Managed MPLS Market Report and Forecast 2024-2032

According to the report, the global managed MPLS market size reached approximately USD 65.31 billion in 2023. Aided by the growing need for secure and reliable network connectivity, the market is projected to grow at a CAGR of 6.1% between 2024 and 2032, reaching a value of around USD 111.56 billion by 2032.

Managed MPLS (Multi-Protocol Label Switching) is a specialised network service offered by various telecommunications providers that enables efficient and secure data traffic management across a wide area network (WAN). It provides businesses with a way to streamline their network operations through enhanced performance, reliability, and scalability, which are essential for supporting complex and bandwidth-intensive applications.

The global managed MPLS market is experiencing significant growth, driven by the increasing demand for reliable and secure network connectivity, the proliferation of cloud-based services, and the need for enhanced performance and scalability in enterprise networks. Managed MPLS services, which provide outsourced management of MPLS networks, are becoming integral to the operations of businesses across various sectors. The market is characterised by advancements in technology, a focus on security and compliance, the rise of Software-Defined Wide Area Network (SD-WAN) integration, and the growing importance of service quality and customer experience.

One of the primary drivers of the global managed MPLS market expansion is the growing need for secure and reliable network connectivity. Enterprises are increasingly dependent on data and communication networks for their day-to-day operations, making network reliability a critical business priority. MPLS technology offers superior performance in terms of speed, efficiency, and reliability compared to traditional internet-based connections. It enables the establishment of private, secure networks that can handle large volumes of data with minimal latency and high quality of service (QoS). As businesses expand and operate in multiple locations, the demand for robust MPLS networks managed by third-party providers continues to rise.

The proliferation of cloud computing and the migration of enterprise applications to the cloud are also influencing the global managed MPLS market growth. Cloud-based services require seamless and reliable connectivity to ensure optimal performance. Managed MPLS services provide the necessary bandwidth and low-latency connections essential for accessing cloud applications and data centres. This trend is particularly relevant for industries that rely on real-time data processing and high availability, such as finance, healthcare, and e-commerce. The integration of MPLS with cloud services ensures that enterprises can maintain consistent and secure access to their critical applications and data.

Technological advancements in MPLS and related network services are further shaping the global managed MPLS market dynamics. Innovations such as Network Functions Virtualisation (NFV) and the increasing adoption of SD-WAN are enhancing the capabilities of managed MPLS services. SD-WAN, in particular, is becoming a game-changer in the market. It allows for dynamic, automated management of network traffic across multiple types of connections, including MPLS, broadband, and LTE. The integration of SD-WAN with MPLS networks offers improved flexibility, scalability, and cost-efficiency, enabling enterprises to optimise their network infrastructure based on real-time requirements. This hybrid approach is gaining traction as businesses seek to leverage the strengths of both technologies.

Security and compliance remain top priorities propelling the global managed MPLS market expansion. With the rising incidence of cyber threats and stringent regulatory requirements, enterprises are increasingly concerned about the security of their network communications. Managed MPLS providers offer enhanced security features, including encryption, firewall services, and secure access controls, to protect sensitive data and ensure compliance with industry standards and regulations. The ability to provide secure, end-to-end managed services is a significant differentiator for MPLS providers, particularly in sectors such as finance, healthcare, and government, where data security is paramount.

Service quality and customer experience are becoming critical differentiators in the managed MPLS market development. Enterprises are looking for providers that can offer high levels of service reliability, performance, and customer support. Managed MPLS services are expected to deliver consistent network performance with minimal downtime, backed by robust Service Level Agreements (SLAs). Providers are investing in advanced network monitoring and management tools to proactively detect and resolve issues, ensuring optimal network performance. The focus on delivering exceptional customer experience is driving the adoption of managed services, as businesses seek to outsource network management to trusted partners who can provide seamless and efficient service delivery.

The managed MPLS market is also witnessing a growing trend towards customisation and tailored solutions. Enterprises have unique networking requirements based on their industry, size, and operational needs. Managed MPLS providers are increasingly offering customised solutions that cater to specific business requirements, providing flexibility in terms of network design, capacity, and service features. This trend is particularly important for multinational corporations and large enterprises that require complex network configurations and global connectivity. Tailored solutions enable businesses to achieve their specific networking objectives while maintaining control over their infrastructure.

The COVID-19 pandemic has accelerated the demand for managed MPLS services, as businesses adapt to the new normal of remote work and distributed operations. The need for reliable and secure remote connectivity has highlighted the importance of managed network services. Enterprises are turning to managed MPLS providers to ensure that their remote workforce can access corporate resources and applications securely and efficiently. The pandemic has underscored the value of managed services in providing scalable, resilient, and secure network solutions that can support evolving business needs.

Despite the positive trends, the managed MPLS market faces challenges related to competition and cost pressures. The emergence of alternative technologies such as SD-WAN, broadband, and 5G is increasing competition in the market. While MPLS remains a preferred choice for many enterprises due to its reliability and performance, the cost associated with MPLS services can be a barrier for some businesses. Managed service providers must continuously innovate and offer competitive pricing to stay relevant in a dynamic market landscape.

Market Segmentation

The global managed MPLS market can be divided based on service, end use, and region.

Market Breakup by Service

• Layer 2 VPN
• Layer 3 VPN

Market Breakup by End Use

• Healthcare
• Banking, Financial Services and Insurance
• Retail
• Manufacturing
• Government
• IT and Telecommunication
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global managed MPLS market. Some of the major players explored in the report are as follows:

• AT&T Inc.
• BT Group PLC
• Cisco Systems Inc
• Lumen Technologies Inc.
• Vodafone Group plc
• NTT Global Networks Incorporated
• Syringa Networks, LLC
• Orange S.A.
• Verizon Communications Inc.
• Tata Communications Ltd.
• China Telecom Corp Ltd
• Others