The managed network services market is projected to reach US$ 130.9 billion by 2032, with a CAGR of 7.8% during the forecast period from 2022 to 2032. This assessment comes from a report by Future Market Insights.
A managed network is a communication network that is operated, secured, and managed by a third-party service provider. It involves collaboration between prime network providers, system integrators, and end-use enterprises to set up a network either over cloud infrastructure or in-house. The service is always managed by the service providers, allowing businesses to focus on their core objectives while transferring the risk and complexities associated with the third party.
By integrating with a managed network service provider, organizations can outsource their infrastructure, support, and technical maintenance, including servers, routers, switches, and firewall software.
The demand for managed network services is rising as they include managing Ethernet WAN, MPLS, and internet lease lines, which form the basis of modern-day IP-based communication in most organizations.
The growth of the managed network services market is driven by factors such as rising globalization, digitization, and increasing use of cloud and BI/Analytics across all industry verticals. As organizations integrate more cloud, social, mobile, and big data into their operations, the complexity increases, leading to a higher preference for managed network services.
Financial companies and banks are adopting managed network services to integrate advanced technologies into their operations and expand their geographical reach. Additionally, the increasing incidences of network security breaches have led companies to prefer a managed service provider over in-house maintenance for high expertise deployment.
The lack of IT workforce skilled in the cloud era is another factor driving organizations to deploy managed services. As organizations become more dependent on technologies such as IoT, AI, augmented and virtual reality, robotics, and automation, network services, security, and network uptime become crucial.
In terms of regional outlook, North America and Europe are expected to remain leaders in the managed network services market due to high digitalization efforts by businesses, including SMEs. Asia Pacific (excluding Japan) is projected to be the fastest-growing market, driven by China and India’s demand for managed network services. The Middle East and Africa region will also see an increase in demand as internet penetration rises and organizations expand geographically. Latin American countries like Brazil, Chile, and Argentina are expected to fuel the demand for managed network services.
Key players in the managed network services market include Verizon Communications Inc., Telstra Global, AT&T Inc., China Telecom, NTT Communications, HCL Technologies, Wipro Limited, Nokia Corporation, IBM Corporation, Cisco Systems Inc., Vodafone Group plc, Tata Communication, Bharti Airtel, Reliance Communication, and Sift Technologies Ltd.
The research report by Future Market Insights provides a comprehensive market assessment, including insights, facts, historical data, and statistically supported and industry-validated market data. It also includes projections using suitable assumptions and methodologies.
The report segments the managed network services market by service (managed WAN, MPLS, ILL, managed LAN, virtual network services, network security, NLD/ILD, and other services), end-use industry (banking and financial services, manufacturing, communication media and services, retail and wholesale, healthcare, utilities, construction, education, government, and agriculture), and region (North America, Latin America, Asia Pacific, MEA, and Europe).
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