Managed Network Services Market Outlook, 2029

In today's fast-paced, digital world, businesses are heavily reliant on robust and reliable network infrastructure to keep their operations running smoothly. A well-maintained network is crucial for facilitating seamless communication, data transfer, and access to critical resources. However, managing an organization's network can be a complex and time-consuming task that requires specialized knowledge and expertise. This is where managed network services come in. Managed network services offer organizations a comprehensive suite of network management solutions, including design, implementation, monitoring, maintenance, and optimization.

By outsourcing these responsibilities to a professional managed service provider (MSP), businesses can focus on their core competencies while leveraging the expertise and resources of the MSP to maintain a high-performance, secure, and efficient network. Managed Network Services have emerged as a popular solution, providing organizations with a reliable and cost-effective way to manage their complex network environments. Managed Network Services refer to the practice of outsourcing the management, maintenance, and operation of an organization's network infrastructure to a third-party service provider. This includes various services such as network monitoring, security, data storage, and overall network performance management.

The service provider, also known as a Managed Service Provider (MSP), takes on the responsibility of ensuring the network's optimal functionality, allowing the business to focus on its core operations. The adoption of managed network services is steadily growing among businesses across various industries, driven by the increasing complexity of network environments, the rising need for cyber-security, and the desire to streamline operations and reduce costs. As organizations continue to recognize the advantages of outsourcing network management, the trend towards adopting managed network services is expected to accelerate.

The shift towards remote work and digital transformation has increased the demand for reliable, secure networks that can support distributed teams and cloud-based applications. Managed network services providers’ offer solutions tailored to these new realities, ensuring seamless connectivity and security for remote work environments. Maintaining an in-house IT team and network infrastructure can be costly. Managed network services provide predictable pricing models, helping businesses budget more effectively. By eliminating the need for full-time staff dedicated to network management, organizations can save on overhead and training costs.

According to the research report, “Global Managed Network Services Market Outlook, 2029”, the market is anticipated to cross USD 110 Billion by 2029, increasing from USD 66.06 Billion in 2023. The market is expected to grow with 9.53% CAGR by 2024-29. Maintaining an in-house IT team and network infrastructure can be expensive due to the costs of hiring, training, and retaining skilled staff, as well as investing in hardware and software. By outsourcing network management to an MSP, businesses can reduce overhead and gain predictable monthly expenses. Network security is a top priority for businesses, especially given the rise in cyber threats and data breaches.

Managed network services providers are equipped with the latest security technologies and best practices to protect the network from potential vulnerabilities and attacks. They continuously monitor the network for suspicious activity and proactively address security issues to keep user’s data safe. As businesses grow, their network needs change. Managed network services offer the flexibility and scalability required to accommodate these changes without causing disruptions. Whether user needs to expand the network capacity or adjust the services, an MSP can easily adapt to meet evolving requirements. MSPs provide round-the-clock monitoring and support to ensure their network runs smoothly at all times.

This continuous oversight helps detect and resolve issues before they escalate, minimizing downtime and maintaining peak network performance. By partnering with an MSP, user gain access to a team of network experts who stay up to date with the latest industry trends and technologies. This knowledge enables them to implement cutting-edge solutions and best practices to optimize network and enhance the competitive edge. Managing a network in-house can divert attention away from the core business objectives.

By outsourcing network management, the team can concentrate on strategic initiatives and revenue-generating activities, leaving the technical aspects to the professionals. As businesses grow, their network needs may evolve rapidly. Managed network services offer the scalability and flexibility to accommodate changing demands. Whether it's increasing bandwidth, adding new devices, or expanding into new locations, MSPs can quickly adapt to the organization's needs.

Market Drivers

• Digital Transformation and Cloud Adoption: The shift towards digital transformation and cloud-based services has significantly increased demand for managed network services. Organizations are moving workloads to the cloud and relying more heavily on digital solutions, driving the need for efficient, reliable network management. Managed network services providers support businesses in navigating complex network environments and ensuring seamless integration of cloud-based resources. This shift also places greater emphasis on security and performance optimization.
• Cybersecurity Concerns: Cybersecurity is a top priority for businesses due to the increasing frequency and sophistication of cyber attacks. Protecting networks and data is crucial for business continuity and maintaining customer trust. Managed network services offer advanced security solutions, including threat detection, intrusion prevention, and data protection measures. Providers keep up with the latest security threats and best practices to safeguard networks.

