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The managed network services (MNS) market size is estimated to increase by USD 15.77 billion and grow at a CAGR of 4.32% between 2022 and 2027. The growth of the market depends on several factors, including the increased adoption of IoT solutions, the rising adoption of cloud computing services, and the increasing IT spending of companies. Managed network services are defined as the IT services provided by a third party to manage the infrastructure of enterprises and software and technical support required to operate an organization's network. The rapid spread of IoT technologies enables the interconnection of hardware devices, embedded software, and communication services, fostering smart ecosystems within residential, commercial, and public settings. Managed Service Providers (MSPs) assume a vital function in overseeing network administration and virtual network operations for IoT implementations. This includes ensuring smooth connectivity and effective management of virtual private networks (VPNs) and software-defined WAN (SD-WAN) solutions, contributing to seamless IoT deployment and operation.
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This market report extensively covers market segmentation by end-user (BFSI, retail and e-commerce, IT and telecom, healthcare, and others), deployment (cloud and on-premise), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the BFSI segment will be significant during the forecast period. The growth of m-commerce and e-commerce in North America, Europe as well as Developing Economies such as India and China are global drivers for the banking and financial services sector. The financial and banking data include the customer's financial and account information, the cardholder's data, the transaction, and personal data.
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The BFSI segment showed a gradual increase in the market share of USD 19.08 billion in 2017 and continued to grow by 2021. Global BFSI businesses often face the challenge of high operating costs that hinder business growth. However, with increasing investments in high operating expenses (OPEX), BFSI companies are outsourcing colocation areas from market players or leasing servers from managed hosting service providers. Such factors are expected to propel the growth of the BFSI segment of the global market during the forecast period.
The cloud-based segment is expected to grow faster than the on-premises segment in terms of revenue. The cloud computing model provides security at every level of the enterprise IT architecture, making these applications accessible even from remote locations. In addition, cloud computing is vulnerable to cyberattacks, which increases the maximum segment size (MSS) requirements for cloud computing service providers. Thus, such factors are expected to increase the adoption of cloud computing services, driving the market growth during the forecast period.
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APAC is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America has always been a lucrative market as it has been an early adopter of advanced technologies in the manufacturing, retail, and BFSI industries, resulting in increased demand for managed network services.
Furthermore, the US is one of the leading countries contributing significantly to the market in this region. Additionally, the integration of cloud-based services, automation solutions, and AI into operations and supply chain processes has led to the development of new intelligent services in the region. Hence, such factors are expected to drive market growth in the region during the forecast period.
The market is witnessing significant growth, driven by the increasing demand for WAN optimization and managed security firewalls to ensure efficient network administration and robust data security. Managed Service Providers (MSPs) play a crucial role in offering virtual private networks (VPNs) and unified messaging solutions, catering to diverse network access needs across various industries. As organizations prioritize network management and seek to streamline maintenance responsibilities, the market for managed network services expands, addressing both present and future IT requirements. With a focus on software-defined WAN (SD-WAN) and virtual network operations, providers enable seamless integration of digital technologies and facilitate global network survey to optimize IP traffic and cloud traffic while minimizing downtime and enhancing infrastructure resilience. This market evolution serves the needs of SMEs, system integrators, and enterprises alike, offering tailored solutions to meet capital expenditure constraints and drive efficiency in network operations.
The market is witnessing significant growth, driven by the widespread adoption of IoT solutions across various industries. The proliferation of IoT technologies facilitates the connectivity of hardware devices, embedded software, and communication services, creating smart environments in homes, businesses, and public sectors. Managed Service Providers (MSPs) play a crucial role in supporting network administration and virtual network operations for IoT deployments, ensuring seamless connectivity and efficient management of virtual private networks (VPNs) and software-defined WAN (SD-WAN) solutions. As organizations increasingly rely on IoT for data security and network access, the demand for managed network services continues to surge, catering to present and future IT requirements while mitigating risks associated with downtime and system vulnerabilities.
