Managed Network Services Market Size & Share, by Component (Managed LAN/WPN Networks, Managed IP Telephony, Managed IP/VPN, Managed Wi-Fi); Deployment Type (On-Premise, Cloud); Organization (Large Enterprises, SMEs); End-user (BFSI, Communication, Media & Services, Healthcare Providers, Manufacturers, Retail & E-commerce, Transportation, Education, Government) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 5013
  • Published Date: Jun 13, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

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.


Managed Network Services Market
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Managed Network Services Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Adoption of Digitalization in Various Sectors Around the World - There is a 90% participation rate in digital initiatives among businesses, and 88% of senior business leaders acknowledge that digitalization is a priority for their organization. Globally, digital transformation spending is expected to reach USD 6.7 trillion by 2023. Digitalization helps organizations to become more efficient and cost-effective. It also helps to streamline processes, reduce manual errors, and increase productivity. As a result, organizations are increasingly turning to managed network services to help them better manage their networks and ensure smooth operation.
  • Increasing Implementation of Modern Campus Networks to Enhance Service Delivery - Campus networks provide an intermediary connection between a LAN and MAN, enabling greater scalability and flexibility. This allows for more efficient delivery of services and better performance due to a larger bandwidth and higher transfer speeds. Additionally, the use of campus networks helps to reduce operational costs, making it an attractive option for businesses looking to maximize their IT budgets.
  • An Exponential Increase in Global IP Traffic and Cloud Traffic - It is estimated that global IP traffic for consumers reached 330 exabytes per month by 2022, with a compound annual growth rate of 26%. Among all data centers, 96% of traffic was generated by cloud data centers in 2021. As businesses and organizations migrate more of their operations to the cloud, there is an increased need for reliable and secure networks for transporting data. Managed Network Services offer businesses the ability to outsource their network needs and ensure that their networks are secure and reliable. Additionally, these services can reduce costs associated with network maintenance and troubleshooting, which can be especially beneficial for businesses with limited IT resources.

Challenges

  • Concerns about data security and privacy - As more and more businesses rely on managed network services, more sensitive customer and employee data is stored on these networks. This data is vulnerable to cyber-attacks and data breaches, which can lead to both financial and reputational losses for the companies involved. As a result, companies are increasingly concerned about the security and privacy of their data, which has caused demand for managed network services to decrease
  • The complexity of network infrastructure
  • Rapid pace of technological change requires managed service providers to update their services constantly

Managed Network Services Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~10.50%

Base Year Market Size (2022)

~ USD 62.63 Billion

Forecast Year Market Size (2035)

~ USD 207.55 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Managed Network Services Segmentation

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:

          Component

  • Managed LAN/WPN Networks
  • Managed IP Telephony
  • Managed IP/VPN
  • Managed Wi-Fi

            Deployment Type

  • On-Premise
  • Cloud

            Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises

              End User

  • BFSI
  • Communication
  • Media & Services
  • Healthcare Providers
  • Manufacturers
  • Retail & E-commerce
  • Transportation
  • Education
  • Government
 

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Managed Network Services Industry - Regional Synopsis

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.

Research Nester
IG Global Managed Network Services Market Size
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Top Featured Companies Dominating the Managed Network Services Market

top-features-companies
    • Amazon Web Services, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Midco
    • IBM Corporation
    • Fujitsu Ltd.
    • Cisco Systems, Inc.
    • Dell EMC
    • Alcatel-Lucent
    • Microsoft Corporation
    • Wipro Limited
    • T-Systems

In-the-news

In The News

  •  Amazon Web Services, Inc. (U.S.) announced its new managed wide area network (WAN) service, AWS Cloud WAN, which will simplify global networks by connecting data centers, colocation facilities, branch offices, and cloud resources.
  • The Midco Wi-Fi powered by Plume HomePass allows customers to experience a better home internet experience. With this next-generation Wi-Fi service, you will have access to even faster, smarter, and more reliable WiFi throughout your home that is powered by artificial intelligence, cloud, and open-source technologies.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5013
  • Published Date: Jun 13, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing complexity of IT networks, the need for better network performance and reliability, and the need to reduce operational costs.

The market size of managed network services is anticipated to attain a CAGR of ~10.50% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Amazon Web Services, Inc., Midco, IBM Corporation, Fujitsu Ltd., Cisco Systems, Inc., and others.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by component, deployment type, enterprise size, end user, and by region.

The managed IP/VPN segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The complexity of network infrastructure and the rapid pace of technological change requires managed service providers to update their services constantly.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Managed Network Services Market Report Scope
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