Market Challenges

• Network Complexity and Integration: As organizations adopt more digital tools and integrate them with existing systems, networks become more complex and require sophisticated management. Managed network services providers must continually enhance their expertise to address the complexity of hybrid networks (a mix of on-premises and cloud-based environments) and ensure seamless connectivity and compatibility across systems.
• Evolving Threat Landscape: Cyber threats are constantly evolving, with new types of attacks emerging regularly. This dynamic landscape poses a significant challenge for managed network services providers. Providers must continuously update their security protocols and technologies to address emerging threats. They also need to educate clients about the latest risks and best practices to ensure comprehensive protection.

Market Trends

• Zero Trust Security Model: The Zero Trust security model is gaining traction as a strategy for securing networks. It involves verifying every user and device accessing the network, regardless of their location or origin. Managed network services providers are adopting Zero Trust principles to strengthen network security. This includes strict access controls, continuous monitoring, and micro-segmentation of networks to limit potential threats.
• Edge Computing and IoT Integration: Edge computing and the Internet of Things (IoT) are transforming how businesses operate, enabling faster data processing and decision-making at the network edge. Managed network services providers are increasingly offering solutions to support edge computing and IoT devices. This includes ensuring secure connectivity, efficient data management, and real-time monitoring at the edge.

Managed LAN is leading in the managed network services industry is its ability to provide comprehensive, scalable, and efficient solutions for local network infrastructure, which enables organizations to optimize connectivity, performance, and security while reducing the complexity and cost of network management.

In today's digital era, organizations of all sizes depend heavily on efficient and reliable local area networks (LANs) for internal and external communication, collaboration, and access to critical business resources. Managed LAN services offer a strategic approach to handling the challenges associated with managing and maintaining complex LAN environments. This is accomplished through the provision of comprehensive and scalable solutions that encompass design, implementation, monitoring, and maintenance of LAN infrastructures. One of the key reasons Managed LAN services are in high demand is their ability to streamline operations and improve network performance.

By outsourcing LAN management to experienced professionals, organizations can focus on their core business activities while experts handle the intricacies of network design, deployment, and maintenance. Managed LAN providers offer tailored solutions to meet the specific needs of each business, ensuring optimal network performance and reliability. Scalability is another significant advantage of Managed LAN services. As organizations grow and evolve, their network needs change, necessitating upgrades and expansions to accommodate additional users, devices, and applications. Managed LAN providers have the expertise to design flexible and scalable networks that can seamlessly adapt to these changes.

This adaptability helps organizations maintain continuity and efficiency in their operations. Moreover, Managed LAN services contribute to enhanced network security. Cybersecurity threats are ever-evolving, and maintaining a secure network environment requires constant vigilance and up-to-date knowledge of the latest threats and vulnerabilities. Managed LAN providers employ advanced security measures, such as firewalls, intrusion detection systems, and secure access controls, to safeguard the network against potential attacks. They also monitor the network 24/7, allowing for rapid response and mitigation in case of a security incident. Managed LAN services also provide cost-effectiveness for organizations.

Building and maintaining an in-house IT team with the requisite expertise can be expensive, especially for small and medium-sized enterprises. Managed LAN providers offer cost-effective solutions by leveraging economies of scale and their existing infrastructure, allowing organizations to access top-notch network management services without the high overheads associated with in-house teams. This cost savings can then be redirected towards other strategic business investments. In addition to performance, security, scalability, and cost-effectiveness, Managed LAN services offer proactive network monitoring and support. Providers use sophisticated monitoring tools to continuously assess network health, identify potential issues, and address them before they become disruptive. This proactive approach minimizes downtime and ensures a seamless network experience for end-users.

SMEs (small and medium-sized enterprises) are leading in the managed network services industry is their growing need for efficient, cost-effective network solutions to support digital transformation and business growth, enabling them to compete with larger enterprises while benefiting from specialized, outsourced expertise in network management.

SMEs play a crucial role in driving innovation and economic growth. As they pursue digital transformation to stay competitive and enhance their operations, efficient and reliable network infrastructure becomes essential. Managed network services have emerged as a preferred option for SMEs, offering a strategic approach to addressing the challenges associated with managing complex network environments. Building and maintaining an in-house IT team with the knowledge and skills required to manage networks can be cost-prohibitive for smaller businesses.

Managed network service providers offer tailored solutions that deliver top-tier network management at a fraction of the cost, allowing SMEs to benefit from professional expertise without the high overheads of internal staffing. Managed network services also enable SMEs to focus on their core business activities. Outsourcing network management allows small and medium-sized businesses to delegate the complexities of network design, implementation, and maintenance to experienced professionals. This delegation frees up valuable time and resources that can be invested in business development and growth. Scalability is another significant advantage that managed network services provide to SMEs.

