Managed Network Services Market Introduction

 Managed network services refer to the outsourcing of network management and maintenance to third-party service providers. These services may include monitoring, troubleshooting, configuration, and optimization of network infrastructure such as routers, switches, firewalls, and wireless access points. The aim of managed network services is to help organizations reduce costs, increase network performance and reliability, and improve security by leveraging the expertise and resources of the service provider.Managed network services are gaining traction due to the increasing complexity of network infrastructure, the need for 24/7 network availability, and the shortage of skilled IT personnel. With managed network services, organizations can focus on their core business activities while leaving network management and maintenance to the experts.Managed network services can be delivered through various deployment models, including on-premises, cloud-based, and hybrid models. These services can also be customized to meet the specific needs of different industries and organizations, including healthcare, financial services, government, and education.The global managed network services market is expected to grow significantly in the coming years, driven by the increasing demand for managed IT services, the growing adoption of cloud computing, and the need for more efficient and secure network infrastructure

Managed Network Services Market Size

The global managed network services market size was valued at USD 52.7 billion in 2020 and is projected to reach USD 71.6 billion by 2025, growing at a Compound Annual Growth Rate (CAGR) of 6.3% during the forecast period 2020-2025.The increasing demand for cost-effective managed services, the adoption of cloud-based managed network services, and the need for better network visibility and control are some of the key factors driving the growth of the managed network services market. Additionally, the increasing adoption of IoT and the growing need for security and compliance are also expected to fuel the growth of the market.The market is segmented by service type, organization size, vertical, and region. By service type, the market is segmented into managed WAN, managed LAN, network monitoring, network security, and others. By organization size, the market is segmented into small and medium-sized enterprises (SMEs) and large enterprises. By vertical, the market is segmented into telecom and IT, healthcare and life sciences, government and public sector, BFSI, retail and consumer goods, manufacturing, energy and utilities, and others.North America is expected to hold the largest market size in the global managed network services market due to the early adoption of managed network services in the region and the presence of major market players. The Asia Pacific (APAC) region is expected to grow at the highest CAGR during the forecast period due to the increasing adoption of cloud-based managed network services and the growth of SMEs in the region.

Managed Network Services Market Share

 The managed network services market is highly fragmented with the presence of several key players, regional players, and new entrants. Some of the major players operating in the market are Cisco Systems Inc., IBM Corporation, Verizon Communications Inc., AT&T Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co. Ltd., Nokia Corporation, CenturyLink Inc., DXC Technology Company, Ericsson, Fujitsu Ltd., Wipro Limited, Accenture plc, NEC Corporation, and Dimension Data Holdings PLC.The global managed network services market in 2020, followed by IBM Corporation, Verizon Communications Inc., AT&T Inc., and Hewlett Packard Enterprise Development LP. These companies have a strong presence in the market and offer a wide range of managed network services to customers across various industries and regions.However, the market share of these players may change over time due to the entry of new players, technological advancements, and changing customer preferences. Regional players and new entrants may also gain market share by offering specialized services, competitive pricing, and innovative solutions to customers. Therefore, it is important for companies operating in the market to continuously innovate and adapt to changing market dynamics to maintain their market share and stay competitive.

Managed Network Services Market Trends

Here are some key trends in the managed network services market:

1. Increasing demand for cloud-based managed network services: With the growing adoption of cloud computing, companies are increasingly moving their IT infrastructure to the cloud. This has led to an increased demand for cloud-based managed network services that provide reliable and scalable network solutions.
2. Adoption of software-defined networking (SDN) and network function virtualization (NFV): SDN and NFV technologies are transforming the way networks are managed and maintained. They enable companies to create virtual networks that can be easily customized and scaled, resulting in greater network efficiency and flexibility.
3. Growing focus on network security: As cyber threats continue to evolve, companies are investing more in network security solutions. Managed network services providers are offering advanced security solutions such as firewalls, intrusion detection and prevention, and security information and event management (SIEM) to protect their customers' networks from cyber attacks.
4. Increasing adoption of Internet of Things (IoT) devices: The proliferation of IoT devices is creating new challenges for network management. Managed network services providers are offering solutions to manage and secure these devices, ensuring that they can be integrated into the network without compromising security or performance.
5. Emergence of edge computing: Edge computing is becoming increasingly popular as companies look to reduce latency and improve network performance. Managed network services providers are offering solutions to manage edge devices and ensure that they are integrated into the network seamlessly.
6. Growing adoption of artificial intelligence (AI) and machine learning (ML): AI and ML are being used to automate network management tasks and improve network performance. Managed network services providers are incorporating these technologies into their solutions to provide more proactive and predictive network management.

