Managed Network Services Market - By Type (Managed Local Area Network, Managed Virtual Private Network, Managed Wide Area Network, Managed Wi-Fi, Managed Security, Managed Monitoring), By Organization Size, Deployment Model, By Application & Forecast, 2023 – 2032

Managed Network Services Market Size

Managed Network Services Market was valued at USD 29.3 billion in 2022 and is anticipated to register at a CAGR of over 6.5% between 2023 and 2032. With the rising number of cyber threats and data breaches, organizations are increasingly focusing on strengthening their cybersecurity posture. For instance, in July 2023, Conterra Networks introduced its Managed LAN service, utilizing Fortinet's security networking solutions. This service offers businesses an integrated local area network infrastructure with robust security features to protect vital data and systems. Fortinet's LAN Edge Solution simplifies network management by combining it with the FortiGate Next-Generation Firewall (NGFW), ensuring comprehensive security across LAN infrastructures, from remote offices and branches to campuses, data centers, and the cloud. This approach streamlines day-to-day management while maintaining scalable security measures.
 

Managed network service providers often include robust security measures as part of their offerings, such as firewall management, intrusion detection and prevention, and threat intelligence. This heightened focus on cybersecurity is driving businesses to seek managed network services to protect their networks and data, strengthening the managed network services industry outlook.

As managed network service providers often have access to sensitive and critical business data, concerns about data privacy and security can be a significant restraint. The FBI's Internet Crime Report for 2022 reveals that the public submitted 800,944 complaints related to cybercrime. Notably, the potential total losses resulting from these cybercrimes surged to USD 10.2 billion in 2022, a significant increase from the USD 6.9 billion recorded in 2021. Among the states, California, Florida, and Texas stood out as having the highest number of victims of cybercrime.
 

The alarming growth in cybercrimes has worried organizations about the potential risks associated with outsourcing network management, including the exposure of confidential information to third parties. High-profile data breaches or security incidents involving managed service providers can exacerbate these concerns and lead some businesses to hesitate in adopting managed network services.
 

However, managed network services can help organizations reduce the total cost of ownership (TCO) associated with managing their networks in-house. By outsourcing network management tasks to a third-party provider, companies can benefit from economies of scale, access to advanced tools and technologies, and specialized expertise. This leads to improved operational efficiency and cost savings, which are compelling reasons for organizations to adopt managed network services.
 

COVID-19 Impact

The COVID-19 pandemic had a profound impact on the managed network services market. With the sudden shift to remote work and increased reliance on digital infrastructure, organizations faced unprecedented demands on their networks. This prompted a surge in demand for managed network services as companies sought to ensure network stability, security, and scalability. Instances like the exponential growth in remote conferencing, e-commerce, and telehealth highlighted the critical role of managed network services in maintaining business continuity. The pandemic underscored the industry's importance in adapting to rapidly changing network requirements and cybersecurity challenges in an increasingly digital world.
 

Managed Network Services Market Trends

Artificial intelligence (AI) and automation are playing an increasingly vital role in managing complex networks. Managed network service providers are adopting AI-driven solutions and automation tools to enhance network monitoring, troubleshooting, and optimization. For instance, in February 2023, the Vice President of Huawei's Data Communication Product Line, Steven Zhao, unveiled the Digital Managed Network Solution along with a range of products tailored for carriers' B2B services during MWC Barcelona 2023, This offering is designed to empower carriers to capitalize on digital transformation prospects and foster fresh avenues for growth. The solution equips carriers with digital managed network capabilities and an extensive product lineup, facilitating their transition from Internet Service Providers (ISPs) to Managed Service Providers (MSPs).
 

AI can help predict and prevent network issues, while automation can streamline routine tasks such as configuration management and security updates. These technologies not only improve network performance but also reduce the burden on IT staff, making them a key trend in the managed network services industry as organizations seek efficiency and reliability in their network operations.
 

Managed Network Services Market Analysis

Based on type, the market is divided into managed LAN, managed VPN, managed WAN, managed Wi-Fi, managed Security, managed Monitoring. The managed WAN segment held around 25% market share in 2022. The managed WAN (Wide Area Network) services industry will record noteworthy growth over the next ten years. Organizations are increasingly adopting these services to streamline network management, optimize performance, and enhance security. With the rise of remote work and the growing demand for bandwidth-intensive applications, businesses require more robust and scalable WAN solutions. For instance, during the COVID-19 pandemic, companies turned to managed WAN services to support remote workforces and ensure uninterrupted connectivity. Additionally, the complexity of managing WAN infrastructures in-house, in line with the need for 24/7 monitoring and support, has driven the adoption of managed services in this domain.

Based on organization size, the market is categorized into large enterprises and SME. Large enterprises segment held around 65% market share in 2022. The segment growth is driven by the need for scalability and agility in network infrastructure across large enterprises to accommodate rapid growth and changing business demands. For instance, as e-commerce and online services surged, large enterprises sought managed services to ensure uninterrupted online operations. Secondly, the growing complexity of network security threats prompts enterprises to leverage specialized expertise for robust cybersecurity measures. Additionally, the cost-effectiveness of outsourcing network management and the potential for improved performance drive demand for managed network services in large enterprises aiming to maintain competitiveness and efficiency.
 

North America led the global managed network services market with a share of over 30% in 2022. North America Managed Network Services industry is experiencing robust growth for several reasons. The region's large and diverse business landscape, including multinational corporations, necessitates advanced network solutions and security. For instance, the healthcare sector in North America witnessed significant growth during the COVID-19 pandemic, with healthcare providers relying on managed services to maintain critical operations. Also, the regulatory environment and data privacy concerns encourage businesses to partner with expert providers for compliance. In addition, the rapid adoption of emerging technologies like IoT and edge computing drives the demand for specialized managed network services. These factors collectively contribute to the industry's high growth in North America.
 

Managed Network Services Market Share

Major players operating in the managed network services industry are :

• Lumen
• PCCW Limited
• AT&T, Inc
• NTT Ltd
• Vodafone Group Plc
• Cisco Systems, Inc
• T-System, Inc
• Verizon, Inc
• BT Group Plc
• IBM Corporation
• Orange SA.

They are also heavily investing in research to introduce innovative products and garner the maximum market revenue.
 

Managed Network Services Industry News

• In August 2023, HCLTech secured a substantial agreement valued at USD 2.1 billion with Verizon Business, the enterprise division of Verizon Communications in the United States. This deal pertains to the provision of primary managed network services (MNS) to Verizon Business's global enterprise clientele. HCLTech anticipates that this arrangement will generate positive revenue effects over a six-year period, commencing in November 2023, with an estimated total contract worth of $2.1 billion throughout the duration of the agreement.
   
• In May 2023, NTT Ltd., a prominent IT infrastructure and services firm, introduced SPEKTRA (Sentient Platform for Network Transformation) as the latest iteration of its global service platform for NTT Managed Networks solutions. This platform offers customers a clear route to network transformation, leveraging NTT's extensive managed services knowledge, proficiency, and vast technical capabilities.
   

The managed network services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Type

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

Market, By Deployment Model

• Large Enterprises
• SME

Market, By Deployment Model

• On-premises
• Cloud

Market, By Operator

• IT & Telecom
• BFSI
• Healthcare
• Manufacturing
• Government
• Retail & Consumer Goods
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa