Telecom Managed Services Global Market Report 2024

The global telecom managed services market has grown rapidly in recent years. It will grow from $22.56 billion in 2023 to $25.95 billion in 2024 at a compound annual growth rate (CAGR) of 15.0%. The growth observed during the historical period can be attributed to several factors, including the increasing network complexity that prompted companies to outsource telecom services, a heightened focus on core business functions by offloading telecom operations, cost optimization initiatives, the expanding subscriber base, globalization leading to the internationalization of telecom operations, the rapid expansion of mobile services, and the competitive dynamics within the telecommunications market.

The global telecom managed services market is expected to see rapid growth in the next few years. It will grow to $44.56 billion in 2028 at a compound annual growth rate (CAGR) of 14.5%. Anticipated growth in the forecast period can be linked to several key factors, including an increased emphasis on enhancing the quality of service, a dedicated focus on managing customer experiences, rising concerns about cybersecurity, heightened demand for network analytics solutions, implementation of network slicing technologies, and a growing focus on sustainability and environmentally friendly practices within the telecom industry. Key trends expected in the forecast period encompass technological convergence, the widespread deployment of 5G networks and network modernization, integration of cloud-native and edge computing solutions, effective management of Internet of Things (IoT) connectivity, utilization of AI and machine learning for predictive analytics, outsourcing of network functions, and collaborative efforts across various industries to drive innovation within the telecommunications sector.

The anticipated increase in internet penetration is poised to fuel demand for telecom managed services in the forecast period. This surge in internet penetration is primarily driven by the widespread use of smartphones and the increasing influence of social networking sites. The expanding global internet user base is creating a substantial demand for managed services, encompassing contracts, billing, legacy equipment, user issues, and the enhancement of customer experience. Notably, the number of internet users worldwide grew from 4.02 billion in 2018 to nearly 4.95 billion by 2022, highlighting the significant role played by the growing population of internet users in driving the telecom managed services market.

The integration of advanced technologies, particularly the adoption of 5G, is expected to propel the telecom managed services market in the coming years. 5G, the latest generation of wireless cellular network technology, represents a substantial advancement in telecommunications standards compared to its predecessors. Telecom managed services play a critical role in facilitating the seamless integration and optimization of 5G technology within telecommunications networks. Providers of telecom managed services contribute to the planning, deployment, and maintenance of the intricate infrastructure required for 5G networks. For example, as reported in April 2023 by 5G Americas, global 5G wireless connections experienced a 76% increase from the end of 2021 to the end of 2022, reaching a total of 1.05 billion. Therefore, the increasing adoption of advanced technologies such as 5G is a significant driver for the growth of the telecom managed services market.

Technological advancement emerges as a key trend gaining traction in the telecom managed services market, with major companies concentrating on new technologies to expand their market share. In June 2022, a Sweden-based information technology company, Enea, introduced the industry's first complete Wi-Fi Software-as-a-Service (SaaS) service management solution tailored for communication service providers (CSPs). This innovative offering enables telecom operators to launch and monetize Wi-Fi services, providing companies with the flexibility to scale at their own pace through a pay-as-you-grow model, thereby expanding their Wi-Fi service footprint and coverage.

Leading companies in the telecom managed services market are actively introducing innovative products and services, such as the Networking Cloud Platform, as part of their strategy to maintain a strong market position. The Networking Cloud Platform serves as a comprehensive solution designed to streamline operations across the company's product portfolio, encompassing SD-WAN, data center, campus and branch, compute, and IoT. For example, in June 2023, Cisco Systems Inc., a prominent US-based digital communications technology company, launched the Cisco Network Cloud. This solution enables IT administrators to manage and access both cloud-based and on-premises network infrastructures through its Meraki dashboard. The Cisco Network Cloud comes with a single sign-on (SSO) feature across Cisco's networking products and services, contributing to enhanced simplicity in terms of automated connections and data exchange.

In a strategic move, Upstack, a web-based technology company based in the US, made an acquisition in April 2022 by purchasing Universal Telecommunications Inc. for an undisclosed amount. This acquisition is instrumental in Upstack's efforts to broaden its services and enhance its product portfolio, enabling the company to cater to a larger customer base. Universal Telecommunications Inc., a US-based full-service telecom agency, brings additional expertise and capabilities to Upstack's offerings.

Major companies operating in the telecom managed services market report are Fujitsu Limited, DXC Technology Company, Juniper Networks, Cognizant Technology Solutions Corporation, ZTE Corporation, Capgemini SE, Accenture Plc., Tech Mahindra Limited, Huawei Technologies Co. Ltd., Sprint Corporation, Vodafone Idea, Cisco Systems Inc., IBM Corporation, Unisys Corporation, Windstream Holdings Inc., AT&T Inc., Verizon Communications Inc., Comarch SA, HCL Technologies Limited, Amdocs Inc., NTT DATA Corporation, Telefonaktiebolaget LM Ericsson, GTT Communications Inc., CenturyLink, Comcast Corporation, Larsen & Toubro Infotech, Nokia Corporation, Tata Consultancy Services Limited, Wipro Limited, Zayo Group Holdings Inc., Ericsson India Limited, Motorola Inc.

North America was the largest region in the telecom managed services market share in 2023. The regions covered in the telecom managed services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the telecom managed services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of telecom managed services comprise managed data center services, managed network services, managed data and information services, managed mobility services, managed communications services, and managed security services. Managed data center services aim to offer functionalities and features akin to those found in standard data centers, albeit delivered through a managed service platform. These telecom managed services can be deployed using different models, including on-premise and cloud setups, catering to organizations of varying sizes, such as large enterprises and small to medium enterprises (SMEs).

This report provides telecom managed services market statistics, including telecom managed services industry global market size, regional shares, competitors with a telecom managed services market share, detailed telecom managed services market segments, market trends and opportunities, and any further data you may need to thrive in the telecom managed services industry. This telecom managed services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The telecom managed services market includes revenues earned by entities by offering technology, network, architecture development and management, tuning of network and service coverage, capacity and functionality and day-to-day operations and management of the entire network and IT infrastructure. Establishments that provide managed telecom services are included in this market. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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