As these businesses expand, their network needs evolve, necessitating upgrades and adjustments to accommodate additional users, devices, and applications. Managed network service providers have the expertise to design adaptable and scalable networks that can seamlessly grow alongside the business. This ensures continuity and efficiency in operations, helping SMEs maintain a competitive edge. Additionally, managed network services offer enhanced security for SMEs. Cybersecurity threats continue to pose risks to businesses of all sizes, but smaller organizations may be particularly vulnerable due to limited resources and expertise.

Managed network providers employ robust security measures such as firewalls, intrusion detection systems, and secure access controls to protect the network and data against potential attacks. Providers also monitor networks 24/7, allowing for rapid response and mitigation of security incidents. Proactive network monitoring and support are also vital services offered to SMEs by managed network providers. Providers use advanced monitoring tools to continuously assess network health, identify potential issues, and resolve them before they escalate.

This proactive approach minimizes downtime and ensures a seamless network experience for users, fostering productivity and operational efficiency. Moreover, managed network services help SMEs stay abreast of technological advancements and industry best practices. Providers continually update their solutions to incorporate emerging technologies, such as cloud-based services and Internet of Things (IoT) integration, ensuring that SMEs can harness the latest innovations to remain competitive and agile.

On-premises solutions are leading in the managed network services industry because they offer organizations greater control, customization, and security over their network infrastructure, enabling them to maintain autonomy over data management and meet specific regulatory and business requirements.

In the managed network services industry, on-premises solutions have continued to be a preferred option for many organizations due to the unique advantages they offer in terms of control, customization, and security. When network infrastructure and related services are managed and hosted on the organization's physical premises, businesses benefit from enhanced oversight and ownership of their network environment. By hosting network infrastructure on their own premises, organizations can dictate the configuration, management, and maintenance of their networks according to their precise requirements.

This control extends to choosing specific hardware and software components, as well as tailoring network architecture and policies to align with business goals. Customization is another significant advantage of on-premises solutions. Organizations with unique or specialized needs can design and implement a network infrastructure that caters specifically to their operational demands. This includes creating tailored network topologies, access controls, and security measures that align with specific business objectives. This degree of customization can be crucial for businesses in industries such as finance, healthcare, or manufacturing, where specialized network requirements may be prevalent.

Security is a paramount concern for many organizations, and on-premises solutions provide a higher level of confidence in this regard. Hosting network infrastructure on-site allows businesses to establish direct control over data access, storage, and transmission. This control helps organizations implement robust security measures, such as firewalls, intrusion detection systems, and encryption protocols, to protect sensitive data and comply with industry regulations and data protection laws. On-premises solutions also offer improved autonomy for data management. For organizations dealing with sensitive or proprietary data, maintaining data storage and processing on-site provides greater oversight and control.

This autonomy allows businesses to establish stringent data governance policies and ensures data remains within their own infrastructure, rather than being managed by third-party service providers. Another factor contributing to the popularity of on-premises solutions is the need for reliable connectivity and minimal latency. In certain industries, such as finance and manufacturing, where real-time data processing and low-latency communications are critical, on-premises networks provide the speed and reliability necessary for operational efficiency.

The banking, financial services, and insurance (BFSI) sector is leading in the managed network services industry is its critical need for secure, high-performance, and reliable network infrastructure to facilitate financial transactions, protect sensitive data, and comply with strict regulatory standards, all while supporting a seamless customer experience.

The BFSI sector is known for its reliance on technology to drive its operations, enabling a wide range of services such as banking, investments, insurance, and financial transactions. The growing digitalization of the sector has heightened the demand for efficient and secure network infrastructure to support these activities, making managed network services an essential component for the industry's success. Financial institutions handle vast amounts of sensitive data, including customer financial information, account details, and personal identification information. Protecting this data from cyber threats and breaches is paramount to maintaining trust and meeting regulatory requirements.

Managed network service providers offer robust security measures, such as firewalls, encryption, intrusion detection systems, and secure access controls, to safeguard BFSI networks against potential threats. Additionally, the BFSI sector operates in a highly regulated environment, with strict compliance requirements from regulatory bodies such as the Financial Industry Regulatory Authority (FINRA), the Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC). Managed network service providers help BFSI organizations navigate these regulations by implementing compliant network practices, monitoring, and reporting to ensure adherence to industry standards and legal obligations.

Another significant advantage of managed network services for BFSI institutions is high-performance network infrastructure. The sector requires low-latency, reliable, and high-bandwidth networks to support real-time financial transactions, stock trading, and market data feeds. Managed network service providers offer optimized network architecture and performance monitoring to ensure seamless operations and swift responses to any issues that may arise. Managed network services also play a crucial role in enhancing the customer experience for BFSI organizations.

