Managed Network Services Market

Market Perspective

The global Managed Network Services Market was valued at USD 55.87 billion in 2022 and is projected to reach USD 110.56 billion by 2030, growing at a CAGR of 10.20% from 2023 to 2030.

The demand for managed network services is rising steadily as organizations increasingly opt to outsource their infrastructure, technical maintenance, and support. By leveraging the expertise of a service provider, businesses can offload the management of critical components like servers, routers, switches, and firewall software. Managed network services also encompass the management of essential communication technologies such as Ethernet WAN, MPLS, and Internet Leased Line. Given that these technologies form the foundation of modern IP-based communication in most organizations, the need for reliable and efficient managed network services continues to grow.

Analyst’s Review on Managed Network Services Market

Managed network services (MNS) are witnessing increased adoption as businesses outsource the management of their network infrastructure, driven by trends in the business landscape. These trends include the need for simplified service management, automation and orchestration, flexibility and scalability, enhanced security and compliance measures, cloud adoption, and the utilization of network analytics for performance optimization. By leveraging MNS, organizations can streamline their network operations, reduce complexity, improve efficiency, and ensure reliable connectivity.

Market Definition

Managed network services refer to the comprehensive outsourcing of an organization's network infrastructure management, including design, deployment, monitoring, maintenance, and support. It enables businesses to focus on their core competencies while entrusting the management of their network to a specialized service provider.

Managed network services cater to wide-ranging applications across various industries. In the realm of business, it allows organizations to streamline their network operations, minimize downtime, and enhance productivity. It provides proactive monitoring and rapid response to network issues, enabling quick resolutions and minimizing disruptions. Additionally, it offers scalability, allowing businesses to easily expand or modify their network infrastructure as their needs evolve.

In summary, managed network services offer organizations a comprehensive and flexible solution for their network infrastructure needs. By outsourcing network management to experts, businesses can focus on their core objectives while ensuring a reliable, secure, and scalable network environment. Managed network services empowers businesses to optimize their network performance, mitigate risks, and adapt to the ever-evolving technological landscape.

Market Dynamics

Managed network services enable businesses to adopt a predictable operating expense (OPEX) model instead of relying on capital expenditure (CAPEX). By leveraging managed network services, customers can save costs associated with purchasing specialized monitoring applications and acquiring expertise to manage these tools and processes. Many businesses opt for long-term service agreements with Managed Service Providers (MSPs) to ensure comprehensive managed network services. Additionally, the rising number of data breaches across organizations has prompted large-scale businesses to heavily invest in centralized data security solutions. The managed network services market is experiencing significant growth due to the increasing adoption of cloud-based data platforms to mitigate data theft and cybersecurity risks.

The market growth of managed network services is being hindered by growing apprehensions surrounding data security and privacy. With businesses increasingly relying on these services, a larger volume of sensitive customer and employee data is stored on these networks. This data becomes susceptible to cyber-attacks and data breaches, posing significant financial and reputational risks for the companies involved. Consequently, companies are becoming more cautious about the security and privacy of their data, leading to a decline in demand for managed network services.

Segmentation Analysis

The global managed network services market is segmented based on type, deployment, organization size, organization size, and geography.

Based on type, the managed network services market is bifurcated into managed LAN, managed WiFi, managed WAN, network functions virtualization, and others. The managed WAN segment held the largest market in 2022. Businesses operating on a global scale increasingly require robust managed WAN services to meet their expanding connectivity needs. Managed WAN services are essential for organizations to achieve reliable connectivity, optimize bandwidth utilization, and improve overall network performance. As businesses continue to expand internationally, the demand for efficient and effective managed WAN services has grown significantly, enabling seamless communication and data transfer across multiple sites.

Based on deployment, the managed network services market is divided into on-premises and cloud-based. The on-premises segment held the largest market share in 2022 owing to several features including as it does not need an internet connection and makes it simple to tailor software to a client's specific needs for business processes. The on premises implementation also helps to improve operational effectiveness and create a control center for effectively coordinating and managing various project management responsibilities and business processes inside an organization.

Geographical Analysis

Based on regional analysis, the global managed network services market is classified into North America, Europe, Asia Pacific, MEA and Latin America.

Asia Pacific accounted for the largest market share in 2022 driven by the increasing deployment of 5G network services and the rapid growth of data centers in the region have sparked a surge in demand for network services in China. For instance, China has witnessed a remarkable expansion in its 5G infrastructure, with over 960,000 base stations established, including 190,000 in the first half of 2021 alone. The number of connected 5G devices has reached approximately 360 million, with 128 million 5G phones shipped. These advancements have prompted businesses to seek the assistance of MNS providers to navigate the intricacies of technologies like 5G, ensuring optimal security and scalability while managing their operations.

Competitive Landscape

The global managed network services industry study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, Type innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization which could pose new opportunities for the market. The major manufacturers in the managed network services market are

• Verizon
• Telefonaktiebolaget LM Ericsson
• Fujitsu
• Accenture
• Amazon Web Services, Inc.
• Wipro
• Lumen Technologies
• Kyndryl Inc.
• Sierra Wireless
• Telstra Corporation Limited
• NTT Ltd

Key Developments

• August 2023 (Partnership): Verizon Business unveiled a significant international alliance, designating HCLTech as its primary collaborator for Managed Network Services across all global enterprise customer networking deployments. This partnership brings together two prominent players in the enterprise networking arena, leveraging Verizon's robust network infrastructure, expertise, and expansive reach of HCLTech's industry-leading Managed Service capabilities.
• July 2023 (Launch): Lumen Technologies introduced its flagship feature on its Network-as-a-Service (NaaS) platform, marking a significant milestone towards the company's ambitious mission to revolutionize the telecom industry.
• May 2023 (Launch): Kyndrylunveiled a new offering in the form of a managed Secure Access Service Edge (SASE) solution, in collaboration with Fortinet. By integrating Fortinet's top-notch cloud-based security and secure networking solutions with Kyndryl's comprehensive network and security services, the firms aimed to deliver customized, end-to-end solutions for designing, building, managing, and modernizing mission-critical networking infrastructure across diverse industries.

The global Managed Network Services Market is segmented as:

By Type

• Managed LAN
• Managed WiFi
• Managed WAN
• Network Functions Virtualization
• Others

By Deployment

• On-premises
• Cloud-based

By Organization Size

• Small and Medium Enterprises
• Large Enterprises

By Vertical

• BFSI
• Telecommunication
• Healthcare
• Retail
• Manufacturing
• Government
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America