USD 267.4 billion
Global Managed Network Services Market Size, Share, Growth Analysis, By Type(Managed LAN (Local Area Network) and Managed WAN (Wide Area Network)), By End-User(IT and Telecom, and BFSI (Banking) - Industry Forecast 2024-2031
Report ID:
SQMIG45H2035 |
Region:
Global |
Published Date: March, 2024
Pages:
197
|
Tables:
62 |
Figures:
75
Global Managed Network Services Market Insights
Global Managed Network Services Market size was valued at USD 267.4 billion in 2022 and is poised to grow from USD 304.03 billion in 2023 to USD 849.19 billion by 2031, growing at a CAGR of 13.7% in the forecast period (2024-2031).
The global market for Managed Network Services is experiencing significant growth due to its ability to reduce downtime and redundancy while providing tailored value-added services like application testing, service catalogue building, and expert consultancy. This market expansion is supported by the utilization of multiple monitoring tools and the management of various infrastructure layers by specialized teams. An example is the recent launch of BMC's "BMC Helix ITSM" in April 2021, a centralized system that integrates observability, AIOps, and cloud-native capabilities. This system offers complete visibility into IT infrastructure, application performance, network performance, and cloud monitoring tools, accompanied by personalized dashboards for individual users and teams. Managed network services involve outsourcing management functions to third-party providers, enabling businesses to enhance operational efficiency and reduce operating expenses. The growing preference for outsourcing management functions to cloud service providers and Managed Network Service providers is driving market growth. Additionally, organizations are leveraging advanced technologies such as machine learning and augmented reality, along with their existing IT infrastructure, to facilitate digital transformation and meet various business requirements. Managed Network Services offer cost-effective functionalities without compromising quality, ensuring reliable and consistent service delivery for different business processes. With the rise in cyber threats, organizations are incorporating managed security services (MSSs) into their business models. To address this, Managed Network Service Providers (MSPs) are developing advanced offerings capable of detecting and mitigating cyber risks. For example, IBM introduced the IBM Center for Government Cybersecurity in June 2021, specifically designed to cater to the cybersecurity needs of federal agencies. Despite the market's growth prospects, challenges such as limited knowledge and experience in integrating new technologies and implementing Managed Network Services could hinder its expansion. Concerns regarding the effectiveness of Managed Network Service models, data security, privacy protection, and the need for skilled resources are also expected to somewhat limit market growth.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Managed WAN (Wide Area Network)
Fastest Growth
Managed LAN (Local Area Network)
Growth Rate
13.7% CAGR
Global Managed Network Services Market ($ Bn)
Country Share for North America Region (%)
Global Managed Network Services Market By Type ($ Bn)
Global Managed Network Services Market By Type (%)
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Global Managed Network Services Market Segmental Analysis
Global Managed Network Services Market is segmented by type, End-User, and region. Based on type, the market can be segmented into Managed LAN (Local Area Network) and Managed WAN (Wide Area Network). Based on End-User, the market is segmented into IT and telecom and BFSI (banking, financial services, and insurance). Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Managed Network Services Market Analysis by Type
By type, the market can be segmented into Managed LAN (Local Area Network) and Managed WAN (Wide Area Network). The Managed WAN segment is currently the dominating segment in the global managed network services market. Wide Area Networks (WANs) play a crucial role in connecting geographically dispersed locations and facilitating efficient communication and data transfer across different sites. As businesses expand their operations globally, the demand for managed WAN services has significantly increased. Organizations rely on managed WAN services to ensure reliable connectivity, optimize bandwidth usage, and enhance network performance.
The Managed LAN segment is the fastest-growing segment in the global managed network services market. Local Area Networks (LANs) are essential for interconnecting devices within a specific geographic location such as an office building or a campus. With the proliferation of connected devices and the increasing demand for real-time collaboration and communication, organizations are seeking robust and reliable managed LAN services. Managed LAN services offer businesses the ability to design, implement, and manage their local networks efficiently.
Managed Network Services Market Analysis by End-User
By End-User, the market can be segmented into IT and telecom and BFSI (banking, financial services, and insurance). The IT and Telecom sector dominated the global managed network services market. The IT and Telecom industry heavily relies on robust and efficient network infrastructure to deliver their services and ensure seamless connectivity. Managed network services play a vital role in this sector by providing network design, implementation, monitoring, and security solutions. With the growing demand for digital transformation, cloud computing, and mobile technologies, the IT and Telecom industry requires advanced managed network services to meet the evolving connectivity needs.
The BFSI sector is the fastest-growing segment in the global managed network services market. Banking, financial services, and insurance institutions require secure, highly available, and efficient network infrastructure to support their operations. Managed network services cater to the unique needs of this sector by offering robust network security, seamless connectivity, and compliance with regulatory requirements. With the increasing digitization of financial transactions, the need for managed network services in BFSI is on the rise.
Global Managed Network Services Market By Type (%), 2023 (%)
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Global Managed Network Services Market Regional Insights
North America dominated the global Managed Network Services market. The region's dominance can be attributed to the presence of a robust technological infrastructure and a high adoption rate of advanced technologies among businesses. The United States, in particular, holds a significant share in the market due to the presence of major IT companies and a strong emphasis on digital transformation initiatives.