Managed Network Services Market Driving Factor

Here are some of the key driving factors for the managed network services market:

1. Cost savings: Managed network services allow companies to reduce their IT infrastructure costs by outsourcing network management to third-party providers. This enables companies to focus on their core business activities while still having access to the latest network technologies and solutions.
2. Scalability and flexibility: Managed network services provide companies with a scalable and flexible network infrastructure that can be easily adapted to changing business requirements. This enables companies to respond quickly to market changes and new business opportunities.
3. Increased network visibility and control: Managed network services provide companies with greater visibility and control over their network infrastructure. This enables them to monitor network performance and identify issues before they impact business operations.
4. Growing adoption of cloud computing: As more companies adopt cloud computing, the demand for managed network services is increasing. Managed network services providers offer cloud-based network solutions that enable companies to easily manage and scale their network infrastructure in the cloud.
5. Need for advanced network security solutions: The increasing frequency and sophistication of cyber attacks is driving the need for advanced network security solutions. Managed network services providers offer a range of security solutions such as firewalls, intrusion detection and prevention, and security information and event management (SIEM) to protect their customers' networks from cyber threats.
6. Increasing adoption of Internet of Things (IoT) devices: The proliferation of IoT devices is creating new challenges for network management. Managed network services providers offer solutions to manage and secure these devices, ensuring that they can be integrated into the network without compromising security or performance.
7. Focus on business continuity: Managed network services providers offer solutions to ensure business continuity by providing disaster recovery and business continuity planning services. This enables companies to minimize the impact of network outages and ensure that their business operations can continue uninterrupted.

Managed Network Services Market Regional Analysis

The managed network services market is a global market with a presence in various regions such as North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Here is a brief overview of the market trends and drivers in each region:

1. North America: North America is the largest market for managed network services due to the presence of several key players and the high adoption of advanced technologies such as cloud computing and IoT. The increasing demand for network security solutions and the need for cost-effective network management solutions are also driving the market growth in this region.
2. Europe: Europe is a mature market for managed network services, with several established players operating in the region. The market growth in this region is being driven by the increasing adoption of cloud computing, IoT, and advanced network security solutions. The need for cost-effective network management solutions is also driving the market growth in this region.
3. Asia Pacific: Asia Pacific is a rapidly growing market for managed network services, driven by the increasing adoption of advanced technologies such as cloud computing and IoT, and the growing demand for network security solutions. The large and growing population in the region, along with the increasing adoption of digital technologies, is also driving the market growth in this region.
4. Latin America: Latin America is a growing market for managed network services, driven by the increasing adoption of cloud computing and IoT technologies. The growing need for cost-effective network management solutions and the increasing demand for network security solutions are also driving the market growth in this region.
5. Middle East and Africa: The Middle East and Africa region is a growing market for managed network services, driven by the increasing adoption of advanced technologies such as cloud computing and IoT. The growing need for cost-effective network management solutions and the increasing demand for network security solutions are also driving the market growth in this region. However, the market growth in this region is constrained by the lack of infrastructure and the low adoption of digital technologies in some countries.

Managed Network Services Market Forecast 2030

The managed network services market is expected to continue to grow in the coming years. The global managed network services market is projected to grow from USD 52.7 billion in 2020 to USD 71.6 billion by 2025, at a CAGR of 6.3% during the forecast period.The increasing adoption of cloud computing, IoT, and advanced network security solutions, along with the growing need for cost-effective network management solutions, are expected to drive the market growth. The increasing demand for managed network services in emerging markets such as Asia Pacific and Latin America is also expected to contribute to the market growth.Moreover, the COVID-19 pandemic has accelerated the adoption of digital technologies, including managed network services, as businesses have had to quickly adapt to remote work and digital transformation. This trend is expected to continue even beyond the pandemic, further driving the demand for managed network services.verall, the managed network services market is expected to continue to grow and evolve as companies increasingly look to outsource their network management and focus on their core business activities. However, market conditions and trends can change over time, and any forecasts should be taken with a degree of caution.

Managed Network Services Market Industry Key Players

The managed network services market is a highly competitive market with several key players operating globally. Here are some of the major players in the industry:

1. Cisco Systems, Inc.
2. IBM Corporation
3. Verizon Communications Inc.
4. AT&T Inc.
5. Hewlett Packard Enterprise Development LP
6. Nokia Corporation
7. Fujitsu Limited
8. Accenture plc
9. Ericsson AB
10. NEC Corporation
11. Wipro Limited
12. Dimension Data Holdings plc
13. Huawei Technologies Co., Ltd.
14. HCL Technologies Limited
15. DXC Technology Company

These companies offer a range of managed network services, including network monitoring and management, network security, cloud networking, WAN optimization, and network consulting services, among others. These companies are also investing in research and development to enhance their service offerings and to stay competitive in the market.