Europe Managed Network Services Market Overview
As per MRFR analysis, the Europe Managed Network Services Market Size was estimated at 19.04 (USD Billion) in 2023.The Europe Managed Network Services Market Industry is expected to grow from 20.74(USD Billion) in 2024 to 54.23 (USD Billion) by 2035. The Europe Managed Network Services Market CAGR (growth rate) is expected to be around 9.132% during the forecast period (2025 - 2035)
Key Europe Managed Network Services Market Trends Highlighted
The Europe Managed Network Services Market is currently characterized by a number of significant trends that are being driven by the growing demand for effective network management solutions. The proliferation of remote work has been a significant factor in the adoption of comprehensive managed services by organizations to guarantee secure and dependable connectivity. Another critical factor is the drive for digital transformations, particularly by small and medium-sized enterprises (SMEs). The growth of managed network services is being driven by the increasing demand for professional assistance from numerous small and medium-sized enterprises (SMEs) in Europe, who are seeking to optimize their IT infrastructure and expedite operations.
Furthermore, organizations in Europe are becoming increasingly aware of their network management strategies as a result of regulatory changes and stringent data protection laws, such as the GDPR. This presents an opportunity for managed service providers to improve data security and ensure compliance. Additionally, the trend toward cloud adoption is causing businesses to increasingly abandon traditional IT installations, which presents opportunities for service providers that provide cloud service integration. The growing integration of artificial intelligence and machine learning into managed network services is also attracting significant attention, as these technologies assist in the prediction of network issues and the enhancement of performance.
Additionally, businesses are seeking managed services that can capitalize on the ongoing deployment of 5G networks throughout Europe to improve data transfer speeds and connectivity. The emphasis on sustainability is also increasing, as European companies endeavor to decrease their carbon footprint. This trend offers an opportunity for managed network services that prioritize energy-efficient solutions. In general, the European market for managed network services is adapting to the evolving dynamics of business requirements and technological advancements, allowing organizations to leverage on these changes while maintaining the security and efficiency of their network infrastructures.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe Managed Network Services Market Drivers
Growing Demand for Digital Transformation
The Europe Managed Network Services Market Industry is experiencing significant growth driven by the increasing demand for digital transformation across various sectors. Organizations are leveraging managed network services to enhance their operational efficiency, reduce costs, and improve customer experience. According to a study published by the European Commission, 70% of companies in Europe are investing in digital transformation initiatives, signaling a robust shift toward adopting advanced technological solutions.
Notable companies such as Deutsche Telekom and BT Group are heavily investing in managed network services to facilitate this transition, which further stimulates the market. The increasing reliance on cloud computing, remote working, and digital collaboration tools has led to an upsurge in demand for reliable and secure network services. This trend is projected to continue, with the European Union emphasizing the importance of digitalization in its recovery plan, thereby fueling growth in the Europe Managed Network Services Market Industry.
Rising Security Concerns
In the wake of increasing cyber threats, organizations across Europe are prioritizing network security, thus driving the demand for managed network services. A recent report from ENISA (European Union Agency for Cybersecurity) highlighted that 93% of organizations in Europe have experienced a cyber incident in the past year, necessitating robust security measures. Companies like Cisco and Fortinet have responded to this surge in security needs by offering comprehensive managed security services, which play a vital role in the overall managed network services landscape.
This implementation of advanced security protocols and technologies has become crucial, especially for sectors such as finance and healthcare, where data protection is paramount. As more businesses seek to shield themselves from potential breaches, the Europe Managed Network Services Market Industry is expected to benefit significantly from this trend.
Increasing Adoption of Internet of Things (IoT)
The proliferation of Internet of Things (IoT) devices is another significant driver for the Europe Managed Network Services Market Industry. The European Telecommunications Standards Institute reported that by 2025, there will be over 25 billion connected IoT devices in Europe. This rapid adoption necessitates robust network management solutions to handle the complexity and volume of data generated. Companies like Vodafone and Orange are leading the charge by providing managed network services tailored for IoT integrations.
Such services are crucial for ensuring seamless connectivity, data analytics, and management of IoT devices across various sectors including smart cities, agriculture, and transportation. The European Union's initiatives to promote IoT deployments further accelerate the growth of this segment, indicating positive prospects for the managed network services industry.
