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Managed Network Services Market Research Report Information By Service Type (Managed LAN/ WPN Networks, Managed Wi-Fi, Managed IP/ VPN, Managed Network Monitoring, Managed WAN, Managed Network Security, Other Services), Organization Size (Small and Medium Enterprises and Large Enterprises), By Deployment Mode (On-Cloud, On-Premises), Vertical (BFSI, IT & Telecommunications, Retail & E-Commerce, Manufacturing, Government, Healthcare), Region (North America, Europe, Asia Pacific, Middle East and Africa, and South America) - Forecast till 2030


ID: MRFR/ICT/9356-HCR | 141 Pages | Author: Ankit Gupta| June 2024

Managed Network Services Market Overview


The Managed Network Services Market size is expected to register an significant CAGR of ~10% during the forecast period and is projected to reach a market value of USD 134.7 billion by 2030.Managed network services are networking applications, operations, and services that businesses contract to a managed service provider (MSP) to be remotely run, monitored, and maintained. Basic network access and transport services, such as classic leased WAN and LAN lines, to modern software-defined WAN (SD-WAN) connections and virtual network services, are all part of managed network services. Aside from network access and transport, managed services such as WAN optimization, unified messaging, network management, Managed security services and virtual private networks (VPNs) are also accessible.


Figure 1: Managed Network Services Market Size, 2022-2030 (USD Billion)


Managed Network Services Market


Source Secondary Research, Primary Research, MRFR Database and Analyst Review


Managed enterprise network services are typically hosted by MSPs in their own data centres and facilities, where they can also host virtual network activities. Small specialist service providers to huge traditional national and global telecommunications carriers are all MSPs. MSPs generally provide clients with service-level agreements (SLAs), which are contractual agreements that detail the performance and quality standards under which the managed service will be supplied.


Managed service providers are necessary for businesses since they reduce risk. Instead than outsourcing IT just when an issue arises, managed services allow for continuous network monitoring. A managed service provider also handles all upgrading and maintenance responsibilities. This frees up managers' time to focus on their companies rather than the company's IT. In addition, a prospective managed service provider should assess present and future IT requirements. The firm provides recommendations for the types of goods and services that a company should employ in the coming year.


Covid-19 Analysis


While no one could have foreseen COVID-19, established corporate structures were already suffering the strains of a changing job market. As management teams attempt to utilise new technology and enhance efficiency measures, cost reduction is a top concern. Non-core but board-critical services such as tax, compliance, risk, and finance are expected to improve their effectiveness without adding any more resources. Managing regulatory duties has become more difficult and expensive as regulations change more often across various countries and regulators expect more openness. As businesses begin to plan for the future, these lessons demonstrate that returning to "normal" is simply not an option. Surviving and flourishing in a post-pandemic environment will almost always need complete corporate transformation — either to fix vulnerabilities, get access to new possibilities, or do both. Managed services goes beyond BPO to make important tasks more efficient and productive by using providers' core subject expertise and technology investments. Managed services are the way to reinvention for many firms. Prior to COVID-19, a growing number of companies were considering switching to a managed services operating model, but the option is now firmly front and centre on many boardroom agendas due to its ability to enable rebuilding confidence, reshaping spending, improving agility, and accelerating digital transformation.


Managed Network Services Market Dynamics


The growth of the managed network services market is mainly driven by the increasing need to minimize capital expenditure and operational expenditure, increasing trends of digital transformation and the software-baseed network boosts for enterprises. Moreover, the growing demand for managed network service providers in SMEs, growing IP traffic and cloud traffic and ability of managed service providers to solve complexity issues associated with SD-WANs presents lucrative opportunities for market growth. However, the growing concerns over data security and privacy coupled with increasing compliances and regulations across different verticals may slow the growth of the managed network services market during the forecast period.


Drivers



  • Growing Need to Minimize Capital Expenditure and Focus on Operational Expenditure


Managed Network Services (MNS) encourages companies to forgo CAPEX in favour of predictable operating expenditure (OPEX) models. Customers save the cost of acquiring their own applications with particular monitoring capabilities, as well as the knowledge necessary to manage the tools and procedures required, by using MNS. For managed network services, businesses often sign an annual or multi-year service contract with an MSP. The type of service, speed, interfaces, regions, number of locations, and amount of managed assistance supplied can all influence pricing.


