Telecom Managed Services Market Size - By Services Type (Managed Data Center Services, Managed Security Services, Managed Network Services, Managed Mobility Services), Enterprise Size (SME, Large Enterprises), Deployment Model & Forecast, 2024 - 2032

Telecom Managed Services Market

Telecom Managed Services Market size was valued at USD 23.1 billion in 2023 and is projected to register a CAGR of over 12.5% between 2024 and 2032. The rising adoption of 5G services is significantly fueling the market growth. The rollout & management of 5G networks requires specialized expertise and resources, prompting telecom operators to work with managed service providers. These providers are aware of the necessary technical know-how and offer scalability and efficient network management, thereby allowing telecom companies to focus on delivering 5G services and enhancing the customer experience.
 

For instance, in February 2023, HCLTech launched a suite of cutting-edge technology solutions for the 5G ecosystem at the Mobile World Congress 2023. These solutions harness the company’s diverse expertise in digital, engineering, cloud, and software services to empower Communication Service Providers (CSPs) and enterprises in enhancing their 5G readiness and expediting the returns on their investments in 5G technology.
 

The growing demand for managed mobility services is accelerating the telecom managed services market size. As businesses increasingly rely on mobile devices and remote work operations, the managing & securing of mobile fleets will become highly complex. Telecom managed services providers offer solutions that streamline device management, security, and support, allowing organizations to optimize their mobile operations efficiently. This trend aligns with the evolving workplace dynamics, making managed mobility services a crucial component for businesses to enhance productivity and data security while reducing operational complexities.
 

Security & privacy concerns pose significant challenges in the telecom managed services market. As managed service providers handle sensitive data and have access to critical network infrastructure, it is very important to ensure robust cybersecurity measures and compliance with privacy regulations. Any breach or compromise can lead to severe consequences such as data leaks, financial losses, and reputational damage. Thus, it is crucial to address these concerns through stringent security protocols and transparent privacy practices to gain & maintain the trust of telecom operators as well as their customers.
 

COVID-19 Impact

The COVID-19 pandemic accelerated the telecom managed services market demand as businesses and telecom operators rapidly adapted to the remote work model and the increased digital demands. The pandemic highlighted the importance of robust & flexible network management. Managed services played a crucial role in ensuring network reliability, security, and scalability during this shift. The urgency to maintain seamless operations and meet the changing customer needs expedited the adoption of managed services, thereby driving market growth.
 

Telecom Managed Services Market Trends

The growing adoption of Network Function Virtualization (NFV) & Software Defined Networking (SDN) technologies is a significant trend in the telecom managed services industry. NFV & SDN technologies are revolutionizing the telecom industry by allowing operators to virtualize network functions, leading to enhancements in agility and flexibility. Managed services providers play a crucial role in assisting telecom operators deploy &and manage NFV & SDN-based networks. This trend enables operators to stay competitive by optimizing their network infrastructure & services in a rapidly evolving digital landscape.
 

Cloud migration is an emerging trend in the market due to its transformative impact on the industry. Telecom operators are increasingly recognizing the benefits of cloud services such as scalability, cost-efficiency, and agility. Managed service providers are responding to this demand by offering expertise in the seamless migration of telecom services to the cloud while ensuring uninterrupted operations. They also assist in optimizing cloud resources, enhancing network performance, as well as maintaining security & compliance in the cloud environment.
 

This trend reflects the industry's shift toward cloud-centric operations to stay competitive & innovative. For instance, in March 2023, Snowflake introduced the Telecom Data Cloud to assist telecom service providers capitalize on their data assets. This initiative allows these providers to leverage their data for various applications, such as improving customer experiences, enhancing network efficiency, and exploring new revenue streams, thereby unlocking the full potential of their data.
 

Telecom Managed Services Market Analysis

Based on enterprise size, the large enterprises segment recorded around 68% of the market share in 2023. Large enterprises, with complex & extensive network infrastructure solutions, often require specialized expertise and resources to efficiently manage their telecommunications. They turn to managed service providers to optimize network performance, enhance security, and ensure compliance with the regulatory standards. As these enterprises expand their operations and digital services, the demand for managed services will continue to rise. This trend is being fueled by the need to efficiently manage vast & intricate telecom networks.
 

Based on services type, the telecom managed services market is divided into managed data center services, managed security services, managed network services, managed mobility services and others. The managed data center services segment held a dominant share in 2023. The managed data center services segment is estimated to see significant growth in the market. Telecom operators are increasingly relying on data centers to support their expanding digital services and network infrastructure.
 

Managed service providers offer specialized expertise in data center operations including maintenance, security, and scalability. As telecom companies seek to reduce operational complexities and focus on core services, the outsourcing of data center management to experts becomes an attractive option, driving segment growth in the market.
 

North America telecom managed services market accounted for 36% of the revenue share in 2023. North America has a highly developed telecommunications infrastructure, making it a hotbed for telecom operators seeking to optimize their services. The rising adoption of advanced technologies, such as 5G, IoT, and cloud computing, is augmenting the need for specialized managed services to support these innovations. Stringent regulatory compliance requirements are driving the demand for managed services to ensure data security & privacy. These dynamics position North America as a significant growth hub for telecom managed services.
 

For instance, in August 2023, VVDN Technologies launched an end-to-end 5G enterprise solution, with ORAN radio units, customized CU/DU, and a 5G core. This comprehensive & secure private 5G solution provides telecom operators and enterprises with a reliable & ready-to-deploy solution to enhance their 5G capabilities & services.
 

Telecom Managed Services Market Share

The major companies operating in the telecom managed services industry are:

• Cisco Systems, Inc.
• Verizon Communications Inc.
• NTT DATA
• Ericsson AB
• Amdocs
• Verizon Communications Inc.
• Tech Mahindra
• Fujitsu Ltd.
   

These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative products and garner the maximum market revenue.
 

Telecom Managed Services Industry News

• In August 2023, Lumen Technologies launched a Network-as-a-Service (NaaS) platform that disrupted the telecom industry by introducing unprecedented flexibility in networking services. The platform provides cloud-like experiences and establishes strategic partnerships; it is projected to redefine the manner in which businesses access & manage their network infrastructure, thereby enabling greater agility & efficiency in the evolving digital landscape.
   

The telecom managed 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 Services Type

• Managed data center services
• Managed security services
• Managed network services
• Managed mobility services
• Others

Market, By Enterprise Size

• SME
• Large enterprises

Market, By Deployment Model

• On-premises
• Cloud

The above information has been provided for the following regions and countries:

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