Managed Network Services Market

[236 Pages Report] The Managed Network Services market size is projected to grow from USD 65.7 billion in 2023 to USD 89.9 billion by 2028 at a CAGR of 6.5% during the forecast period. Managed network services are an attractive alternative to the costly, time-consuming business of in-house network management services, which are difficult to install and manage for SMEs where cost is a significant factor.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

Managed Network Services Market Dynamics

Driver: Increasing trend of digital transformation across the globe

Digitalization is sweeping industries and necessitates networks with remarkable agility to deliver unparalleled customer experiences. Recognizing this critical imperative, global enterprises embark on ambitious digital journeys, embracing cutting-edge technologies to transform their operations and customer interactions. These transformative endeavors, however, demand skilled resources and global reach that often exceed internal capabilities. MNS providers emerge as strategic partners in this evolving landscape, adeptly bridging skill gaps and facilitating access to new markets through innovative solutions. Their comprehensive expertise empowers organizations to navigate the multifaceted digital terrain, encompassing cloud, mobile, and emerging technologies. This strategic alliance fosters a surge in MNS adoption as organizations seek agile networks and skilled resources to fuel their digital metamorphosis. Further propelling this trend are advancements in cloud technologies, accelerated mobile device penetration, a growing appetite for technological adoption, and the strategic initiatives undertaken by multinational corporations. These converging forces create a fertile ground for global MNS market growth, empowering organizations to thrive in the dynamic digital ecosystem.

Restraint: Concerns over data privacy and security

One of the major restraining factors in outsourcing network functions management is the risk of exposing critical business details. Data privacy and security are primary criteria enterprises consider when selecting managed network services. Enterprises believe managed network services can disclose their sensitive data and cause them to lose control over their infrastructure. Data storage control is partially or entirely under the vendors’ control, and they may get access to customer’s data when enterprises select managed network services for their networks. Network security is an imperative consideration that can guarantee the privacy of the client’s data. Outsourcing network services can also generate issues in organizational security among clients. However, managed network service providers never misuse client’s confidential documents unless access has been given to them by the client itself. Taking appropriate security and proactive control measures becomes hectic for enterprises when data access and control rests with the vendor. The data is also vulnerable to data breaches, and companies do not trust vendors. Enterprises must constantly enforce robust security and compliance protocols to limit access to sensitive and critical content and safeguard the information against threats. This aspect is a major restraining factor for enterprises adopting managed network services.

Opportunity: Opportunity to provide value-added services above and beyond core network infrastructure and become true business partners

In today's hypercompetitive environment, more is needed for a managed network service provider to be solely a network infrastructure provider. Nowadays, enterprises want their service providers to help drive digital transformation solutions. They expect managed network service providers to help them achieve more with the advanced technologies to better engage with their customers and radically improve performance. As more enterprises begin the digital transformation process, managed network service providers have an opportunity to provide value-added services above and beyond core network infrastructure and become true business partners.

Challenge: Monitoring complex, multi-technology physical and virtual networks across customer networks

As cloud networks and service offerings continue to expand, large businesses and SMEs have opted to outsource the management and assurance of their network. This challenges Managed Service Providers (MSPs) to continuously monitor complex, multi-technology physical and virtual networks across customer networks. The managed network service provider is expected to meet diverse customer requirements with varying networks and ensure proper regulatory compliance while offering managed network services to customers. MSPs should practice appropriate security and regulatory policies, as non-compliance with regulations and standards can directly affect the services they provide to enterprises, leading to significant financial and business risks to clients and their business processes. As technology evolves, it becomes more work for service providers to keep up with the constantly changing technology and government regulations. This is a significant challenge for managed network service providers and enterprises in this market.

By type, Manged LAN will account for the largest market size during the forecast.

Managed network service providers offer various services to monitor, maintain, and protect organizations' network infrastructure while reducing network operating costs. Providers roll out new network business tools to connect users in different geographical locations and increase communication efficiency. Managed LAN is an industrialized service that comprehensively addresses the LAN and WLAN infrastructure at organizations’ small branch offices, big campuses, and data centers. Managed LAN services boost productivity by minimizing downtime, and the ongoing support frees IT teams to concentrate on organizations’ other projects and priorities. Managed LAN services from MSPs comprise planning, on-demand provisioning, and the management of organizations' LAN ports, including roll-out to all sites, software and hardware maintenance, proactive monitoring, service level reporting, and support. Managed LAN services cut both infrastructure and operational costs for an enterprise.

Based on region, North America is expected to hold the largest market size during the forecast.

North America houses the headquarters of the major players in the MNS market, such as Cisco, IBM, Verizon, and AT&T. The region witnesses a considerable demand for the SD-WAN solution because of the rising demand for the next-generation 5G network. Due to the rapidly changing technological landscape, enterprises are inclined toward managed SD-WAN services. North America remains a leader in the market due to the rising demand for high-speed networks, the increasing competition among major players in the networking industry to provide better customer experience, and the growing adoption of cloud networking. Mobile penetration in the region is high.

Market Players:

The major vendors in this market include are IBM (US), Cisco (US), Ericsson (Sweden), Verizon (US), Huawei (China), AT&T (US), BT Group (UK), Telefonica (Spain), T-Systems (Germany), NTT (Japan), Orange (France), Vodafone (UK), Fujitsu (Japan), Lumen (US), Masergy (US), Colt Technology Services (UK), Telstra (Australia), CommScope (US), etc. These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their MNS footprint.

Want to explore hidden markets that can drive new revenue in Managed Network Services Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

This research report categorizes the managed network services market to forecast revenues and analyze trends in each of the following submarkets:

Based on Type:

• Managed LAN
• Managed Wi-Fi
• Managed VPN
• Managed WAN
• Network Monitoring
• Managed NFV
• Managed Network Security

Based on Network Security:

• Managed Firewall
• Managed IDS/IPS
• Other Managed Network Security

Based on Verticals:

• Banking, Financial Services and Insurance
• Retail and Ecommerce
• IT and Telecom
• Manufacturing
• Government
• Education
• Healthcare
• Media and Entertainment
• Other Verticals

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • France
  • Germany
  • Spain
  • Italy
  • Nordics
  • Rest of Europe
  •  
• Asia Pacific
  • China
  • Japan
  • India
  • Australia and New Zealand
  • South East Asia
  • Rest of Asia Pacific
• Middle East and Africa
  • GCC Countries
    • UAE
    • KSA
    • Rest of GCC Countries
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In May 2023, NTT announced the Next Generation Platform for Managed Network Services. The platform provides customers a direct pathway towards network transformation, underpinned by NTT’s managed services experience, expertise, and expansive technical resources.
• In Feb 2023, Huawei launched the digitally managed network solution to boost new growth for carriers' B2B services.
• In June 2021, with Cisco, AT&T Business introduced Webex Calling with AT&T – Enterprise to Cisco’s Unified Communications Manager – Cloud (UCMC), helping businesses optimize operations and accelerate digital transformation in any environment.
• In May 2021, Cisco Webex, one of the leading providers of cloud-based collaboration solutions, and Box, one of the leading Content Clouds, announced new and deepened integrations between the two technology platforms to make it easier for customers to work securely and effectively in the cloud.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst