Managed Network Services Market Size

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.

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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.