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The managed multiprotocol label switching market size is forecast to increase by USD 8.18 billion, at a CAGR of 6.78% between 2023 and 2028. Market growth hinges on several pivotal factors: escalating demand for secure and dependable connectivity solutions, the rapid expansion of managed SD-WAN services, and the continuous evolution of network infrastructure. As businesses and consumers alike prioritize seamless and secure digital experiences, the demand for robust connectivity solutions intensifies, driving innovation in telecommunications and network technologies. Managed SD-WAN services are at the forefront of this evolution, offering organizations scalable and efficient solutions to manage their network operations effectively. Furthermore, the expansion of these services reflects a broader trend toward outsourcing complex network management tasks, thereby enhancing operational efficiency and reducing costs for enterprises. These interconnected factors underscore a dynamic market landscape characterized by technological advancement and strategic investments in digital infrastructure. Stakeholders across telecommunications, IT services, and network security sectors are poised to capitalize on these trends, contributing to sustained market growth and resilience in an increasingly interconnected global economy.
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The market is integral to modern networking technology, addressing challenges like network traffic management, network congestion, and bandwidth utilization through efficient MPLS VPNs and virtual private cloud (VPC) services. MPLS, a reliable routing technique, supports security surveillance applications in banks and enhances connectivity for VoIP (Voice over Internet Protocol) and IoT (Internet of Things) deployments. Managed services by providers like Adaptiv Networks and Owl Labs ensure optimized connection speeds and secure Internet connections with Layer 2 VPN and 3 VPN MPLS services. The market's growth is fueled by the increasing adoption of cloud computing solutions and Software-Defined Wide Area Network (SD-WAN) technologies, offering scalable and resilient networking solutions tailored to the needs of enterprises and IT departments. As businesses rely more on digital connectivity, managed MPLS services play a pivotal role in ensuring robust and efficient network operations across diverse industries.
The increasing demand for secure and reliable connectivity is driving the growth. The growing reliance of companies on managed MPLS services has been one of the major drivers for the market. These services provide dependable connectivity options that link different locations inside an organization, thus enabling smooth data transfer and communication. In order for businesses to grow globally and benefit from the essential applications in their business, they need a solid network infrastructure that enables them to cope with interconnection system needs.
However, for businesses seeking efficient and secure connectivity solutions, managed services are the preferred choice due to their ability to fulfill the necessary bandwidth, Quality of Service (QoS) assurance, and prioritization capabilities to support these vital business applications. Hence, the increasing demand for secure and reliable connectivity is an important driver that is expected to drive the growth of the market in focus during the forecast period.
The expansion of managed SD-WAN services is a primary trend in the market. In order to upgrade the performance, cost-effectiveness, and application prioritization of their wide-area networks (WANs), organizations are increasingly turning to integrated SD-WAN solutions, which are becoming popular in the global market. To respond to this demand, fully SDWAN solutions combining the benefit of MPLS with its speed and elasticity as a Software Defined Networking solution are being provided by service providers that manage an MPLS network.
However, these integrated solutions provide businesses with the ability to reduce costs, enhance network performance, and effective management of applications in a number of locations. Businesses may dynamically assign bandwidth, give priority to key applications, and integrate various network connections seamlessly by utilizing SD-WAN technologies. This indicates that market acceptance of the importance of transformational WAN solutions, which can grow in line with evolving requirements for today's business organizations such as Google and Amazon, is beginning to emerge. Hence, the expansion of managed SD-WAN services is a significant trend, which is expected to drive the growth of the market in focus during the forecast period.
Complex network management is a major challenge faced by the market. The management and maintenance of a global network is an enormous challenge in the world market for managed MPLS. The initial challenge lies in the extensive size and geographic dispersion of the network, due to which the network configuration becomes complicated. In order to coordinate settings across a number of sites and ensure seamless connectivity, it takes expertise and meticulous planning.
Further, troubleshooting becomes challenging when issues appear throughout the network. In order to address the problems, identify their root causes, and make efficient solutions available, it will take skilled network engineers and significant resources. Moreover, network management is becoming more complex as a result of the need for constant monitoring, performance optimization, and security controls to be carried out throughout the worldwide MPLS infrastructure. Thus, operating and maintaining an MPLS network is a challenging task in the market because of these complications, which, in turn, can impede the growth of the market in focus during the forecast period.
The market share growth by the IT and Telecommunication segment will be significant during the forecast period. The IT and telecommunication industry accounted for a significant market share as an end-user in the market. This sector depends heavily on managed MPLS networks in order to ensure the security, reliability, and efficient transmission of data. Managed MPLS systems have advantages like better network performance, increased scalability, and efficient traffic prioritization.
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The IT and Telecommunication segment showed a gradual increase in the market share of USD 6.05 billion in 2018. For instance, Juniper focuses on delivering a high-performance networking solution, including managed MPLS services, that provides seamless and optimal network performance to users of IT and telecommunications throughout the world. Owing to the advantages, the adoption of managed MPLS in the IT and telecommunications sector is expected to increase over the forecast period, thus driving the growth of the market in focus.
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North America is estimated to contribute 35% to the growth of the global market growth and forecasting report during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, the demand for secure and dependable network connectivity, efficient data transmission, and the rising usage of cloud services are contributing to the continuous growth of the regional market in North America. The leading companies in the regional market and those businesses offer end-to-end managed services, ensuring seamless connectivity, improved network performance, and increased security by utilizing their enormous network infrastructure and experience. They also make a positive shift towards the market focus in 2021 to deal with ever-changing business needs. As businesses increasingly transition to on-the-spot operation, their need for managed MPLS services has increased.
The industry 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 market growth analysis 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.
AT and T Inc. - The company offers MPLS such as ONE unifies, VPN Business solutions, Networking services, Wireless services, Voice, and collaboration.
BT Group Plc - The company offers managed MPLS such as SD-WAN solutions, Hybrid connectivity, LAN solutions, and Secure Access Service Edge SASE solutions.
Cisco Systems Inc. - The company offers managed MPLS such as voice, video, business-critical data services, Internet access, and Multiprotocol labels switching.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 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 research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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The market plays a crucial role in optimizing Internet connections and enhancing connection speeds through efficient routing and label-switching techniques. Utilizing MPLS (multiprotocol label switching) , this market provides secure and reliable Virtual Private Network (VPN) services, crucial for secure communications and data management across diverse IT departments and enterprise networks. MPLS enables cloud storage integration, supports video conferencing and Voice-over-Internet Protocol (VoIP) services, and facilitates Unified Communications as a Service (UCaaS), ensuring seamless connectivity and communication capabilities for businesses. With a focus on network node management and optimized routing tables, managed MPLS solutions cater to the increasing demand for Internet-enabled devices and the expanding smartphone penetration globally. By offering unique network models and scalable solutions, MPLS providers enhance operational efficiency and cybersecurity, meeting the evolving needs of modern businesses in an interconnected digital landscape. The information technology (IT) department manages client data securely through virtual private cloud services, optimizing internet connection speed via router and routing table while ensuring adherence to internet protocol standards and supporting VoIP service.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 8.18 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.23 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 35% |
Key countries |
US, China, UK, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AT and T Inc., Bharat Sanchar Nigam Ltd., Bharti Airtel Ltd., BT Group Plc, Cisco Systems Inc., ERNET India, Forcepoint LLC, International Business Machines Corp., Juniper Networks Inc., Lumen Technologies Inc., NTT Communications Corp., Orange SA, Palo Alto Networks Inc., Reliance Industries Ltd., Syringa Networks LLC, T Mobile US Inc., Telefonaktiebolaget LM Ericsson, Verizon Communications Inc., Versa Networks Inc., and Vodafone Group Plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market forecasting 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 Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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