Shift Toward Operational Efficiency and Cost Management
As businesses in Europe strive for operational efficiency and cost-effectiveness, the adoption of managed network services is becoming increasingly attractive. The European Union's emphasis on improving business productivity through innovative solutions has prompted many organizations to outsource their network management needs. A survey conducted by Eurostat indicated that 42% of European businesses expect to achieve significant cost savings through outsourcing IT-related services, including network management.
Major players such as IBM and Accenture are actively targeting this segment, offering managed solutions that enhance operational efficiency while minimizing capital expenditures. The overall trend toward streamlining operations is a key driver for the Europe Managed Network Services Market Industry and reflects a broader realignment of priorities in response to economic conditions.
Europe Managed Network Services Market Segment Insights
Managed Network Services Market Service Type Insights
The Europe Managed Network Services Market is experiencing significant growth, driven by the increasing demand for reliable and secure network solutions among businesses of all sizes. The Service Type segment comprises various critical offerings that are essential to the seamless operation of modern enterprises. One of the prominent services is Managed LAN/WPN Networks, which plays an essential role in providing robust local area network capabilities alongside Wide Area Network solutions. This service ensures connectivity, scalability, and performance for organizations, accommodating their expanding networks. Managed Wi-Fi has also gained traction, facilitating high-speed wireless internet connectivity, which is vital given the rising mobile workforce and the need for internet access in various public spaces. Managed IP/VPN services are crucial for secure networking, allowing businesses to protect sensitive data and maintain secure connections between their remote offices and employees.
Another key aspect is Managed Network Monitoring, which enables proactive management of network performance, identifying issues before they escalate into significant problems. This real-time monitoring capability is increasingly vital in optimizing network uptime and ensuring service continuity. Managed WAN solutions address the growing complexities of networking across multiple locations, offering flexibility and comprehensive control over wide area networks which is increasingly essential as businesses adopt more cloud-based operations. Managed Network Security service is indispensable given the uptick in cyber threats; organizations recognize the necessity for advanced security protocols to safeguard their data. Finally, Other Services within this segment encompass various additional offerings that cater to unique business needs, further enhancing the overall network experience.
In Europe, the rapid digital transformation across industries is driving the demand for these managed services, as businesses aim to improve operational efficiency and secure a competitive edge in the market. The focus on automation and remote management of network services is especially pertinent, as companies increasingly seek to reduce operational costs while ensuring their networks are resilient and adaptable. Overall, the Europe Managed Network Services Market is characterized by its diverse service types, each playing a pivotal role in enabling organizations to thrive in a complex digital landscape.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Managed Network Services Market Organization Size Insights
The Europe Managed Network Services Market has experienced significant growth driven by the varying needs of different organization sizes. Notably, Small and Medium Enterprises (SMEs) have increasingly adopted managed network services to enhance operational efficiency and reduce IT-related costs, playing an essential role in the overall market dynamics. SMEs often seek flexible and scalable solutions, making them a major contributor to market trends as they aim to compete with larger enterprises by leveraging technology. On the other hand, Large Enterprises are inclined to invest in robust managed network solutions to ensure seamless communication and support their expansive operations.
Their established budgets allow for comprehensive and advanced network management, addressing critical requirements for security and data handling. The blend of both organization sizes creates a diverse ecosystem within the Europe Managed Network Services Market, where the demands and growth strategies vary, ultimately aiding the evolution of network service offerings. As a result, understanding these dynamics is crucial for stakeholders looking to navigate this competitive landscape effectively. As the market matures, collaboration between service providers and businesses of all sizes will be key to addressing emerging challenges and harnessing new opportunities.
Managed Network Services Market Deployment Mode Insights
The Deployment Mode segment of the Europe Managed Network Services Market is a critical area driving growth and innovation in the region. This segment is primarily divided into On-Cloud and On-Premises deployments. On-Cloud services are gaining significant traction due to their flexibility, scalability, and cost-effectiveness, allowing businesses to rapidly adjust resources based on demand. Meanwhile, On-Premises solutions continue to hold importance for organizations with strict data security and compliance requirements, as they offer enhanced control over IT infrastructure.
The increasing digital transformation initiatives in Europe, coupled with the rise in cloud adoption across various industries, are transforming the landscape of the Europe Managed Network Services Market. Additionally, the European Union’s focus on data protection and privacy regulations is influencing companies to carefully choose between these deployment modes. As organizations strive to optimize operational efficiency and streamline costs, the choice between cloud and on-premises deployment will shape the future dynamics of the market. Overall, the Deployment Mode segment offers a comprehensive view of the different methodologies organizations are adopting to meet their networking needs effectively.