Increasing automation is the primary trend in the market. Automating these services can greatly improve the efficiency of business processes. Automating managed infrastructure services within an organization increases operational processes and reduces costs. The data center's automated resource provisioning system allows users to store and manage corporate data in a flexible IT ecosystem.
Furthermore, market players are automating a managed network service delivery system to take service excellence in IT solutions offerings. Therefore, increasing automation is expected to boost the growth of the global market during the forecast period.
Data privacy and security risks is a challenge that affects the growth of the market. Cloud security management is a daunting task for providers to protect online data. Because cloud infrastructure is based on many patchworks of open-source code, bugs can occur in cloud systems. Due to the infrastructure being based on open architecture and shared resources, cyber attackers can easily access data storage systems. Cloud-based technology gives service providers access to a company's business data.
In addition, market players must encrypt customer data and implement multi-factor authentication systems such as biometrics to authorize users on the customer's IT system. Market players must also follow regulatory guidelines for cloud security controls. Thus, such factors may impede market growth during the forecast period.
The Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing substantial growth, driven by the increasing demand for WAN optimization, unified messaging, and managed security firewalls among enterprises. Managed Service Providers (MSPs) play a crucial role in offering comprehensive solutions for network administration, virtual private networks (VPNs), and cybersecurity issues, addressing the challenges posed by the Internet of Things (IoT) and connected devices technology. With a focus on service level agreements (SLAs) and software-defined WAN (SD-WAN), MSPs cater to the evolving needs of small scale enterprises (SMEs) and telecommunication companies, ensuring data security and minimizing downtime. As digital technologies and 5G networks continue to proliferate, the Managed Network Services Market is poised for significant expansion, driving innovation and efficiency in global network management.
The Market is witnessing significant growth, driven by the escalating demand for network access solutions and the proliferation of MSPs (Managed Service Providers) offering comprehensive virtual network operations. Organizations are increasingly reliant on cloud-based data platforms and apps, necessitating robust cybersecurity measures to address cyber security issues and ensure secure network access. Managed service providers offer managed security services to mitigate risks and handle maintenance responsibilities, aligning with present and future IT requirements. As businesses seek to optimize capital expenditure and manage IP traffic and cloud traffic, the market for managed network services continues to expand, supported by advancements in SD-WANs and partnerships with system integrators and mobile network operators. Insights from the Global Network survey and Ericsson Mobility Report inform strategies to combat cybercrimes and enhance IT service management, driving market growth amidst evolving network access landscapes.
In today's interconnected world, the convergence of facilities and virtual network services is revolutionizing the delivery of goods and services. Facilities serve as the physical infrastructure crucial for operations, while virtual network services provide the digital backbone for connectivity. This integration facilitates the seamless exchange of system information, enabling businesses to optimize resource management and enhance operational efficiency. By leveraging virtual network services, organizations can expand their reach and deliver goods and services to consumers with greater agility and precision. Real-time access to system information empowers businesses to make data-driven decisions, improving supply chain management and customer experiences. As businesses embrace digital transformation, the synergy between facilities and virtual network services becomes increasingly essential in meeting the evolving demands of today's market landscape.
Managed Network Services Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.32% |
Market growth 2023-2027 |
USD 15.77 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.86 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 29% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, AT and T Inc., Brennan VDI Pty Ltd., BT Group Plc, Cisco Systems Inc., Colt Technology Services Group Ltd., Deutsche Telekom AG, Fujitsu Ltd., GTT Communications Inc., Huawei Technologies Co. Ltd., Infosys Ltd., International Business Machines Corp., Lumen Technologies Inc., Nippon Telegraph And Telephone Corp., Orange SA, Singapore Telecommunications Ltd., Tata Consultancy Services Ltd., Telefonaktiebolaget LM Ericsson, Telefonica SA, Telstra Ltd., and Verizon Communications Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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