Restraints



  • Concerns Over Data Security and Privacy


When you hire an MSP, you're relying on them to stick to service level agreements (SLAs) and complete tasks as promised. You may be left with severe downtime if they do not keep their half of the bargain. One may also be unable to obtain system information if managed service providers utilise proprietary tools to manage and monitor infrastructure. This limits your capacity to keep informed about the present health of your infrastructure, making it harder to switch suppliers or take over maintenance if necessary.


Managed Network Services Market Opportunity



  • Growing Demand For Managed Network Service Providers in SMEs


Managed network services provide SMEs a lot of room to expand and achieve their objectives. IT spending among SMEs is expected to rise dramatically, indicating that SMEs are always under pressure to expand by implementing new and expanded IT services. As SMEs adopt cloud, automate services, and explore sophisticated digital technologies, the demand for MSPs will grow. Smaller organisations have benefited from managed network services that are both cost-effective and efficient thanks to these technologies.


Value Chain Analysis


The global managed network services market has witnessed significant growth in the past decade due to technological changes and is expected to grow at a steady rate in the upcoming years. The value chain analysis of the managed network services market comprises four major levels: managed service providers, system integrators, marketing and sdistribution, and end users.


Market Segmentation


The global Managed Network Services market has been segmented based on services type, organization size, deployment, vertical, and region.


Based on the service type, the managed network services market has been segmented into managed LAN/ WPN networks, managed wi-fi, managed VPN/ IP, managed WAN, managed network security, managed network monitoring, and other services.



  • By organization size, the managed network services market has been segmented into small and medium enterprises (SMEs) and large enterprises.

  • By deployment mode, the market has been segmented into on-cloud and on-premises.

  • By vertical, the managed network services market has been segmented into bfsi, IT & telecommunications, retail & E-commerce, manufacturing, government, healthcare, and others.


The regions included in the study are North America, Europe, the Asia-Pacific, the Middle East and Africa, and South America.


Regional Analysis


The regional analysis for the global Managed Network Services market has been done for North America, Europe, Asia-Pacific, and the Middle East & Africa, and South America. The market in North America accounted for the largest market share in 2020, and it is expected to register strong growth during the forecast period. Several important market companies operate in the North American region, providing modern solutions to all of the region's industry verticals. Strategic investments, partnerships, and considerable R&D operations, in addition to geographical presence, are all contributing to the widespread adoption of managed network services market.


Competitive Landscape


The global market for managed network services has witnessed significant growth over the forecast period due to the growing number of managed network services players. There are several domestic, regional, and global players operating in the managed network services market who continuously strive to gain a significant share of the overall market. The key market participants are investing in research & development activities to drive organic growth and increase their market shares. In addition, these players are engaging in new product developments to expand and strengthen their existing portfolios and acquire new consumers.


Key Players


The Managed Network Services market is characterized by the presence of several regional and local providers. Some of the key players in the market are,




  • Cisco Systems Inc. (US)




  • Tata Communications In. (India)




  •  AT&T Inc. (US)




  • Telefonaktiebolaget LM Ericsson (Sweden)




  • BT Group PLC (UK)




  • Verizon Communications Inc. (US)




  • IBM Corporation (US)




  • Hughes Network Systems LLC (US)




  • T-Systems International GmbH (Germany)




  • Telefonica SA (Spain)




  • NTT Limited (Japan)




  • Sify Technologies Limited (Indian)




  • DXC Technology Company (US)




  • Wipro Limited (India)




  • Colt Technology Services (UK)




  • Fujitsu (Japan)




  • Commarch SA (Poland)




  • ManageEngine (India)




  • Lumen Technologies (US)




  • HCL Technologies Limited (India)




Recent Developments



April 2024


-Systal Technology Solutions, an organization specializing in security transformation, cloud, and global managed networks, announced the grand opening of its Network Operations Center (NOC) in Tampa, Florida today. This signifies the most recent achievement in Systal's recent worldwide expansion and growth trajectory; the state-of-the-art facility is specifically engineered to assist Systal's current clientele in the United States and fulfill the increasing market need for managed network, cloud, and cybersecurity solutions throughout North America.


Situated in the center of Tampa's Westshore District, the facility is manned by Systal's highly trained engineers and functions as the company's North American headquarters for administering, monitoring, and optimizing enterprise client network performance.


Systal is now recognized in Gartner's most recent Magic Quadrant™ for Managed Network Services as one of only two non-Internet Service Providers (ISPs) to possess a tangible Network Operations Center in the United States, with the launch of today.