With the rise of digital banking and online financial services, customers expect easy access to their accounts and transactions through various channels, such as mobile apps and websites. Managed network services help ensure that these digital platforms are secure, reliable, and responsive, contributing to customer satisfaction and loyalty. Moreover, managed network service providers offer proactive monitoring and support for BFSI networks, minimizing downtime and disruptions that can impact operations and customer trust.

Providers continuously assess network health, identify potential issues, and address them before they escalate, ensuring smooth and uninterrupted service for customers. Managed network services allow BFSI institutions to focus on their core business activities while outsourcing the complexities of network management to experienced professionals. This approach helps organizations optimize resources, reduce operational costs, and stay agile in a rapidly changing industry.

North America is leading in the managed network services industry due to its advanced technology infrastructure, strong emphasis on cybersecurity, and a robust market demand driven by the digital transformation of various industries, all supported by a skilled workforce and a culture of innovation.

The managed network services industry in North America is characterized by its advanced technology infrastructure and a strong culture of innovation. As one of the most technologically developed regions in the world, North America has a well-established ecosystem of network service providers, data centers, and IT companies that contribute to the region's leading position in the industry. The region boasts high-speed internet connectivity, a dense network of data centers, and extensive fiber-optic networks. This robust infrastructure supports the efficient delivery of managed network services to businesses across various industries, enabling them to maintain high levels of performance and reliability.

Another critical factor contributing to North America's dominance in managed network services is the region's strong emphasis on cybersecurity. With the increasing frequency and sophistication of cyber threats, businesses in North America prioritize secure network infrastructure to protect sensitive data and maintain customer trust. Market demand for managed network services in North America is driven by the digital transformation of various industries, including finance, healthcare, retail, and manufacturing. As businesses in these sectors adopt digital technologies to enhance operations, improve customer experiences, and drive innovation, the need for efficient and reliable network services grows.

Managed network services offer these businesses the ability to outsource network management to experts, allowing them to focus on their core activities and stay competitive in the digital economy. North America's skilled workforce and culture of innovation also play a significant role in its leadership in the managed network services industry. The region is home to many leading technology companies and research institutions, fostering a talent pool of highly skilled professionals in networking, cybersecurity, and information technology. This expertise drives continuous improvement and development in managed network services, ensuring that businesses in North America have access to cutting-edge solutions.

Moreover, North America's business-friendly regulatory environment and strong intellectual property protections attract both domestic and international investments in the technology sector. This environment encourages the growth of managed network service providers, enabling them to expand their offerings and cater to a diverse range of clients across industries. In addition, North America's proximity to other major global markets such as Europe and Asia facilitates international collaborations and partnerships in the managed network services industry. This global reach helps service providers deliver comprehensive and integrated solutions that meet the needs of multinational corporations and organizations.

Recent Developments

• In May 2023, NTT announced the Next Generation Platform for Managed Network Services. The platform provides customers a direct pathway towards network transformation, underpinned by NTT’s managed services experience, expertise, and expansive technical resources.
• In Feb 2023, Huawei launched the digitally managed network solution to boost new growth for carriers' B2B services.
• June 2023: Wipro launched a managed private 5G-as-a-service solution in partnership with Cisco. Wipro said that the new offering enables enterprise customers to achieve better business outcomes via the integration of private 5G with their existing LAN/WAN/Cloud infrastructure.
• May 2023: Cloudflare Inc. partnered with Kyndryl Holdings Inc., one of the key IT infrastructure services providers, to help enterprises modernize and scale their corporate networks with managed WAN-as-a-Service and Cloudflare Zero Trust. The partnership combines the expertise of managed networking services provided by Kyndryl with the robust technology platform of Cloudflare to enable enterprises to connect to multiple clouds on a large scale seamlessly.
• In June 2021, with Cisco, AT&T Business introduced Webex Calling with AT&T - Enterprise to Cisco’s Unified Communications Manager - Cloud (UCMC), helping businesses optimize operations and accelerate digital transformation in any environment.
• In May 2021, Cisco Webex, one of the leading providers of cloud-based collaboration solutions, and Box, one of the leading Content Clouds, announced new and deepened integrations between the two technology platforms to make it easier for customers to work securely and effectively in the cloud.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Managed Network Services market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Managed LAN
• Managed VPN
• Managed Network Security
• Managed Wi-Fi
• Network Monitoring
• Managed NFV
• Managed WAN

By Organization Size

• SME's
• Large Enterprises

By Deployment Mode

• Cloud
• On-Premises

By Verticals

• Banking, Financial Services and Insurance
• Manufacturing
• IT and Telecom
• Retail and Ecommerce
• Healthcare
• Government
• Other Verticals (Education, Media and Entertainment, Hospitality, Transportation and Logistics, Energy and Utilities, Agriculture, etc.)

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the analyst started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the analyst had primary data, they started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Managed Network Services industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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