 33.2% by 2035. With the expansion of 5G network services and the rise of data centers, the region has seen a rise in the demand for MNS services. There have been over 960,000 5G base stations built in China, of which 190,000 were built during the first half of 2021. Approximately 360 million 5G terminals have been connected to China's 5G network, and 128 million 5G phones have been shipped. With the emergence of new technologies, such as 5G, businesses are looking to manage service providers to handle the complexities associated with the technology, such as security and scalability.
North American Market Forecast
The North America managed network services market is estimated to be the second largest, registering a share of about 28% by the end of 2035. The healthcare organizations in the region have been implementing telehealth solutions to respond to the increased demand for healthcare services during the COVID-19 pandemic, as well as to improve the quality of services and patient outcomes. Over 77% of hospitals in the United States provide telemedicine services to their patients. This has led to a surge in demand for managed network services, such as cloud-based storage and virtual private networking, which allow for secure and reliable communication between patients and healthcare providers.
Author Credits: Abhishek Verma, Hetal Singh
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