On the other hand, the Asia-Pacific (APAC) region is experiencing rapid growth in the Managed Network Services market. The region is witnessing significant advancements in technology infrastructure, particularly in emerging economies such as China and India. These countries have a large and expanding base of small and medium-sized enterprises (SMEs) that are increasingly relying on Managed Network Services to streamline their operations.
Global Managed Network Services Market By Region, 2024-2031
- Largest
- Fastest
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Global Managed Network Services Market Dynamics
Managed Network Services Market Drivers
Increasing preference for outsourcing management functions to specialized service providers
- One significant driver for the global Managed Network Services market is the increasing preference for outsourcing management functions to specialized service providers. Businesses across various industries are recognizing the benefits of entrusting their network management to experts, allowing them to focus on core competencies while leveraging the expertise and advanced technologies offered by Managed Network Service providers. This driver is fueled by the need for improved operational efficiency, cost reduction, and access to a wide range of value-added services, contributing to the market's growth.
Managed Network Services Market Restraints
Lack of knowledge and experience in integrating new technologies
- One notable restraint in the global Managed Network Services market is the lack of knowledge and experience in integrating new technologies and implementing Managed Network Services. Many organizations face challenges in effectively leveraging emerging technologies and aligning them with their existing IT infrastructure. This constraint limits the adoption and implementation of Managed Network Services, hindering the market's growth potential. Additionally, concerns about the efficacy of Managed Network Service models, data security, privacy protection, and the availability of skilled resources further contribute to the restraint in the market expansion.
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Global Managed Network Services Market Competitive Landscape
Global Managed Network Services market is characterized by a diverse range of players offering comprehensive Managed Network Services solutions. These companies focus on providing customized value-added services, such as application testing, expert consultancy, and service catalog building. To gain a competitive edge, market players emphasize technological advancements and innovation in their service offerings. They also invest in research and development activities to enhance their capabilities and expand their service portfolios. Furthermore, strategic partnerships, collaborations, and mergers and acquisitions are common strategies employed by companies to strengthen their market position and meet the evolving demands of customers.
Managed Network Services Market Top Player’s Company Profiles
- IBM (US)
- Cisco Systems (US)
- Verizon Communications (US)
- AT&T (US)
- NTT Communications (Japan)
- Orange Business Services (France)
- BT Group (UK)
- CenturyLink (US)
- Deutsche Telekom (Germany)
- Fujitsu (Japan)
- Telefonica (Spain)
- Tata Communications (India)
- Cognizant (US)
- Accenture (Ireland)
- HCL Technologies (India)
- Wipro (India)
- Dimension Data (South Africa)
- Huawei Technologies (China)
- Fujitsu (Japan)
- Infosys (India)
Managed Network Services Market Recent Developments
-
In February 2024, Nokia Corporation (NOK) announced a huge collaboration with Ucom to transform network connectivity in Armenia. This partnership includes upgrading Ucom's nationwide radio access network (RAN) and improving its core and IP network infrastructure to enable the future rollout of 5G services across the country.
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In February 2024, NTT DOCOMO, INC. and NEC Corporation uncovered their intention to establish a joint venture company named OREX SAI, INC. by April 1. The purpose of this venture is to offer OREX Packages solutions for the comprehensive global deployment of Open RAN services.
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In March 2024, Kyndryl, an IT infrastructure services provider, and Cloudflare, a cloud specialist, revealed a new global strategic alliance. Their collaboration aims to enhance and secure customers' connectivity to various clouds and data centers.
Global Managed Network Services Key Market Trends
- One key market trend in the Managed Network Services market is the increasing adoption of cloud-based Managed Network Services. Businesses are leveraging cloud technologies to enhance their network infrastructure, reduce costs, and improve scalability. Cloud-based Managed Network Services offer flexible and on-demand access to network resources, allowing companies to easily scale up or down as per their requirements. This trend is driven by the growing need for agility, cost efficiency, and the ability to quickly adapt to changing business needs, contributing to the overall growth of the market.
Global Managed Network Services Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global Managed Network Services market analysis, the market is witnessing significant growth due to the benefits it offers, such as reduced downtime, customized value-added services, and improved operational efficiency. North America dominated the market with its mature technological infrastructure, while the Asia-Pacific region is experiencing rapid growth fueled by the adoption of cloud-based technologies and digital transformation initiatives. Outsourcing management functions to specialized service providers is a key driver, enabling businesses to focus on core competencies while leveraging expertise and advanced technologies. However, the lack of knowledge and experience in integrating new technologies and implementing Managed Network Services poses a restraint. The competitive landscape comprises a diverse range of players emphasizing technological advancements, innovation, and strategic partnerships. Additionally, the adoption of cloud-based Managed Network Services emerges as a prominent trend, offering flexibility, scalability, and cost efficiency.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 267.4 billion |
| Market size value in 2031 | USD 849.19 billion |
| Growth Rate | 13.7% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Managed Network Services Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Managed Network Services Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Managed Network Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Managed Network Services Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Managed Network Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Managed Network Services Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Managed Network Services Market Report Snapshots
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