Managed Network Services Market Vertical Insights
The Europe Managed Network Services Market, particularly in the Vertical segment, showcases a diverse array of applications catering to critical industries. The Banking, Financial Services and Insurance (BFSI) sector is significant within this landscape, driven by the need for secure and efficient network solutions to manage monetary transactions and customer data. The IT and Telecommunications industry also stands out, as organizations increasingly rely on managed services to enhance operational efficiency and manage complex infrastructures. Retail and E-Commerce have seen substantial growth, with businesses seeking advanced network services to ensure seamless customer experiences and optimize supply chains.
Manufacturing benefits from managed network services by streamlining operations and facilitating real-time data analytics for improved productivity. The Government sector prioritizes robust managed services to ensure secure and reliable communication channels, catering to public safety and national infrastructure. Additionally, the Healthcare industry places a premium on managed network solutions to comply with stringent regulations while enhancing patient care through better information flow and network reliability. As these verticals evolve, the demand for tailored managed network services remains crucial, reflecting the industry's adaptability and importance within the broader scope of the Europe Managed Network Services Market.
Managed Network Services Market Regional Insights
The Europe Managed Network Services Market demonstrates significant potential for growth across various regions, driven by an increasing demand for reliable network infrastructure and resilience. Germany stands out as a key player in the market, showcasing a strong emphasis on digital transformation, influencing its role in Managed Network Services. The UK also holds a prominent position, where businesses prioritize enhancing operational efficiency through managed services. France’s focus on cybersecurity and robust regulations contributes to its increasing prominence in this market space.Meanwhile, Russia and Italy have been gradually expanding their managed service offerings, with Italy focusing on integrating innovative solutions to address local market needs.
Spain is witnessing a surge in demand for cloud-based managed services, reflecting a broader trend for households and enterprises aiming to optimize their network operations. Lastly, the rest of Europe collectively presents diverse growth opportunities fueled by varying technology adoption rates and investment in network services. Overall, the regional dynamics of the Europe Managed Network Services Market highlight the strategic importance these nations have in shaping the future landscape.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe Managed Network Services Market Key Players and Competitive Insights
The Europe Managed Network Services Market is characterized by a dynamic competitive landscape driven by the increasing demand for reliable, efficient, and flexible network solutions across various industries. As businesses continue to navigate the complexities of digital transformation, providers of managed network services are focusing on delivering superior connectivity, security, and management capabilities. The competition is intensifying with the emergence of both established telecommunications companies and innovative startups, all aiming to capture market share by offering tailored solutions that meet the diverse needs of enterprises. Factors such as advancements in technology, regulatory developments, and shifting customer preferences are also influencing the competitive strategies adopted by market players, thus shaping the overall environment of managed network services in Europe.
Vodafone Group stands out as a significant player in the Europe Managed Network Services Market, leveraging its extensive network infrastructure and service capabilities to deliver comprehensive solutions. The company's strengths lie in its robust presence across multiple European countries, allowing it to provide localized support and services that are tailored to the unique requirements of various markets. Vodafone Group has made substantial investments in expanding its network capabilities, which enhances its service offerings, encompassing critical aspects such as security, connectivity, and data management. Moreover, the company has built strong partnerships with key technology providers, further enhancing its ability to deliver innovative managed solutions. Vodafone's commitment to customer-centric approaches also positions it favorably in the market, as it continually seeks to refine and improve its service portfolio to meet the evolving demands of enterprises.AT&T has established a noteworthy presence in the Europe Managed Network Services Market, recognized for its suite of high-quality network solutions designed for businesses operating in various sectors.
The key products and services offered by AT&T in this region include managed network services, cybersecurity solutions, and advanced connectivity options that cater to the needs of multinational corporations. The company's strengths also lie in its extensive experience and expertise in managing complex network environments, which enables it to provide reliable and efficient services that enhance operational performance for its clients. AT&T's strategic focus on mergers and acquisitions has allowed it to broaden its capabilities in Europe, integrating new technologies and solutions to improve service delivery. Additionally, the company’s adaptability to market changes and its investment in cutting-edge technologies have solidified its competitive stance, allowing it to navigate the evolving landscape of managed network services effectively.