Improving our operational presence in the United States is crucial for providing our premium services within the nation," stated Neil Nicolson, chief executive officer of Systal. By opposing the "low-cost offshore model" that numerous organizations have adopted to provide services in the United States market, "Systal's strategy is to buck the trend and deliver best-in-class services with the most qualified personnel in the country." This constitutes the foundation of our delivery paradigm, and our expansion into the United States will merely enhance our capacity.


Although this is our inaugural local entry in Tampa, we intend to substantially expand our operations in the coming years," Nicolson continued. In Tampa Bay, we are delving into a dynamic region with world-class IT talent, outstanding institutions and a rapidly expanding technology community that complements Systal’s ambitions. Our current and long-term commitment to Tampa stems from the mayor's and the broader Tampa business community's active participation and support. We are extremely ambitious and ecstatic to integrate ourselves into the local community and truly establish Tampa as our US headquarters.




  • In April 2021, BT has unveiled a new Fortinet-powered managed secure SD-WAN solution. The firms see their collaboration as a sign of their shared commitment to providing secure networking solutions that allow digital transformation.

  • In March 2020, Meraki's cloud allowed Cisco to expand its small business offering. Meraki's cloud-managed smart cameras may be utilised for analytics and to prevent inventory loss. Meraki's Wi-Fi 6 access points would make it easier for small companies to manage their networks and increase their performance, dependability, and security.

  • In May 2019, NTT Communications Corporation (NTT Com), the NTT Group's ICT solutions and international communications business, and CAPSiDE S.L., a major provider of comprehensive hyperscale cloud managed services based in Spain, announced that NTT Com Managed Services (NTT Com's subsidiary) has completed its 100 percent acquisition of CAPSiDE..


Report Overview


This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2019 to 2030. For this analysis, MRFR segmented the global managed network services market has been segmented based on service type, deployment mode, organization size, vertical, and region.


Based on Service Type



  • Managed LAN/ WPN Networks

  • Managed Wi-Fi

  • Managed VPN/ IP

  • Managed Network Monitoring

  • Managed WAN

  • Managed Network Security

  • Others


Based on Organization Size



  • Small And Medium-Sized Enterprises

  • Large Enterprises


Based on Deployment Mode



  • On-Cloud

  • On-Premise


Based on Vertical



  • BFSI

  • IT & Telecommunications

  • Retail & E-Commerce

  • Manufacturing

  • Healthcare

  • Government

  • Others


Based on Region



  • North America

  • Europe

  • Asia-Pacific

  • Middle East & Africa

  • South America

Report Attribute/Metric Details
  Market Size   2030 – USD: 134.7 billion
  CAGR   CAGR: ~10% From 2022 to 2030
  Base Year   2021
  Forecast Period   2022 to 2030
  Historical Data   2018-2020
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   • By Service Type (Managed LAN/ WPN Networks, Managed Wi-Fi, Managed VPN/ IP, Managed WAN, Managed Network Security, Managed Network Monitoring, And Other Services) • By Deployment Mode (On-Cloud, On-Premise) • By Organization Size (SMEs, Large Enterprises) • By Vertical (BFSI, IT & Telecommunications, Retail & E-Commerce, Manufacturing, Government, Healthcare, and Others)
  Geographies Covered   • North America (US, Canada, and Mexico) • Europe (UK,Germany, France, Rest of Europe) • Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific) • Middle East & Africa • South America
  Key Vendors   • Cisco Systems Inc. • Tata Communications Inc. • Telefonaktiebolaget LM Ericsson • AT&T Inc. • BT Group PLC • Verizon Communications Inc. • IBM Corporation • Hughes Nework Systems LLC • T-Systems International GmbH • Telefonica SA • NTT Limited • Sify Technologies Limited • DXC Technology Company • Wipro Limited • Colt Technology Services • Fujitsu • Commarch SA • ManageEngine (Zoho Corporation) • Lumen Technologies • HCL Technologies Limited
  Key Market Opportunities   Growing demand for managed network service providers in SMEs
  Key Market Drivers   Need to minimize capital expenditure and focus on operational expenditure


Frequently Asked Questions (FAQ) :

A 11.2% CAGR is expected to transform the market.

The Asia-Pacific regional market is projected to be the major driver of the market.

The segments in the market are service type, deployment mode, organization size, and vertical.

The major contenders in the market are Cisco Systems Inc., Tata Communications Inc., Colt Technology Services, BT Group PLC and DXC Technology Company

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