Key Companies in the Europe Managed Network Services Market Include
- Vodafone Group
- AT&T
- GTT Communications
- Tata Communications
- Colt Technology Services
- Dimension Data
- Cisco Systems
- Verizon Communications
- BT Group
- IBM
- Orange SA
- NTT Ltd
- Deutsche Telekom
Europe Managed Network Services Market Industry Developments
Vodafone Business expanded its partnership with Fortinet in April 2025, introducing converged networking and cybersecurity services—including FortiSASE and SD-WAN—to markets throughout Europe. This improvement enables multinational enterprises to safeguard their hybrid workforce by incorporating performance dashboards and visibility dashboards. The cybersecurity operations center in Düsseldorf, which is manned by more than 100 specialists, was also established by Vodafone Business.
Airbus Public Safety and Security and Vodafone began a multi-year partnership in June 2025 to provide a secure critical-communications service throughout Europe. Developed on Airbus's Agnet cloud platform and Vodafone's mission-critical networks, the service offers voice, messaging, video, location sharing, and an automated "lifeguard" alert for hazardous incidents. It is specifically designed for the utilities, transport, public safety, and infrastructure sectors. In July 2023, Tata Communications successfully acquired the remaining 41.9% equity in Oasis Smart SIM Europe, a prominent provider of eSIM technology. Consequently, Tata Communications is able to accelerate the development of its MOVE™ platform for global markets and completely own the entity.
Europe Managed Network Services Market Segmentation Insights
Managed Network Services Market Service Type Outlook
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- Managed LAN/ WPN Networks
- Managed Wi-Fi
- Managed IP/ VPN
- Managed Network Monitoring
- Managed WAN
- Managed Network Security
- Other Services
Managed Network Services Market Organization Size Outlook
-
- Small and Medium Enterprises
- Large Enterprises
Managed Network Services Market Deployment Mode Outlook
Managed Network Services Market Vertical Outlook
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- BFSI
- IT & Telecommunications
- Retail & E-Commerce
- Manufacturing
- Government
- Healthcare
Managed Network Services Market Regional Outlook
-
- Germany
- UK
- France
- Russia
- Italy
- Spain
- Rest of Europe
| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2023 |
19.04(USD Billion) |
| MARKET SIZE 2024 |
20.74(USD Billion) |
| MARKET SIZE 2035 |
54.23(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
9.132% (2025 - 2035) |
| REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR |
2024 |
| MARKET FORECAST PERIOD |
2025 - 2035 |
| HISTORICAL DATA |
2019 - 2024 |
| MARKET FORECAST UNITS |
USD Billion |
| KEY COMPANIES PROFILED |
Vodafone Group, AT&T, GTT Communications, Tata Communications, Colt Technology Services, Dimension Data, Cisco Systems, Verizon Communications, BT Group, Kcom, IBM, Orange SA, NTT Ltd, Deutsche Telekom |
| SEGMENTS COVERED |
Service Type, Organization Size, Deployment Mode, Vertical, Regional |
| KEY MARKET OPPORTUNITIES |
Cloud integration services expansion, Growing demand for cybersecurity solutions, Increasing adoption of IoT connectivity, Enhanced focus on operational efficiency, Rising interest in SD-WAN deployments |
| KEY MARKET DYNAMICS |
increasing demand for automation, rise in cybersecurity threats, growing cloud adoption, focus on cost efficiency, shift towards network virtualization |
| COUNTRIES COVERED |
Germany, UK, France, Russia, Italy, Spain, Rest of Europe |
Frequently Asked Questions (FAQ):
As of 2024, the Europe Managed Network Services Market is valued at approximately 20.74 USD Billion.
By 2035, the market is expected to grow significantly, reaching approximately 54.23 USD Billion.
The market is anticipated to grow at a CAGR of 9.132% during the forecast period from 2025 to 2035.
Germany is expected to have the largest market share, with a value of about 4.5 USD Billion in 2024, growing to 12.0 USD Billion by 2035.
Managed Wi-Fi is projected to be valued at 3.8 USD Billion in 2024 and is expected to grow to 10.0 USD Billion by 2035.
Key players in the market include Vodafone Group, AT&T, GTT Communications, Tata Communications, and Cisco Systems.
Managed WAN services are expected to grow to approximately 10.73 USD Billion by 2035.
The market value for Managed IP/ VPN services is estimated to be 4.2 USD Billion in 2024 and to reach 11.0 USD Billion by 2035.
The UK is expected to show considerable growth, with market values rising from 4.0 USD Billion in 2024 to 10.5 USD Billion by 2035.
The market presents growth opportunities through increasing demands for advanced network solutions, though challenges may arise from competitive dynamics and technological shifts.
